Ingalls Case Summary

1. Without MBO, would it have been harder for Ingalls to detect and correct the problem the supervisor was having with cash application errors? Why or why not?
Yes it is harder to detect without MBO. It help to track each department performance. After setting objectives it easy to detect deviation from objectives. Ingalls set the objective and review it every 3 to six months. Reviewing is important rather than waiting until end of the year. When Ingalls find any department is failing, it is detect the issues and find the root cause for the failures. In this situation he detect the cash application error by monitoring the occurrences. Therefore MBO is effective tool if monitor it frequently, at least 2-3 times per year.
2. The examples
Personal development through will help to improve the performance of the employees. With trained employees credit department can move forward positively to meet the objectives.
Ingalls believe MBO is effective and easy method to manage employees. Ingalls view is correct because the employee know their target or objective. They can focus and work. At the same time supervisor and manager can evaluate periodically, whether the department meet expectation or not. The objectives set by the Ingalls are measurable, clear and achievable.
Credit department play vital role, they approve credits and make sure approved partners are pay back capabilities etc. When customers pay on time it will help to overall function of the organization. Maintain the cash flow of the organization. Therefor Ingalls objectives help to improve department performance as well as company overall performance.

3. Write a personal development objective for yourself. Make sure it meets the criteria for effective objectives shown in Figure 6.1. Show your objective to a friend or classmate, and discuss with that person how you plan to achieve your