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Problems with the Cross-Cultural Manager
An American computer company introduce pay-for-performance in both the US and the Middle East. It worked well in the US and increased sales briefly in the Middle East before a serious slump occurred. Inquiries showed that indeed the winners among salespeople in the Middle east had done better, but the vast majority had done worse. The wish for their fellows to succeed had been seriously eroded by the contest. Overall morale and sales were down. It was contagious. Then the bosses discovered that certain salespeople were earning more than they did, high individual performances also ceased. Obviously these were problems, but the principal reason for eventually abandoning the system was the discovery that customers were being loaded up with products that they did not need. Whenever A tried to beat B to the bonus, the care of customers began to slip, with serious if delayed results.
Question: What do you think was the real problem and how should the Managers fix it. Explain.
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