Management by objectives implementation and performance management at Valley Wide Utilities

Valley Wide Utilities Company experiences financial inadequacies emanating from the expansion of its facilities. Delgado, the President of the company, hired John Givens and Hilda Hirsh to hand out an extensive outline of management by objectives (MBO) performance standards, pinpointing major standards that control performance as well as separate goals not easily achieved. Management by objectives (MBO) is an approach employed by organizations to set goals and aims. In delineation, an MBO is a procedure whereby the superior and subservient managers of an organization mutually and cooperatively ascertain its common goals, outline every person's key areas of accountability in terms of outcomes expected, and utilize these measures as guiding principles for running the unit and appraising the involvement of every participant (Carmen, 2014). However, in the course of the past year, issues with performance management have been sprouting and discontent developing. The managers have been keen to point out that MBO standards are too tight and prejudiced, with some of the personnel threatening to leave. This report to the Chief Executive Officer (CEO) delineates the need for change together with recommendations to implement the change and development.

Rationale and outline of the change and development at both the individual and organizational levels

Change management is an aspect that is vital for the success of a company. In this contemporary world, with constant advancements and progressions in technology, change is an aspect that cannot be avoided by organizations. Change management, restructuring, in addition to reorganization are all processes and practices that are denoted by the fact that they assess and weigh the fundamental structures with the key determination of changing such practices by way of directed and resounding interventions (Koper and Richter, 2014). There are several challenges being faced by Valley Wide Utilities Company that are associated with the issues of structure and implementation. In particular, these challenges take into account the lack of proper investigation, discussion and implementation and also in the performance management system of the company. In turn, this has instigated a lack of effectiveness within the organization. In this particular case, John as well as Hilda might not have the skills or competencies necessitated to evaluate and appraise and change performance levels of not only individuals, but also teams within the organization. It is imperative to point out that performance management is an essential and vital part of an organization (Hrebiniak, 2013). The capacity to efficaciously and effectively undertake the management of employee performances plays a key role in the achievement of the firm in general. It is essential for employers or organizations as a whole to strategically integrate a system that will have the capacity to facilitate the engagement and development of their personnel as well as aid them in realizing goals and objectives that are in alignment with the strategic objectives of the organization in overall (De Waal, 2013).

In the same manner, another significant aspect to take into consideration is the substantial level of dissatisfaction emanating with complaints that the standards set are too tight and stringent as well as unfair, with the personnel threatening to leave the organization. This is largely caused by the fact that Hirsh was solely seeking to find out and point out any failures perceived under the cover of the management by objectives system. So what were the consequences? To begin with, this change within the organization had an adverse impact on not only individuals, but also the organization as a whole. Valley Wide Utilities Company altered its structure by increasing its level of performance on numerous items. However, the main issue is that the organization failed to set a specific goal or objective (Cummings and Worley, 2013). Once problems and issues of dissatisfaction started out, what the company ought to have done is to have dialogue and concession with personnel. It is imperative for the organization to understand that fundamentally, for change management to be effective, the employees have to be included and they have to have a level of satisfaction. It was important to sit down with managers and personnel to discuss how to implement performance change management and also determine what to undertake subsequent to that. However, the company failed to do so (Cummings and Worley, 2013).

Application of the theory and concepts to the area for change and development

Organizational change and development within any setting necessitates the application of concepts and theory that form the basis of any practice and implementation. For any organizational development program, a sequence of steps and phases are necessary and planned to ascertain that the organization moves in the direction of realization of goals. In particular, organizational development program largely depend on goal setting for the reason that goals provide not only a direction, but also a purpose. In accordance to the goal setting theory that is yielded and put forward by Edward Locke and Gary Latham, it is centered on the principle that actions of individuals are controlled by their mindful purposes and values (Miner, 2015). One of the key findings of this particular theory is that participation in goal setting increases and enhances the level of commitment and realization of goals and objectives. Secondly, having feedback as well as goals enhance the level of performance. This implies that the organization is able to alter any areas that are deemed ineffective or unfair by the personnel. Third of all, any variances and dissimilarities do not have a tendency of influencing the setting of goals. Lastly, individuals may opt to let go and get rid of goals if they deem them to be too difficult (Cummings and Worley, 2013).

Implementation Plan

In order for Valley Wide Utilities Companies to experience effectiveness within its organization, it is imperative to have a clear and purposeful implementation plan. The first step of the plan is for the company to have work group engagement and participation. This encompasses defining the general organizational and individual goals and instituting action plans for accomplishing them. The second step of the plan is having joint and mutual goals setting between the manager and the personnel or subordinates. In this phase, once the general goals and objectives of the organization have been ascertained, considerable attention and dialogue is undertaken between the two parties to have mutual consent (Griffin, 2013). In this case, it implies that the managers have to sit down and discuss the proper and fitting performance management system that is accepted by all. This is to ensure that the personnel do not feel that the new system is only out to take note of their failures (Cummings and Worley, 2013). This leads to the third step of the implementation plan, which is the establishment of action plans for goals. This encompasses the personnel and subordinates developing action plans on how to realize the set goals. This can be done as a group or having a meeting with the close managers. These particular plans are meant to mirror the individual standing of the personnel and not that of the manager. The fourth step of the implementation plan is the establishment of standards or benchmarks of success (Burke and Noumair, 2015). In this particular phase, the superiors and subordinates come to an agreement on the success benchmarks for the goals that have been ascertained. In this case, the two parties discuss on the most acceptable criteria of performance management. What is more, this takes into account making certain that both the superiors and subordinates have a common understanding of the new change development and what is expected of them (Cummings and Worley, 2013). Coming to a mutual understanding is the most significant phase of the implementation plan. The last phase of the implementation plan is review and recycle. In this case, the appraisal of the change undertaken within the structure is executed. This takes into account assessing the progress made, having dialogue on the attainments as well as any challenges and obstacles faced (Cummings and Worley, 2013).

Reflection

The following report has enabled me to attain considerable understanding regarding change management. As aforementioned, change management is imperative for a company to attain its level of success. What is more, this is an aspect that is inevitable for all organizations. Change is necessitated in the Valley Wide Utilities Company owing to the financial problems that the company is presently facing. However, the adjustments of the standards has been perceived to be extreme as it hinges upon the satisfaction levels of the personnel, to the extent of wishing to quit and leave the company. One of the possible change from the initial group plan encompasses the carrying out of the five-phase implementation plan rather than simply lowering the standards. I believe that change should be managed within the organization in mutual and consensual manner. This not only increases the level of satisfaction amongst the personnel, but at the same time increases their level of productivity. Therefore, by having criteria, action plans and goals set by both superiors and subordinates, I believe that Valley Wide Utilities Company will be able to fully undertake its performance management system in an effective manner that yields not only acceptance from the personnel, but also improves the output attained in general. What is more, I consider this approach to be the most effective way of accomplishing the set goals within the organization.