British Airways Case Summary

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Assignment Questions:

1. Evaluate TMS’s system of measuring, evaluating, and rewarding the performances of the regional general managers. Be sure to identify the key issues related to managerial authority and financial responsibility.

TMS’s system of measuring, evaluating, and rewarding the performances of the regional general managers was, as they called it, “tiered”. They started the rewards at the top, the general managers, and allowed them to allocate the rewards throughout their salesmen based on sales, and when the sales occurred. With TMS being the largest seller of import cars and trucks in the United States (with sales over one million), they were evaluated based on the number of promotional vehicles they could sell in
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They should start the change in some of their more profitable divisions of the company. They have proved that they are profitable so they have the human resources, marketing and finance divisions’ in-line. They would need to have someone in to teach them about the port-of-entry division to make them a solid solo division that is completely decentralized from TMC. From there they would need to monitor the division to see where any possible issues may occur and iron them out. From there they could begin implementing them in other more profitable divisions and slowly turn them all into independent operations.
I suggested starting with the most profitable divisions first due to the fact that they are financially stable and would be able to handle any issues that may arise during this transition. They would be the most resilient to change and would be a good model for all the other division to see what is to come and what changes to expect.
Case Analysis:
Key Issues:
Change was the main issue of this case. TMS was expected to change from a centralized company to a decentralized company. They wanted their GM’s to be more responsible for what was happening in their divisions, not only their successes, but their failures to. The GM’s were to take over the finance, human resources, marketing, and port-of-entry operations. TMC felt that this would make them look at long-term goals,
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