This case involves a consumer goods manufacturer by the name Rainbarrel Products. According to the text, the company is struggling to adapt to a market characterized by reduced consumption of products after a ten-year period of boom. The organization’s Chief Executive Officer Keith Randall decides to hire a professional to get things under control. Thus, Hiram Phillips is considered and takes up the mantle as the Chief Finance and Administration Officer. Within no time, Hiram introduces a lot of changes to achieve what he considers good for the company. Some of the changes he makes include; cutting budget, reducing labor expenses, restructuring sales incentives, shipping re-arrangements and altering customer service procedures. The consultants
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For instance, Hiram had announced new targets for the salespersons, laid off 10% of staff from each unit regardless of performance and ordered reduction of time spent on each customer by customer care representatives among other changes (Kerr, 2003). In this case study, the answer to the question whether Rainbarrel should consider revisiting its approach to performance management is a resounding “yes”. Hiram Phillips made unprofessional decisions of laying off staff from each unit and authoritatively restructuring incentives without hearing from the employees and consulting extensively. In management, involving employees in decision-making is one way of quenching and minimizing likelihood of resistance or go slow. In fact, Hiram had confused performance with productivity as the real problem at Rainbarrel Products Company was not performance but a challenge in the external environment. The reason as to why employees were demoralized was because of poor techniques used by Hiram. Instead of firing high performing staff or restructuring sales incentives, the CFO/CAO should have applied operant conditioning to modify their employees’ behavior. This modification, for example rewarding performers, should have been aimed at increasing the sales of the personnel hence their commission instead of …show more content…
Keith Randall does not seem concerned about management of the organization yet she is the one expected to get deeper involved in its daily operations. Instead, she looks comfortable with Hiram at the helm forgetting that he is new to the company’s culture. The employees at Rainbarrel seem to be victims of high power-distance because they do not question the decisions and actions of their superior Mr. Hiram. Thus, their concerns are only known too late after a research survey. In short, Hiram had targeted quick making of profits for the company at the expense of long-term benefits like employee turnover and customer satisfaction. Therefore, appropriate performance management approach is required to for
For instance, Hiram had announced new targets for the salespersons, laid off 10% of staff from each unit regardless of performance and ordered reduction of time spent on each customer by customer care representatives among other changes (Kerr, 2003). In this case study, the answer to the question whether Rainbarrel should consider revisiting its approach to performance management is a resounding “yes”. Hiram Phillips made unprofessional decisions of laying off staff from each unit and authoritatively restructuring incentives without hearing from the employees and consulting extensively. In management, involving employees in decision-making is one way of quenching and minimizing likelihood of resistance or go slow. In fact, Hiram had confused performance with productivity as the real problem at Rainbarrel Products Company was not performance but a challenge in the external environment. The reason as to why employees were demoralized was because of poor techniques used by Hiram. Instead of firing high performing staff or restructuring sales incentives, the CFO/CAO should have applied operant conditioning to modify their employees’ behavior. This modification, for example rewarding performers, should have been aimed at increasing the sales of the personnel hence their commission instead of …show more content…
Keith Randall does not seem concerned about management of the organization yet she is the one expected to get deeper involved in its daily operations. Instead, she looks comfortable with Hiram at the helm forgetting that he is new to the company’s culture. The employees at Rainbarrel seem to be victims of high power-distance because they do not question the decisions and actions of their superior Mr. Hiram. Thus, their concerns are only known too late after a research survey. In short, Hiram had targeted quick making of profits for the company at the expense of long-term benefits like employee turnover and customer satisfaction. Therefore, appropriate performance management approach is required to for