Incentive Problems In A Software Company Harvard Case Solution & Analysis

Incentive Problems In A Software Company Case Solution


The composition of a team is very important. It refers to the overall characteristics of the people among the team. For instance, the sales departments consist of the sales reps, they all are working under one roof diving towards the same task of marketing and delivering the products. They all have the same motive which helps them to learn different characteristics and qualities from each other. This is very important to characterize the team in a manner that does not lead to differences among them.


Every employee wants the motivation to work and perform better. Incentives are an exemplary way to motivate your employees. For example; I categorized two different incentives approaches for both of my company’s departments. I have implied that every rep in the sales department will get 15% incentives for an individual product as a reward for their sales. Whereas the individual who worked hard and generates new ideas in the office department will get 8% incentives of their total salary.

This will help in building a boss-employees relationship in a good manner and will help create a successful environment for the company.


It is very important to weekly report the team and ask the follow-up to know every possible factor and make team more responsible. First, assign the team with possible tasks and then meet them often to take follow-up for future considerations. This is another main factor that holds importance in building the team and customer relationships which in turn depends on the company’s success.

Managing team goals and success

To work successfully and achieve the desired goal, it is very important too;

  • First, identify your area of interest and what you want to achieve.
  • Make the goals measurable and identifiable to all.
  • Set the team goals.
  • Set individual goals and motivate them.
  • Establish deadlines and stick to the goal till the end.
  • As a leader and manager of your team, you need to visit your team quite often and ask them for the follow-up.
  • Track progress and keep your eye on individual success also.
  • Lastly, support your team by providing motivations and incentives.

Question no 4

Innovation is very essential aspect for the organizational success. According to McKinsey the 84% of the executives believes that the success of the organization depends on innovation of the organization. Pro-innovative organizations tend to be more successful as compared to the other organizations. Organizations that support innovation in the organizational culture are tend to get more opportunities to meet the consumers demand and meet the changing trends. In case of Software Company; it is even more important because the technology is evolving with time and these technology changes require innovation in the organization. The basic implication of innovation is positive on organizations as it increases the company’s strength to explore the opportunities, quickly respond to the consumers demand, innovation help the organizations to make an effective use of the employees’ competencies, knowledge and experience. Innovation promotes the continuous learning culture in the organization. Innovation and continuous learning help the company in growth and business development. Innovation help the organization to increase the employee and business productivity, it helps to reduce the cost of the products. Organization acquire the competitive edge in the industry. To sell the new product company need to obtain certain new ways to approach the consumers, the advertisement level should be different to approach the consumers. The company needs to use the artificial intelligence and data to study the client’s consumption patterns and respond accordingly. Innovation help the company to improve the brand recognition and value. Innovation allow the company to increase the employee partnerships and their Public relations. To sell the new products in the organizations the sales team should be trained according to the consumer’s data and their behavior. Organizations first study how the consumers respond to particular moves and what they prefer.  Artificial intelligence is the most growing technology advancement option in the industries and industries are going for artificial intelligence to make their business more effective and compete in the industry. According to the world economic forum in 2022 75 million new jobs will be generated in the market, whereas these jobs would be the result of Artificial intelligence, robotics and automation. The CEO in this software company should consider the artificial intelligence option to sell the products in the market and also gather the data and use consumer’s data to maintain the company efforts. Change is continuous process and change it will take place throughout the time, change is permanent and beneficial for everyone because it is nature’s rule change will lead to new and better place.

 Question no 5

Turnover has a devastating effect on the company’s overall environment. It specifically affects employee’s productivity and their general performance. When there is a high employee turnover, it means that the company is having many distasteful experiences and unproductive employees and so on. So firstly, it is very important for any organization to look into all the possible factors that cause the turnover and direct a proper plan to eliminate them specifically.

We can reduce the turn and manage them in the following ways:

  • Create a positive environment in your workforce, be more giving than judgmental and motivate the employees.
  • Improve your recruitment.
  • Understand the client’s nature and their needs.
  • You just don’t need to be only taking, but to decrease the turnover; the organization needs to be more giving and should create a soft barrier between the organization-employee relationship
  • Provide your employees with yearly bonuses and incentives; which helps them to work with great motivation and driving forces.
  • Review pay and benefits.
  • Promote your employees.
  • Prioritize the employees’ happiness.
  • Provide flexibility and avoid work overload.
  • Praise your employees and acknowledge their hard work.
  • Organize other social activities apart from the work relevant activities.
  • Motivate them with compliments and gift hampers.
  • Organize monthly meetings and training programs to develop the important skills in your employees and train them very well, to avoid any hassle.

It is very important to study your turnover, assist what factors are causing these turnovers, and then perform accordingly. For instance: providing your employees the extra benefits by understanding their needs would be helpful in creating an overall positive environment in the company. It is very important to create a soft and friendly relationship between your employees and to listen to their queries and understand them. Provide a flexible working environment rather than overloading them will be one of the possible factors of increasing the turnover rate.

However, organizing the social events apart from the work environment would also be a great idea in encouraging employees and provide them fun apart from their workload. These are the little things that would create a great effect over the company’s environment.

Another factor that would help decrease employee turnover is to provide the employees with extra benefits and incentives when necessary. Motivate them and praise them for their hard work and acknowledge their success.

All of these aforementioned factors would have great impact over the management of the employee’s turnover, which in turn increases the company’s productivity and its performance.

 Question 6

High performance work system is the basic element that ensures high performance of the employees in any organization. The CEO needs the sales team to be more productive and helpful in achieving the company’s  the objectives.There are seven basic elements that will increase the employee’s performance. HPWS system will allow the employee’s involvement in the company and will also help in increasing their  increase interest and commitment in the organization. At the same time, HPWS will also be helpful in creating high performance culture in the organization. Along with that, it will also help the company in improving its employees’ behavior. HPWS shares common management practices that tends to help the company in achieving the competitive advantage and increasing its performance.............................

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