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  • August 2019
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Bark Gift Shop Ltd.

By: Susanna Gallani, Jan Bouwens and Peter Kroos
  • Format:Print
  • | Language:English
  • | Pages:11
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Abstract

This case describes a setting in which the CFO of Bark Gift Shop Ltd., a gift items retailer, discovers an undesired pattern in the performance data suggesting that her shop managers that perform well during the first part of the year, purposely reduce their effort in the later part of the year. This pattern drives the CFO to reflect on the process by which she sets annual targets for shop managers and how those targets relate to various aspects of their compensation contract. Challenging targets, however, appear to be motivating for a sizeable amount of shop managers. In fact, many shop managers that repeatedly fail to meet the target appear not to be giving up and keep trying to achieve their challenging targets. Therefore, the CFO needs to strike the right balance between providing motivating targets and curbing the undesired behaviors that she just discovered. The case lends itself to a rich discussion of common performance management issues, such as target setting, performance metrics selection, and performance-based compensation design. In particular, the case exposes the students to the issue of target ratcheting. As the case includes a dataset, it provides ample opportunities for students to practice their analytical skills (producing and discussing descriptive statistics, regressions and interactions).

Keywords

Data Analytics; Employees; Behavior; Performance; Management; Goals and Objectives; Motivation and Incentives; Analysis

Citation

Gallani, Susanna, Jan Bouwens, and Peter Kroos. "Bark Gift Shop Ltd." Harvard Business School Case 120-008, August 2019.
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About The Author

Susanna Gallani

Accounting and Management
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Related Work

    • September 2019
    • Faculty Research

    Bark Gift Shop Ltd.

    By: Susanna Gallani, Jan Bouwens and Peter Kroos
    • July 2020
    • Faculty Research

    Bark Gift Shop Ltd. Assignment Worksheet

    By: Susanna Gallani
    • July 2020
    • Faculty Research

    Bark Gift Shop Ltd. Assignment Worksheet Solution

    By: Susanna Gallani
Related Work
  • Bark Gift Shop Ltd. By: Susanna Gallani, Jan Bouwens and Peter Kroos
  • Bark Gift Shop Ltd. Assignment Worksheet By: Susanna Gallani
  • Bark Gift Shop Ltd. Assignment Worksheet Solution By: Susanna Gallani
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