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Plaza Grocery Case Study

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I. INTRODUCTION Mr. Brad Holden is the executive vice president of the family-owned business chain of six branches, Plaza Grocery, in the metropolitan area. Mr. Holden's recently been swamped with problems regarding his employees, specifically the stock employees considering they are paid according to what is stated in the hourly wage rate in the Federal Law. He observed that they are not efficient and effective enough in their jobs, which resulted to empty shelves and slow service most of the time. He also had a hard time in obtaining enough applicants for Plaza Grocery and worse is his employees are doing only the menial level of effort in their jobs. He also noticed that his employees are lacking motivational drives to strive harder …show more content…

This alternative course of action is enough to motivate workers because these concern their families. Brad Holden will have to make records of each employee to check their performance and growth and this environment can create competition among workers. VI. RECOMMENDATION/CONCLUSION Plaza Grocery experiences problems with its employees due to low compensation and lack of incentives. Even after consulting a local expert, the same causes are pointed as the reason for the employees’ poor performance. Given this situation, we recommend the company to apply the second alternative course of action, which is to increase the wage rate and apply an incentive system. The store, having only six branches, can easily increase the wages due to the relatively small number of workers. However, once an increase is implemented in one branch, the same shall be applied in the other branches to emphasize the sense of equity among the employees of all branches. Although this may entail costs for the company, the increase in workers’ productivity may lead to higher sales, providing more revenue. In the long-run, the benefits would outweigh the costs. Although increasing the wage rate may motivate the employees to work harder, it is not enough because it would not always and ultimately lead to the satisfaction of their needs. What the company can do is to adopt an incentive system. The incentives the

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