Valley Wide Utilities Company, a privately owned utility company, is faced with financial inefficiencies resulting from an expansion of its facilities. President Robert Delgado has requested a review of the firm’s operating standards. He has asked John Givens and Hilda Hirsh to provide a broad outline of MBO performance standards that would identify key standards with which to control performance. Three years ago, Valley Wide Utilities, under the direction of a management consulting firm, implemented a system of MBO for the purpose of evaluating department managers, sales engineers, and consumer service employees.
The advantage of such a system of controls is that top management can very rapidly scan a printout and detect any trouble spots in the department. Givens and Hirsh attempted to set the standards as if the personnel were working at a normal pace. After review, Givens and Hirsh raised the performance level on several items, reasoning that the standard is probably too low if it can be achieved without a challenge. Delgado had specifically asked for goals that were not easily attainable. There was a certain amount of negative reaction, but in the end, the department agreed.
According to the case study, during the past year, there has been the emergence of a significant amount of dissatisafction within Valley Wide Utilities Company. In the first year, there occurred the encouragement of particiopation and obtaining of rewards were made. The staffs did the setting of high goals and there occurred an incraese in productivity. Presently, however, there is occuring the reporting of problems in respect of performance evaluation, and many mangers are making the claim that the standards that has been set by Hirsh were too much strict. Managers of two other departments also complained that the system was not fair, and many other engineers threatened to give resignation.
The orgnization was faced with financial inefficiencies that resulted from the expanding its facilities. Few years earlier, Valley wide did the implementation of an MBO program for the evaluation of the department managers, sales engineers, as well as consumer service staffs. President Delgado did the appointment of John Givens as well as Hilda Hirsh for providing a broad outline regading the MBO performance stabdards, identifying the key standards controlling performance, and to be more specific, isolating the goals that are not attained easily (Allen 2013).
In the earlier stages, there occurred the receiving of negative feedback, but gradually departments started coming around. During the first year, there occurred the encouragement of particiption, staffs did the settng of high goals, there occurred increase in productivity and obtained of rewards took place. However, during the previous year, problems related to performance evaluation started surfacing, dissatisfaction started emerging and the managers have stated that the MBO standards are very stringent and not at all fair. Moreover, the workers are also threatening to put down their papers (Chmiel 2017).
John as well as Hilda might not be having the awareness of the job that others have to do. Although, they might be having the necessary knowledge regarding MBO and possess better ideas but they require to think about what is best for the organization. When the standards have been set, the should have taken into consideration that circumstances happen and as an organization, there is the requirement for dealing with the challenging circumstances in the best possible way. Other departments also started complaining that Hirsh was trying to find failures to report under the cover of the MBO method.
- In respect of structural scenario, it can be stated that there were no goals made for offering the staffs the necessary hope or guidance all through the transition to a new system that should be followed as the oirganizational policy.
- In respect of pyschological scenario, it can be stated that there had been a significant drop in the staff moral to the point where several enegineers were ready to give the resignation (Bushe 2015).
- In respect of the technical scenraio, it can be stated that there is the requirement for the employees of the technical department in coming together as an organization and sitting down as well as asking each other what the stanadards should be. It is also required to find out the weak points and working towards strengthening them (Bushe 2015).
- In respect of the manegirial perspective, the managers are required supporting their staffs and make them aware of the fact that they are doing a better job. The president should have mentioned to his staffs that there would be occuring a MBO performance review regading the organization (Hornstein 2015).
The report will ascertain the identification of the problem, discussion regarding the causes of the problem, determinination of the organiational systems that are affected as well as what are the possible alternative courses of action, whch will be explaining two or more different ways in which the organization will be addressing the problem.
The scope of the report will help in having an understanding about the organizational development model that needs to be implemented in this regard. The organizational development model that will be used here is the Leavitt’s model. Leavitt’s organizatioanl development model is founded regarding the interactive nature of the different sub-systems regarding a change process. Within an organizational system, there is the occurrence of four interacting sub-systems – tasks, structure, people as well as technology (Bruns 2014). Because of their interacting characteristic, change in any one of the sub-systems will be havng consequences in respect of the othet sub-systems as well. Change in any one of the sub-systems can be worked out that depends upon the scenario.
- The absence of true experimental designs in majority of the research regarding organizational development
- The absence regarding the availability of resources regarding many practitioners
- The limitations regarding field research designs
- Potential partiality by the the evaluators of organizatioal development
- Having an absence of motivation by the evaluator of organizational development for doing the job in a correct manner.
From the various materials of study, it was found out that the most suitable organizational model that should be used in respect of the crisis situation that has occurred in Valley Wide Utilities company is the Leavitt’s model. For finding this various online journals, books, websites were being used.
The Leavitt’s model is proposing that every organizational development process is having four major elements such as people, task, strcuture and technology. It is the interaction amongst these four elements that will be determing the organizational fate of Valley Wide Utilities company.
