Goals Going Astray
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» Human Resource and Organization Behavior Case Studies 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. |
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ExcerptsAbout The CompanyBestValue was a professionally managed company providing automotive repair and maintenance solutions across the country. Started in 1999 and headquartered in Pune, it had 53 service centers manned by an average of 15 personnel and equipped with state-of-the-art facilities as of late 2010... The Auto Repair IndustryThe auto repair industry comprised firms involved in providing repair and maintenance services for automotive vehicles... Performance BluesBestValue enjoyed a healthy market share, customer loyalty, and financial performance in the initial eight years of its operations. However, with the increase in the number of players in the market since 2007, it found the competition hotting up... Changes at Bestvalue
Performance-Linked Incentive PlanAccording to the proposed plan, for every hour worked, the service advisors would get a basic salary of Rs. 12/- per hour which they would receive for regular attendance at work. The daily target for service advisors was set at 10 customers per day... ProblemsHowever, this arrangement had its downside. Some customers complained that they were unhappy with the hard sell approach adopted by the service provider. Initially, the management was not too worried as such customers were few in number... Raju's StoryRaju had joined the Bengaluru unit of BestValue as Service Advisor in March 2010. After completing a diploma in mechanical engineering, he had worked for a local car dealer as a service station supervisor for about two years in his home town Hassan... What Went Wrong?Back in the head office, Gupta was livid when he reviewed the report of the inquiry committee. He was more incensed when someone brought to his notice the news clip regarding the company that had appeared in that day's newspaper... Exhibits
Exhibit I: The News Clip Getting the Worst from BestValue
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