Montego Bay Case Study Essay
Case Title: Montego Bay, Unsustainable Motivation
The role of the responder: Lisa Mahoney, Store Manager, Montego Bay
Introduction Montego Bay, a retailer selling distinctive women’s apparel, reported a quarterly sales drop of 3.5% from the last year. The company is going to close down 20 underperforming stores in coming 18 months. A new computerized scheduling system was introduced to the store under trial basis for 6 months in order to see whether it could improve productivity & reduce payroll costs. The new system improved productivity and reduced the labour cost but had a major impact on employee morale and significantly changed the culture and behaviour of the store. This case study is an insight of the scenario and it will …show more content…
Drop of quarterly sales before the trial and the risk of being included in to 20 underperforming stores going to close in coming 18 months. This will have a major impact if the trend is not reversed as early as possible. 3. The “successful” trial run of computerized scheduling may endorse the viability of new system. There is a risk of implementing it throughout the company without considering or undermining negative impacts because of key benefits as productivity improvement and payroll cost reduction.
Analysis
It’s not an easy task to keep sales on a positive track and employees motivated in an economic turbulence. Customers tend to choose less expensive retailers than an upscale store like Montego Bay, when they feel economic hardships. Therefore an extraordinary effort to improve performance would be natural. In the other hand the sales staffs also has significant grievances regarding new system. It changed the whole set up of working and disregarded all intangible values, reasons considered in the previous system.
The computerized system used an extrinsic motivation which focuses to lower ends of needs as security (job), food, and basic comfort. But the staff was familiar with more advanced culture which cater for higher ends of needs as recognition, accomplishment, fulfillment and
The role of the responder: Lisa Mahoney, Store Manager, Montego Bay
Introduction Montego Bay, a retailer selling distinctive women’s apparel, reported a quarterly sales drop of 3.5% from the last year. The company is going to close down 20 underperforming stores in coming 18 months. A new computerized scheduling system was introduced to the store under trial basis for 6 months in order to see whether it could improve productivity & reduce payroll costs. The new system improved productivity and reduced the labour cost but had a major impact on employee morale and significantly changed the culture and behaviour of the store. This case study is an insight of the scenario and it will …show more content…
Drop of quarterly sales before the trial and the risk of being included in to 20 underperforming stores going to close in coming 18 months. This will have a major impact if the trend is not reversed as early as possible. 3. The “successful” trial run of computerized scheduling may endorse the viability of new system. There is a risk of implementing it throughout the company without considering or undermining negative impacts because of key benefits as productivity improvement and payroll cost reduction.
Analysis
It’s not an easy task to keep sales on a positive track and employees motivated in an economic turbulence. Customers tend to choose less expensive retailers than an upscale store like Montego Bay, when they feel economic hardships. Therefore an extraordinary effort to improve performance would be natural. In the other hand the sales staffs also has significant grievances regarding new system. It changed the whole set up of working and disregarded all intangible values, reasons considered in the previous system.
The computerized system used an extrinsic motivation which focuses to lower ends of needs as security (job), food, and basic comfort. But the staff was familiar with more advanced culture which cater for higher ends of needs as recognition, accomplishment, fulfillment and