Goals Going Astray|Human Resource|Organization Behavior|Case Study|Case Studies

Goals Going Astray

            
 
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Case Details:
Case Code : HROB140
Case Length : 08 pages
Period : 2007-2011
Pub Date : 2011
Teaching Note : Not Available
Organization : -
Industry : Automotive / Service
Countries : India

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Human Resource and Organization Behavior | Case Study in Management, Operations, Strategies, Human Resource and Organization Behavior, Case Studies



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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.



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Excerpts

About The Company

BestValue 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 Industry

The auto repair industry comprised firms involved in providing repair and maintenance services for automotive vehicles...

Performance Blues

BestValue 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

Concerned about the declining average revenue per service outlet, Gupta recruited a new marketing head, Ashwath, hoping to increase the company's revenue...

Prevent 'em Campaign

Thus Ashwath came up with a new scheme for revamping the operations and employees' performance of BestValue. The new scheme was billed as the 'Prevent 'em Campaign'. As part of the campaign, he decided that BestValue would offer its customers more than what the customers requested by providing technical suggestions on other necessary service issues which the customers might not be competent to know about...

Human Resource and Organization Behavior | Case Study in Management, Operations, Strategies, Human Resource and Organization Behavior, Case Studies

Performance-Linked Incentive Plan

According 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...

Problems

However, 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 Story

Raju 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
Exhibit II: Earlier Salary Structure of BestValue Service Employees
Designation: Service Maintenance Officer (Qualification- Diploma/ Degree Engineer)
Exhibit III: Present Salary Structure and Component-wise Break-up
Exhibit IV: Performance Linked Incentive Plan

Human Resource and Organization Behavior | Case Study in Management, Operations, Strategies, Human Resource and Organization Behavior, Case Studies

 

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