Case Study: Formal Essay Format: Typed, double-spaced, and written in 3 rd perso
ID: 348557 • Letter: C
Question
Case Study:
Formal Essay Format:
Typed, double-spaced, and written in 3rd person only (i.e., he, she, it, one, etc.) (no I, me, we, or you) utilizing APA or MLA format. If references are used, citations and bibliography are required. You should have paragraphs, not an outline. Papers are usually 5-7 pgs long. Remember - you do not want me to comment that your analysis is SUPERFICIAL.
Answer:
1. Synopsis of Case Study: The synopsis should be a brief summary of the case study. You are assuming that I, the reader, am unaware of the case’s contents. Include, however, only the important, key points.
2. Diagnosis of Case Study:
Describe the organizational problems. Include any theoretical support. For example: An organization has some problems with productivity. Apparently the company is using goal setting inaccurately. Now describe goal setting and how it is an integral part of this organization’s productivity problems.
3. Proposed Solutions to Case Study Problems:
Any proposed solutions should have theoretical support (see #3 above). Also discuss Pros and Cons of each solution.
4. Conclusion (Do not be superficial or weak in this section)
What is your preferred solution and why? Discuss Pros and Cons of the solution, and how you would address the Cons.
Case #1
Vêtements Ltée is a chain of men’s retail clothing stores located throughout the province of Quebec, Canada. Two years ago, the company introduced new incentive systems for both store managers and sales employees. Store managers receive a salary with annual merit increases based on store sales above targeted goals, store appearance, store inventory management, customer complaints, and several other performance measures. Some of this information (e.g., store appearance) is gathered during visits by senior management, whereas other information is based on company records (e.g., sales volume).
Sales employees are paid a fixed salary plus a commission based on the percentage of sales credited to that employee over the pay period. The commission represents about 30 percent of a typical paycheck and is intended to encourage employees to actively serve customers and to increase sales volume. Returned merchandise is deducted from commissions, so sales employees are discouraged from selling products that customers do not really want.
Soon after the new incentive systems were introduced, senior management began to receive complaints from store managers regarding the performance of their sales staff. They observed that sales employees tended to stand near the store entrance waiting to “tag” customers as their own. Occasionally, sales staff would argue over “ownership” of the customer. Managers were concerned that this aggressive behavior intimidated some customers. It also tended to leave some parts of the store unattended by staff.
Many managers were also concerned about inventory duties. Previously, sales staff would share responsibility for restocking inventory and completing inventory reorder forms. Under the new compensation system, however, few employees were willing to do these essential tasks. On several occasions, stores have faced stock shortages because merchandise was not stocked or reorder forms were not completed in a timely manner. Potential sales have suffered from empty shelves when plenty of merchandise was available in the back storeroom or at the warehouse. The company’s new automatic inventory system could reduce some of these problems, but employees must still stock shelves and assist in other aspects of inventory management.
Store managers have tried to correct the inventory problem by assigning employees to inventory duty, but this has created resentment among the employees selected. Other managers have threatened sales staff with dismissals if they do not do their share of inventory management. This strategy has been somewhat effective when the manager is in the store, but staff members sneak back onto the floor when the manager is away. It has also hurt staff morale, particularly relations with the store manager.
To reduce the tendency of sales staff to hoard customers at the store entrance, some managers have assigned employees to specific areas of the store. This has also created some resentment among employees stationed in areas with less traffic or lower-priced merchandise. Some staff have openly complained of lower paychecks because they have been placed in a slow area of the store or have been given more than their share of inventory duties.
