Advantages And Disadvantages Of MBO: Strengths And Disadvantages And Models

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3 Advantages and disadvantages of MBO

The above has detailed the concept and the basic features of the model. But what do these features mean in practice? To understand the model, you also need to consider the strengths and weaknesses of the approach.

Advantages of MBO

MBO has plenty of advantages relating to the operational effectiveness and the enhanced relationships between the different stakeholders. Drucker thought of effectiveness as something the management has to focus on and through the communicative and participative style, organisations can improve the rate at which they achieve objectives. In essence, the fact that objectives are organisation-wide and they are appropriately discussed prior to setting them, the organisation can
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Management hierarchies are understood, which helps devise strategies for deeper inclusion. Management at all levels has a say in operational objectives, together with the inclusion of employees. Studies have shown how better inclusion of different opinions and backgrounds can not just result in better results, but also improve relationship. When management and employees are not divided and kept secret, communication between the two groups improves. The strong feedback systems of MBO provide people the opportunity to improve the work input, but also to self-development. The ability to voice opinions without the fear of punishment creates an environment of trust and respect. Both managers and employees feel appreciated and respected, which builds mutual trust and understanding. As communication becomes better, the organisation will benefit. Job satisfaction is higher and effectiveness to reach operation goals…show more content…
While the MBO model is a straightforward one with clear steps of implementation, it does require a systematic approach to implementation. For the model to work efficiently, the approach has to be followed rigorously, which can be time-consuming and difficult to maintain. In essence, the model requires careful monitoring and enforcing even after the initial stage, which adds pressure on the organisation in terms of resources. The model is rather rigid, resulting in a situation where the rules and processes must be followed. This requires knowledge, time and resources. The MBO model brings about plenty of paperwork in the form of training manuals, feedback forms, and performance data collection. The rigid system can add extra burden on staff and reduce
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