General Information on these three question 1. Why is GM abandoning monthly sales reporting? 2. ...

General Information on these three question

1. Why is GM abandoning monthly sales reporting?

2. How does monthly sales reporting drive employee behavior? What are the negative behaviors resulting from monthly car sales reporting?

3. How will the changes in sales reporting impact employee behavior? What are the expected positive and negative implications?

Solutions

Expert Solution

1. GM is abandoning monthly sales reporting for the following reasons:

The market is highly competitive and dynamic. 30 days is not enough to separate real sales trends from short-term fluctuations.
Quarterly reports will make it easier to see how the business is performing
Monthly sales reports do not give a clear picture whether a company or a model is doing well as there is too much variability

2. Changes in sales reporting may lead to changes in performance and goal expectations of the employees. This can have an impact on the motivation of the employees.

Changes in targets from monthly to quarterly may make some employees more lenient thereby negatively affecting their performance. At the same time this can improve the performance of some other employees as this will put them in more ease in doing their duties.

3. Employee motivation depends on the changes in incentives and rewards. If incentives becomes higher and the employees can work with much ease, their performance will improve. On the other hand, if the incentives become negatively affected when compared to the current system or if the changes lead to a more stressful environment, the performance and motivation of the employees might be negatively affected.

keosha answered 1 week ago

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