The president of the Academy Employment Service has inaugurated a Management by Objectives…

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The president of the Academy Employment Service has inaugurated a Management by Objectives program in order that more accurate appraisals may be made of professional personnel. Frank Bank, an employment interviewer, has for the past year established relations with Small Business College, a privately run school in the southern part of the state. It graduates about 25 people per month and bank had agreed to place as many of those who wanted placement in training-related jobs. Between 15 and 20 people per month signed up for his service. When the president asked Bank to prepare objectives for his job, this seemed to be one of the easy places to do it. Inasmuch as Bank was now placing about 35 percent of the applicants, the president asked if he thought he could raise this to 50 percent. Bank assured him that he could. In reviewing Bank’s accomplishments at the end of the 6-month period. It was concluded by the personnel unit that Bank was placing only 5 to 7 percent of the graduates in training-related jobs. Several lengthy and heated discussions took place regarding just what was meant by training-related. Bank considered any job to be training-related, while the personnel unit contended that job content had to bear some relationship to the training acquired in school. Moreover, ifthe placed student quit before 90 days of work, the personnel unit would not classify this as a successful placement. Continuous documentation of Bank’s 5 to 7 percent performance against the 50 percent objective led to Bank’s serious consideration of early retirement.

Questions:

1.Is this objective a well-stated one? Why or why not?2.If you were the president, how would you resolve the dispute between Bank and the personnel unit?

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