Question

In: Operations Management

Ali recently became a manager at a local furniture store that employs three managers and 55...

Ali recently became a manager at a local furniture store that employs three managers and 55 non- managerial employees. As larger furniture stores such as IKEA and Home Center are coming to the area, the owner is concerned about losing customers to competition based on the price of products.
The management team met and discussed their strategic response to this problem. The team agreed that if profit levels did not rise in the next few months, some employees would need be terminated. It was decided that the furniture store would compete using customized designs and better customer service. Ali’s responsibility was to train all non-managerial employees in good customer relation skills, and was given a budget of AED65,000 for this.
After contacting several training providers, Ali has narrowed down his options to the following three training programs:
Expert Trainers Inc.
Al Jumeirah Consultants
Al Areej Training Services
Training Program: How to Build Long-Lasting Customer Relations? Three-Day workshop for AED35,000
Method: Lecture, Group Discussion, and Activities
Maximum Trainees: 50 per session
Training Program: Customer Service Skills One-Day Seminar for AED8,000
Method: Lecture and Question-Answer Session Maximum Trainees: 70 per session
Training Program: Customer Satisfaction Training for Sales Staff Three-Day workshop for AED25,000
Method: Customized Simulations with Feedback
Maximum Trainees: 25 per session
Each of the three options has its own advantages and disadvantages. Ali has been comparing these three options and is unsure if he should pick one of these or go with a different approach altogether. At this stage he is not even sure if training the employees would even help.
Case Questions

2. How can the training program improve employee performance? Use one of the motivational theories covered in this course to support your answer.

Solutions

Expert Solution

Training programme helps in building relationships management skills, customer satisfaction skills, negotiation and communication skills, technical selling skills and ultimately gives them an added advantage as an extrinsic factor of motivation based on Mcgregors Theory X and Y where employees are given extrinsic factors fot motivation viz, appraisal, compensation, training, reimbursement, wok life balance, on site opportunities as few amongst them.

As per Blake Mouton Management Grid we see that, there are 5 leadership styles as below:

  • Impoverished style
  • Country club style
  • Middle of road style
  • Perish style
  • Team style

This helps leaders to adopt team style where high concern for both production and people is shown in terms of training which enhances people performance and organisational outcomes.

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