Individual IVEY Case

Case study: Goodies Organizational Effectiveness Case

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Individual IVEY Case

Case Analysis on Sweet Treats Inc.

1. Background Information or synopsis

 Established by Joel Symthe in 1951, Sweet Treats Inc. is a family-run

snack food company that is presently managed by his grandson
Mark.
 Even with its $36 million valuation, the company has been having
trouble regaining market share that it lost to bigger rivals like Frito-
Lay.

 After earning an MBA in marketing, Mark joined the company six

months ago and was elevated to the position of sales manager in just
four months. When he was hired, it was anticipated that he would put
plans in place to turn the company around.

 Salespeople who receive performance ratings below average are

required to attend mandatory coaching sessions under the new sales
performance management system that Mark introduced.

 Because of their poor performance in the preceding quarter, Lynda

Lewis, Michael Benjamin, and Kyle Sherbo, three employees, are
scheduled to attend the coaching sessions. Their responses to this
new policy are very different from one another.

 A downturn in the economy caused Lynda, who is usually a hard

worker and consistent performer, to miss her sales quota for the first
time in three years. She is not happy about the coaching sessions,
mostly because they conflict with her weekend family time.

 Michael had the lowest customer satisfaction ratings in the

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Individual IVEY Case
organisation, despite not being a big fan of sales work. He feels the
coaching session was a waste of time and is not happy about the
change in the commission structure.

 After Mark was promoted to a position he was vying for, Kyle, who
was previously a top-performing salesperson, saw a sharp decline in
his performance. He is bitter and seeking work elsewhere, but his
location limits his options.

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Individual IVEY Case
2. Immediate Issues/Symptoms
Explain Who is involved? Impact on costs,
What is their role and quality, customer
responsibility in service, or
creating or resolving innovation?
this issue?

Declining Sales Sales manager Mark A direct result of

Performance and Symthe, who is in decreased sales on the
Employee charge of increasing company's revenue.
Dissatisfaction sales and putting the High turnover costs and
new system in place, is decreased output as a
involved. The result of disgruntled
salespeople that need workers. Low staff
to attend the coaching morale may have a
sessions are Lynda detrimental effect on
Lewis, Michael customer service.
Benjamin, and Kyle
Sherbo. It is their duty
to reach their sales
goals.
Changes in Involved parties include The alteration may
Commission Structure Mark Symthe and the cause sales personnel
sales team, especially to become
Michael Benjamin. demotivated, which
Mark is presumably in would lower sales and
charge of the change lower the calibre of
because he is the sales customer service,
manager. Michael particularly for lower
believes that the volume stores.
changes are not in his
favour.
Lack of Career Additionally involved Morale is negatively
Progression and are Mark Symthe and impacted by the
Recognition Kyle Sherbo. Being circumstance, which
promoted to Sales raises employee
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Individual IVEY Case
Manager, Mark's turnover and reduces
achievement might productivity. If staff
have inadvertently members feel
infuriated Kyle, who underappreciated and
had been hoping for their efforts are not
the same position. At acknowledged, it may
this point, Kyle feels affect the company's
undervalued and ability to innovate.
ignored.
Balancing Work and Lynda Lewis and Mark Productivity and
Family Responsibilities Symthe are involved. customer service may
Lynda's decision to be impacted by the
schedule coaching problem, which could
sessions on the lower employee morale
weekends has caused and job satisfaction.
her problems because Employee turnover may
she needs to juggle her rise if they believe they
obligations to her family are unable to reconcile
and her job. their personal and
professional life.

