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Vêtements Ltée is a chain of men's retail clothing stores situated throughout the province of Quebec. Two years ago, the business presented new incentive systems for both store managers and sales staff members. Store managers in each store receive a salary with yearly merit increases based upon sales above targeted goals, store look, store inventory management, customer grievances, and numerous other performance procedures. A few of this details (e.g., store appearance) is gathered during visits by senior management, while other details is based on company records (e.g., sales volume).
Sales staff members are paid a repaired salary plus a commission based upon the percentage of sales credited to that employee over the pay period. The commission represents about 30 percent of a typical paycheque and is planned to encourage employees to actively serve clients and to increase sales volume. Due to the fact that returned merchandise is discounted from commissions, sales workers are prevented from selling items that clients do not actually want.
Not long after the brand-new reward systems were introduced, senior management began to get complaints from shop supervisors concerning the performance of their sales staff.
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They observed that sales workers tended to stand near the store entryway waiting to "tag" customers as their own. Occasionally, sales personnel would argue over "ownership" of the customer. Supervisors were concerned that this aggressive behaviour intimidated some consumers. It also tended to leave some parts of the shop unattended by personnel. Numerous supervisors were also concerned about stock responsibilities.
Formerly, sales staff would share responsibility for restocking stock and completing stock reorder types.
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 paycheques because they have been placed in a slow area of the store or have been given more than their share of inventory duties.
Human Resource Management at Vetements Ltee. (2016, Sep 17). Retrieved from https://studymoose.com/human-resource-management-at-vetements-ltee-essay
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