The damage caused by "Management" by targets is much larger in dysfunctional organizations - they are also more likely to be given more importance by dysfunctional organizations, that is a bad combination. In a great organization with an strong understanding of systems, respect for people, no pay based on "performance," an understanding of data and variation... then damage managing by targets does is much smaller. But the number of those organizations is not huge.
Reaction to: Target Setting, Cause and Effect
Related: Setting Goals Can Easily Backfire - I achieved my goal by not my aim - Be Careful What You Measure - Targets Distorting the System