Your organization is considering implementing a management by objectives (MBO) program in the hopes ...

MBO programs can result in clear productivity gains. However, a number of factors can cause them to fail. For example, it is an elaborate, difficult, and time-consuming process and its implementation requires the full commitment of top management—programs without such commitment are much less effective than those with it. Without such commitment, managers at lower levels simply go through the motions of practising MBO. This can also lead to the haphazard specification of objectives and thus subvert the very core of MBO—which is goal setting. A frequent symptom of this degeneration is the complaint that MBO is “just a bunch of paperwork.” Setting specific, quantifiable objectives can be a difficult process that results in an overemphasis on measurable objectives at the expense of more qualitative objectives. As well, an excessive short-term orientation can be a problem. A final reason for failure can occur if the performance review becomes an exercise in punishing employees for failing to achieve objectives.