This case illustrates the consequences of the use of rigorous measurement systems performance to create pressure for performance, achievements motivate employees and sharpen the competitiveness of a company. It opens with a description of the drawbacks of the ruthlessly competitive culture Zynga, successful small business, online game. A measurement system based on similar performance data applies to Dovernet, a provider of business communications and social networking technologies based in Vancouver. Founder and CEO of Dovernet see metrics for key performance culture work? PART innovative competitive Dovernet necessary to win in a very competitive sector. Dovernet uses quarterly reviews from top to bottom and stack range (with important implications for the bonus), and the comments from the bottom up, to reward the best employees and poor performance on notice. The practical difficulties of implementing a system of this type is shown in three short vignettes. In the first two, students can play the role of a responsible manager to interpret and act on negative comments to two employees (but are they mitigated?) Unique personal circumstances. The third bullet puts students in the role of an employee with a bottom-up review as it struggles to balance honesty with potential impacts to give his manager less-than-perfect information. The case allows students to consider the benefits and risks of the different strategies for performance assessment and its implications for the performance of the company culture and employee morale. Are there certain types of businesses or industries for which these systems are more appropriate? Is the integrity and efficiency of a system of performance measurement depend on the application of cold objectivity managers, or there is some leeway PART? In highly competitive industries, companies that do not have a strong focus on performance can beat competitors like Zynga and Dovernet?
by
Robert L. Simons,
Natalie Kindred
Source: Harvard Business School
11 pages.
Date Posted: April 27, 2012. Prod #: 112061-PDF-ENG
Case Solution Dovernet
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