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Individual IVEY Case
3. Root Cause/Basic Underlying Issues
Explain Who is involved? Impact on costs,
What is their role and quality, customer
responsibility in service, or
creating or resolving innovation?
this issue?
Lack of Effective Involved because of his Lower productivity,
Leadership and choices and tactics that greater turnover
Management have resulted in these expenses, and worse
Strategies problems is Mark sales performance
Symthe, the sales could result from this.
manager. In addition to Quality of customer
making sure strategies service may suffer as a
suit the goals and result of the detrimental
motivations of the effect on morale.
team, his main
responsibility is to
manage the sales force
efficiently.
Inadequate There's Mark Symthe, Reduced productivity
Performance Kyle Sherbo, and other and sales performance
Management and members of the sales can have a direct effect
Recognition team. Mark is in charge on revenue. High
of overseeing performers may
performance and become less innovative
appreciating work from and incur higher
staff members. Kyle turnover costs if they
performs worse feel ignored.
because he feels
unnoticed.
Poor Work-Life Lynda Lewis and Mark Could result in reduced
Balance Provisions Symthe are involved. morale, lower
The problem stems productivity, and higher
from Mark's choice to turnover. Low morale
do coaching sessions could have an indirect
on the weekends. As effect on customer
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Individual IVEY Case
an employee, Lynda service as a result.
finds it difficult to
maintain a work-life
balance.
Negative Workplace Michael Benjamin, Could have an adverse
Culture Mark Symthe, and Kyle effect on expenses and
Sherbo are involved. sales performance by
While Michael and causing employee
Kyle's experiences demotivation, low
point to a perceived productivity, and high
lack of fairness, Mark is turnover. A hostile work
accountable for environment may
upholding equitable hinder creativity and
practises. customer service.
Lack of Employee Encouraging employee Low engagement can
Engagement and engagement is Mark lead to decreased
Involvement in Symthe's job as a innovation, increased
Decision-Making leader. The decisions turnover, lower
impact every member productivity, and
of the sales team. possibly even worse
customer service.
Mismatch of Job During the hiring Sales and customer
Expectations and process, Michael service may suffer as a
Reality Benjamin is directly result of low motivation
involved, and Mark and subpar
Symthe is in charge of performance brought
making sure that the on by mismatched job
role's expectations and expectations.
reality match.
Resistance to Change Mark Symthe is in Opposition to change
charge of handling this can sabotage new
resistance and tactics and have a
promoting change, but detrimental effect on
all members of the productivity, creativity,
sales team are and sales.
involved.
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Individual IVEY Case
Inefficient Sales Involved are Mark Loss of revenue,
Processes Symthe and Michael decreased customer
Benjamin. The sales satisfaction, and
process's inefficiencies increased operating
should be addressed expenses can result
by Mark in his capacity from ineffective sales
as sales manager. procedures.

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Individual IVEY Case
4. Analysis of Case Data
Causes & Effects
1) Cause: Mark's implementation of the new sales
performance management system.
Effect: As a result, the sales staff is now more
resentful. The team's motivation and morale may
suffer in the absence of effective communication
and involvement, which would affect sales results.

2) Cause: Modifications to the commission

schedule.
Effect: Michael's dissatisfaction has grown as a
result, which may cause him to put in less energy
and enthusiasm in his sales work. Sales and
customer satisfaction may therefore suffer as a
result.

3) Cause: As demonstrated by Lynda's

circumstances, a lack of appreciation for
accomplishments.
Effect: She might become less committed and
motivated as a result, which could have an impact
on how well she performs in sales. This may
eventually affect her choice to remain employed
by the company.

4) Cause: The impression that Kyle was given an

unfair promotion.
Effect: As a result, Kyle is no longer as devoted or
productive. Additionally, it has made him more
resentful of management. Both the overall sales
and the dynamics of the team may suffer as a
result.

Constraints  • The limited number of job opportunities due to

the company's rural location. In addition,
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Individual IVEY Case
employees' personal lives and obligations
outside of work may make it difficult for them to
put in more time at work, which affects the
company's ability to find new talent and replace
underperforming staff. Morale among staff
members and job satisfaction may suffer as a
result.
 Improved productivity and sales performance
Opportunities are possible with the new sales performance
management system.
 The company can enhance motivation and
productivity by putting comprehensive
employee engagement strategies into practise.
 Company policies and procedures can be
changed with the help of employee input. Better
work satisfaction and higher employee retention
could result from this.
Quantitative Data  Although the case doesn't give exact figures, it
does show a notable drop in sales performance
from the prior quarter.
 Revenue for the company comes in at $36
million.
 Michael's customer satisfaction ratings are
incredibly low, which might be a sign of
impending client apathy and diminished
business.

Qualitative Data  It is clear from the case how the employees feel
and perceive the recent changes made to the
company. These emotions include feeling
underappreciated, resentment, discontent, and
lack of motivation.

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Individual IVEY Case
 Michael's job doesn't match his first
expectations, which suggests that job roles and
expectations need to be redefined.
 Linda believes that her dedication and hard
work go unappreciated, pointing to the need for
an enhanced system of rewards and
recognition.

