alley Wide Utilities Company Macro Problems: 1.Financial problems due to expansion of facilities 2.Problems with MBO system 3.Performance standards were raised prematurely 4.All the departments are at odds with the goals that Delgado is trying to achieve 5.Department managers are complaining that MBO system is unfair and some of the engineers are threatening to resign 6.Valley Wide is using the MBO as an evaluation tool Micro Problems 1.Management has not been properly trained on the MBO system and how to use it 2.New standards are a problem 3.Valley wide did not properly count the cost of its expansion 4.Standards and goals has not been properly communicated to the whole organization and especially those who are expected to meet the standards 5.Upper management has not realistic with the goals of the organization or communicating those goals to the other managers Causes: The MBO is unfortunately, not being used as it was originally designed to be used. It was designed to integrate the individual and organizational goals (Brown, 2011p.324). However, Valley Wide’s upper management is using the system as only an evaluation tool and not as a system to get the all the employees involved with the goal of the organization. And another problem that Valley Wide has not considered is that the standards that were set by Givens and Hirsch were not properly measured to make sure they were fair and accurate. Valley Wide should have also considered the need for continual communication from the departments managers as well as employees about how the new standards were affecting them and their performance. Real participation by subordinates in setting goals and reviewing targets is also needed (Brown, 2011 p.326). Recommendations: My recommendation is that Valley Wide reconsiders the MBO program but give all department managers and their