The aim of this paper is to show that MBO is not universal application in all company especially in the Chinese society.

Management by objectives (MBO) is the process that organizational objectives are segmented into objectives for individual employees. Superior and subordinates meet and jointly agree subordinates’ job specifications and goals, preferably in quantitative terms. Management by objectives supposedly motivates employee through involving them develop their individual careers. Subordinates who exceed their targets might experience a sense of satisfaction in their achievements, and the causes of success can be isolated, analyzed, and applied else. (Bennett,1991, p.203)

If an organization applies MBO in its planning, it can enjoy advantages brought from MBO. At the same time, it should also accept disadvantages of MBO.

a) It is difficult to measure quantify activities that are basically unquantifiable. For example, how can be the objectives of a manager whose role is purely advisory be quantified?

MBO is not universal application in all regions. MBO is a type of management possessing necessary two-way communication. The traditional Chinese society can not be applied MBO because of its one-way and top-down communication. The Chinese emphasize on respect for age, respect for hierarchy, face and relationship. These block development of MBO.

2. Respect for hierarchy. The Chinese society has a strong concept of hierarchy. Different roles are given hierarchical position. Everyone have their roles and relative duties. At home, sons should follow fathers’ instruction. Mencious stated that “The father is righteous and protective; the mother is loving and caring; the elder brother is fraternal; the younger is respectful; and the son is filial.”(cited in Berlin 1996, p.11) Within the company, the superiors and the subordinates have their own duties, too. Superiors’ duties are thinking how to get the best to the company. The subordinates’ duties are just follow superiors’ instructions. The Chinese emphasize on doing our own duties and not leap over others’ duties. Therefore, under this hierarchy, subordinate hardly express ideas to leap over superiors’ duties. It is only a one-way communication. Consequently, a high degree of centralization of power in the hands of one autocratic entrepreneur (Kai-Alexander, p.2-5), who is usually the founder and owner. (Kai-Alexander, p.31). They hold both power of initial and final say.

b) Targets are clarified and mechanisms are created for monitoring performance.<

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