Performance
Six measures of performance were provided from archival company records. Each measure was for a 6 month period, beginning 3 months after the administration of the attitude survey (see figure 1).
These measure represented the major performance measures tracked by the corporate headquater as indicators of a business success.
'Workers' compensation was the workers' compensation expenses incurred during the 6 months divided by sales; the lower the number the better.
Quality was measured as 100,000 pieces per error, where each piece represented a carton.
'Shrinkage' was measured as the percentage of inventory loss, including loss due to spoilage, warehouse outs, inventory adjustments, cycle count adjustments, warehouse damage, delivery shorts, delivery damage, samples shrinkage and sales return damage.
Productivity was assessed as payroll expenses for all employees, divided by the number or pieces; the lower the number the better.
Operating expenses consisted of all relevant business operating expense, including warehouse, occupancy. delivery, selling, data processing and general and administrative expense. Finally, Profitability was assessed as the operating pre-tax profit of the business unit as a percentage of sales where operating pre-tax profit was calculated as sales (cost of goods sold+operating expense+cash discount)