Peter Drucker first
describes this approach in 1954 in his book ’The Practice of Management’. This
idea became prominent in 1960.
MBO is an attempt to align personal goals with business strategy by increasing
communications and shared perceptions between the manager and subordinates, either
individually or as a group, and by reconciling conflict where it exists.
Problems of MBO
·
Subordinate feels
uncomfortable
·
Distorted communication
· Lacks Objective clarity
(quantity enhancement or quality enhancement? If for organisation or for
individual?)
·
Too much multi-tasking
·
Low initial goal set by
subordinates
