The case study presents an interesting concept of organizational behavior and performance measurement systems. The CFO and Chief Administrative Officer of Rainbarrel products, Hiram Phillip was very confident about the changes he brought in Rainbarrel. He had been in the company for only a year and had done lots of infrastructural changes. Some of the changes included cost cutting in budget, headcount reductions of 10 % across all units, introducing the ‘wall of shame’ policy for customer care representatives, on time shipment policy. He felt, according to his metrics and figures, he had single handedly improved the company’s performances by leaps and bounds. And today was the day where he …show more content…
The other stakeholders that are affected by Hiram’s performance management policy are the customers. Long term customers like Brenton Brothers have numerous complaints against the Rainbarrel services. They do not get their products on time and customer care doesn’t resolve their issues through phone. Their important shipments were not delivered to them on time, but were lying at the rail road near the plant. All this leaves the customers unhappy and dissatisfied which can hamper their overall business.
Course of Action
The key issue we see in the diagnosis is that the metrics used for performance management system is flawed and is highly focused on