What is often a consequence of management by objectives?

Study for the Penn Foster Principles of Management (BUS 110) Test. Review core concepts with flashcards and multiple-choice questions, each offering hints and explanations. Prepare effectively for your exam!

Management by objectives (MBO) is a performance management approach where employees and managers collaborate to define and agree upon specific objectives within a set timeframe. A key aspect of MBO is its focus on short-term goals and specific performance targets, which can lead to an overemphasis on achieving these immediate objectives.

The consequence of this approach is that organizations may unintentionally neglect long-term goals. This occurs because the drive to meet established short-term objectives can overshadow the need for a broader, strategic focus on where the organization needs to be in the future.

Ultimately, while MBO promotes clarity and accountability for short-term performance, it must be balanced with attention to long-term strategic planning to ensure sustainable growth and success.

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