Nano Products is a company in the consumer electronics industry. It is concerned that it is losing the competitive edge due to lack of new products. Research and development (R&D) division is responsible for new product development. In order to increase the number of new products introduced to the markets, the company introduced a new performance measure to the R&D division, speed-to-market. Speed-to-market measures the time a product is in development before it is released to the market for sale.

1. Identify two actions that employees/managers in the R&D division may take to improve the speed-to-market, but detrimental to the overall organization. Briefly explain (using 3 sentences) how each action you identified can be detrimental to the organization.
2. 4 points
3. For each detrimental action you suggested, identify one performance measure or a change in operations/policies that will overcome the problem you identified. If your suggestion can lead to other dysfunctional behaviors, suggest a complimentary performance measure to overcome the dysfunctional behavior.
4. 4 points

1. MSJ Programs Inc. produces software for individual users and small businesses. May Morgan manages the customer hot line department for the firm and is responsible for answering customer questions related to software products produced by all divisions of the firm. Which one of the following would be the least appropriate measure of her Performance? Briefly explain why it is the least appropriate measure.

1. Average time to provide an answer or solution to a customer.
2. Number of calls to the hot line for each new release of software.
3. Average time a customer is on hold.
4. Number of customer complaints due to incorrect responses given to customers
5. 4 points

1. David Burke is manager of claims processing for Continental Health Care System. His performance is evaluated using various measures agreed upon in advance with the general manager of the Health Care System. Which one of the following performance measures would likely have the least positive effect on Burke's motivation and performance as well as on the efficiency and effectiveness of the claims processing function? Briefly explain your reason.

1. Processing cost per claim.
3. Average processing time per claim.
5. Percentage of claims processed accurately the first time.
7. Total dollar amount of claims processed per month.