Motivation at Monarch Supply Company: a Case Study

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Case Analysis
MGT 390
10/18/12
Kelly Dengler
Matthew Lam
Isaiah Wright

Introduction:The major issue that is concerning Monarch Supply Company is that seems to be a rather large disconnect between the employees working in the field sales department and the inside sales department which is causing a number of problems for the company, and jeopardizing their sustainable competitive advantage of other firms. The field sales department is regarded by most as being the backbone of the company due to the vast engineering background all employees are required to have and the extensive interactions they have with the customers. The field sales department are all paid strictly on a commission basis with the salary ranging anywhere from $50,000 to $95,000. The inside sales department is responsible for supporting the field sales department by doing tasks such as, ordering equipment, expediting orders and quoting prices. In addition the inside sales department are responsible for handling all direct phone calls from customers interested about the prices of certain pieces of equipment. The inside sales representatives are paid on a salary basis with annual raises being based on the scores each employee receives on company performance appraisals. If an inside sales representative is performing their job to a high degree, they may in turn be asked to become a field sales department if the opportunity arises. In the midst of certain mistakes occurring, which have the potential to ruin Monarch’s credibility with customers if it continues; interviews with company employees have been conducted in which employees talk about their jobs and “point the finger” as to whom they deem responsible for the screw ups that have been occurring in the company. Problem Identification:

* Monarch’s level of service has declined, which continues to result in a loss of clients to their competition. * Problem mainly lies within the two different job perceptions held by the Field Sales force and the Inside Sales force. * Field Sales employees really enjoy working in the sales department, having a lot of interactions with customers, and receiving positive feedback from those customers when a job is done correctly. The Field Sales employees are able to reach such a high level of enjoyment because they find pleasure in being able to successfully fix any problems that customers may have. In addition, they have been with the company for a long time and view working for Monarch as being their job of choice. * The Field Sales force is comprised of employees who are highly motivated to work hard due to their salary being solely based on commission. * Inside Sales employees see their job as something to hold them over until a better opportunity comes along. When asked to talk about her job, Beth Sammuels responded with comments such as, “This job is O.K.” and, “I just take the order and shut up.” * Comparison of the Two Perceptions using the Job Characteristics Model: * Field Sales employees are high in task significance, feedback from job, and autonomy, but are lacking in skill variety. Extremely high levels of the three job characteristics seem to cause the employees to have an overly high sense of experienced meaningfulness. * Task Identity – Field Sales representatives have an average sense of task identity because they are all aiming for the common goal of fixing customers’ problems, but in order to do so they must work closely and on a personal level with the customers. * Task Significance – They believe they have one of the most important jobs at Monarch Supply Company and that the entire business would fall apart without them. * Autonomy – Field Sales employees are barely supervised and have the freedom to use their knowledge and educational background to solve problems for customers. * Feedback from Job – Customers tell the Field Sales employees how...
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