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Case
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Reference no. 9-412-S29
Spanish language
Published by: Harvard Business Publishing
Originally published in: 2011
Version: 10 October 2011
Revision date: 13-May-2019

Abstract

This is a Spanish version. In January 2010, US luxury goods retailer Raleigh & Rosse is being sued by its employees for encouraging 'off the clock' hours. At the center of the class action lawsuit is the famous Raleigh & Rosse performance measurement system previously thought to be the core of the retailer's success. The system uses a sales-per-hour model to reward salespeople for time well spent on the floor. However, in this industry, where strong customer service is essential, many sales representatives feel they are encouraged to spend time off the clock tending to client needs; this issue and others have led to consequences that the company did not envision. The case illustrates how rapid company growth, decentralized management, and unrelenting pressure to perform can distort performance measurement systems and lead to undesirable consequences.
Location:
Industry:
Other setting(s):
2011

About

Abstract

This is a Spanish version. In January 2010, US luxury goods retailer Raleigh & Rosse is being sued by its employees for encouraging 'off the clock' hours. At the center of the class action lawsuit is the famous Raleigh & Rosse performance measurement system previously thought to be the core of the retailer's success. The system uses a sales-per-hour model to reward salespeople for time well spent on the floor. However, in this industry, where strong customer service is essential, many sales representatives feel they are encouraged to spend time off the clock tending to client needs; this issue and others have led to consequences that the company did not envision. The case illustrates how rapid company growth, decentralized management, and unrelenting pressure to perform can distort performance measurement systems and lead to undesirable consequences.

Settings

Location:
Industry:
Other setting(s):
2011

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