In January 2010, the U.S. luxury products merchandiser Raleigh &Rosse was being indicted by its employees for suggesting working after the designated shift hours. Lying at the core of the class action indictment is the much talked about Raleigh &Rosseperformance evaluation program, which was earlier thought to be the success factor for the merchandiser’s development. The performance program makes use of an hourly sales approach to compensate employees for adequate time spend on the shop floor. However, in this industry where the priority is given to fulfilling the customer needs and adhering to the client service schedules, sales employees for the merchandiser soon began to feel that they were being made to spend extra time to cater to the client demands; this concern and others have resulted in a situation that the company did not foresee. This case demonstrates how steady company development, decentralized managerial force and continuous pressure to perform can defragment performance evaluation programs and result in unwanted consequences.
What is the primary problem in the case?
What are the major factors affecting the problem?
How are you approaching the problem?
What is your solution and/or recommendation?