Solution

The disadvantages of MBO include: •MBO can only succeed if it has the complete support of the top management. •There is considerable paperwork involved and it takes too much of the manager’s time. Too many meetings and too many reports add to the manager’s responsibility and burden.  •The emphasis is more on short-term goals. Since the goals are mostly quantitative in nature, it is difficult to do long-range planning which may result in strategic goals being replaced by operational goals •The integration of MBO system with other systems such as forecasting and budgeting etc., is very poor. This makes the overall functioning of all systems mare difficult. •Group goal achievement is more difficult.  The advantages of MBO include: •Since MBO is a result-oriented process and focuses on setting and controlling goals, if encourages managers to do detailed planning. •Both the manager and the subordinates know what is expected of them and hence there is no role ambiguity or confusion. •The managers are required to establish measurable targets and standards of performance and priorities  for these targets. In addition, the responsibilities and authority of the personnel is clearly established. •It makes individuals more aware of the company goals. Most often the subordinates are concerned with their own objectives and the environment surrounding them. But with MBO, the subordinates feel proud of being involved in the organizational goals. This improves their morale and commitment. •MBO helps in performance appraisal as it often highlights the area in which the employees need further training, leading to career development. •The system of periodic evaluation lets the subordinates know how well they are doing. Since MBO puts strong emphasis on quantifiable objectives, the measurement and appraisal can be more objective, specific and equitable. •It improves communication between management and subordinates.