Question

Management in Action- Questions

Was ROWE a problem for Best Buy- or Part of the Solution

1. How well did ROWE meet the criteria of an effective performance system? Will eliminating it be more or less effective? Why?

2. How can clan control help Best Buy improve it's performance?

Answer 1

Answer:-

an effective performance system can be seen as one which provides the better flexibility in the operations of the organization, motivates the manpower, reduces the turnover in the manpower and improves the overall profitability of the organization. As after implementing the ROWE plan, Best Buy witnessed a reduction in the turnover of the manpower, it results in a profit of $2 million in the initial two years of its implementation, provided the flexibility of operations and the goals of the employees were selected after consulting him and then it has to be accomplished by him and thus overall the desired results were obtained from the implementation of ROWE. Thus I think the plan fulfills all the requirements of an ideal performance system

Answer:- Clan control be defined as the different set of values and beliefs that an organization is not just a working plan but in fact, it is a close family. This concept really helped the Best buy to improve its performance as after the implementation of a new performance system, everyone in the organization was participating in the operations of the organization, decision making was made more participative, goals were allocated after the mutual agreements and greater working hour flexibility improves the overall performance and working experience of the employees. They all started to help each other in daily operations and this is how the performance of Best Buy improved drastically.