Question: Baron & Kreps, Pay for performance, Chapter 1 1 , pp . 2 4 5 2 7 1 . [ HBS ] Case: Bark Gift

Baron & Kreps, Pay for performance, Chapter 11, pp.245271.[HBS]
Case: Bark Gift Shop [HBS]
Case Analysis Questions:
1. Describe the mechanism by which Myriam Beatty sets targets for her shop managers.
How would you feel about this system if you were one of them? What would be aspects
of this system you would like? What would be your main concerns?
2. Evaluate the way performance is measured at Bark Gift Shop. Is this a good way to
capture the shop managers skills and effort? Why or why not?
3. Propose one change in the way that Beatty sets targets, measures performance, or
rewards her shop managers. Explain the reasons for your proposed change and
describe your expectations in terms of what would change in shop managers behaviors
based on your proposed change

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