A Zero Wage Increase Again? Harvard Case Solution & Analysis

Whoever owns furniture, a big hardware and building centre faced a dilemma regarding how to manage the approaching wage review procedure. After two straight years of frozen wages, workers were impatient for progress that is financial, however there was no reserve money in the budget. It was possible to pump savings from upcoming procedure improvement initiatives into wage increases.

But, the owner had limited incentive to channel hard-acquired funds to employees that were underperforming. On the flip side, he was enthusiastic to reward the people who added value. A strategy that rewarded only some employees could result in an angry backlash. He had to decide whether he desired to redirect the savings into damages, and in that case, he needed an effective distribution plan.

PUBLICATION DATE: September 07, 2011 PRODUCT #: W11154-HCB-ENG

cThis is just an excerpt. This case is about STRATEGY & EXECUTION

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