First Federal Savings
- Students should read this case and come to class prepared to discuss the following
questions:
- Should Gene Rice recommend a bonus for this year even if profits are less than
projected?
- What will be the impact of Gene's decision on the future motivation of his executives?
- What is your evaluation of First Federal's bonus plan? Would you recommend
changes?
- How important are bonus systems like the one at First Federal in stimulating effective
managerial performance? Do they create problems?