MGMT3600 Vetements Ltee Case #1 [Compatibility Mode] a Search in Document Home Insert Design Layout References Mailings Review View Share ^ Times New Ro , 20·A-A-A- ·-·-·, T Paste Styles Pane Heading1 Heading 2 Title Subtitle CASE #1: vetements Ltée By Steven L. McShane, Currin University (Australia) and University of Victoria (Canada,) Vesemeats Ltée is a chain of men'sretail clothing stores loeated throughout the province of Qucbec Canada. Two years ago, the company introduced new incentive systems for both store managers and sales employees. Store managers roceive a salary with annual merit increases based on store saks above targeted goals, store appearunce, store inveatory management, customer complaints, and several other performance measures. Some of this information (c.g., store appearance) is gathered during visits by senior management, whereas other information is based on company records (e.g., sles volume) Sales employces aro paid a fixod salary plus a commission based on the parcentage of sales credited to that employee over the pay period. The commission represents about 30 percent of a typical paycheck and is intended to cncouragc employces to actively serve customers and to increase sales volume. Rctumed merchandise is deducted from commissions, so sales employees are discouraged from selling products that customers do not rcally want Soon afler the new incentive systems were introduced, senior managemen began to receive complaints from store managers regarding the pertormance of their sales staff. They observed that sales employecs tended to stand near the store entrance waiting to tag cussomers would argue over "ownership" of the customer. Managers were concerned that this aggressive behavior intimidated some eustomers. It also tended to leave some parts of the store unattended by staff as their own Occasionally, sales staff Many managers were also concerned about inventory duties. Previously, sales staff would share responsibility for restocking inventory compensation system, however, few employees were willing to do these essential tasks, On several occasions, stores have faced stock shortages because merchandise was not stocked or coder forns were not completed in a timely manner. Potential sales have suffered from empty shelves when plenty of merchandise was available in th back storeroom or at the warchouse. The inventory system could reduce some of these problems, but employees must still stock shelves and assist in other aspects of inventory management und completing inventory rcorder forms. Under the new c company's ncw utomatic Store managers have tried to correct the inventory problem by assigning employccs to inventory duty, but this has created among with dismissals if they do not do their share of inventory management. This strategy has been somewhat effective when the manager is in the store, but staff members sneak back onto the floor when the manager is away. It has also hurt staff morale, particularly relations with the store manager resentment armong the employces selected. Other managers have threatened sales staff To reduce the tendency of sales staff to hoard customers at the store entrance, some managers have assigned employces to specific arcas of tho store. This has also created some rosentment among employees stationed in areas with less traffic or lower-priced merchandise. Some staff have openly complained of lower paychecks because they have been placed in a slow arca of the store or have been given more than their share of inventory duties. Page 1 of 1 512 Words English (US) Focus + 100%Explanation / Answer
Synopsis - Vêtements Ltée is a chain of men’s retail clothing stores located throughout the province of Quebec, Canada. 2 years hence a new incentive system was put in place. For store managers it looked at merit points capturing sales and other measures which are captured by senior managers and company records. For Salespersons it is a fixed salary and a percentage component on sales.
Store managers now complaint that sales persons are fighting among each other to capture customers in store. Leading to more sales persons at the door and some store parts unattended. Also now sales persons were reluctant to look after inventory and thus there were problems of empty shelves when there was inventory in the warehouse.
All the actions implemented by management such as fixing duties , threats of punishment etc have led to more resentment in the employees and lead to complaints of low paycheck .
Diagnosis :- Sales persons are only incentivised for increasing sales. All other activities are not compensated or it appears that they are not valued .Naturally they are not motivated to do other chores. As per Incentive theory of motivation a person will produce that behaviour which he perceive as incentivised.
Solutions :- 1. Before opening the store get all sales people to fill inventory and do other required chores
2. Give a group performance incentive that is all the sales people will get equal commission basis sales in store. This has a drawback of demotivating outstanding performers
3. Value all activities by putting a second measure such as manager's weekly performance rating which will capture the parameters such as order compliance , coordinating efforts and over and above efforts for better store performance. This rating will have a moderateing effect on incentive. For ex Outstanding rating incentive 120% of normal , Poor rating incentive 80 % of normal , satisfactory rating incentive 100% of normal.
4. Start employee of the week / month to incentivise sales persons
Conclusion :- Drawing reward strategies seem simple but a careful consideration to all kinds of employee behaviors need to be carried out to ensure that they produce the desired effect