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  • Essay / Patagonia Inc. Case Study - 1121

    Workers were curious about financial statements and appreciated the “brain food” classes. It's all what we like to call "fool's gold" because the problems started showing up late in the year. Unfortunately, it turns out that many goals were not met, a lack of communication emerged, and employees began to blame each other. Patagonia employees began to manipulate the system in the second year by changing the goals so that they were very easy to achieve. Therefore, it damaged the financial statements and did nothing to challenge employees and improve the company. At this point, it is obvious that the workbook process is not working the way Patagonia intended. Although things could change at any time, it is unlikely that they will. Moving forward, we suggest Patagonia resolves the issues, listen to questions 1 and 2: • The workbook process is heavily oriented toward finances, which is contradictory in a company that places profitability as a secondary concern. • Lack of employee participation due to lack of understanding of finances • Unnecessary costs in time and paperwork • Lack of individual rewards for motivation (group rewards prove unmotivating) • Results of new ideas diminish enthusiasm for the news • Uncertainty between departments and goals • The process does not contain a long term