Product details

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Abstract

This case is about a revolutionary workplace program called the Results Only Work Environment (ROWE) which was introduced and subsequently withdrawn at the retailer Best Buy. The ROWE was introduced in the year 2003 by two executives in the HR department of the company. Best Buy faced severe attrition of its employees due the demanding work environment which was prevalent at the company. Under the ROWE, flexible work scheduling was introduced and managers were encouraged to trust their employees. Employees were given full autonomy to choose their working hours as long as they could show their productivity. The program showed good results and led to a 90 percent decline in attrition accompanied by a 35 percent increase in productivity. Despite the good results that the program gave to the company, the ROWE was discontinued in 2013. The discontinuation of the program was part of a turnaround strategy introduced by the company's new CEO, Hubert Joly. Joly was of the view that making the employees work together was more crucial than just delegating key tasks to them. A new program called 'all hands on deck' to bring more accountability was introduced at Best Buy. Many industry observers criticized the company's decision to discontinue the program saying that it could again lead to the recurrence of the problems that the company had been facing before the introduction of the ROWE.
Location:
Industry:
Size:
Large
Other setting(s):
2003-2013

About

Abstract

This case is about a revolutionary workplace program called the Results Only Work Environment (ROWE) which was introduced and subsequently withdrawn at the retailer Best Buy. The ROWE was introduced in the year 2003 by two executives in the HR department of the company. Best Buy faced severe attrition of its employees due the demanding work environment which was prevalent at the company. Under the ROWE, flexible work scheduling was introduced and managers were encouraged to trust their employees. Employees were given full autonomy to choose their working hours as long as they could show their productivity. The program showed good results and led to a 90 percent decline in attrition accompanied by a 35 percent increase in productivity. Despite the good results that the program gave to the company, the ROWE was discontinued in 2013. The discontinuation of the program was part of a turnaround strategy introduced by the company's new CEO, Hubert Joly. Joly was of the view that making the employees work together was more crucial than just delegating key tasks to them. A new program called 'all hands on deck' to bring more accountability was introduced at Best Buy. Many industry observers criticized the company's decision to discontinue the program saying that it could again lead to the recurrence of the problems that the company had been facing before the introduction of the ROWE.

Settings

Location:
Industry:
Size:
Large
Other setting(s):
2003-2013

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