1. What symptoms in this case suggest that something has gone wrong?

One of the symptoms in this case that suggests something has gone wrong is
after the new incentives were made known, manager complains about the
effectiveness of their sales staff. Sales staff typically waited to "tag" consumers as
their own by standing near the store entrance. The "ownership" of a customer might
occasionally be a source of conflict between sales staffs. Besides that, there are also
problems relating to staffs not willing to do inventory duties. By giving employees
inventory responsibility, store managers have attempted to fix the inventory issue, but
this has engendered animosity among the chosen employees.

2. What are the main causes of these symptoms?

Main causes of these symptoms would be due to the new incentive systems
that were introduced, employees in the sales department are paid a set salary as well
as a commission depending on the share of sales credited to them during the pay
period. This causes sales staff to “fight” each other for customers. Another cause is
inventory duties problem. Many staffs have avoided doing their share of inventory
duties and even sneak away when the manager is not around. Lastly, a few
managers decided to assigned sales staff on certain location around the store as a
way to avoid employees from hoarding customers, but alas this has created a
negative environment among employees.

3. What actions should Vetements executives take to correct these problems?

An example of the action Vetements’ executives should take to correct these
problems is by providing an employee training program for each employee.
Employee training program can help to enhance an employee’s knowledge or skills
as part of their overall development, whether that is in their current position or as part
of a plan to advance to a more senior or other function within your organisation.