Alternative Courses of Action

The management team recommends that Superado will push through in paying the employees the full amount of their annual bonuses in spite of the ongoing nationwide recession. As what Superado’s human resources director mentioned, the company’s sales figures would have been in a more unfavorable state had it not been for their highly-motivated employees who provide utmost customer satisfaction.

This option will address the aforementioned objectives, which are: ? 95% Retention of employees for the next six months – Considering that their competition is recruiting more employees with the promise of a “signing” bonus, Superado can ensure that they can retain their employees. ? 100% Customer satisfaction – The bonus will serve as a positive reinforcement tool for all employees to continue serving with utmost dedication. 100% Hit in sales target – Motivated employees can be more creative and suggest ways in how to better improve the sales operations of their respective store. 2) Another option is for management team to pay out half (50%) of the guaranteed annual bonus amount to the employees; and the remaining half will be under a goods-exchange deal, wherein employees can get products from the supermarket worth 50% of their bonus. Furthermore, human resources should talk to the employees and make them aware of the ongoing recession and its aftereffects.

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Through this option, employees can still attain incentive cash and goods by the yearend, and at the same time, the company can retain a significant amount of money in hand in case the recession will worsen. ? 95% Retention of employees for the next six months – Employees should be aware that the replacement of the 50% amount of their annual bonus with supermarket goods has been done for the long-term stability of the company.

With this in mind, employees will be motivated to stay with Superado, since it is a company that considers their long-term best interests and welfare. ? 100% Customer satisfaction – Providing the employees with its annual incentives will motivate them to continue serving proficiently. ? 100% hit in sales target – Providing the employees with its annual incentives, and by letting them know of the ongoing recession will likewise motivate them to be more creative in ensuring that their store will hit target sales quota. Usage of inventory for the employees’ incentive program will considerably lessen the cash to be shelled out by the company. This will allow the company to have spare money in hand in case the nationwide recession will worsen. 3) The third option is for the management team to revise its annual incentive program by implementing a score sheet scheme, wherein there will be criteria on how each employee will be paid.

The score sheet or employee’s grade will be based on how they are able to meet overall and store’s sales targets and individual performance. Employees will be graded accordingly: 40% overall sales target, 40% store’s sales target, 20% individual performance. Individual performance will be rated by store managers based on the following aspects: attendance and punctuality, zero customer complaints, positive work attitude, and creativity in making suggestions for better sales operations. 95% Retention of employees for the next six months – By guaranteeing a financial incentive by yearend, employees will be motivated to stay in the company. ? 100% Customer satisfaction – Since it is a performance-based incentive, employees will be motivated to do their best in serving all customers. ? 100% Hit in sales target – Factoring in how the store and the company as a whole can hit sales target, employees will be more motivated in doing exemplary work such as making suggestive selling or aiding customers in their shopping needs.