Psycho Mycko specialises in online psychometric profiling. The company was incorporated in 2018 and has grown...

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Psycho Mycko specialises in online psychometric profiling. The company was incorporated in 2018 and has grown rapidly over the past 3 years to a total of 310 staff today. Its headquarters are located in New York and operating divisions have recently been set up in Singapore, London and Australia. Senior management consists of Tim Jones, an MBA graduate from Harvard Business School, Elenora Young, a psychologist with ten years of industry experience, and Ricki Martin, an IT graduate specialising in artificial intelligence. Recently, a new commission-based remuneration scheme has been introduced in the sales division. This has increased competition amongst the sales staff, who are competing fiercely to attract new customers and meet their performance targets. Tim is aware of this fierce competition but aspires to launch Psycho Mycko as an Initial Public Offering (IPO) on the NY stock exchange later this year and aims to maximise financial performance and turnover as much as possible. Psycho Mycko's business model is based on 'high turnover and low margins, so increasing sales is the fastest way of growing the business. Elenora is concerned about the negative impacts the new remuneration scheme has on the organisation's culture. She acknowledges that performance measurement has traditionally been a weakness of the organisation but believes Tim has gone too far with the new scheme. Elenora is also concerned about the new decentralised management structure, which she believes provide too much decision-making power to the regional managers in London, Singapore and Australia. Tim disagrees with her and says that decentralisation is necessary to get the regional managers to try out new ideas' he says rigid policies and control systems stifle innovation and reduce growth. In fact, Tim intends to implement new performance measures to reward risk taking and entrepreneurial thinking. Ricki has recently implemented a new knowledge management system to help ensure information and knowledge sharing across the operating divisions. Elenora is wondering if perhaps this will help compensate for the lack of standardised operating policies and procedures across the regional officers. Required: Simon introduces a risk calculator that assigns risk exposure scores to nine pressure points. Discuss three (3) pressure points that you think are most critical to Psycho Mycko. In your answer, discuss (i) the score (high, medium or low) you would assign to each of these three pressure points, (ii) which exposure area each of these pressure points relate to; and (ii) the justification for these scores. Psycho Mycko specialises in online psychometric profiling. The company was incorporated in 2018 and has grown rapidly over the past 3 years to a total of 310 staff today. Its headquarters are located in New York and operating divisions have recently been set up in Singapore, London and Australia. Senior management consists of Tim Jones, an MBA graduate from Harvard Business School, Elenora Young, a psychologist with ten years of industry experience, and Ricki Martin, an IT graduate specialising in artificial intelligence. Recently, a new commission-based remuneration scheme has been introduced in the sales division. This has increased competition amongst the sales staff, who are competing fiercely to attract new customers and meet their performance targets. Tim is aware of this fierce competition but aspires to launch Psycho Mycko as an Initial Public Offering (IPO) on the NY stock exchange later this year and aims to maximise financial performance and turnover as much as possible. Psycho Mycko's business model is based on 'high turnover and low margins, so increasing sales is the fastest way of growing the business. Elenora is concerned about the negative impacts the new remuneration scheme has on the organisation's culture. She acknowledges that performance measurement has traditionally been a weakness of the organisation but believes Tim has gone too far with the new scheme. Elenora is also concerned about the new decentralised management structure, which she believes provide too much decision-making power to the regional managers in London, Singapore and Australia. Tim disagrees with her and says that decentralisation is necessary to get the regional managers to try out new ideas' he says rigid policies and control systems stifle innovation and reduce growth. In fact, Tim intends to implement new performance measures to reward risk taking and entrepreneurial thinking. Ricki has recently implemented a new knowledge management system to help ensure information and knowledge sharing across the operating divisions. Elenora is wondering if perhaps this will help compensate for the lack of standardised operating policies and procedures across the regional officers. Required: Simon introduces a risk calculator that assigns risk exposure scores to nine pressure points. Discuss three (3) pressure points that you think are most critical to Psycho Mycko. In your answer, discuss (i) the score (high, medium or low) you would assign to each of these three pressure points, (ii) which exposure area each of these pressure points relate to; and (ii) the justification for these scores.

Answer rating: 100% (QA)

1 New Commission based Rem uner ation Scheme High Risk Ex posure Area Financial Just ification The highly competitive nature of the new rem uner ation scheme puts the organisation at risk of making un... View the full answer