Case Study &. VETEMENTS LTEE Vtements Lide is a chain of en\'s Canada Two years
ID: 3453924 • Letter: C
Question
Case Study &. VETEMENTS LTEE Vtements Lide is a chain of en's Canada Two years ags, the cmany y introduced not complesed in a timely manner. Potential sales ore managers and have suffered from empty shelves when plenty of the back soreroom new incensive syses for boch store managers and y widh annual mert increases based on store customer complaints, and or at the warehouse. The company's new astomatic inventory aystem could reduce some of dhese peb lems, but employees mut soill stock shelves and ales above targeted goals, sore appearance, inlormation (eg, volme) es Some of this assist in other aspects of inventory store appearance) is gathered durStore managers have tried to correct the inventory by aigning employees to inventory duty mabion is based on company records (eg, sales but this has created resentment among the employees ing viaits by senior management, while other infor- selected. Oher managers have threatened sales Sales employees are paid a fixed salary plus a com with dismissal if they do not do their share of inven tory management. This stralegy has been somewhat mission based on the percentage of sales credised to hat employee over the pay period. The commission eflective when the manager is in the store, but members sneak back onto the floor when dhe man epeesents about 30 pecest of a typical paycheck and is intended to encourage employees to actively serve customers and to increase sales volume. Because re- relations with the store manages turned merchandise is discounied from commissions To reduce the tendency of sales stallf to hoard sales employees are discouraged from selling prod- custiomers at the store entrance, some managers ucts that customers do not really want ager is away. It has also hurt staff morale, particularly have assigned employees to speciflic areas of the Soon aber the new incentive systems were intro- store. This has also created some resentment among daced, senior management began to receive com employees stationed in areas with less traflic on plaints from store managers regarding the perfoemance lower-priced merchandise. Some stall have openly of dheir sales stafl. They observed that sales employees complained of lower paychecks because they have tended to stand near the store entrance waiting to been placed in a slow area of the store or have been ag customers as their own. Occasionally, sales stall given more than their share of inventory duties would argue over "ownership" of the customer. Man agers were concerned thalt this aggressive behavior Discussion Questions some parts of the store unattended by staff hai some- Many managers were also concerned about in thing has gone wrong? ventory duties. Previously, sales staff would share 2. What are the main causes of these symptoms? responsibility for restocking inventory and com 3. What actions should Vetements executives take pleting inventory reorder forms. Under the new to COrrect these problems? compensation system, however, few employees were willing to do these essential tasks. On several 1989 Seven L. McShaneExplanation / Answer
1•The symptoms that reflects that there are inter and intra conflict behaviours being experienced in the store, are as follows.
1.After the introduction of the new incentive plans, the customer service in the store was negatively effected. For example, in order to attain more sales, the sales staff started to claim ownership of the customers visiting the store. This reflects aggression and easily intimated the customers.
2.Since the introduction of the new compensation plan, the sales have dropped as staff refused to share responsibility of restocking inventory and completing reorder forms. The section with potential sale were left unattended and empty, which significantly effected the output and profit of the store.
3.Intra personal conflict with the manager To avoid hoarding the customers, the manger allocated spaces to the sales staff in the store. This has led to feelings of inequity among the staff . Staff complained about low paycheck as some of them were alotted saces with less cost merchandise , thereby leading to less sales.
2• Main cause of these symptoms is as follows.
Equity theory (Stacy Adams 1960). - As seen in the case study, there is a sense of inequity between the sales staff members on the allocation of specific areas of store which has led dissatisfaction among staff who are allotted areas with low cost merchandise and less traffic, which significantly influencing their monthly pay. There is a feeling of being under-rewarded among ceratin sale staff, which has created distress and a workplace tension between the store managers has developed.
3.Actions that executives shpuld take to correct these problems are as follows.
A sense of equity should be established within the sales staff, via balanced methods of allocation of the store space with equal opportunity to increase their target sale. A feedback questionnaire should also be developed for the managers and sales staff to know their ideas, concerns and ways to make a workplace environment more goal oriented.This would focus on inclusion and inculcate a feeling of motivation and coheiseveness among the staff members to achieve the target sales as a group, rather than individuals. There can be workhops held in the store occasionally to address the ways to deal with office conflict and focus on activities that reduces the inter-group friction , thereby creating a positive relation and work environment .