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Roohi Asif Mc110200198 Semester Fall 2011

Principles of Management (MGT503)


Assignment No. ----2----- Marks: ---30-------Well-designed Goals
Global Experts Co. Case:
Global Experts Co. designs and develops innovative game applications based on customer feedback and requirements. After each delivery, the customers feedback is taken as a measure of performance of the development team. This feedback, quantified as the level of customer satisfaction, is tied to the development teams pay for performance system. Three basic objectives have been set for the development teams effective performance: To deliver the end product with minimum or no flaws To achieve the target within due date To ensure best after-sales services However, the development team faced a major dilemma. In most of the projects, the customers requirements were vague and the team required more time to clarify necessary issues. This sometimes translated into projects being late and bad after-sales services, which meant an adverse impact on the teams compensation. Ultimately the project manager, who had to face a lot of dissatisfied customers, team members and management, decided to resign. Questions: No 1 1. Based on your understanding and knowledge of the characteristics of welldesigned goals, you are required to briefly state what is the problem with the objectives that have been set for the development team? (For word limit, refer to instructions section given below) (10 marks)

Solution: Goals are desires outcomes for individuals, groups, or entire organization.

They are also called objectives. The goals play very important role in a companys planning They guide all management decision and from the criterion against which actual work being done is measured. They are also called the FOUNDATION of planning. Goal setting and planning is often called the primary management function. Clear goals are called Well-designed goals, because every can not only understand but also perform easily like that a time structure, Challenging but reasonable and Communicated with all organizational members. We should be written goals in terms of result and feedback may not give true picture of the outcomes. So we can say Goals should reflect what the mission statement says. Like the example of a company ,it increase application on the basis of customer feedback or result and requirements after each delivery, so the customers feedback is taken as a measure of performance of the development team so this thought should be changed. Management should think about its time of proper inventory production and should not rely only on customers result if customer requirements are not clear and there is uncertainty about supplies and, and the team required more time to clarify necessary matter. however the development team faced a major dilemma in the most of the projects and didnt think about its time structure and gave main concern to customers feedback which may not be the appropriate controller of the production and also the customers requirement is not regular and maybe it changes with the change of fashion in the culture. This thing lead us far away our achievement. 2. Give two suggestions for how this issue can be resolved? Provide proper reasoning in Favor of your suggestions. (For word limit, refer to instructions section given below) (20 marks) Suggestion 1) Management should change its compensation program on temporary basis and shouldnt confine it to the pay for performance system in order to keep employees morale high and to decrease turnover ratio. Reason By customer feedback, quantified as the level of customer satisfaction, is tied to the development teams pay for performance system and in case of low returns employees may not be compensated which can significantly harm or lower the level of satisfaction of employees which make the situation more worst. Suggestion 2) The greater the environmental uncertainty, the more plans should be directional and emphasis placed on the short term. Goals must be clear keeping in mind the mission of the company. 1) When uncertainty is high, plans should be specific, but flexible.

2) Managers must be prepared to rework and amend plans, or even to abandon their plans Management should consider short-term efficiency and try to manage its workforce as high as possible. Management should re-design its goals considering its short-term profitability.