Strengths and weaknesses of MB
Strengths:
• Better Managing
MBO if well implemented can result in much improved managing. MBO forces managers to think planning for results. It also forces them to think of how the objectives will be accomplished, the resources necessary to achieve these objectives e.g. personnel needed. The goals set also act as a good incentive for control.
• MBO Clarifies Organizations
Managers are forced to clarify organizational roles and structure. It clearly shows areas of delegation of authority in order to achieve the results.
• Personal Commitment
It encourages employees to commit themselves to their goals. Goals which they themselves have set. Employees have a better understanding of their role and authority in the organization. Little time is wasted waiting for instructions. People know what they have to do and with what tools and they become enthusiastic masters of their own fate.
• Development of Effective Controls
The goals that are set in the process of MBO serves as clear results against which performance can be measured. Infact even the employee is able on his own to gauge his own performance.
- Under MBO organizational energies are focused on organizational goals.
- MBO helps elevate morale. If the employee succeeds he is rewarded. Pay is a motivator.
- MBO also aids in personnel development and can be a superior tool for evaluation than traits evaluation.
Weaknesses:
•MBO is time consuming.
•Conditions in the environment change too frequently for MBO to work.
•Failure on the part of the management to teach the philosophy of MBO i.e. that it is built on self control and self direction.
•If not properly implemented it could be resented by subordinates especially because of the difficulties in setting goals (especially verifiable goals).
•Involves dangers of inflexibility, subordinates may stick to goals set even when conditions have changed.
•Failure to give guidelines to goal setters - MBO like any other kind of planning cannot work if those expected to set goals are not given needed guidelines. If corporate goals are vague, unreal or inconsistent then it is impossible for managers to guide employees to set any meaningful goals.
•Other influences outside the control of management.
•Danger of managers forgetting that there is more to management than goal setting.
•The multiple goals faced by managers which are impossible to state in end results or to communicate e.g. favourable company image.
Note:Despite all these weaknesses if used properly MBO can enhance motivation and communication and therefore lay the foundation for a more effective organization.