3.06  Disadvantages of MBO

. Disadvantages of MBO The disadvantages of MBO arise due to the application of the MBO which are discussed below: . MBO fails to explain the philosophy; most of the executives do not know how MBO works? what is MBO? and why is MBO necessary? and how participants can benefit by MBO? . MBO is a time consuming process. Much time is needed by senior people for framing the MBO. Next,it leads to heavy expenditure and also requires heavy paper work. . MBO emphasises only on short-term objectives and does not consider the long- term objectives. . The status of subordinates is necessary for proper objectives setting. But, this is not possible in the process of MBO. . MBO is rigid one. Objectives should be changed according to the changed circumstances, external or internal. If it is not done, the planned results cannot be obtained.