Case Application 10-B: TEAM FUN! Kenny and Norton, owners of TEAM FUNI, a sporti
ID: 434271 • Letter: C
Question
Case Application 10-B: TEAM FUN! Kenny and Norton, owners of TEAM FUNI, a sporting goods manufacturer and re ting their annual management retreat at a hunting lodge in central Canada. This year , the attendees e Tony, director of human resources; Josephine, comptroller; Arlien from m arketing, research, an roduction operations; and the three retail branch store managers, Eric, Joe, and 3 of the hunting, fishing, planning, and evaluating week. Settling into an afternoon of performance appraisal discussions, Tony places soggy agendas in front of them. Bobby. They are in d Kenny punches Norton in the ribs and says, "Looks like I can catch a 3-4-hour nap this afternoon. Let me know if anyone says anything funny." He turns to Tony, "Sorry about cleaning the fish on these papers of yours. Looked like fish-gut paper to me! Whew. Maybe the smell will keep me awake." The group spent yesterday talking about the successes and failures of each br year. They talked about each employee, and how that individual helped or hindered It was decided to move a few people to new assignments for the coming year Tony starts: "Apparently TEAM FUNI has been using a modified MBO proce ss for all of it employees." Eric, who has run operations since the company was founded, agrees, "Yes about MBO, we do. I know I work out with each shift and team goals for each quarter. We usually have five or six goals for each person and group. If all are met, we all get a nice bonus from the share plan. If most are met, we get decent raises. One year, no one got raises." Norton shakes his head, "That was a tough time. We turned it around faster than most, t And we didn't lay anyone off." Bobby asks, "What would be good sales goals? My guys set goals like these, for 10,000 customers a month by the third month of operation. Keep shrinkage/breakage under 0.5 percent. Have zero customer complaints and returns. Every cash register balances at the end of each shift. All employees speak both Spanish and English." Tony comments, "Bobby, you were a special case because the south Florida store j this year." Josephine adds, "You all need good financial goals-for each and every employee. Arlien snaps, "Bobby, you need to sell more. And we need to know what you a customers before they call to ask me why it's lat Kenny wakes up and asks, "What about the fun? Do you have goals for f saying about relative and absolute standards for fun that you learned int sent you and Joe to?" Tony brightens up and pulls out a cha Questions 1. Does TEAM FUN! follow the six-step ap 2. Is an MBO plan good for the company? according to MBO criteria. Suggest an alternative to 3. Comment on the overall effectiveness of 4. Provide an outline for their discussion y's goals ppraisal process t TEAM FUN! t techniques for "fun."Explanation / Answer
1) No, they don't follow complete six step appraisal process but they complete their appraisal process in just three steps which are:
a)Working out with each shift and team goals for each quarter
b)Assigning 5-6 goals for each person and group
c)If all goals met, bonus provided from profit share plan and if most are met, employees get decent raises.
2) MBO stands for Management By Objective which follows the result-oriented approach so as to improve the performance of employees as well as organization.
Yes, MBO seems to be a good approach for the company as every organization needs to focus on the goals first. But they can improve it somehow by reviewing the performance of the employees frequently so that employees are aware of their performances. Frequent review of the performance helps to know the real capabilities of the employee and the performance standards.
Bobby's goals are quite in the favor of the organization plus he wants every employee to speak Spanish as well as means Spanish will help them cover local market and English for the International Market. He has made those goals thinking quite strategically but there are always improvements available.
3) Talking about all over effectiveness of appraisal system, MBO is all about result-oriented approach. If goals are met, employees get raise otherwise no raise. Not many employees are happy with this result-oriented approach. People preferably look for people-oriented approach. So, there is need to create a balance between result-orient approach and people-orient approach. Not only thinking about gaining customers they must also think about the development of employees. This will surely help to increase satisfavction of employeee thereby, enhancing their performance.
4) Relative and Absolute Standards measure performance of the employee in comparison to the standard performance.
Absolute Standards involve following methods:
a) Essay Appraisal, an essay regarding the performance of employee is noted down comprising of strength, wea ness, previous performance etc.
b) Critical Incident Method, each and every ciritical incident related to the employee is noted down and looked for during the appraisal.
c) Checklist, evaluator has the list of goals and objectives and compares it with the employees.
d) Graphic rating scale, it lists the characteristics and performance standards for an employee.
e) Forced Choice, the evaluator is asked to put employees in categories as per their performance.
f) Behaviorally Anchored Rating Scale, helps to rate employees on basis of behavioral dimensions.
Relative Standards involve following methods:
a) Group Order Ranking, places employee into particular classification.
b) Individual Ranking, ranks individual employee on the basis of performance.
c) Paired Comparison, compares employees with all others in pairs.
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