Mbo: Management & commercial objectives

Abstract

Our two previous articles highlighted some of the problems and difficulties that can be expected with the typical MbO programme. We offered some hints about overcoming some of these problems, but other problems we postponed for discussion in this, the third article. Summarising the problems we postponed for discussion, we stated: ▾ Setting objectives for some functions is more trouble than it's worth, if the senior management's objectives are different in kind from the junior management's — as in a customer service function. ▾ The chain of managerial commitment is as strong as its weakest link. If that link is in the middle, as it usually is, then junior managers, who are the ones most likely to have been trained in the use of MbO and are most likely to be committed to it, cannot realistically set objectives for their people. ▾ MbO programmes tend to emphasise the efforts and improvements that can be made within a person's job boundaries only, ignoring the major sources of inefficiency, which are the conflicts between job boundaries. ▾ Managers can assume that objectives have to be specified in quantifiable, numerical terms. If this is not possible then all kinds of problems arise and people do not get set meaningful objectives.

Citation

STEWART, V. and STEWART, A. (1972), "Mbo: Management & commercial objectives", Industrial and Commercial Training, Vol. 4 No. 7, pp. 336-340. https://doi.org/10.1108/eb003234