Valley Wide Utilities Company

Company Name: Valley Wide Utilities Company____________________________

I. Problems

A. Macro

1. The company was faced with financial inefficiencies resulting from an expansion of its facilities.

2. President Delgado hired two individuals (John Givens and Hilda Hirsh) to provide a broad outline of MBO performance standards to see if they could minimize the financial spending.

B. Micro

1. Different departments started to complain about their performance score due to the fact that they felt the MBO standards were unfair and not set right.

2. Workers have threated to quit their job, due to poor performance scores.

II. Causes

1. Two people that are not aware of the job that other have to do, come in and say do it this way and it will be perfect it not the answer. They might be knowledgeable on MBO and have good ideas but they need to think about what is best for the company.

2. When setting the standards, they should have taken into consideration that circumstances happen and as a company you have to deal with them the best way you know how.

3. Other departments started complaining that Hirsh was only looking for failures to report under the cover of the MBO system... There is no trust in this company due to management.

III. Systems affected

1. Structural, I don't see where the company has really looked at all its possibilities. I don't see any Goals made to offer the employee's hope or guidance through out the transition to a new system to follow as company policy.

2. Psychosocial, The moral of the employees has dropped tremendously to the point where several engineers want to resign.

3. Technical, They need to come together as a company and sit down and ask each other what the standards should be. Finding the weak points and work on strengthen them.

4. Managerial, Managers need to stand behind their employees and know they are doing a good job. The president should have mentioned to his employees that there was going to be a MBO performance review of the company.

5. Goals and Values, I didn't see an goals that where written so there for I can only assume that the goals is to fix the financial dilemma that they are currently in.

IV. Alternatives

1. Set goals with your staff and try to change what is not working for your employees.

2. When giving a review of performance give the employees something to go by like an outline. So that they know what to improve on.

3. Before