The Internal Hire (Scenario)
Wade McKenzie is a new sales manager for The Medi-Mac Group, a medical supply company based in Ontario. Wade was hired from within the firm and he is now supervising many of the people he formerly worked with, including two friends with whom he competed for his new job. As a result, Wade is concerned about potential problems stemming from the performance evaluation process, and is conducting research on the advantages and disadvantages of various methods.
-Six months into Wade's tenure as regional sales manager,he hosts his first regional sales meeting.During the course of the meeting,Wade meets individually with each of his employees and shows them a chart of their sales numbers for each month compared to their budgeted quota for the year to date.Additionally,Wade and each employee set mutually agreed upon,off-budget goals for the remaining six months of the fiscal year.This is most representative of which performance appraisal method?

Question

Quizplus · Accepted Answer

The performance appraisal method used by Wade is Management by Objectives (MBO). The method involves setting specific and mutual goals with the employees for the remaining months of the fiscal year, which is the core of MBO. The use of a chart to showcase the sales numbers is also a part of MBO as it helps in comparing the actual performance with the predetermined standards.