Advantages of MBO to Superiors :
1. It facilitates guidance and direction to the subordinates.
2. It provides a base or aid for evaluating the performance of subordinates.
3. By MBO, superiors can motivate the subordinates towards achievement of goals.
4. MBO helps in coordinating the individual efforts with group efforts, unifying the individual goals with departmental goals and organisational goals in better way.
Advantages of MBO to Subordinates :
1. As each employee knows about his specific goal and how to achieve it, its achievement becomes easy for him.
2. It enhances job satisfaction of employees by providing them participation in management.
3. It encourages and motivates subordinates to work more.
4. It develops cordial relations between superior and subordinate, as the subordinate has to maintain continuous interaction with his superior, reducing the chances of confusion and chaos.
Limitation of MBO :
1. It is very difficult to set quantitative, measurable, realistic, verifiable, goals. Future uncertainities, difficulty in accurate forecasting, etc. makes setting of goals a difficult task.
2. Lack of cooperation and support of top level managers.
3. It is criticised for being a time-consuming process.
4. It emphasises more on short-term goals, neglecting long-term goals.
