R&R Retailer’s Employee Performance Management
OLHR 8096 - Performance Management
University of Cincinnati
Introduction
Human resources is one of the most valuable assets in any business. Unlike technology, it can
grow skills and improve performance due to psychological influence from management.
Employees are especially valuable in fields dealing with direct customer service, as their
attitude predicates the company’s success through the reputation they create. The case of R&R,
a retailer of luxury brands primarily from Europe, is an example of outcomes that each
company would face after neglecting its personnel. With a key issue being an imperfect system
of performance measurement, R&R should now look for a new system of recognition that
would satisfy its sales employees.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
SPH
The so-called system of Sales Per Hour (SPH) became the primary issue that is currently facing
R&R. Its main idea lies in calculating the average revenue each sales associate makes an hour.
For instance, there was a target value of $412 per hour in 2009. It did not look unachievable
since the market of luxury brands features expensive products. However, the system was built
in a way that the most successful sales associates received the most advantageous hours when
they were able to sell more. It is a fact that the number of customers is different throughout the
day and during a week. This measure created a situation where top employees would receive
all options for growth, while other workers were put in conditions where they could not perform
as effectively.
Off-Hours Work
While sales associates had to maintain the required level of SPH performance, their work
outside of direct sales was rarely recognized. The company’s policy calls for performing all
sorts of tasks to keep a client satisfied with the service and be willing to return to the store. It
sometimes took sales employees hours to search for an item that their client wished to have,
made them run around the city carrying clothes for customers, and required a lot of other out-
of-office tasks to be performed. Although these duties resulted in customer loyalty, they were
not reflected in the SPH measurement system. Thus, the employees’ input could not be
recognized properly. Besides, the SPH system allowed some manipulations with it, which was
carried out by several employees at some point in their career.
Lawsuit
The situation described above resulted in a major conflict with several sales associates filing a
claim to a court where they identified the issue of their employer being too demanding. Those
employees recognized their rights to be paid for work they were doing outside of office hours.
Besides, the economic crisis that started in 2008 dropped the luxury market in the US by 14%.
With income level decreasing, management stressed the importance of bigger efforts among
the personnel, which could serve as a trigger for the growth of dissatisfaction. At this point, the
top manager of R&R recognizes the importance of the lawsuit and needs to develop a strategy
for satisfying the sales associates.
Performance Management
One of the adequate solutions to this problem lies in reviewing the system of employee
recognition. It must be an essential skill of the company’s new HR director to find the
motivation of each sales associate. It could be a great solution in the long run to let workers
invest in the company and let them make their own decisions to keep a feeling of control and
belonging.
Equity and Expectancy
There are two fundamental theories explaining the motivational factors of employees. Although
they discuss the same concept, the approach of each theory is based on different values. The
expectancy theory works with benefits, while equity focuses on the concept of fairness.
The expectancy theory implies that people imagine certain benefits that they will receive as a
result of their work (Latham, 2012, p. 47). This is not necessarily the financial side. Some
workers are interested in community, job security, career growth, etc. They would choose an
option that offered more benefits if they had to make a decision.
The equity theory (Latham, 2012, p. 45), on the contrary, states that employees are most
motivated when they recognize that they work in fair conditions. It is important for them to
know that their colleagues are receiving the same attitude as they do. No exceptions should be
made to keep an employee motivated in further development.
Leadership Style
Instead of giving orders and setting standards, managers should become role models for their
subordinates. Even the Army commanders recognize the importance of shaping someone’s
behavior through an appropriate leadership style (Abrashoff, 2002). While it may seem
effective to make people conform to the rules, the best strategy is to motivate employees instead
of pressuring them.
Sharing the Control
Some managers choose to be a single decision-maker. While this measure brings a certain order
to internal processes, it does not work towards motivating people in the long run. The best
strategy for R&R would be letting employees make some portion of decisions on their own.
For example, sales associates work directly with customers, thus they are able to evaluate the
level of client satisfaction. Moreover, this group should be responsible for measuring the
overall behavior and attitudes inside the working community.
Creating a corporate culture that actively engages employees is crucial for R&R. Every sales
associate should be able to identify the company’s goals for the future and work towards
achieving them. Furthermore, this culture should become a base for creating a board of
employees that would discuss the issues regarding workers’ satisfaction and motivation level.
Of course, no progress can be made without offering opportunities for career development.
Succession plans and recognition categories must be developed for all sales associates to make
them interested in putting effort for the sake of personal growth. Besides, growth is not
achievable without regular education. All workers should attend sessions that would help them
develop their professional skills. The most successful employees should take charge of others
to mentor them and teach ways to improve performance. Trips to production sites should also
become a part of educational sessions to create a better understanding of the company’s
functioning.
Finally, the level of motivation and commitment can be significantly increased if employees
knew their input is valued. Their feedback should become a very important source of
information for the top management, which has to be collected in a proper manner. All feedback
must be documented to avoid putting too much weight on fresh information (Bach & Edwards,
2013, p. 231). Allowing employees to buy the company’s shares should also work towards their
motivation as they would be interested in putting efforts into developing R&R and increasing
their revenues.
Remodeling the Performance Measurement System
Apart from shaping the level of employee motivation, it is important to change the system of
performance measurement. Instead of maintaining the current model of SPH, it is more
beneficial to set weekly goals. The stress on individual achievements should be shifted more
towards the team effort. The overall distribution of measurement would include 43 percent on
team performance, 42 percent on individual achievement, and 15 percent on tasks performed
outside the direct sales.
