What is a disadvantage of management by objectives (MBO)?

Choosing objectives that are unrealistic can significantly hinder the effectiveness of management by objectives (MBO). This approach relies heavily on the establishment of specific, measurable goals that are intended to guide performance and provide a clear direction for both managers and employees. When the objectives set are unattainable, it can lead to frustration among employees, decreased motivation, and ultimately, failure to achieve desired outcomes.

Moreover, unrealistic objectives can create a culture of stress and disappointment, as employees may feel pressured to meet standards that are simply not feasible. This can diminish job satisfaction and could contribute to high turnover rates. The essence of MBO is to align goals between management and employees in a way that is realistic and attainable, ensuring that all parties are working toward a common purpose. If objectives lack realism, the core value of MBO is compromised, leading to its classification as a disadvantage.