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    YAAS's Service Center

    Hall, Brian J. ; del Nido, Sara

    • Reference: HBS-914049-E

    • Year: 2006

    • Number of pages: 12

    • Geographic Setting: Kuwait;Middle East

    • Publication Date: Jun 19, 2014

    • Fecha de edición: Jan 8, 2017

    • Source: HBSP (USA)

    • Type of Document: Case

    • Industry Setting: Automobiles;Human resources

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    Description

    This case is about a compensation change at an automotive service company in the Middle East. The case allows investigation and analysis of many issues related to compensation design and human resource management, and even change management. The focus of the case is all the ways in which bad incentive design leads to dysfunctional behavior. In particular, a crucial issue is whether individual incentives are best or whether team incentives are best, and why. In the B and C cases, the case rolls out in sequence as more and more information is revealed to students so the unfolding of events keeps students interested and engaged in how to solve the various problems that arise, including a near mutiny.

    Keywords

    Compensation Emotions Hiring & employment Incentives Labor Labor markets Motivation Negotiation Social psychology Value creation Values