Question

In: Operations Management

A major theme in the readings and film is the pressure to perform and how this...

A major theme in the readings and film is the pressure to perform and how this pressure can lead employees to desperate measures (as depicted by Shelly burglarizing the office, Wells Fargo employees creating new accounts for their clients, and Sears auto employees selling unnecessary services to hit goals).

1. Do you think companies put excessive pressure on employees to perform/achieve sales goals?

2. What are the advantages and disadvantages of such a results-based approach?

3. Does this mean that companies can't set aggressive sales targets, while still promoting ethical behavior?

Solutions

Expert Solution

1. Do you think companies put excessive pressure on employees to perform/achieve sales goals?

  • Yes, companies put excessive pressure on employees to perform/achieve sales goals
  • It is aimed to fulfill the company gaols set at the beginning of year
  • This pressure is passed on to low level employees from higher management

2. What are the advantages and disadvantages of such a results-based approach?

Advantages

  • Company's sales goals are achieved
  • Employees get paid based on their performance
  • Variable pay is great in this case

Disadvantages

  • There is an extreme pressure on employees
  • It is hard to motivate employees
  • There is no work life balance

3. Does this mean that companies can't set aggressive sales targets, while still promoting ethical behavior?

  • Companies can set aggressive sales targets, while still promoting ethical behavior
  • If the employees are paid well at the end of the day, then this aggressive sales targets is justified
  • Comapanies cannot do without setting aggressive sales targets to the employees due to the harsh competition

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