What is the disadvantage of using the Management by Objectives method in performance appraisal?

Using the Management by Objectives (MBO) method in performance appraisal has various characteristics that can create challenges. One significant disadvantage is that obtaining positive participation from subordinates can be an ongoing struggle. This method relies heavily on collaboration between management and employees to set mutually agreed-upon goals, which necessitates open communication and a willingness to engage in the process. If subordinates are not actively involved or do not feel motivated to participate in setting objectives, the effectiveness of the MBO approach can be significantly diminished.

When employees feel disconnected or uninvolved, it can lead to a lack of commitment to the goals set forth, which in turn affects the overall performance evaluation. This challenge can be particularly pertinent in hierarchical organizations where employees may feel intimidated to express their thoughts or input regarding objectives. Therefore, without high levels of participation and buy-in, the MBO approach may not yield the desired outcomes that are central to its effectiveness in evaluating employee performance.

Contextually, while the other options may reflect issues that could arise, they do not encapsulate the direct impact of employee engagement on the efficacy of the MBO method to the same extent.