A Study of The Business Strategy Employed by Howe 2 Ski Stores

A non-traditional incentive system focuses more on intrinsic rather than extrinsic motivations. To a greater extend it is more personal and more often tailor made for a specific employee based on their passion, energy, interests and even goals in their career. Howe 2 ski stores cannot be able to offer a traditional incentive system because it would increase the cost of labor and eventually reduce the profits earned. On the other hand if the organization was to offer its staff non-traditional incentives that are not necessarily money related, there is a higher chance that the quality of the services offered would improve and the productions would offer seamlessly. Conversely, a non-traditional incentive system takes longer to outline and implement in comparison to its traditional counterpart.

The problem that Howe 2 ski stores are facing can seem simple but if not properly handled it can cause a chain reaction that completely hinders normal business activities. The staffs require being motivated in order to improve per capita output and the services offered (Landers, et al 2017). The problem is that the stores cannot be able to offer purely monetary based incentives in terms of salary increments and bonuses without negatively affecting their profit margin (Bijman, et al 2014). The staff are used to the aforementioned incentives that when they stay for long without having them provided there is a chance that they may report to their union and then the stores will be forced through legal action to offer these incentives. This is the scenario that Howe 2 ski stores wishes to avoid.

The stores seek to that it gives back to the employees just as much as they contribute to the company but without much friction taking place between management and the subordinates. In order to ensure that the process has a continuity aspect to it, the company will require making investment in a non-traditional incentive system that will be adaptable to changes in the society and the corporate world.

The solution to the aforementioned problem should be based on the social exchange perspective. The perspective is based on the premise that inter-dependence exists in any relationship (Landers, et al 2017). Conversely each party should feel that they get more value than what it costs them to actually have the relationship. In this case, the employees should be offered incentives that make them feel that it costs the company more to have them as employees than it costs them to be employees at the company. They should feel that they are valued and that they are an intricate part of the company.

Contrary the company also, through financial calculations and analysis, should get more from the employees at a cheaper cost. In this case the company will be having more value while it works hand in hand with the subordinates (Bijman, et al 2014). This concept ensures that there is a state of equilibrium and no side will feel oppressed, undervalued or experience losses.

There are various solutions to the Howe 2 ski stores problem. Here are some of the solutions;

The main advantage of this the quality of services offered by the staff to the clients will be of better quality than before. The staff will be able to understand most of the products and can easily cross sell products. The main disadvantage is that the process is time consuming and the staff can use the gained certificate to look for employment elsewhere and eventually leave the company.

The main advantage is that this will harbor productive competition that will create room for innovation and creativity. Team work will be enhanced and less friction between the management and the subordinates will be experienced (Landers, et al 2017). The last advantage is that it is much cheaper than giving all the subordinates in the department a bonus or a raise.

The main disadvantage is that it may take concentration away from the main goal of a competitive environment and can easily become cut throat if not well monitored.

This is especially for upcoming junior managers who would like to get a diploma in management. The company can sponsor part of the fees and find another education based organization to sponsor an employee every other financial year depending on their set targets. The main advantage is that this would not only assist the junior managers to become professionals but also to be improving on the level of professionalism offered at the stores (Zhang et. al 2014). The main disadvantage is that this would be a long term project that is time consuming and takes the person away from their desk. It will put more pressure on the other subordinates that have to cover up for the one attending classes.

The human resource department should first take time to know and understand the employees in accordance to their passion, needs and career goals. This can be done through having them fill questionnaires about themselves and each other and properly analyzing them using their immediate supervisor (Bijman, et al 2014). By understanding the staff, the HR then easily be able to tailor make some of the incentives to individuals specifications and consequently ensure employee loyalty.

The HR department can involve the staff in the decision making process especially on issues that affect them directly like working hours and shifts (Bijman, et al 2014). Employees tend to respond positively when they feel that they are being listened to as opposed to when they feel like the management is simply dictating policies without seeking to hear their side of the solution (Zhang et. al 2014). The HR department should try to ensure that the staffs are convinced to buy into the company in terms of shares whenever possible. The shares can be bought and sold after a significant period of time and for the period the company will ensure that there is staff loyalty

There are various ways within which the HR department can determine whether the non-traditional incentive system is working. The effectiveness of the policies should be tested by analyzing the desired end results and if they were met. For instance the main end result is to ensure that there is staff loyalty. Loyal staff will always seek to know and understand the company products, culture and will work always to achieve the goals of the company. Loyal staff will always represent a positive image of the company in all aspects and never seek to taint the brand. All these can be observed from the way in which a staff interacts with the clients, other staff members and the company’s infrastructure.

Reduced friction between management and subordinates is also another way in which HR can determine whether the policies implemented are working effectively. A reduction in the number of visits and calls from the union chairman can mean that there are less complains that are being reported. The reverse also means that the policies implemented are not working.

The policies will definitely bring forth a social change. As mentioned earlier on, the work place is a social setting that is highly influenced by value and cost as per the social exchange perspective. When each participant in the social exchange process feels that they get more value at a smaller costs to themselves then there are bound to be changes in the association (Perego & Kolk, 2014). The policies will improve on the level of professionalism and competence demonstrated by the employees. Mainly because they will have more knowledge on how to be able to handle situations at work without feeling overwhelmed. This will reflect in improved customer service and cross selling of products.

The social life of the employees while at work will be made up of less complaining and engaging in productive activities as the management and the subordinates will no longer be at loggerheads (Bijman, et al 2014). There will be a decrease in disciplinary actions that are taken on by the human resource department as the policies will favor all stakeholders involved.

Conclusion

Traditional incentive systems are not realistic as they tend to strain and choke the financial aspect of a business making the management to expect perfect performances. This increases tension and creates hostility at the workplace. Conversely, non-traditional incentive systems ensure that the human resource, which is the most important resource in a service organization like Howe 2 Ski stores, is properly maintained. Loyal employees lead to a loyal clientele base which is the target of every organization. Non-traditional incentives will equip the employees with the necessary social and corporate skill to tackle issues even while under minimum supervision and this will further assist the company’s brand.