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FOC101-Spring 2013 | ABC Computers Case Study Questions

  • 22 Jan 2013 12:10
    Quote
    Message # 1185432
    Jun (Administrator)
    QUESTIONS FOR DISCUSSION:

    1. What happened at ABC Computers that led to such a disappointing turn of events (e.g., high employee turn over, disengaged employees, etc.)?

    2. What can you learn from this case study that you can apply to your own organization?

    3. If you are in Tanaka-san's shoes, what would you recommend to the management of ABC Computers?

    Note: Feel free to critique, comment, or ask questions on your classmates' answers.

    DUE DATE: 25 January 2013
  • 22 Jan 2013 13:42
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    Reply # 1185490 on 1185432
    Deleted user

    1. What happened at ABC Computers that led to such a disappointing turn of events (e.g., high employee turn over, disengaged employees, etc.)?

    Employees were unhappy with the compensation system as it did not reward success or effort. Employees felt it was unfair and that their voices were not heard by senior management, and so joined companies they felt had fairer internal systems.

    2. What can you learn from this case study that you can apply to your own organization?

    That it is important that employees feel their efforts are justly rewarded and that it is important for senior management to discuss with employees directly when issues come up.

    3. If you are in Tanaka-san's shoes, what would you recommend to the management of ABC Computers?

    Performance-based pay in the form of a bonus or commission system.

     
  • 22 Jan 2013 17:07
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    Reply # 1185633 on 1185432
    Jun (Administrator)
    Thanks Bobak for starting this conversation and good answers. As a follow up question, would you then agree that compensation is more than just about money but primarily a "communication tool" that Management can use? Why or why not? In the case of ABC Computers, how did the company's comp system undermine its overall business objectives?
  • 22 Jan 2013 20:08
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    Reply # 1185712 on 1185432
    Deleted user
    Good evening Mr. Jun,

    Here is my answer for the case study#1.  

    1. What happened at ABC Computers that led to such a disappointing turn of events (e.g., high employee turn over, disengaged employees, etc.)?

    Faced a very high employee turn over rate in Eastern Division.

    2. What can you learn from this case study that you can apply to your own organization?

    1. Shouldn't mention my inability to provide a solution to the problem, I think it'll give them negative result before decided.  I would liket to show /tell them that I constantly try to make a good effort.

    2. Constantly share information with personnel. (in this case, personnel didn't heard anything for two more month after they received negative information from Mr. Tanaka)
    No information is scarly....mostly people will reach very negative thought and it'll effect to organization!

    3. If you are in Tanaka-san's shoes, what would you recommend to the management of ABC Computers?

    1. More chance to express personnels own openion. 
    2. Make a option fo non-monetary compensation.
    For example:

    * Flexible working hours - balance of work and life
    * Support for acquisition of qualification.  Support their time to study and tuitions
    * Emvirenment work place (Clean, Comfortable, and fanctionable office)





    Last modified: 22 Jan 2013 20:15 | Deleted user
  • 22 Jan 2013 21:11
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    Reply # 1185741 on 1185432
    Deleted user
    Hello everyone. Here's my answers:

    1. Resulted high turnover and demotivated the employees. The employees were unsatisfied with the unfairness of the compensation system against their efforts and felt not being involved in the organization because their voice doesn't reach to the management at all neither.

    2. It is very important for the management to communicate well their direction (strategies and values) of the organization to the employees when they raised the issue like the uniform compensation system. Why they decided to do so. Also HR personnel should be a good communicator between the management and the employees.

    I would explain to the management at early stage using the examples of other companies, which introduced the uniform compensation system (especially to the sales reps) and ended up with high employee turnover and low performance, and how we could benefit the introduction of the performance based pay system.

    If the idea turned down and doesn't fit their strategies and values, I would communicate more with the management and explain to the employees the reasons why the company uses the uniform compensation system. There could be positive reasons for the organization, too.

    3. I would suggest:

    -Performance based pay system as Bobak says,
    -More communication opportunities with the management as Naoko says, like more town hall meeting/SNS etc.
    -Also more recognition in public(within the company) of the good sales reps/the employees most contributed the company.
    For example, award the "Employee of the Year" at a company's party or meetings so that they feel more recognized by the company/management and other employees and more engaged to the organization.
  • 23 Jan 2013 10:43
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    Reply # 1186331 on 1185432
    Jun (Administrator)
    Thank you all for answering the questions and please don't forget to comment or critique your classmates' answers as well. This is an important part of the learning process...

