ECS case study

Topics: Sales, Employment, Team Pages: 16 (5638 words) Published: October 12, 2013
This case discusses the problems and dilemmas faced by the employees of a leading IT distributor in Malaysia, ECC Berhad. It is a listed company on the Main Market of Bursa Malaysia Securities Berhad on year 2010 and is an associate company of ECC Holdings Limited, a Singapore Exchange main board company – leading ICT distributors in Asia Pacific. This case highlights the problems related to the de-motivation of the employees, especially in Sales Department of ECC Peri Sdn Bhd. As a result, the turnover rate of the employees is increasing and exit interview shows that the employees can’t find any career growth sense in the company.

Key words: De-motivation, sales employees, turnover rate, career growth

It was a raining Tuesday, at 5pm, few employees from Sales department gathered at pantry to have a short break before preparing for overtime. It was another month end where everyone was striving for targeted goal set by the management. Everyone was fed up. Kelly: I wonder what time I can go home tonight, my little daughter is still waiting for me to bring her to buy for her school clothes. My husband is persuading me to quit this job again; I am not sure how long I can hold. Winnie: Well, you do not have much to worry. You have an excellent account manager. You have already achieved your monthly target isn’t it? Chloe: Exactly! My team is still far apart from it, but manager, Mr Yoo is still not giving up and pushing us to get more orders by this week! Stressful indeed! I am not complaining but my account manager is too young in this area, the customers are not as powerful as your teams. I think my incentive for this month will be disappointing again. Janet: Well everyone, why are you guys complaining? I am not saying anything yet. Haha, frankly I am not stressful, because I know I will not achieve the target. I wonder when they able to hire a new account manager for my team. Being here for 6 months, striving alone, I think I will be the lowest achievement for this month again. So de-motivated! But what can I do? Mr Yoo is asking me to wait patiently, but sometimes I feel so unbalance to see little paid after working so hard, yet the Marketing colleagues are getting more incentives than me! Jenny: What? Seniors, I am really surprise. Do you mean they have incentives also? But they are just doing billing and ordering in house and we have to go outside to get sale? I feel like quitting! Janet: Ops, I think I should not tell you this.

Kelly, Winnie, Chloe: Hahaaa..

ECC Berhad distributes a comprehensive range of ICT products comprising of notebooks, personal computers, printers, software, network and communication infrastructure, servers, and enterprise software from more than 30 leading principals. With a nationwide channel network of more than 3,000 resellers comprising of retailers, system integrators and corporate dealers, ECC Berhad also provides value-added product support and technical services. The Group business segments comprise of the following:

(i) ICT Distribution
Distribution of Volume ICT products to resellers, comprising mainly of retailers (ii) Enterprise Systems
Distribution of Enterprise ICT products to resellers, comprising mainly of system integrators and corporate dealers (iii) ICT Services
Provisioning of ICT systems and services

Under ECC Berhad, there are four main subsidiaries which responsible for different scope and group of customers. It can be categorized as below:

ECC PERI is a wholly-owned subsidiary of ECC Berhad, began its operations in 1986 to distribute computer peripherals and other hardware to PC dealers. It is a leading value added distributor of Enterprise Systems and solutions serving the business and enterprise segments of the IT industry. Currently it distributes Enterprise Servers, Storage, Network products and software to its distribution network of over 500 Enterprise IT resellers and System Integrators...
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