What is often a consequence of management by objectives?

Study for the Penn Foster Principles of Management course. Enhance your knowledge with flashcards and multiple choice questions, each supported by hints and explanations. Prepare effectively for your exam!

Management by objectives (MBO) is a performance management approach where employees and managers collaborate to define and agree upon specific objectives within a set timeframe. A key aspect of MBO is its focus on short-term goals and specific performance targets, which can lead to an overemphasis on achieving these immediate objectives.

The consequence of this approach is that organizations may unintentionally neglect long-term goals. This occurs because the drive to meet established short-term objectives can overshadow the need for a broader, strategic focus on where the organization needs to be in the future.

Ultimately, while MBO promotes clarity and accountability for short-term performance, it must be balanced with attention to long-term strategic planning to ensure sustainable growth and success.

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