Case Affinity Plus
What is the goals of the new strategy operated through the MOE framework?
Putting the members before anything else
Member, Organisation, Employee.
Which recruitment channel was found to align employees most closely with organizational objectives in the study?
Referrals by aligned employees
What three types of pay were discussed in the article?
Below-market pay
At market pay
Above market pay
Explain the detection-based model
It allowed employees to deviate from the formal guidelines but required them to justify their decisions when they did so
What organizational change formed the context for the study's analysis?
The transition from a centralized to a decentralized business model.
What is the term used to describe the alignment of an employee's personal values with the values of the organization?
Value Congruent
What is the practice referred to as "crack cocaine", which significantly contributed to Affinity’s loan growth but conflicted with the MOE philosophy
Indirect Auto lending
Which framework prioritizes customer needs above organizational or employee considerations, as discussed in the study?
The "MOE" (Member, Organization, Employee) framework.
When employees are paid below the market rate, this will lead to ... individual task performance
Higher
Approximate percentage of employee turnover at Affinity in 2002 during its transition to MOE
65% employee turnover
What type of past experience was seen as potentially detrimental to aligning with the decentralized system's objectives?
Experience in traditional financial services organizations.
When employees are paid at market rate or above market rate their perceived partner value congruence is ... compared to when they are paid below market rate
Lower
What innovative tool did Affinity implement to document and justify exceptions?
Touche, internal IT system for managing member relations and documenting exceptions.
What is a primary characteristic organizations seek in employees to ensure alignment with their goals in decentralized systems
Empathy and a willingness to take ownership and accountability.
True or False
The underlying incentive of a pay rate above the market level is to attract employees who are more value-congruent and are better at teamwork.
False