Syarikat DMega O&G Berhad is a medium-sized refining and distributor of gasoline and other refinery products. A major concern of top management was an usually high employees accident rate during the previous year. At the end of the year 2020, an overall performance appraisal was held for individuals, departments, and the corporation as a whole. Departments that had successfully reduced accidents by 50 percents were given awards. Information about safety procedures and accident rates was used to set a new safety goal for the this year 2021. Delinquent departments were given stringent goals. Most important, the company achieved its goal of reducing accidents by 50 percent.

The MBO system energized employees action company wide towards a goal deemed critical by top management. MBO got all employees working towards the same end.

Based on the case study above, elaborate the benefits and problems faced by the DMega O & G Berhad of the top management during implementing the Management by Objectives (MBO)