His RTO program is another example of his root cause analysis gone wrong. His focus was on how to keep the W-2 hoppers out of the company rather trying to figure out how to stop his sales force leaving in the first place. Maybe if their variable pay didn’t have such a great impact on their overall pay they might not think so quickly about switching between companies.
These examples and several others stated in the article show that when he sees a problem he tries to change the behavior directly with some kind of limitation or incentive rather than asking why the problem is happening in the first place.
The CEO of Arrow Electronics, Steve Kaufman is a highly self motivated, self esteemed with high self monitored personality. He is trying to identify talents by performance evaluation in order to sustain the organizational performance. He strongly believes that defining the right strategy and getting the right people are the top most quality of a CEO.
This is another failure story of Performance evaluation. The CEO is getting engaged in fixing and re-fixing the performance evaluation and finally there is no great result or success on this system. He has taken a good measure to deal with the unethical sales force and opportunists but he is still not clear about what would be the right decision to sustain his employees.
We can analyze the...