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Grace Myer is the founder and GED of Myer Sisters Apparel. a retailer of highend women's clothing. Earlier this year Grace opened her fth retail

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Grace Myer is the founder and GED of Myer Sisters Apparel. a retailer of highend women's clothing. Earlier this year Grace opened her fth retail store in Sydney's Eastern Suburbs. MyerSisters appeals to women who want to try on and buy the latest fashions in a physical store] and receive outstanding. personalised customer service from start to finish. Grace wants to continue her five year plan to expand Myer Sisters, but she is wonied that her stores have stopped generating the returns she needs to make this feasible. IWhen Grace had only one store that she individually owned and operated, she was able to control most of the details of the business. She was able to be on the sales floor regularly to personally interact with customers and staff. and she always knew what her employees were doing. However. as the number of stores and the size of the stores increased] the number of employees also grew. and Grace could not engage with them in the same way. When Grace was anning the one store. she rarely heard a customer complaint. Now customer complaints are a daily occurrence. and the numbers are growing. In addition. her sales per square metre was $10,000 just two years ago] compared to $0.000 today. She knows this is not due to customers moving to online shopping as her some of her betterknown competitors. such as Davie Jonah and Marsha Jake. are still generating a higher sales per square metre. All of this concerned Grace greatly as it made it almost certain that her expansion plans for Myer Sisters would have to slow down. The store managers are also complaining to Grace because of the high training costs of bringing on new employees. The turnover rate seems to be very high and Grace cannot understand why. She is paying sales staff an average fixed salary of $30000 per annum and store managers an average fixed salary of $130,000 per annum which is one of the highest salaries in the industry - yet they are leaving to work elsewhere. The customers are also complaining about the lack of helpfulness of the sales staff. Even after extensive employee retraining, Grace is still hearing many complaints. Required: A. Based on your understanding of intrinsic motivation and extrinsic motivation. draw on case information to explain why ivlyer Sisters' employees are not motivated to perform at a high level. B. Grace is considering implementing an alternative reward system for her staff: A \"gainsharing" plan. with a focus on generating sales revenue. Specifically. 5% of any revenue in excess of the target sales level of $15 million per year will be placed in a "bonus pool\" for distribution to all stores [last year's sales were $12 million}. For example. if ivlyer Sisters as a group achieves total sales revenue of $15 million [$1 million more than the target level}, then 5% of the additional $1 million in sales revenue will be distributed to employees. All sales staff will receive a portion of the bonus pool, with store managers receiving a greater percentage compared to sales staff. Do you think this gain sharing plan is a good idea\"!II Support your answer using agency. goal setting and expectancy theories as appropriate (is. you do not need to refer to every part of every theory}. C. Based on your understanding of the various principles of incentive systemlr performance evaluation system design. make three suggestions as to how Myer Sisters' performance measurement 1' incentive system can be improved

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