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Mechanics : SPH measured the sales performance by the following formula: SPH = (Sales- merchandise returned)/Selling Hours. Unfortunately , a sale of a good , sometimes involved associates efforts outside the sales floor. But the hours outside werent included in the selling hours and were written off as non-selling hours. This caused distortion in the SPH figures. Suitability : SPH isnt suitable in retail business of luxurious goods , where per customer sales time can beyond sales floor premises. Instead we must provide incentives on absolute dollar sales values.
How would you redesign compensation and performance appraisal system at R&R?
Target based Performance Management System Exclude # of hours from evaluation Optimal Shift/Job Rotation to provide equal opportunity to every sales associate Individual customer feedback appreciations or complaints need to be accounted
Thank You !