Course Concepts  Change Management: With the use of

Relevant to Case efficient change management techniques, the
difficulties arising from overseeing the
adoption of the new commission structure
and sales performance system may be more
fully recognised and mitigated.
 Employee Motivation: By identifying the
factors that drive individual employees, a
company can more effectively customise its
management techniques to improve morale
and job satisfaction.
 Leadership: How Mark guides the group
through these adjustments and responds to
their worries could have a big influence on
the effectiveness of the new systems and the
group's performance as a whole.

 Performance Management: An environment

where employees are treated fairly and are
motivated to work could result from a more
efficient system.

 Job Satisfaction: Employees like Michael

may perform better, be more motivated, and
have a higher level of job satisfaction if the
gap between expectations and reality is

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Individual IVEY Case
addressed.

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Individual IVEY Case
5. Describe alternatives to resolve root cause/basic issues.
Issue Considerations/Support
Resentment and lack  Improve communication: Explain the
of acceptance changes' justification and how they will help
towards the new sales the company and its employees. Employee
performance involvement in the process can also be
management system. fostered by providing regular updates on the
new system's development. Acceptance of
change can be greatly increased by effective
communication. Employees can ensure that
their objectives are in line with the company's
by comprehending the rationale behind
changes.
 Employee participation in decision-making:
Allow staff members to participate in
decisions about changes that will directly
impact them. Since employees will be the
ones who will be directly impacted by the
changes, this will aid in getting their
acceptance and may result in better ideas.
Changes in  • Performance-based rewards: Put in place a
commission structure system that recognises and rewards effort and
leading to decreased commitment in addition to hitting sales targets.
motivation. This can motivate workers to give it their all,
enhancing the business's performance as a
whole.
Lack of recognition for  Put in place a system of recognition:
effort and Consistently acknowledge and value the efforts
commitment. of your employees. This might be accomplished
by shout-outs during staff meetings, a
"Employee of the Month" programme, or other
reward schemes. Employee appreciation may
have a significant positive impact on morale and
job satisfaction by helping workers feel
appreciated and inspired to work hard.
Perception of unfair  Open and honest promotion guidelines: Create
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Individual IVEY Case
promotion and a promotion policy that is transparent and easy
decreased loyalty. to understand. Make certain that every
employee understands the requirements and
the procedure for promotions. Improved loyalty
and morale can result from a transparent
promotion process that reduces perceptions of
unfairness and favouritism.
Employees feeling  Frequent feedback sessions and one-on-one
undervalued and meetings can help employees feel heard and
unappreciated. appreciated. They allow them to voice their
ideas and concerns and receive helpful
criticism. Receiving feedback on a regular basis
makes it possible to spot possible problems
early and take action before they worsen.
Additionally, it improves management-employee
relations and increases workers' dedication to
the organisation.

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Individual IVEY Case
6. Decision Criteria
What are the criteria that are
important to making this
decision?
Employee Acknowledgment
Practicality
Impact on Employee Morale and
Motivation
Conformity to the Long-Term
Objectives of the Company
Effect on Customer Service and
Contentment
Implementation Simplicity
Justification for choosing this
criterion
Only after employees accept
changes will they become effective.
Employee agreement and
understanding of new procedures
and policies is essential.
The suggested modifications need
to make sense in terms of money,
time, and available resources.
Unfeasible solutions will merely
cause more issues.
Any changes must take into account
how they will affect employee
motivation and morale, which will
have a direct impact on their work
and, eventually, the company's
success.
To guarantee that changes
contribute to the company's overall
vision, they should be in line with
the long-term goals and strategies
of the organisation.
Salespeople deal with clients face-
to-face. As a result, modifications
that affect them may have a big
impact on customer satisfaction and
service.
Easy-to-implement solutions
encounter fewer obstacles and are
more likely to be successful.
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Individual IVEY Case
7. Alternative Assessment

Note: You are not required to use 4 criteria or identify 5 alternatives; alter the table as required for
your analysis.

