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Motivation at the Globe Silk Department Store Essay

Sharon knows that the Store’s has its work model. When she visited on several stores, disguised a few years back, she was dismayed to see that a salesperson actively engaged with a customer was occasional. About a year and a half ago, she reads about a quiet revolution extensive department store retailing specifically at NEON and CISCO stores, managers put all salespeople on straight commission. Sharon decided to give the system a yearlong try Into two of Its area stores. She reasoned would be good for Globe Silk Store If It lived up to Its promise of attracting better salespeople, more customer-oriented and will motivation them eventually.

Salespeople in departments such as electronics, appliances, and Jewelry, where expertise and highly personalized but had long worked solely on commission. Majority of the employees earned an hourly wage plus an occasional 0. 5 percent commission on sales. Under the trial scheme, all employees would earn a 7. 0 percent commission on sales. Nonetheless, Sharon had observed that a new salesclerk in women’s wear would earn $35,000 on $500,000 in sales, as similar to only $18,000 under the old scheme.

Now, with the trial period about to end, she noted that while overall sales in

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the two stores eave increased discreetly, so also has employees’ income. She also examined the sales-by-manager figures, It was obvious that some associates had succeeded and others had not. Most fell somewhere In the middle. For example, Ramsey works in women’s designer shoes and handbags, he is excited about the change and for a good reason. He has put even more time and effort into nurturing relationships with wealthy customers, and it shows that where a single item can cost of $1 ,OHO.

His pay has increased an average of $150 per week. It’s a deferent story in the lingerie department, where even luxury Items have more modest price tags. The lingerie department head, Gladys Hellholes said, salespeople In her department are earnings. Aim of the Study The aim of this study is to identify the human resource management strategy(s) that the Globe Silk Department Store must utilized upon completion of the experimented “straight commission” system and finally roll it out across the chain for the next six months.

Discussion Questions 1. What theories about motivation underlie the switch from salary to commission 2. What needs are met under the commission system? Are they the same needs in the shoes and handbag department as they are in lingerie? Explain. 3. If you were Sharon Limb, would you go back to the previous compensation system, implement the straight commission plan in all Globe Silk Store’s stores, or devise and test some other compensation method? If you decided to test another system, what would it look like?

Solutions to the Discussion Questions To be able to response on the subsequent questions with regard to the appropriate management strategies and issues: We can say that motivation is an internal feeling which can be understood only by manager since he is in close contact with the employees. Needs, wants and desires re inter-related and they are the driving force to act. These needs can be understood by the manager and he can frame motivation plans accordingly. We can say that motivation therefore is a continuous process since motivation process is based on needs which are unlimited. The process has to be continued throughout.

We can summarize by saying that motivation is important both to an individual and a business. Motivation is important to an individual as: 1) Motivation will help him achieve his personal goals. 2) If an individual is motivated, he will have Job satisfaction. 3) Motivation will help in elf-development of individual. Similarly, motivation is important to a business as: 1) The more motivated the employees are, the more empowered the team is. 2) The more is the team work, more profitable and successful is the business. 3) Motivation Although there are a lot of theories underlies the topic at hand.

The major theories of motivation that can be applied in the working environment as well on the employees to see the impact of motivation on the organization as a whole. 1) Need Approaches Mascots Hierarchy of Needs The basis of Mason’s theory of motivation is that human beings are motivated by unsatisfied needs, and that certain lower needs need to be satisfied before higher needs can be addressed. As per the teachings of Abraham Moscow, there are general needs (physiological, safety, love, and esteem) which have to be fulfilled before a person is able to act unselfishly.

These needs were dubbed “deficiency needs. ” While a person is motivated to fulfill these desires, they continue to move toward growth, and eventually self-actualization. 2) Miscellany’s Learned Needs Theory One of Miscellany’s most well-known theories is that human motivation is dominated by three needs. Miscellany’s theory, sometimes referred to as the three need theory or as the learned needs theory, categorizes the needs as follows; a) The need for achievement, b) The need for power, and c) The need for affiliation. The importance of each of these needs will vary from one person to another.

