Vetements Ltee Commission Based Program Discussion Questions

I’m working on a management discussion question and need support to help me learn.

See the Vetements Ltee case posted under Readings, Cases, & Videos. Create a thread with your response to the two Qs below and reply to at least one other student’s post with a substantive comment. One well-written paragraph per question should be sufficient. Write formally, using complete sentences. Remember to proofread and run spellcheck before posting.

Questions:

What are some of the unintended, undesirable effects that have resulted from the commission-based sales program?

What specific actions should this company take now to eliminate these problems?

Could you replay to this please?

1. The newly stated commission-based sales programmed affected many aspects of the store. The employees started off by arguing for “ownership” of the customers who entered the door. This takes away from the customer service as customers seeing employees fighting over who gets the sale. Another thing that went wrong was that areas of the store were unattended. Along with leaving areas unattended, employees did not restock shelves or process re-order forms due to them not being on the floor when customers when enter the building. This caused some shelves to be empty and to run out of some merchandise that they had at the warehouse. Lastly, the new commission-based program effected the relation between the manager and the employees. I do not think that the employees were too fond of the manager because they had to enforce the rules of which they did not like.

2. One way these problems could be eliminated is to maybe not make it such an individual commission aspect. Perhaps giving commissions out to the whole staff would work better. This could be based off the number of sales the employees make in a day or week. The commissions would be divided out equally to all employees that are on staff. This would help the employees not fight for customers but rather each salesperson trying to close the sale. Another way to help this problem would to not everyone be a salesperson. Potentially hiring staff to do the things that the salespeople do not want to do, such as stocking the shelves and processing the re-order forms. This would ensure that the stocking and running out of inventory problem does not occur so often.