Alternat Decision Criteria

ive
Action Respons Audit Employe Sales Cost Ease of
ible Measures e Performa Effectiven Implement
Satisfacti nce ess ation
on
Improve Call a Mark After the High Medium High High
Communic meeting Symthe meeting,
ation with all of (Sales administer a
the sales Manager survey to
staff to ) the staff to
hear gauge their
about acceptance
their and
issues, go comprehens
over the ion.
company' Throughout
s goals the coming
and weeks,
strategies, keep an eye
and offer on the
a forum communicat
for candid ion
conversati procedures
on. to see if
they get
better.
Introduce Check the Mark Keep track High Low Medium High
Flexible training Symthe of training
Scheduling schedule (Sales session
for Training for any Manager participation
Sessions areas ) in and
where consultat attendance.
flexibility ion with Ask workers
might be HR about how
possible. Departm the new
Discuss ent. scheduling
personal system
commitme affects their
nts with work-life
staff balance and
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Individual IVEY Case
members what their
to create thoughts
a are on it..
schedule
that works
for them.
Re- Conduct a Joel Jr. After Medium High Low Low
evaluate thorough (CEO), commission
Commissio analysis Mark structures
n of the Symthe are
Structures existing (Sales changed,
commissi Manager keep an eye
on ), and on how
system. Finance sales
Compare Departm performanc
to industry ent. e and
norms employee
and satisfaction
assess change.
the effects
on the
performan
ce of
sales.
Provide Provide a Mark monitor High High High High
Recognitio structured Symthe changes in
n for Effort method to (Sales sales
acknowle Manager performanc
dge staff ), HR e, employee
members' Departm morale, and
contributio ent. motivation.
ns, such
as thank-
you notes,
award
presentati
ons, or
unofficial
team-
meeting
shout-
outs.
Create To ensure Joel Jr. Observe High Medium Medium Medium
Clear and fairness (CEO), how
Fair and HR employees
Promotion transpare Departm react to
Policies ncy, ent. opportunitie
review the s for

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Individual IVEY Case
current advanceme
promotion nt and keep
policies tabs on
and make shifts in job
any satisfaction
necessary and
adjustmen leadership
ts. confidence.

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Individual IVEY Case
8. Recommendations
Recommendation
Improve Communication
Introduce Flexible Scheduling for
Training Sessions
Provide Recognition for Effort
Create Clear and Fair Promotion
Policies
Justification for choosing this
alternative
This resolves the fundamental
problem of Mark and the sales
team's misunderstandings and poor
communication. Through effective
communication and unambiguous
clarification of strategies and
objectives, the organisation can
enhance employee morale and
guarantee that all employees are
working towards the same
objectives.
This takes into account the sales
team members' personal
obligations. Offering a more flexible
schedule for training sessions
demonstrates to employees that the
company values work-life balance,
which may boost morale and
possibly lower attrition.
Acknowledging staff members'
contributions can greatly boost
morale and motivation, which can
enhance sales results. Because it
deals directly with the performance
issue, this alternative is a great
option.
This responds to Kyle's expressions
of demotivation and discontent.
Establishing fair and transparent
promotion policies will help the
business boost morale, mend
fences with staff members, and
inspire its sales force to aim higher.
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Individual IVEY Case

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Individual IVEY Case
9. Implementation Plan
What? Who? When? Resources Monitor/Audit
Short Term
(<90days)

1) Conduct 1)Mark Symthe, Sales 1) Within 2 1) Meeting room, 1)Conduct employee

meeting to Manager. weeks. presentation survey to gauge
improve materials effectiveness
communicatio
n.
2) Develop and 2) Mark Symthe in 2) Within 60 2) Scheduling tools, 2) Track attendance and
introduce consultation with HR days HR Personnel engagement in training
flexible department sessions.
scheduling for
training
sessions.

Medium Term
(3 months – 2
years)
1) Monitor shifts in sales
1) Funding for the results and staff morale.
programme of
1)Implement 1) Mark Symthe and HR 1)3-6 months recognition
recognition program Department (bonuses,
certificates, etc.) 2) Track shifts in
2) Review and revise employee satisfaction
promotion policies 2) CEO, HR Department 2) 6 months - and trust, as well as how
1 year staff members react to
2) Legal counsel and opportunities for
HR staff (for policy promotion.
review)

Long Term
(over 2 years)

CEO, Sales Manager, and 2 years Finance Department Finance Department

Re-evaluate Finance Department Personnel, industry Personnel, industry
commission benchmark data benchmark data
structures

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