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Valley Winery

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Valley Winery, a successful wine company based in California is quite profitable but faces many problems in their organization. Such problems consist firstly of a very high employee rate turnover rate. This rate is actually 100% per year. Each year they hire an average of fifty sales people per year and the longest working sales rep has only two years of experience with the company. A second problem facing this organization is its complications with management skills. And the third problem is the lack of skills that salesmen possess
The problem of the high employee rate is a large issue. This mainly because the reduction in the turnover of employees will definitely increased profitability keeping it easier to obtain future sales. This issue …show more content…

With regards to continuous restructuring of the company. This issue is a big factor that even stimulates the first problem. With the re- evaluation of the organizational structure the employees tend to lose confidence and trust in those in charge and therefore their performance is hindered because of this. Concerning the hiring skills of the company it is very inefficient such as recruiting college kids, newspaper advertisements, employment agencies and job notices on job search websites. These hiring skills are very costly and time consuming. The high expectations of management to meet high quotas is unreasonable and thus puts pressure on the salesmen causing them to perform unethical actions such as posting incorrect sales figures just to please their managers. Options that can assist the firm in these issues are by management evaluating the company and making a consistent and permanent organizational structure. To make the hiring process more efficient it needs to be shorter in length, be specific in the characteristics of the potential employee to avoid the many steps and narrow the amount of hiring methods to reduce costs. Not stretching quotas is another factor that needs to be considered by management. This can be done through lowering their expectations of sales in the same time frame that currently exists making them realistic, give incentives if they need to be stretched, employ feedback from sales persons so as to assign comfortable quotas around each

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