    Looking forward to your additional comments.

    Regards,

    Jun
  • 23 Jan 2013 23:41
    Quote
    Reply # 1186763 on 1185741
    Deleted user
    Yukiyo Odate wrote:Hello everyone. Here's my answers:

    1. Resulted high turnover and demotivated the employees. The employees were unsatisfied with the unfairness of the compensation system against their efforts and felt not being involved in the organization because their voice doesn't reach to the management at all neither.

    2. It is very important for the management to communicate well their direction (strategies and values) of the organization to the employees when they raised the issue like the uniform compensation system. Why they decided to do so. Also HR personnel should be a good communicator between the management and the employees.

    I would explain to the management at early stage using the examples of other companies, which introduced the uniform compensation system (especially to the sales reps) and ended up with high employee turnover and low performance, and how we could benefit the introduction of the performance based pay system.

    If the idea turned down and doesn't fit their strategies and values, I would communicate more with the management and explain to the employees the reasons why the company uses the uniform compensation system. There could be positive reasons for the organization, too.

    3. I would suggest:

    -Performance based pay system as Bobak says,
    -More communication opportunities with the management as Naoko says, like more town hall meeting/SNS etc.
    -Also more recognition in public(within the company) of the good sales reps/the employees most contributed the company.
    For example, award the "Employee of the Year" at a company's party or meetings so that they feel more recognized by the company/management and other employees and more engaged to the organization.

     I agree Yukito's part of answer of Q2; "Also HR personnel should be a good communicator between the management and the employees".
    Sometime people thinks that HR people are in charge of rule employees by regulation, but we are here to give their satisfaction through their job.  Which is very important us to be a good communicate between personnel and management!

    I also like Yukiyo's idea of award system!
  • 23 Jan 2013 23:47
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    Reply # 1186770 on 1185490
    Deleted user
    Bobak Rostampour wrote:

    1. What happened at ABC Computers that led to such a disappointing turn of events (e.g., high employee turn over, disengaged employees, etc.)?

    Employees were unhappy with the compensation system as it did not reward success or effort. Employees felt it was unfair and that their voices were not heard by senior management, and so joined companies they felt had fairer internal systems.

    2. What can you learn from this case study that you can apply to your own organization?

    That it is important that employees feel their efforts are justly rewarded and that it is important for senior management to discuss with employees directly when issues come up.

    3. If you are in Tanaka-san's shoes, what would you recommend to the management of ABC Computers?

    Performance-based pay in the form of a bonus or commission system.

     

    I have a question for #3 of Bobak answer... 
    Is performance based pay will be for only individual personnel or combination with team performance bases?
    Individually has feeling of unfairness for me.
  • 05 Feb 2013 19:17
    Quote
    Reply # 1199210 on 1185432
    Deleted user

    1. What happened at ABC Computers that led to such a disappointing turn of events (e.g., high employee turn over, disengaged employees, etc.)?

    Although some sales personnel in Eastern Division who achieve or excess their sales target, they were not satisfied with their uniform compensation system.  Therefore they requested to introduce performance based variable pay system however this was not accepted the top management which disappointed the high performance sales personnel.

    2. What can you learn from this case study that you can apply to your own organization?

    In our organization, performance based variable pay system has already been introduced to all employees and I believe this is a very fair system.  This would motivate employees what to target clearly and they will know what the reward would be also.  Of course if achieving target is tough due to economic situation etc, employees would have to work harder to even meet the target or their salary is going to be reduced accordingly.  However the vice versa occurs!


    3. If you are in Tanaka-san's shoes, what would you recommend to the management of ABC Computers?

    If the company has any allergy to introduce performance based variable pay system, how about firstly introduce some recognition program?  For instance, Best sales person of the year etc to offer additional awards.  This would help employees to feel their work is appreciated and rewarded by the company.
  • 17 Feb 2013 15:34
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    Reply # 1210492 on 1185432
    Jun (Administrator)
    Thanks Seko-san for your answers and I especially like your suggestion of introducing first a form of recognition system instead of introducing a formal performance bonus system. This may be a stepping stone that an organization can take before introducing a variable pay system to help manage the change in mind set and organizational culture.

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