Motivation at Monarch Supply Company: a Case Study
Case Analysis
MGT 390
10/18/12
Kelly Dengler
Matthew Lam
Isaiah Wright
Introduction: The major issue that is concerning Monarch Supply Company is that seems to be a rather large disconnect between the employees working in the field sales department and the inside sales department which is causing a number of problems for the company, and jeopardizing their sustainable competitive advantage of other firms. The field sales department is regarded by most as being the backbone of the company due to the vast engineering background all employees are required to have and the extensive interactions they have with the customers. The field sales department are all paid strictly on a commission basis with the salary ranging anywhere from $50,000 to $95,000. The inside sales department is responsible for supporting the field sales department by doing tasks such as, ordering equipment, expediting orders and quoting prices. In addition the inside sales department are responsible for handling all direct phone calls from customers interested about the prices of certain pieces of equipment. The inside sales representatives are paid on a salary basis with annual raises being based on the scores each employee receives on company performance appraisals. If an inside sales representative is performing their job to a high degree, they may in turn be asked to become a field sales department if the opportunity arises. In the midst of certain mistakes occurring, which have the potential to ruin Monarch’s credibility with customers if it continues; interviews with company employees have been conducted in which employees talk about their jobs and “point the finger” as to whom they deem responsible for the screw ups that have been occurring in the company.
Problem Identification: * Monarch’s level of service has declined, which continues to result in a loss of clients to their competition. * Problem mainly lies within the two different job perceptions held by the Field
MGT 390
10/18/12
Kelly Dengler
Matthew Lam
Isaiah Wright
Introduction: The major issue that is concerning Monarch Supply Company is that seems to be a rather large disconnect between the employees working in the field sales department and the inside sales department which is causing a number of problems for the company, and jeopardizing their sustainable competitive advantage of other firms. The field sales department is regarded by most as being the backbone of the company due to the vast engineering background all employees are required to have and the extensive interactions they have with the customers. The field sales department are all paid strictly on a commission basis with the salary ranging anywhere from $50,000 to $95,000. The inside sales department is responsible for supporting the field sales department by doing tasks such as, ordering equipment, expediting orders and quoting prices. In addition the inside sales department are responsible for handling all direct phone calls from customers interested about the prices of certain pieces of equipment. The inside sales representatives are paid on a salary basis with annual raises being based on the scores each employee receives on company performance appraisals. If an inside sales representative is performing their job to a high degree, they may in turn be asked to become a field sales department if the opportunity arises. In the midst of certain mistakes occurring, which have the potential to ruin Monarch’s credibility with customers if it continues; interviews with company employees have been conducted in which employees talk about their jobs and “point the finger” as to whom they deem responsible for the screw ups that have been occurring in the company.
Problem Identification: * Monarch’s level of service has declined, which continues to result in a loss of clients to their competition. * Problem mainly lies within the two different job perceptions held by the Field