Vetements Ltee Mini Case

1152 Words Nov 3rd, 2012 5 Pages
Name of Case: Vetements Ltee Date Due: November 6, 2012

Problem Statement

Who has to make recommendation/decision: Vetements Ltee Executives
Has to do what: Adjust the incentive systems for both store managers and sales employees.
Why: The sales employees began to engage in activities that had an adverse effect on inventory management, employee cooperation, and customer relations.
When: Immediately
To Whom do they make recommendation: To the store managers of Vetements Ltee retail stores.

Analysis

A. Issues and Symptoms (cause and effects)

OB issue: Expectancy Theory
Evidence: motivated to stay by door to get to customers first because of more commissions.

OB issue: Equity Theory
Evidence: Sales reps
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This means not only helping customers make purchases, but also ensuring that customers are assigned to them. This is why employees to stand near the store entrance and possibly fight over who owns the customer. The more customers a sales employee has, the more sales will be rung up in that employee 's name.
The OB Mod concept of extinction explains why sales employees do not perform inventory control duties. By leaving the sales floor to restock merchandise and complete reorder forms, employees are losing the opportunity to increase sales assigned to their name. Higher commissions lost while employees are doing inventory work.
Store managers made ineffective use of punishment. Punishment is applied when store managers reprimand and threaten to dismiss employees for failing to perform inventory duties. Punishment tends to be effective only when the manager is present. Punishment also results in negative attitudes of those being punished towards the punisher. This should only be a last resort.
Alternatives

Decision Criteria (specific, measureable)

1) Improve customer service and satisfaction 2) Improve employee involvement in inventory system (rewards) 3) Boost employee morale, and reduce employee conflict. 4) Improve store appearance and sales.

Viable Alternatives and their Analysis of Alternatives:

1) Alternative: Institute an even

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