Vetements Ltee is a chain of men’s retail clothing stores located throughout province of Quebec, Canada. Company introduced incentive scheme to have more sales resulting more profits. Topmanagement began to receive complaints from store manager and other areas and also from the customers.
2. https://prezi.com/dfo1hr_fk4i7/orgb-1105-vetements-ltee/ https://www.coursehero.com/file/7056632/Module-5-Case-Study-51-Vetements-Ltee/
Work as a team and get equal salary or reward seems to be the best because it will reduce competition and help to create a healthy working environment where people can count on each other and help one another. There should be a sense of community.
1. Some symptoms that suggest that something has gone wrong are: •Constant arguing and conflict between employees. •Deteriorated relationships between employees and between management and employees. •Intimidated and uncomfortable customers due to customer “tagging” and aggressive behaviour by the employees. •Poor inventory levels and consequently poor sales as employees are unwilling to complete reorder forms and stock shelves (decreased profit margins). •Management is concerned about employees’ lack of concern in regards to inventory management (stocking up the merchandises). •Resentment towards management for being forced to do inventory duty and for being assigned at the “slow spots” on the floor. •Negligence of some parts of the store because employees do not want to work at the “slow spots”. •Vocalization of disgruntled and unsatisfied staff on their low paycheques. •Managers’ efforts to correct the store issues and employee complaints have failed, resulting in more tension and decreased productivity and morale.
Some of the main causes of these problems are as follows:
• Due to commission based on the percentage of sales given to that employees over the pay period, employees are motivated to get more customers and prefer waiting at the store entrance rather than attending the lower traffic parts of store and completing inventory duties.
• Store managers tried to solve inventory problem by assigning employees to inventory duty but in the absence of store manager, they sneak back to the floor to get more customer which has hurt staff morale, particularly relation with managers.
• To avoid to hoard customer, few employees are specified with areas but it has also created some resentments among employees stationed in areas with less traffic or lower priced merchandise. Some staffs complained of lower pay checks because they have been placed in a slow area of the store.
• The Need for Achievement (nAch) is causing employees to neglect other important duties. High incentive system caused aggression towards the customers where commission represents 30% of a typical pay cheque. So, “Substantial incentives lead to lower productivity & teamwork.”
In this case, vetements Ltee was using money as a motivator for the managers and staffs and the employees changed their behaviour in order to maximize profit. The staffs were being positively motivated with money when they made sales. Thus, the employees continued to try to make sales in order to continue making more money rather than serving the customers.
Some actions to correct their actions are as follows:
? Restructuring incentives which creates stronger teams and better control on inventory.
? Replacing commissions with competitive salaries that creates equality in the team and reduce competition.
? Hire employees at a specific wage as in charge of stocking shelves and keeping inventory.
? Rotate all the employees throughout the store equally.
? Pay the employees well, pay fairly and make them feel important where they care about their work.