The Best Laid Incentive Plan

The best Laid Incentive Plan Case Description

The case study presents an interesting concept of organizational behavior andperformance measurement systems. systems. The CFO and Chief Administrative Officer ofRainbarrel products, Hiram hillip !as very confident about the changes he brought inRainbarrel. He had been in the company for only a year and had done lots ofinfrastructural changes. "ome of the changes included cost cutting in budget, headcount reductions of #$ % across all units, introducing the &!all of shame' policy for customer care representatives, on time shipment policy. He felt, according to his metrics and figures, he had single handedly improved the company's performances by leaps and bounds. And today !as the day !here he !ould present his numbers to thee(ecutives thee(ecutives in the corporate e(ecutive council meeting. Hiram !as applauded by theC)O *eith Randall in the meeting and everything loo+ed good and positive until !hencertain information information started coming out. t came to light for instance the, Research and-evelopment and-evelopment department had developed a brea+through product that !as not beingbrought to mar+et as uic+ly as it should have been / because of Hiram0s infle(iblebudgeting process. An employee survey sho!ed that !or+ers !ere demoralized. Thecustomers !ere unhappy and !ere complaining about Rainbarrel's service.  Al  Althou though gh Hiram's numbers loo+ed remar+able on paper, there !ere lots of thing thatHiram !as una!are of and !as detrimental to the company as a !hole. Diagnosis of the problem