CASE - Puente Hills Toyota

Case summary:

Because the incentives provided in this company and the US automobile dealership sector in general, are quite substantive, this case describes an auto companies performance measurement and incentive systems. Puente Hills Toyota has some features that, individually and in combination, make it different from most other companies described in cases that focus on incentive systems. This company is privately-held; it makes use of some non-financial performance measures; provides incentives to personnel well below the management level; and its managers are well aware that people are 'playing games' with some of the measures.

 

Question:

Describe 3 major incentives in either sales or service department. Describe 2 ways that management was able to control 'game playing' temptations.