MBO and the Size of Organization
Muhammad Al-Waeli, Member
MBO is an important method, even if we would focus only one of its characteristics which is involving everybody in the process of goal setting and not keeping it the privilege of managers only.
MBO is at its best when you try to convey strategic goals to subordinates
and ask them to participate in refining strategic goals into functional goals.
However I would say that MBO works best in small organizations
. When we try to implement it in larger ones, the process of doing it would take a lot of overhead time, effort, and cost and that overhead might exceed the benefits of MBO.