Solved Case Analysis: Mountain Lumber Company by Luann J. Lynch


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In 1998, Mountain Lumber Company implemented a performance measurement and incentive plan for all company employees. Details of the plan by department for both managers and non-manager employees are presented, and students are asked to review and evaluate the plan in light of the company’s strategy. The case exposes students to evaluating key success factors and developing performance measures for successfully implementing organizational strategy, linking performance measures to monetary incentives, identifying possible unintended consequences of performance-measurement systems, and developing compensating control mechanisms to discourage those behaviors.

Publishing Authority:

Darden Business Publishing – University of Virginia


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