ABC company management has decided to revamp their performance appraisal system. As human resources director, you have been tasked with outlining a new program. The goal is to move every business unit to an MBO performance system. The company’s goals as a whole have been set for the year. Now it is time to deliver the program to the various business units. The first area being converted is the sales department. To prepare for the change, you are tasked with the following.

1. Define an MBO performance appraisal system, including a description of its six (6) steps.

2. Identify and describe the three (3) areas where there may be problems implementing an MBO system.

3. Include one (1) possible solution to overcome each of the identified problems that is directly related to implementing the system with salespeople.