Disadvantage of MBO
1 pressure oriented: MBO may prove to be self defeating in the long since it is tied with a reward punishment psychology. It is a clear violation of the integrity of subordinate's personality. MBO programmes sometimes discriminate against superior performers.
2 Time consuming: MBO demands a great deal of time to set objectives carefully at all levels of the organization. Initially to in still confidence in subordinates in the new system superiors may have to hold many meetings. The formal periodic progress and final review sessions also consume time.
3 Increased paperwork: MBO programmes introduce a tidal wave of newsletters instruction booklets training manuals, questionnaires performance data, and reports into the organization. To stay abreast of what is going on in the organization managers may demand regular reports and data in writing resulting in gruelling exercise in filling out forms.
4 goal set ting problems: MBO works when important measurable objectives are jointly agreed upon. It works less when;
1. Verifiable goal is difficult to set.
2. Goals and tend to take precedence over the people who use it.
3. Goals are inflexible and rigid.
4. There is over emphasis on quantifiable and are easily measureable results instead of important results.
5. Overemphasis on short term goals at the expenses of the long term goals.
Organizational problems: MBO is not a palliative for all organization lists. It is not for everybody. MBO creates more problems than it solve when:
1. There is failure to teach the philosophy to all participants. Too often MBO is introduced across the organization with a little explanation, training or help.
2. There is failure to limit objectives. Too many objectives obscure priorities and create a sense to fear and panic among subordinates;
3. The programme is used as a whip to control employee performance;
4. It leads to a tug of war in which the subordinate tries to set the lowest possible targets and superiors the highest;
5. Managers turn MBO into a sham and start playing games.