- Lack of top management involvement and support. For an MBO program to succeed, it must have the complete support of top management.
- Lack of understanding of the philosophy behind MBO. MBO program in some organizations meets the resistance of the employees because it is imposed on them as a 'control device' to curb their freedom.
- Difficulty in setting realistic and meaningful objectives. Some jobs and areas of performance cannot be quantified and hence are not amenable for objective evaluation.
- Increased time pressure. To use MBO program, manager must learn to establish priorities and use the time effectively.
- Lack of relevant skills. Managers may not have the requisite skill for identifying objectives, communication and interpersonal interaction such as counseling and giving and receiving feedback.
- Lack of individual motivation. The rewards and incentives for superior performance have to be specified clearly. Ambiguity or uncertainty regarding the outcome of the efforts is one of the reasons for the non-performance.
- Poor integration with other systems. The objective setting and review phases must be performed in conjunction with other activities such as budgeting, forecasting and the like. Often, managers are neither taught how to set the objectives nor familiarized with the various p1 and policies of the organization. In such cases, each department en up going its own way and the results are counterproductive to overall organization.
Kavungya answered the question on March 26, 2019 at 12:01
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