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Organization Behavior Case

Essay by   •  July 7, 2016  •  Case Study  •  561 Words (3 Pages)  •  1,177 Views

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  1. CASE TITLE

Boosting Employee Morale: Performance stagnation in Fine Skin Marketing Corporation

  1. VIEWPOINT

Ivan Cruz (Regional Manager, Fine Skin Marketing Corporation)

  1. STATEMENT OF THE PROBLEM
  1. Despite incentives, motivation among sales people of Fine Skin Marketing Corporation (CALABARZON) has gone down and this eventually affects productivity. How can this issue on motivation be resolved?

  1. AREAS OF CONSIDERATION/ SWOT ANALYSIS

STRENGTHS:

  • Being an exclusive dealer of Oil Skin Product, which are high-end
  • Branches in key cities which adds to the accessibility in distributing the product

WEAKNESSES:

  • Sales department employees are unproductive
  • Communication between the upper management and the sales people

OPPORTUNITIES:

  • More people are becoming beauty conscious and are willing to buy beauty products like theirs.

THREATS:

  • The existence of new competitors after seeing that the product that they have has strong market value.
  1. ALTERNATIVE COURSES OF ACTIONS

ACAs

PROS

CONS

Organize an immediate collaborative meeting with the Sales team

An earlier detection of what causes the sales to decline.

Could start a conflict between the parties if all of their concerns are not given emphasis / attention.

Do not increase the commission by 12%. Just promote incentives to those who will be able to reach their well defined Sales Quota. Provide performance feedback afterwards.

Decreased expense since not all Sales personnel will benefit on the said incentives. There will be specific and defined goals for the sales people to target. Employees who reached the performance standards will be rewarded and recognized.

Lower morale and motivation to those sales personnel who will not reach the quota, which are sometimes out of hand.

On the region-wide meeting, use his authority to motivate the people instead of appealing to them.

The people will be more impressed to leaders who speak with authority than those who plead for cooperation.

Not all will listen to him and others will be even more rebellious.

  1. DECISION

ACA No. 2: Do not increase the commission by 12%. Just promote incentives to those who will be able to reach their well defined Sales Quota. Provide performance feedback afterwards.

  1. ACTION PLANS

The Regional Manager has already invested various efforts and actions in trying to improve the performance of his Sales team, even giving them a 12% increase over their current commission. But despite all these and his so-called “morale booster” plan, improvement in performance were still not observed.

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