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  • April 2021
  • Exercise

Valuing Employment Exercise

By: George Serafeim, Ethan Rouen and Katie Panella
  • Format:Print
  • | Language:English
  • | Pages:5
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Abstract

The Valuing Employment exercise can be used to show the importance of impact measurement in designing incentives and contracts. The exercise has two phases. In the first phase, participants play the role of managers at the State of Massachusetts Infrastructure Department. They are tasked with evaluating competing bids for a 10-year, $100 million project from two finalist companies: Infrastructure Bay and Infrastructure Gold. Participants are asked to evaluate the bids after taking into account workforce impact. To measure impact and determine the winning company, students must develop a methodology to create monetized impact figures for each company based on factors such as workforce diversity and injury rate. In the second phase of the exercise, participants are assigned to one of three teams: Infrastructure Bay, Infrastructure Gold, or State of Massachusetts Infrastructure Department. During this phase, the competing companies present their cases for why they should be awarded the bid, while the members of the Infrastructure Department must make a final decision and provide a rationale for who will win the contract.

Keywords

Bid Evaluation; Workforce; Impact Measurement; Bids and Bidding; Contracts; Design; Measurement and Metrics

Citation

Serafeim, George, Ethan Rouen, and Katie Panella. "Valuing Employment Exercise." Harvard Business School Exercise 121-086, April 2021.
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About The Authors

George Serafeim

Accounting and Management
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Ethan C. Rouen

Accounting and Management
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Related Work

    • May 2021
    • Faculty Research

    Valuing Employment Case Spreadsheet Supplement

    By: George Serafeim, Ethan Rouen and Katie Panella
    • April 2021
    • Faculty Research

    Valuing Employment

    By: George Serafeim and Ethan Rouen
Related Work
  • Valuing Employment Case Spreadsheet Supplement By: George Serafeim, Ethan Rouen and Katie Panella
  • Valuing Employment By: George Serafeim and Ethan Rouen
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