Case Study : Au Bon Pain

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At Au Bon Pain (ABP), Ron Shaich, company President hired Len Schlesinger as Executive Vice President/Treasurer to increase sales and improve quality. They recognized store performance and customer service were degrading from the phenomenon they called “the cycle of failure” caused by chronic employee shortage, inability to recruit high performing managers and insufficient training. Ron/Len identified that a new competitive compensation program (pay for performance) at the manager level could create a new level of loyalty and attract top talent that could reverse the cycle of failure. The new Partner/Manager program would result in greater accountability to drive store outputs through employee ownership subsequently improving the…show more content…
Effective group decision making needs to minimize process loss by addressing composition, participation and influence problems within the group setting. Leaders need to legitimize disagreement within the group to encourage varying views. Leaders also have to address and manage individual’s motivations. Thorndale’s Law of Effect indicates one’s effort is controlled by the consequences and contingencies individuals put upon it. Thus, performance can deliver desired results if individuals understand, believe and value the reward they will receive for their positive behavior and effort. Intrinsically motivated individuals will perform regardless of the reward associated with their efforts; while extrinsically motivated individuals are driven based on the rewards. Organizations can benefit from a balance of both, as each type of individual can produce results that help meet the overarching goals and objectives. Creating an environment where behavior is encouraged through ownership and participation is better than behaviors cultivated through coercion. Strong leaders are able to influence others to work together effectively and get others to want to do what the leader needs them to do. In a negotiation, acquiring information creates value which helps in making trades to satisfy the needs of both sides. By shifting the

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