Bill Sparks Case

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Bill Sparks - Case Synopsis David Jeffrey Problems: 1. The manager's bonus scheme leads to behavior detrimental to the company. Because the bonus is tied to efficiency alone, Bill is motivated to maximize his own reward at the expense of the company. 2. Data Computer does not effectively plan for its human resources needs. There are no forecasts, and succession planning. The transfer policy of taking the best from each office appears to be detrimental; little attention is paid to matching transferees to where they will be satisfied. 3. In Seattle, no systematic hiring process was used. Bill Sparks handled the whole process alone, leading to ineffective recruitment, and an undocumented selection process. 4. The immediate problem is dealing with the rash of phone calls regarding a position at the Seattle office, in light of Bill's desire to downsize. Solutions 1. The bonus system needs to be adjusted, company-wide, to ensure that managers' behavior is in the best interests of the company as a whole. This means looking again at the type of behavior desired, and finding effective ways to measure that behavior. Tying the bonus to sales volume, or mutually-agreed profit targets, and efficiency, should achieve this objective. This should reduce the likelihood of managerial dishonesty in the pursuit of increased personal income and increase managerial seeking of organizational goals. 2. The human resources function should take a stronger role in the organizations. In sales, people are the key asset, and more attention needs to be paid to managing them here. 3. Data Computer must implement a human resources service in the organization that forecasts human resources needs and makes plans to meet them. Specifically, human resources planning needs to be done. This way the company will know when it needs to hiring or transfer people, and will be able to go

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