Raleigh & Rosse Case Study

1. What is the cause of the problems in the case? How serious are these problems? How would you quantify the potential financial risk to R&R?

2. Are R&R employees pressured inappropriately by the sales-per-hour system? By management?

3. How effective is the memo shown as Case Exhibit 4 in clarifying the distinction between sell and nonsell time?

4. How would you redesign compensation and performance appraisal systems at R&R? Is sales-per-hour an effective measure of customer satisfaction? Are R&Rs HR policies and practices fully aligned with its business strategy?