What is a drawback of the MBO assessment method?

The Achilles’ Heel of MBO: When Ambition Outpaces Reality

Management by Objectives (MBO) is a widely adopted performance management approach that aligns individual goals with organizational objectives. Its premise is simple yet powerful: clarify expectations, empower employees to achieve them, and measure progress against agreed-upon targets. However, this seemingly straightforward system has a potential pitfall: the danger of overreaching ambition. While striving for challenging objectives is inherent to MBO’s success, setting the bar too high can inadvertently undermine the very performance it seeks to boost.

The core problem lies in the delicate balance between stretch goals and attainable outcomes. Stretch goals, by definition, push individuals beyond their comfort zones, encouraging growth and innovation. They inspire employees to reach for higher levels of performance and contribute significantly to organizational progress. However, when objectives become excessively ambitious, they can quickly transform from motivating challenges into demotivating burdens.

This shift occurs because unattainable goals foster a sense of futility. Employees, recognizing the impossibility of achieving the objectives set before them, may become discouraged and disengaged. Instead of driving improved performance, excessively ambitious targets can breed a sense of helplessness, leading to decreased effort and a decline in overall productivity. The very act of striving, so crucial to MBO’s effectiveness, is replaced by resignation and apathy.

Imagine a sales team tasked with doubling their revenue in a quarter despite a shrinking market and limited resources. While such a goal might initially ignite a spark of ambition, the persistent struggle against insurmountable odds will likely lead to burnout and frustration. The team, realizing the impracticality of the objective, may eventually abandon their efforts altogether, leading to a performance decline far greater than if a more realistic, albeit still challenging, target had been set.

Therefore, the key to successful MBO implementation lies in finding the “sweet spot” between ambitious stretch goals and achievable outcomes. This requires careful consideration of various factors, including available resources, market conditions, individual skill levels, and past performance. Open communication and collaboration between managers and employees are crucial in setting realistic yet challenging objectives that foster motivation and drive performance improvement without inducing a sense of helplessness. Ultimately, the success of MBO hinges not on the loftiness of its aspirations, but on the judicious alignment of ambition with reality.