In an attempt to rectify these problems, Vêtements Ltée attempted a few solutions. They assigned people to do the inventory and stocking. This caused bitterness and resentment. Then managers asserted their power by threatening staff with dismissal if they did not stock the shelves. This was successful when managers were in the store, but when they left, employees snuck back onto the floor. Management also assigned employees to certain areas in the store, but then employees complained about being assigned to slow areas. These actions broke down the trust between the managers and employees and hurt staff morale.
Vêtements Ltée needs to realize that some employees, but not all, are motivated by rewards and bonuses. When employees are motivated and excited about their jobs or because they are doing something that provides a service to others, they are much more productive and satisfied with their careers. Vêtements Ltée needs to find a happy medium which uses both economic and social incentives. It needs to abandon its new commissions program and switch to a profit sharing program. There are a few easy solutions that Vêtements Ltée could attempt: Option 1 Keep commission incentive
Hire employees at a specific wage who are in charge of stocking shelves and keeping inventory Rotate employees throughout the store so that no one is in a specific location for an extended period of time Option 2 get rid of commission incentives
Hire employees at a specific wage who are in charge of stocking shelves and keeping inventory, or rotate each employee through the stocking position. Each employee will fill in a stocking log that specifies everything that they did during their shift. Have a base pay for all employees, and split the merit that is above the target sales with all employees and not just the manager
Give a bonus to the branch of Vêtements Ltée that has the greatest increase in sales compared to their previous year. Option 3 -- Fire all employees and hire all new employees (very impractical)
I would recommend the second option. However, Vêtements Ltée is also going to need to make some additional changes.
I agree with management theorist Frederick Herzberg. He said,...