FLAWS OF MANAGEMENT BY OBJECTIVES (MBO)Over reliance on target can distort resourceallocation.Management by objectives usually draws targets and objectives for theorganization over a period which managers and employees are to meet at the end ofthe giving period. Time and resources are factors that expedite meeting targetshence both levels of the organizational structure; managers and employees mightbe forced to cut down on quality to be able to meet set target.
In thepharmaceutical industry, quality is a number one factor hence a managementstrategy that at the long run will affect quality is disadvantageous. Ifmanufacturers have target set in production, the employees might go againstquality assurance process just to be able to meet target and distributors willalso be forced to use any means possible to convince prescribers to use aparticular medication which might be non-ethical and will go against rationaldrug use. On the grounds of retailers, pharmacist might be forced to advisewrongly on over –the-counter medications just to meet target of selling someparticular drugs and also in the treatment of aliments of common occurrencewhich their professional advice will be required.
Encourage self-centerednessManagement by objectives encouragesself- centeredness in employees. Management by objectives set individualtargets for employee’s hence discouraging teamwork. Employees plan to achievegoals are individualized. In the pharmaceutical industry, teamwork is arequisite since decisions on health issues should not be based individualizedgoals but collective goals. Inproduction, employees should be able to report production errors hencewithdrawal of such products forgetting about the individual goal but therational policy of improving health.
Indistribution, medical representatives should be able to adequately inferiorabout side effects and even adverse drug interaction which might lead to thewithdrawal of such products from the market. Health care is all about team workto achieve a common goal which is an obligation of all health workers to thepatient or client and the general public at large but not based on one’sindividual target that needs to be achieved . MBO boost up the working spiritof employees but discourages teamwork which aims at inter-organizational goalachievement.