Question: HoffmannDiscount Drugs Case Summary: The case illustrates a different method of dealing with uncontrollability problems. This company makes adjustments foruncontrollablesonly if they are larger than
HoffmannDiscount Drugs
Case Summary:
The case illustrates a different method of dealing with uncontrollability problems. This company makes adjustments foruncontrollablesonly if they are larger than apre-set threshold level through a type of ad hoc variance analysis performed by corporate managers. The store managers must bear the full risk of all small things.
Case Questions:
- Evaluate the HDDI Store Management Bonus Plan. What, if anything would you change? Explain.
- What behavioral issues are associated with asking others to bear the risk for uncontrollable events?
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