Utilize motivation concepts and theories. Directions: Read the Case for Critical
ID: 469526 • Letter: U
Question
Utilize motivation concepts and theories. Directions: Read the Case for Critical Analysis “Lauren’s Balancing Act” at the end of Chapter 12. Answer the following questions: 1. What do you see as the advantages and disadvantages of the incentive system that DeMarco’s is using for sales associates? What impact do you think it is having on the DeMarco’s culture? Explain. 2. Do you think the complaints of lower-paid sales associates are legitimate? Why? How do you suggest Lauren respond to these complaints, such as the gripe that the system offers few opportunities for large commissions in some departments? 3. Have the successes of sales associates such as Katherine or Damien created a situation in which loyalty to customers is stronger than loyalty to the store? For example, if a successful associate leaves DeMarco’s, might the customer leave also? 4. What do you think DeMarco’s should do to motivate employees and keep the cooperation culture of the store alive and how should DeMarco’s implement it? Prepare this assignment in a Microsoft Word document using Times New Roman 12-point font, and double spaced. Use proper spelling, grammar, and punctuation. The response should be 1-2 pages.
Explanation / Answer
1. Advantages and disadvantages of the incentive system for sales associates - The Impact it is having on the DeMarco’s culture - Explained:
The change from pay per hour into a commission that was calculated as a straight forward made some definitive advantage. As the amount of commission received is directly proportional to the number of customers serviced, employees are now better motivated to work harder and with sincerity. They get better job satisfaction now days.
But the drawback is that the commission is based on the sale price of an item – for example, if you declare that the salesperson would get 10% of sold amount as commission, then those people working in luxury products would get more commission than those in economical products – As an employee in Accessories section mentioned that what she gets from selling a $50 belt is too meager compared to what Katherine gets by selling designer dress for $2800. But the number of belts sold per day could be much more than the number of designer suits sold per day – but they cannot gurantee that probability.
2.
The complaints from lower paid sales associates are legitimate because people doing the same job are paid differently. Unless they are given deputation or department rotation so that everyone will get a chance to work in higher valued commodities, their commission system cannot be balanced. Alternatively, Lauren could introduce hourly wages along with commissions. In that case those who are getting lower commission may get satisfied with the higher amount of hourly wages they receive due to their longer working hours.
3.
At two instances they (the customers) might continue to be loyal to the store – first are they able to find an equivalent sales associate who is as good as the one who had just left? Second, are they not finding the same product with the same quality for a lower price in a nearby rival store? If both the answers are yes, then they are more likely to continue to be loyal to the store even after their favorite sales associates are left.
4.
In order to motivate they could satisfy their employees on motivation levels like physiological factors, psychological factors, physical factors, hygiene factors, self esteem needs, job needs, and motivational needs.
They could introduce cash reward, performance bonus, non cash awards like employee of the month award, team of the month award, certificates etc.
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