Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

should we Continue use this scheduling? Lisa Mahoney stared intently at her computer screen, scrolling quickly through d1? d5? Whiting quarterly sales reports for her

should we Continue use this scheduling?

image text in transcribed
Lisa Mahoney stared intently at her computer screen, scrolling quickly through d1? d5\"? Whiting quarterly sales reports for her store. For three years, Mahoney had ourished in hat role as a store manager for Montego Bay, a retailer selling distinctive women's apparel in an upscale outdoor mall in Pasadena. Mahoney was discouraged that sales were down 3-5 percent from last year and weary of the challenges that faced her. She knew 20 under- Performing stores would he closed over the next 13 months, and she wanted to Pm her store and her employees from layoffs. She wondered how to keep employts hOPerI and working hard during the economic downturn. _ _ Theresa Daley, operations director for Montego Bay, asked Mahoney to join her for lunch to discuss a new initiative. Seated together at an outdoor daft, Daley told Mahonelh \"We're under a [or of pressure to improve store performance,\" as she squeezed 'a [31511 lemon into her glass of water. \"I would like to try out a new, computerized scheduling 51'5' \"3"\" in Your store for six months to see if it will improve productivity and reduce payroll costs. You have an excellent track record, Lisa. If we see improvements in your start after six months, we may implement it in other Montego Bay stores.\" Mahoney learned that the new system had several goals: {I} to improve labor effi ciencies by determining how many employees should be working at any given time; {2) to automatically schedule the most productive salespeople to work the hours with the most customer trafc; and {3) to increase sales by turning more browsers into buyers. Mahoney agreed to the trial period but worried that the new system would disrupt the productive and collegial work environment she had created at the Pasadena store. - Despite her concerns, Mahoney announced the new plan to her sales staff and was ready to give it a go. The new syscem tracked employees' daily \"performance metrics\": sales per hour; units sold, and dollars per transaction. Based on these data, the system generated work schedules for each einployee, giving the most successful salespeOplc prime work hours when the store was heading with customers. The system also recorded sales per employee. Employees with low performance metrics were scheduled for slower time slots or left off the schedule. Almost immediately, Mahoncy's worst fears became realityemployee morale took a nosedive and long-term employees started grumbling about the new system. \"What do you mean, I can't work on Saturday,\" moaned Sylvia, stunned that the sys- tem didn't find her productive enough to work on a prime sales day. \"I have always worked Saturdays. Plus, my hams have been cut from 40 hours to 12 this week!\" she exclaimed. \"I can't even cover my living expenses with more hours.\" Sylvia had lost her Satin-day shift and full-time work status to a new, more aggressive salesperson who had generated more sales. Recomizingthegamc thathadto he played towin mehmthouraSylviastartedout-hustling other employees and becoming aggressive with customers. Other employees did the same, snatching customers as they came in the door or pushing products that tarstomers didr want. Anger and frustration brewed among the sales staff as they outmaneuvertd each other to close more sales. Employees accrued motivated to work hard but not the way Mahoney wanoed, After the six-month trial period drew to a close, the employees bitterly voiced their complaints. Mahoney listened attentively, but she knew her options were limited. Before the sys- tem was installed, she would create the weekly schedules and accommdate personal preferences. But the new system automatically generated work schedules based solely on performance metrics. Her high-performing, motivated staff was feeling devalued, and the friendly work environment was shattered. Despite these disadvantages, however, sales were up 2.8 percent and labor costs were down 5 percent at the end of the six-month trial

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Strategic Management and Competitive Advantage Concepts and Cases

Authors: Jay B. Barney, William Hesterly

5th edition

133129306, 0133127400, 9780133129304, 978-0133127409

More Books

Students also viewed these General Management questions