If the manager can determine the importance of each of these needs to an individual, it will help the managers to decide how to influence that individual. McClellan asserted that a person’s needs are influenced by their cultural background and life experiences. A person’s motivation and effectiveness can be increased through an environment, which provides them with their ideal mix of each of the three needs. 3) Cognitive Approach Expectancy Theory The expectancy theory says that individuals have different sets of goals and can be motivated if they have certain expectation.

Individuals choose behaviors’ based on the outcomes they expect and the values they ascribe to those expected outcomes. Broom’s Expectancy theory is based upon the following three variables which he calls Valence, Expectancy and Instrumentality valances. 4) Goal Setting Theory of Motivation Goal-setting theory “focuses on identifying the types of goals that are most effective n producing high levels of motivation and performance and explaining why goals have these effects. ” Goal-setting theory is found within the field of organizational behavior; however, it can be applied to any general area where goals may be achieved.

In order to direct ourselves we set ourselves goals that are: Clear (not vague) and understandable, so we know what to do and what not to do. Challenging, other people set us goals without our involvement, then we are much less likely to be motivated to work hard at it than if we feel we have set or directed the goal ourselves. He shoes and handbag department as they are in lingerie? Physiological needs – a person’s needs for food, drink, shelter, sexual satisfaction, and other physical needs and can be translated to fulfillment on the Job would be the base salary.

Therefore, incentives/commission through salary really can sometimes work to accomplish the goals of a concern. The need of salary can be many: 1. To increase productivity, 2. To drive or arouse a stimulus work, 3. To enhance commitment in work performance, 4. To psychologically satisfy a person which leads to Job satisfaction, 5. To shape the behavior or outlook of subordinate towards work, 6. Therefore, management must offer the same need in the shoes and handbag department as they are in lingerie on the following category of incentives to motivate an employees.

Monetary incentives which satisfy the subordinates by providing them rewards in terms of salary. Money has been recognized as a chief source of satisfying the needs of people. Money is also helpful to satisfy the social needs by possessing various material items. Therefore, money not only satisfies psychological needs but also the security and social needs. Therefore, in many stories, various age plans and bonus schemes are introduced to motivate and stimulate the people to work. 3.

Would you go back to the previous compensation system, implement the straight commission plan in all Globe Silk Store’s stores, or devise and test some other compensation method? What would it be? In my view, I think the straight commission world offers greater opportunity and higher overall potential, but everyone’s situation is different. So, with that in mind, let’s take a look at each. Salary or Salary plus Commission: Advantages: 2. 3. Economic security. Stability. Training. 5. Benefits. Disadvantages: . Reduced commissions. Less freedom. Time management. Questionable security.

Lowered competitiveness. Higher taxes. Straight Commission 1. Higher overall opportunity. 2. Freedom. 3. More productivity. 4. More competitive. 5. Lower taxes. 1. No financial guarantees. 3. Higher expenses. 4. The Government. Licenses or permits. 5. Questionable security. It would made far more money doing that than at a regular Job, and it is enjoyed a thousand times more because the freedom it offered. It would be like difficulty finding a regular salary + commission Job, but I’ve been offered this straight omission opportunity. It really depends on yourself and your requirements.

Conclusion / Management Lessons Learn Organizations must match the reward systems with the motivational needs of employees and hence, the package that they offer to potential and existing employees must be a mix of financial and non-financial rewards. As economists would point out, the role of incentives in motivating employees is indeed high and hence the right kind of incentives must be rolled out. It is not simply enough if companies keep raising the salaries or giving higher bonuses. It is also not enough if impasses flatter their employees and publicize their achievements.

The key aspect is the match between the rewards that are offered to the employee and his or her inner needs. All the evidence shown above shows us that the incentives can affect and boost the the evidence that the incentive can be proven less significant and even backfiring if it poorly designed. So that it is important for everybody to take attention toward the organizational behavior and the design of the incentive itself to make sure that the incentive positively affect the employee performance and therefore boost the many productivity.

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