DNF Waste & Environmental Services $($DNF$)$ is an Environmental Management and Waste Management Services Company that was created in $2008.$ It is one of the leading waste and environmental management service providers in South Africa. DNF is a $100\%$ Black woman owned business and is a Level $1$ Value Added Supplier and Exempted Micro Enterprise in terms of the latest BBBEE Codes of Good Practise.

Waste Management services include Onsite Waste Management, Collection and Recycling, Static and Mobile Buyback Centres, Call$2$Action Programme, Oil Recycling and Glass Beneficiation

Environmental Management services include Auditing, Management Systems Implementation, Assessments & Monitoring and Training.

The founder of the company Ms$.$ Dee recently left the company and Ms$.$ Lee, her daughter, has since taken over as the company managing director. Since Ms Dee's departure, DNF has had a high staff turnover due to unhappy employees.

During Ms Dee's tenure the employees were allowed to rate themselves using their own ratings for certain agreed performance criteria. Management would then assess and review the rating. Ms$.$ Lee felt that this was not effective as the performance metric as most employees did not rate themselves on their contribution towards the company's financial targets $($sales$,$ productivity, profit etc.$).$ She also felt that this was the reason why profits didn't grow.

Ms$.$ Lee is worried that the company has been severely impacted by Coved $19,$ with sales and profits declining by more than $10\%,$ a declining market share, high staff turnover and a growing negative attitude amongst employees of the company towards the future prospects of the company.

She then decided to change the performance metrics to a more formal approach focusing mainly on key metrics related to sales and productivity for the company rather than the employee selected metrics. She also reduced costs including staff salaries by $20\%$ to stabilise the company. This led to a mass resignations at the company were employees were not happy with these decisions. They feel

that it is difficult to reach the company's sales$/$financial targets due to the coved impact and that the $20\%$ reduction in salaries is unfair.

Despite the challenges that the company is experiencing, Ms$.$ Lee is still excited about the growth prospects of the company as the company is a market leader in Research and development and very innovative in terms of product development. DNF has a very strong asset base that can be used for potential invesiment in capital projects. The company is also heavily involved in community projects through their $"$no child to attend school barefoot" project which is geared towards assisting the comnunity.

The following was noted with respect to employee behaviours:

Ms Dee's tenure $-$ employees did more than what was required of them, although not all these tasks resulted in the company meeting its financial targets.

Ms$.$ Lee's tenure$-$employees feel forced to pursue financial targets and aren't happy with this cold approach

REQUIRED:

$($a$)$ Contrast and discuss the performance appraisal metrics used by both Ms Dee and Ms$.$ Lee during their tenure as CEO of the company

$(6$ Marks$)$

$($b$)$ Discuss by making use of Drucker's management by objectives how the company is performing in relation to each objective.

$(8$ marks$)$

$($c$)$ Contrast and discuss the Rosseau and Greller's psychological contracts used by DNF Waste & Environmental Services during Ms Dee's and Ms$.$ Lee's tenures?

$(6$ marks$)$