The people are considered being the organizatioanal staffs. When this approach will be getting used, the employees are not looked at as accountants, receptionist, managers and so on. As an alternative, their skills, effectiveness, productivity as well as knowledge also gets observed. It is required looking at the the ways by which this element will be getting modified with respect to changes in the other three elements (Petrou 2016).
- Change in Tasks – Changes in the ways by which things get conducted. When the tasks are being planned for getting changed, there is the requirement for educating as well as training the staffs for making them familiar with the new processes.
- Change in structure – Change in structure will be implying the changing roles in job. Here as well, the staffs would be requiring the support for learaning about the new duties as well as responsibilities regarding the job (Lewis 2016).
- Change in technology – Shifting to a new technological aspects will be having the requirement for extensive training, so that the staffs can do the handling of the new technologies in an efficient manner. This will occur without the employees causing damage to themselves or to the technological aspects. This might also be having the involvement of recruiting new skilled staffs for handling the new technologoical aspect (Lowman 2014).
This element will be including the objectives in addition to the tasks. Therefore, this element will be looking at two aspects. Primarily, in what ways things are being conducted and then, what is necessary for getting achieved. Once again, it is required focusing more on the qualitative scenario of the tasks as well as goals as an alternative to the original objectuves as well as tasks.
- Change in people – When the manpower will be getting changed, the organization is required modifying the tasks or goals for making the correct and best use of their knowledge as well as skills.
- Change in strcuture – When there will occur the merging of two departments into one, there will be the need for doing the implementation of new goals and the earlier objectives will be required getting discarded.
- Change in technology – To shift to a newer technological aspect, there will be the requirement for making changes to the way, things are getting conducted. Moreover, while shifting to a more advanced technological aspect, there must occur the raising of the goals for reaping the advantages as well as for covering the technological expenses. In certain scenarios, there might occur the complete changing of the objectives (Cummings 2014).
The structural element will be including not simply the hierarchical structure, but the relationships as well, the patterns of communication, as well as the coordinaton within the different levels of management, departments as well as staffs. This will be taking into consideration the ways by which there occurs the flow of authority and responsibility within the company.
- Changes in people – When there occurs the hiring of more skilled as well as talented individuals, there will not be required for having similar type of supervision as is required for staffs who are having less skill as well as qualification. This will be requiring the reduction in the number of supervisory positions. The approach is having more concentration on the qualitative scenario of each factor (Vakola 2013).
- Changes in tasks – When there will be occur the re-engineering of the business methods, the requirement for certain job posts or even levels of management might get perished completely (Hamlin 2016).
- Changes in technology – The process of automation often will be having the requirement to revamp the organizational structure for getting bebefitted from the upgradation of the technological aspect. There might occur the creation of new job positions and the old ones will be getting discarded for making the optimum utilization of the new technological aspects (Cameron 2015).
Techology is considered to be the organizational element that will be facilitating the people for performing the tasks. Computers, LAN lines, barcode readers, software applications and so on, are all considered under the technological aspect. Technology also, in similarity to other elements of the organizatioanl development model, will be required having a change when modifications occur in respect of any other element (Aarons 2015).
- Changes in people – For taking the complete advantage of the organizational manpower, there is theh requirement for changing the technological aspect in accord with the changing scenario relating to knowledge, qualifications as well as abilities regarding the organizational workforce. When it will be required that the staffs should do the handling of extra tasks, then they should be provided with the technological assistance that wll be helping them in that path.
- Changes in tasks – Changes in the tasks might as well as be compelling the organization for having a chahge regarding the technological aspect.
- Changes in structure – When there will be the requirement for reducing employees from a specofic department, there is the requirement for automating certain methods for maintaining the same production level (Benn 2014).
- There is the requirement setting goals with the employees of the organization and trying to change what is not effectively working in respect of the organizational staffs.
- When proividing a performance review, there is the requirement for giving the staffs something to follow in the form of an outline, so that the employees are having the knowledge what they need to do an improvement on (Anderson 2016).
The organizational development model being used will be enabling Valley Wide Utilities company in providing an improved response as well as adaptability to changes in the industry or market as well as making advancement regarding the technological aspect. This will also help in intrinsic motivation of the employees. It will also help in training the employees within the particualr standard. This will help in improving the performance of the employees. Investment in the underground lines will also help in improving the standards and thus getting free from all tensions.
According to me, for improving the present condition of Valley Wide Utilities company, the company seniors should be focussing on certain advantages relating to organizational development. These will be including the aspects of continuous development, better communication, staff growth, enhancement of product as well as service and increased profit. I would also like to cite that the structural element will be including not simply the hierarchical structure, but the relationships as well, the patterns of communication, as well as the coordinaton within the different levels of management, departments as well as staffs. This will be taking into consideration the ways by which there occurs the flow of authority and responsibility within the company.
To conclude, it can be stated that there has been the outlining of the changing scenario as well as developmental aspect at both the micro level as well as macro level of the Valley Wide Utilities company. There has been the application of the organizational development model in respect of the area that requires development. The problem has been identified, the causes of the problem has been discussed, the organization system that has been affected has been determined and the alternatives have also been discussed.
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