•Management by Objectives (MBO)
Describe the theories found in each case study and cite specific examples. Goal-setting theory uses goals to assess job performance and encourages employees to try to achieve those goals. Two Men and a Truck used the goal-setting theory. Mrs. Sheets’ goal was to bring a personal touch to an industry known for its uniformity and stressed-out customers. Management by objectives is a work performance review system that involves setting specific and challenging goals and then reviewing employees’ progress towards achieving those goals. Siemens unit in the Bavarian town of Forchheim was getting beat up by rival General Electric Co. and shareholders were nagging Siemens to dump its medical equipment unit. The workers signed off on Kleinfeld’s plan, which helped cut the time it took to build a $100,000-plus diagnostic scanner from six weeks to one. Siemens Medical is now Siemens’s most profitable business. What was each business owner’s approach to creating high-performing teams within their company? Like most successful franchisers, Sheets realized the need for consistency. In 1998, she established Stick Men University, a comprehensive training facility at the company’s Lansing headquarters. Here, franchisees and movers learn the basics—from answering a customer’s first phone call to a handshake after the move is done. Klaus Kleinfeld asked workers to work more flexible shifts and wanted some people to work weekends to speed production. He won over workers, hanging around the factory asking detailed questions. He answered e-mails from employee reps almost immediately, even late at night. He was able to motivate people to pull together.