FLAWS OF MANAGEMENT BY OBJECTIVES (MBO)

Over reliance on target can distort resource
allocation.
Management by objectives usually draws targets and objectives for the
organization over a period which managers and employees are to meet at the end of
the giving period. Time and resources are factors that expedite meeting targets
hence both levels of the organizational structure; managers and employees might
be forced to cut down on quality to be able to meet set target. In the
pharmaceutical industry, quality is a number one factor hence a management
strategy that at the long run will affect quality is disadvantageous. If
manufacturers have target set in production, the employees might go against
quality assurance process just to be able to meet target and distributors will
also be forced to use any means possible to convince prescribers to use a
particular medication which might be non-ethical and will go against rational
drug use. On the grounds of retailers, pharmacist might be forced to advise
wrongly on over –the-counter medications just to meet target of selling some
particular drugs and also in the treatment of aliments of common occurrence
which their professional advice will be required.   

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Encourage self-centeredness

Management by objectives encourages
self- centeredness in employees. Management by objectives set individual
targets for employee’s hence discouraging teamwork. Employees plan to achieve
goals are individualized. In the pharmaceutical industry, teamwork is a
requisite since decisions on health issues should not be based individualized
goals but collective goals.  In
production, employees should be able to report production errors hence
withdrawal of such products forgetting about the individual goal but the
rational policy of improving health.  In
distribution, medical representatives should be able to adequately inferior
about side effects and even adverse drug interaction which might lead to the
withdrawal of such products from the market. Health care is all about team work
to achieve a common goal which is an obligation of all health workers to the
patient or client and the general public at large but not based on one’s
individual target that needs to be achieved . MBO boost up the working spirit
of employees but discourages teamwork which aims at inter-organizational goal
achievement.

 

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