RKO Warner Video Inc.: Incentive Compensation Plan Harvard Case Solution & Analysis

Details of the development and implementation of the incentive bonuses for managers video store. The problem for the top management of the chain to encourage store managers to "then details" to save the stores neat and well organized, and it politely and effectively with clients. The design of the bonus plan is simple: instead of trying to measure the cleanliness stores or customer service directly, give managers the share of income from the shops, and let them worry about the details for yourself. It ends after a six-month probationary period with a new plan, and leaves the top managers of the chain said that while revenues have increased, the store management has not improved in terms of managing the details. "Hide
by George P. Baker, Samuel L. Shimer Source: Harvard Business School 14 pages. Publication Date: October 20, 1989. Prod. #: 190067-PDF-ENG

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