Western Utilities Company

Western Utilities a privately owned utility company currently faced with financial inefficiencies resulting from an expansion of its facilities. MBO is being implemented by John Givens and Hilda Hirsh to identify key standards with which to control performance. President Robert Delgado has personally asked them to raise the standard of employee performance as well as setting goals that are not easily attainable.

During the past year however, a significant amount of dissatisfaction among employees has emerged. As some employees feels that the goals set by the management is unachievable, however during the first year the employee’s was encouraged and reward were obtained hence productivity increased.

Now, however problems are being reported in the evaluation of performance and many have complained that the standards set by Hirsh were too tight and unfair. Bill Wanton the manager of consumer department exceeded the monthly labor cost standard and is given a” red-line” performance