Lauren’s Balancing Act
In this act it is discussed about a lady whose name is Lauren’s and she was the manager of the department store. She analyzed that the demand for online shopping and discount retailers are increasing day by day. So to retain old customers and to increase future customer base she decided to implement a strategy. The strategy was that the entire team of DeMarco’s will be given a straight commission as more the customer by the employee the more will be the incentives. Lauren’s idea was that the store customer should receive the upscale. The customer should feel that they are somebody special in the store. The pay of each employee is based on their own initiative and individualized service that induces customer to visit the store again and again (Razote, 2017). The instruction is given by Lauren’s to the employees of the store. The new plan which is implemented caters huge number of people who want assurance of a regular pay cheque. The plan which was implemented achieved success during the time period and also an impressive number of loyal customers. The satisfaction level of the consumer has increased by implementation of this plan. The referrals of friends and relatives all are tracked from the starting of the program or plan. But the negative impact of this plan is that the co-workers and workers become aggressive. The main aim of the workers is to increase the incentives. They only give focus on increasing the incentives. This creates a cut throat competition and conflict between the employees or workers of the organization. The managers and the sales associates of different departments complained of lower wages. The conflict occurs due to the discrimination in incentives. The comparison between the workers occurred. Each and every worker compares their performance with each other. So it sometimes de-motivates the workers who are not able to achieve the incentives. To solve this problem Laurens should fix the incentives which are offered to employees or workers. By fixing the incentives it will be beneficial for the organization and also for workers because by this no conflict will occur between the workers and also it motivates them to work efficiently and effectively. To maintain discipline and to create a good environment the equal incentive strategy should be followed which increases the motivation level of employees or workers (Katz, 2019). The plan which was implemented was successful but it causes many issues which are related only to the incentives. The customers only focused on earning more and more incentives which causes many conflicts between the employees. There is high level of competition and low level of cooperation. There are many complaints from managers and sales associate due to the value of some items on which commission is based. The feeling of jealousy and resentment was there in the employees or the workers. The incentive technique which was introduced is highly concerned with sales performance and also this technique promoted elite personalized service. By this the sales performance increased and also improved. The Lauren’s balance act acknowledges the concerns of sales executive and also validates them with the sales figures gathered from the last 24 months when the experiment was implemented. So, in this equal incentive technique or compensation mix (hourly base pay) this will maintain the culture of cooperation. It will also promote elite personalized service. The incentives should be performance based not on the product basis. If the performance has improved it has improved everything the company image and goodwill also and if there is any drawbacks it should be relooked and correction should be made efficiently.
Answer 1. The advantages are because straight commission method was introduced. The main advantage is that employees are working harder and with full dedication because the more customers they serve the more commission will be received by the worker. It gives more incentives to work harder. By this workers are giving their best to serve the customers so that they can earn more incentives. The disadvantage is what is mentioned by the worker working in accessories. She said that “My commission on a belt is nothing compared to Katherine’s commission on a designer dress” which causes issues, because the incentives which are given to them are not equal to the work done by them because the product that they are selling don’t have the same value or a price. Also some associates soared and other veered towards an aggressive, pushy sales style and teetered, monthly on a verge of being replaced because they are not making any sales. The advantage of this doesn’t have a impact on the DeMarco’s culture because when it comes to sales the workers become aggressive. They may not passionate about their jobs or customers because they only think about money. This type of behavior can drive customer away from the organization. This culture also affects the co-workers because there is a conflict between each other and they also refuse to help each other out (Likert, 2011).
Answer 2. Yes, because the workers are complaining about the unequal commission. Like one worker told that the commission on selling the belt should not be equal then the commission on selling designer dress. So Lauren should give equal opportunity to all the sales person or worker so that the feeling of discrimination do not arises and also the person should be given the responsibility to sell each type of product so that the worker can have an equal opportunity to earn the incentives. For example: one worker is selling laptop and one worker is selling a shirt. The efforts of worker for selling a laptop will be more because the customers think twice before purchasing costly items. Incentives should be given on the basis of performance and not product wise. Performance has improved everything like company image etc. So the drawbacks should be relooked and proper steps should be considered to improve it.
Answer 3. Yes, the success of sales associate has created a situation in which loyalty to customer is loyalty to store because the workers are given so much power that they induce customer to buy the product. Now when the employee or the worker leaves the job it will also take the customer with them. If the worker is given the opportunity to make customer relation it can be beneficial for the organization but when it leaves the organization it can create problem because the worker takes the customer with them if he or she goes to some other store or an organization. If in case the worker leaves the job then the customer also leaves the organization. Customer gets induced by the seller to buy the product. If the seller or the worker is not in the organization it can create problem and sometimes it can happen that customer never comes to buy the product from that store or the organization. So, customer should be given benefit so that if the worker leaves the organization it can create customer relation for long time and by the benefits the customer can be attracted towards the store (Daft & Samson, 2014).
April Razote. (2017). Lauren's Balancing Act. Retrieved on 14 June 2017 from https://prezi.com/ytrff18ldmg2/chapter-16-laurens-balancing-act.
Daft, R.L. and Samson, D., 2014. Fundamentals of Management: Asia Pacific Edition PDF. Cengage Learning Australia.
Katz, L., 2009. Balancing act: ethical dilemmas in retaining e-discovery consultants. Geo. J. Legal Ethics, 22, p.929.
Likert, R.,2011. New patterns of management.