Vêtements Ltée
1. Problem Statement
The company is faced with the issue of channelizing its human resources bandwidth in the right direction so as to achieve the goals of the company and fulfill the expectation of its employees. The new incentive system for Managers and Sales employees is acting like a double edged sword. On one side it is discouraging sales employees to sell products to customers they do not really want and on the other hand there are constant differences among sales employees as well as between sales employee and manager. These issues needs to be sorted out at the earliest possible as it is affecting the morale of the employees which will reflect in the company’s image, efficiency, service and financial results.
2. Situational Analysis
The new incentive system has led to differences among the employees. These differences have arisen because of the new challenges that have cropped up due to the following:
1. Tagging of customers by the sales employees as their own to earn commission. The sales employees keep waiting at the entrance of the stores to tag the customers as their own.
2. Some areas of stores having fewer sales as compared to others and sales employees openly complain about the same.
3. Declining interest of the sales employees in inventory management as it is not linked to commission.
4. Store managers have to sometimes threaten to dismiss the sales employees on account of non-performance of inventory related activities.
SWOT analysis of the new incentive system.
Strengths
1. The new incentive system focuses on the productivity of the employees. The incentive system has been designed to benefit the company financially by incentivizing the sales employees for increasing the sa ...