In order to get more commission, employees were motivated to stare at the store entrance to have more customers as their own. We use cookies to give you the best experience possible. Read Full Essay Save. To the store managers of Vetements Ltee retail stores. Situational Analysis The new incentive system has led to differences among the employees. Email required Address never made public.

The new incentive system for Managers and Sales employees is acting like a double edged sword. This means not only helping customers make purchases, but also ensuring that customers are assigned to them. Fill in your details below or click an icon to log in: Vetements Ltee Mini Case send By clicking “Send”, you agree to our terms of service and privacy policy. Ease your MBA workload and get more time for yourself. Employees who stock inventory and serve low traffic parts of store have same inputs but lower outcomes than the hoarders. Tagging of customers by the sales employees as their own to earn commission.

Some managers have assigned employees to work at lower priced goods and less traffic areas, which has caused employees’ complained for getting lower commissions. The areas of focus in the equity theory are inputs effort, time, abilityoutcomes pay, achievementand comparison other other employees. Stduy store managers have tried, with limited success, to correct these problems.

Punishment also results in negative attitudes of those being punished towards the punisher. Organizational Behavior Modification Evidence: Notify me of new comments via email. Hi, I am Sara from Studymoose Stucy there, would you like to get such a paper? Work as a team and share rewards and introduce incentive programs. What are the underlying problems that have led to these symptoms? The E-to-P expectancy drops when every employee tries to hoard customers; the competition for customers reduces the change that effort will result in having more customers and therefore more sales.


Vetements Ltee Case – Essay

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.

By redesigning the commission system to motivate group rather than individual performance, the problems of customer ownership and intimidation would be reduced. soljtion

By leaving the sales floor to restock merchandise and complete reorder forms, employees are losing the opportunity to increase sales assigned to their name. To find out more, including how to control cookies, see here: Leave your email and we will send you an example after 24 hours caae Behaviour modification is a key factor because the reward system reinforces the inappropriate behaviours.

vetements ltee case study solution

Majority employees were unwilling to solurion inventory and complete inventory recorder forms, which caused a stores shortage at store.

These differences have arisen because of the new challenges that have cropped up due to the following: Store managers have to sometimes threaten to dismiss the sales employees on account of non-performance of inventory related activities. This could be bad if some sales reps slack but it should balance out by the other reps motivating them.

Sorry, but copying text is forbidden on this website! Based on both solytion theory and behaviour stucy, the organization should redesign its incentive system for sales employees so that they also receive financial compensation for these organizational goals. How about receiving a customized one?


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Sorry, but copying text is forbidden on this website. Equity theory also applies to this case because it refers to staff resentment that some staff gets more customers and that they are motivated to get more of their share.

vetements ltee case study solution

Also, the injustice of assigning employees to specific area have created the dissatisfactions among employees. Hi there, would you like to get such a paper?

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