RealGood Insurance Case Study – Part B


SKU: C-401 Category:


RealGood Insurance’s pay-for-performance incentives are producing anomalous results. While the incentives are producing the desired improvement in policyholder claims satisfaction, the cost of claims has also gone up significantly. Focus group feedback indicates the employees (1) are confused about management’s objectives; (2) have adopted new, helpful attitudes in resolving claims and are resolving claims quicker than they have in the past; and (3) are proud of their results, which are being celebrated by the office’s top manager.