Sharpe BMW – Case Study Example

Sharpe BMW Case Summary and Detailed Responses to the Questions Provided In the Case Study Since the departure of the previous service director, service department’s revenue and customer satisfaction index rating (CSI) have fallen (Cummings & Worley, 2009). Deshane discovered that the problem at the service department was the differential rate of remuneration paid to service technicians for the two types of jobs (customer pay work and warranty dealership job). There is great disparity between customer pay and warranty pay. To correct the problem, the service director, Bob Deshane, intends to transform the service department by implementing a new compensation plan. Tom, Dun, the company’s service manager is to implement the plan aimed at improving dealer’s CSI ratings and the service department’s revenues. Dun’s main concern is how to effectively implement the bonus plan, which could help to address the long-lived industry problem of technician compensation.
One of the pros of the plan is that it is a motivator to the service technician. Jack Sycamore, a level-two technician, feels satisfied because he sees that his efforts are rewarded beyond good work praises. Also, the bonus plan can enhance efficiency of technicians and hence the service department leading to high level of customer efficiency. However, the plan also has cons because the bonus offer is meager as stated by Peter Jackson, a level-one technician. It also does not recognize technicians’ level of certification, which can demoralize high-level technicians.
Implementation Plan for Dun
The implementation plan is based on Kurt Lewin’s 3-step change management model of Unfreeze – Change – Refreeze.
1. Unfreeze: Preparing the department to accept the need for change. Use compelling message to demonstrate that the status quo must be dismantled by indicating important facts like declining revenues and CSI ratings. Create uncertainty.
2. Change: Communicate the likely change benefits and how it will take place to the people involved.
3. Refreeze: fix changes into the department’s culture, provide relevant support and celebrate success.
Cummings, T. G., & Worley, C. G. (2009). Organization development and change (9th Ed.).Mason, OH: Cengage.