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: The well paid recepcionist - Case Study Example

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Value driven management is a growth oriented managerial strategy that involves organization and control of activities with the aim of maximizing an organization’s long-term value based on value theory. I, in this paper and based on ‘The well paid receptionist case study,’…
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Case study: The well paid recepcionist
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Case study: The well paid receptionist Value driven management is a growth oriented managerial strategy that involves organization and control of activities with the aim of maximizing an organization’s long-term value based on value theory. I, in this paper and based on ‘The well paid receptionist case study,’ discuss significant value drivers in the case and identify specific aspects of the drivers.
The case involves a business enterprise that established from limited resources but has expanded to massive capital base and revenues. The proprietor, Harvey Finley, established the business and recruited Ms. Brannen who was to work as a receptionist and a secretary. Harvey recruited Branned at an annual salary of $ 14000 with a reward of two percent of the organization’s sales. Brannen’s outstanding professional qualifications and personal attributes have contributed to the massive expansion of the enterprise and her total annual remunerations amounts to $ 127614. While the other employees have not complained about Brannen’s remunerations, though they seem aware of the level, Bradley has realized the need for a review (Cousins, 1992).
The key factor to value over time maximization in the case is the high remuneration to Brannen. The total remuneration is too high relative to her basic salary and remunerations for her position in the organization. One of the most significant drivers to be considered for the value over time maximization is the return on investment in Brannen’s human resources to the enterprise. This driver is fundamental to the long-term value because it determines productivity that culminated to benefit. The “net present value” of the enterprise is another significant driver for evaluating viability of the remuneration rate (Kaplan, 2005, p. 84). Employees’ level of trust organization and solidarity with the organization are other important value drivers for consideration because they determine employees’ commitment to an organization’s value objectives (Woodside, Golfetto and Gilbbert, 2008). Growth in sales and operation margins are other significant drivers to the case as determinants of an organization’s present and long term economic value (Berman, 2007; Kok, Wit and Wiggers, 2004).
Return on investment
Brannen joined the organization in its start up period and her presence during the growth identifies her efficiency, especially before other employees were employed. Her potentials that meet customer’s expectations also identify her significant contribution to the organization. The level of remuneration, $ 127, 614 per year, is however high for her position and is likely to demoralize other employees at higher levels who are receiving lower remunerations. Reducing her rewards may however demoralize her and force her out of the organization. Empirical evaluation to compare her contribution to the enterprise with her remuneration is therefore necessary (Cousins, 1992).
Net present value
Even though the business’ net present value is not disclosed, its ability to pay $ 200000 to the Harvey, $ 127614 to Brannen and pay other employees means that its value can afford its current expenses. Brannen’s high rewards depend on sales and therefore offer no threat or potential threats to the organization’s current value (Cousins, 1992).
Trust and solidarity
Brannen has worked for the organization for a long time and her continued commitment to her post regardless of her high earnings identifies her level of trust and solidarity with the business. Compromising the trust and solidarity by a remuneration review is the major problem with threats of failing to derive such trust and commitment from other employees as potential problems (Cousins, 1992).
Sales growth and operations margins
The business has demonstrated growth prospects in sales and revenues and Brannen’s input may be significant. A review that might force her to leave the organization or reduced her productivity may compromise these growths and the business’ long-term prospects (Cousins, 1992).
Bradley should therefore apply analytical approaches to evaluating the relationship between Brannen’s remuneration and her contributions, and effects of a downward review on her, other employees and the overall long-term net value of the business (Cousins, 1992).
Berman, J. (2007). Maximizing project value: Defining, managing, and measuring for optimal return. New York, NY: AMACOM Div American Mgmt Assn.
Cousins, R. (1992). The well paid receptionist. Huizenga School of Business and Entrepreneurship. Retrieved from:
Kaplan, J. (2005). Strategic IT portfolio management: Governing enterprise transformation. London, UK: PRTM.
Kok, H., Wit, M. and Wiggers, P. (2004). IT performance management. Burlington, MA: Routledge.
Woodside, G., Golfetto, F. and Gilbbert, M. (2008). Creating and managing superior customer value. Bingley, UK: Emerald Group Publishing. Read More
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