RETAINING PROFITS AT APNA BAZAR – CASE 2

After two weeks of observation, Rahul had his plan ready. He called a meeting of the store supervisors

and narrated his plan in detail. He specifically suggested the following interventions:

1. Increase in the variable component to 30% of the salary. While the take-home salary of the

workers would remain constant for the next three months, the performance pay would

gradually be eased into the total salary, taking place of the fixed pay. To keep the proposition

attractive, while the fixed component would be of 70% in the final salary, the workers may

earn up to 50% of the current salary as a variable component.

2. A strict performance appraisal system was to be launched. Each worker was to be delegated

a specific area of the store – and would be appraised based on the cleanliness and decoration.

Performance would be rated based on observations by store supervisors, as well as on

customer feedback

3. Training programme was to be implemented for dealing with the computerized check-out

system. All the workers were to receive this training, to facilitate job rotation later

Knowing how messages get lost in translation, Rahul made it a point to meet the sales assistants in

person the same day and describe his plan. It was heartening to see both the store supervisors and

the workers accept and welcome his plan. There was hardly any dissent and people were quick to

accept the changes and adapt to their respective roles.

Before leaving, Rahul called Aditya and said, ‘I am glad that the meetings worked out so well. I would

be away for the next week for a working vacation at Malayasia where we are launching Shaukeen.

Feel free to call me anytime with your updates about the situation.’
It was important to do the right things and things are smoother if you do them in the right way. Rahul’s

first project on field appeared to be on the road to success. He felt happy as he stepped out of the

store that evening.

Q. ‘It was important to do the right things’ - what is your view about Rahul’s intervention at the

stores?

Q. ‘Things are smoother if you do them in the right way’ - what is your view about how Rahul

proposed and initiated change at the store?