You are the HR Manager for a group of car dealerships for Auto Plaza. Last year the owner wanted to move from a low base pay plus high commission pay structure for the car salespeople to a pay-for-performance model. This pay-for-performance model based the incentive pay on not only the sale of a car and its price point but also on customer satisfaction. The owner believed this new pay-for-performance (incentive pay model) would motivate employees to perform at their best, align their efforts with organizational goals, and reward exceptional performance. The owner believed this new pay model which has a focus on customer satisfaction, would help the organization compete in a new era of consumer preference of purchasing cars without going to the dealership, such as online-only car purchasing. Unfortunately, many salespeople were very unhappy with this change, and sales declined dramatically. The owner was forced to reinstate the old pay plan and has directed you to determine why the pay-for-performance change initiative failed.
Based on your review of the organization, how the change plan was implemented, and employee reactions, you have determined that there was no sustained encouragement for employees to learn and adapt to new market realities. Most employees saw no reason to change how “things were always done” in this organization. You conclude that the organization is not prepared to evolve continually and adapt to changes in the industry and market. Therefore, you decide to prepare an executive summary for the CEO that argues for transforming his company into a learning organization.
Instructions
Write an executive summary using APA format (Title page, Reference page, citations) in Microsoft Word (minimum three pages) that addresses the following:
· Explains the concept of a learning organization and its importance in responding to environmental changes at Auto Plaza.
· Describes the five main characteristics of a learning organization and how they are applied to Auto Plaza.
· Provides examples of the benefits of becoming agile for Auto Plaza as a learning organization.
· Provides examples for the CEO of Auto Plaza of how a learning organization reacts to triggers related to environmental changes.
· Details the three stages Auto Plaza must go through (cognitive, behavioral, and performance improvement) to become a learning organization.
· Describes immediate actions Auto Plaza can take to begin the transformation process into a learning organization.
· Provides attribution for credible sources used in the executive summary.
Resources
Library Databases
· A – Z Database List
Guides