Goals Going Astray


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Please note:

This case study was compiled from generalized experience of the authors, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:

Price:

Case Code : HROB140 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges

Themes

Money Organizational behavior / performance management
Case Length : 08 pages
Period : 2007-2011
Pub Date : 2011
Teaching Note : Not Available
Organization : -
Industry : Automotive / Service
Countries : India

Abstract:

A renowned auto service and repair solutions provider in India had been witnessing declining revenues over the past few years. To turn the situation around, the CEO, Sudhir Gupta, directed the Marketing Head P. Ashwath and HR Head S. Nagesh to implement a series of changes in the marketing, performance management, and compensation systems. As part of the changes introduced, the compensation of the employees was to be linked to their performance.

The changes aimed at: a) changing the culture of the company to bring around a 'sales' orientation,

b) increasing revenue; and c) increasing employees' motivation. As a result of the changes made, the company did register higher revenue. Employees' motivation levels also rose. However, customers were not happy and there were also some serious accusations leveled against the company. The top management at the company wondered what had gone wrong.

Issues:

Analyze economic effectiveness of performance-related rewards.

Understand the influence of performance-related rewards on organizational culture management.

Understand the powerful and predictable side effects of associated with narrowly defined goals.

Understand the interplay between organizational culture and goal setting theory.

Contents:

  Page No.
Introduction 1
About The Company 1
The Auto Repair Industry 2
Performance Blues 2
Changes at Bestvalue 2
Prevent 'em Campaign 3
Performance-Linked Incentive Plan 5
Problems 5
Raju's Story 6
What Went Wrong? 6
Exhibits 7

Key Words:

Performance-related rewards, Organizational culture, Organizational culture management, Goal setting, Performance management, Incentives, Goal setting theory, Rewards, Motivation, Ethics

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