The Limits of Management by Objectives

Pablo Cardona and Carlos Rey ()
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Carlos Rey: Universitat Internacional de Catalunya (UIC)

Chapter 3 in Management by Missions, 2022, pp 35-48 from Springer

Abstract: Abstract Many companies today experience a critical strategic contradiction. Their corporate purpose and values have evolved into what could be described as a humanistic vision while, at the same time, their management systems, mostly built around management by objectives (MBO), are designed to maximize shareholder value. Everything—customer service, talent development, even their philanthropy—is a means to increase profit. The problem is not about the objectives themselves, but rather their widespread misuse through the MBO system. Judging by the results of four decades of research, MBO has not been able to bring employees’ full potential into play. In this chapter, we analyze the limits of management by objectives and their consequences at organizational and personal levels.

Keywords: Goals; Management by objectives; Commitment; Management by missions (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-83780-8_3

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DOI: 10.1007/978-3-030-83780-8_3

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