Blinds to Go
New York Institute of Technology
Blinds To Go
Sheri Pompey
Staffing and selection
Professor Mohammad Ali, PHD
July 19, 2012
1. Summarize the key strengths and weaknesses of BTG’s staffing system, and explain why the factors you identify are strengths or weaknesses.
2. How can BTG improve on the weaknesses you identified in question 1, and what can it do to maintain the strengths? In which ways is BTG not prepared to meet its plans to increase staff? Explain
BTG is finding it difficult to attract new talent and retain quality employees. In 1996 the company changed its compensation system from full commission to salary because of a recommendation from the newly hired vice president of store operations. This change was done to attract new recruits for the expansion phase. It was also intended to make sales associates less entrepreneurial and more customer service focused. Store manager compensation was also revised to reflect a higher base salary component relative to commission. A more casual uniform was mandated in place of the business casual attire that was being worn at the stores. Store managers were also no longer involved in the sales process. Although it was a good attempt, overall staff turnover increased to more than 40 percent from a pre-1995 figure of 13 percent. When the change was made it did make it easier to staff the store, however, the caliber of the staff that was being recruited was very low in comparison the high quality staff they had. The first thing that BTG did wrong was to have someone come in and recommend a change to a system that was working out well in comparison to the competitors. The company was already on top and a large portion of that was due to the drive the staff had of making the sale because their paycheck depended on it. Another reason was based on the excellent customer service system they had already had in place.
Blinds To Go
Sheri Pompey
Staffing and selection
Professor Mohammad Ali, PHD
July 19, 2012
1. Summarize the key strengths and weaknesses of BTG’s staffing system, and explain why the factors you identify are strengths or weaknesses.
2. How can BTG improve on the weaknesses you identified in question 1, and what can it do to maintain the strengths? In which ways is BTG not prepared to meet its plans to increase staff? Explain
BTG is finding it difficult to attract new talent and retain quality employees. In 1996 the company changed its compensation system from full commission to salary because of a recommendation from the newly hired vice president of store operations. This change was done to attract new recruits for the expansion phase. It was also intended to make sales associates less entrepreneurial and more customer service focused. Store manager compensation was also revised to reflect a higher base salary component relative to commission. A more casual uniform was mandated in place of the business casual attire that was being worn at the stores. Store managers were also no longer involved in the sales process. Although it was a good attempt, overall staff turnover increased to more than 40 percent from a pre-1995 figure of 13 percent. When the change was made it did make it easier to staff the store, however, the caliber of the staff that was being recruited was very low in comparison the high quality staff they had. The first thing that BTG did wrong was to have someone come in and recommend a change to a system that was working out well in comparison to the competitors. The company was already on top and a large portion of that was due to the drive the staff had of making the sale because their paycheck depended on it. Another reason was based on the excellent customer service system they had already had in place.
Bibliography: George, Jennifer M., and Gareth R. Jones. Understanding and Managing Organizational Behavior. Custom Edition ed. 2 vols. New Jersey: Pearson, 2006. Heneman, Herbert G., Timothy A. Judge, and John D. Kammeyer-Mueller. Staffing Organizations. 7th ed. Middleton, WI.: McGraw-Hill/Irwin, 2012. Traduce, WikiHow “Reduce Employee Turnover.” Wikihow. http://www.wikihow.com/index.php?title=Reduce-Employee-Turnover&action=credits (accessed July 19, 2012). [2] Herbert G. Heneman, Timothy A. Judge, and John D. Kammeyer-Mueller, Staffing Organizations, 7th ed. (Middleton, WI.: McGraw-Hill/Irwin, 2012), pageNr.220 [3] Ibid 222 [4] Ibid 218 [5] wikiHow traduce, “Reduce Employee Turnover,” Wikihow, http://www.wikihow.com/index.php?title=Reduce-Employee-Turnover&action=credits (accessed July 19, 2012).