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  • October 2011
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Raleigh & Rosse: Measures to Motivate Exceptional Service

By: Robert Simons and Michael Mahoney
  • Format:Print
  • | Language:English
  • | Pages:11
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Abstract

In January 2010, U.S. luxury goods retailer Raleigh & Rosse is being sued by its employees for encouraging "off the clock" hours. At the center of the class action lawsuit is the famous Raleigh & Rosse performance measurement system previously thought to be the core of the retailer's success. The system uses a sales-per-hour model to reward salespeople for time well spent on the floor. However, in this industry, where strong customer service is essential, many sales representatives feel they are encouraged to spend time off the clock tending to client needs; this issue and others have led to consequences that the company did not envision. The case illustrates how rapid company growth, decentralized management, and unrelenting pressure to perform can distort performance measurement systems and lead to undesirable consequences.

Keywords

Control Systems; Performance Measurement; Goal Setting; Compensation; Incentives; Motivation; Sales Compensation; Motivation and Incentives; Goals and Objectives; Growth Management; Lawsuits and Litigation; Organizational Culture; Management Systems; Customer Focus and Relationships; Employees; Performance Evaluation; Compensation and Benefits; Retail Industry; United States

Citation

Simons, Robert, and Michael Mahoney. "Raleigh & Rosse: Measures to Motivate Exceptional Service." Harvard Business School Brief Case 114-353, October 2011.
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About The Author

Robert Simons

Accounting and Management
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Related Work

    • October 2011 (Revised April 2017)
    • Faculty Research

    Raleigh & Rosse: Measures to Motivate Exceptional Service (Brief Case)

    By: Robert L. Simons and Michael Mahoney
Related Work
  • Raleigh & Rosse: Measures to Motivate Exceptional Service (Brief Case) By: Robert L. Simons and Michael Mahoney
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