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The Limits of Management by Objectives

In: Management by Missions

Author

Listed:
  • Pablo Cardona

    (Universidad Internacional De La Rioja)

  • Carlos Rey

    (Universitat Internacional de Catalunya (UIC))

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.

Suggested Citation

  • Pablo Cardona & Carlos Rey, 2022. "The Limits of Management by Objectives," Springer Books, in: Management by Missions, edition 2, chapter 3, pages 35-48, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-83780-8_3
    DOI: 10.1007/978-3-030-83780-8_3
    as

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