“Our company has adopted something called Management by Objectives. MBO they call it,” Sara reported.
“And why did your company adopt that strategy?” I asked.
“There were some who said that our appraisal system was too subjective, that it needed to be measurable. So everyone had to sit down and make up some objectives.”
“And why do you think your company made that decision?”
“Some of the managers were uncomfortable making judgments about a team member’s performance. There were squabbles, disagreements and the whole thing turned into a big distraction.”
“And how is MBO working out for you?”
“Well, it has just as many downsides as the old system,” Sara replied. “Some people get so focused on their own objectives, they forget about the other people they work with. Cooperation gets stopped dead in its tracks. And sometimes the objectives are not really in the control of the team member. We seem to spend more time talking about how unfair the system is than we do about improving individual effectiveness.”