Advantages of MBO
- It reduces conflicts related to change since the objectives have already been set.
- It reduces management work load thus giving managers more time to formulate new plans and strategies.
- High performance is encouraged since everyone has to work towards the specified objective.
- Needs lots of paperwork thus bringing an extra cost.
- Leads to rigidity since staff can only follow the specified goals, no divergent thoughts are allowed.
- Environmental changes may weaken it
Advantages of MWA
- Allows for innovative thinking since divergent ideas are allowed.
- There is easy change in strategy in case of changes in environment.
- It improves staff-management relations.
- Less paperwork is required thus cutting on cost.
- Increases complexity of decision making since strategies are changed from time to time.
- It is difficult to make long term decisions since strategies and plans change from time to time.
- It may cause change related conflicts.