JANE'S SWEET STUFF BAKERY

CASE

Jane Brown has operated Jane's Sweet Stuff Bakery for the past 6 years. By 5:00 a.m. every weekday morning, customers are dropping in both to enjoy the cozy smells and to purchase fresh warm donuts and other goodies to enjoy with their coffee before going to work. After 5 years of this schedule where she began baking by 3:00 a.m., Jane is very tired.

Jane has decided to hire an apprentice baker and a cashier to provide early morning counter help. She knows that she must stop treating her bakery as an extension of herself and begin operating a business. She has a friend with an MBA who told her to establish a performance measurement system, so that she can tell whether her two new employees are good employees or not.

It all seems so complicated. Jane has contacted the local Business School Co-op Program and asked for advice. Your professor assigned you to answer Jane's questions for 20 percent of your grade. When you meet with Jane, she tells you that she will need you to explain with examples related to her bakery "because I'm not good at theory."

She presents you with the following questions:

1. Define performance and explain how this term relates to her employees. [4 Marks]

2. Evaluate why all of this so complicated to Jane. [10 Marks]

3. Explain the kinds of performance you would be measuring and justify your answer