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  • Essay / A Study of the Business Strategy Used by Howe Ski Shops 2

    A non-traditional incentive system focuses more on intrinsic rather than extrinsic motivators. To a greater extent, it is more personal and most often tailor-made for a specific employee based on their passion, energy, interests and even career goals. Howe 2 Ski Shops cannot offer a traditional incentive system because it would increase the cost of labor and possibly reduce the profit made. On the other hand, if the organization offered its staff non-traditional incentives that are not necessarily linked to money, there would be a greater chance that the quality of the services offered would improve and that productions would proceed without problem. Conversely, a non-traditional incentive system takes more time to define and implement than its traditional counterpart. Say no to plagiarism. Get a Custom Essay on “Why Violent Video Games Should Not Be Banned”? Get an Original Essay The problem facing Howe 2 Ski Shops may seem simple, but if not handled properly, it can cause a chain reaction that completely hampers normal business activities. . Staff must be motivated to improve per capita output and services offered (Landers, et al 2017). The problem is that stores may not be able to offer purely monetary incentives in terms of salary increases and bonuses without negatively affecting their profit margin (Bijman, et al 2014). Staff are accustomed to the incentives mentioned above: if they go a long time without these incentives, provided they have the opportunity to report to their union, then the stores will be forced, through legal action, to offer these incentives. This is the scenario Howe 2 Ski Shops wants to avoid. Stores seek to give back to employees as much as they contribute to the company, but without too much friction between management and subordinates. To ensure that the process has an aspect of continuity, the company will need to invest in a non-traditional incentive system that will be adaptable to changes in society and the business world. The solution to the aforementioned problem must be based on from the perspective of social exchange. This perspective is based on the premise that interdependence exists in every relationship (Landers et al 2017). Conversely, each party should feel like they are getting more value than what it costs them to actually maintain the relationship. In this case, 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 employed at the company. They must feel that they are valued and that they are an integral part of the company. Conversely, the company should also, through financial calculations and analysis, get more from its employees at a lower cost. In this case, the company will be more valuable if it works hand in hand with its subordinates (Bijman et al 2014). This concept ensures that there is a state of balance and no party will feel oppressed, undervalued or suffer losses. There are various solutions to the Howe 2 ski store problem. Here are some of the solutions: The main advantage is that the quality of services offered by the staff to the customers will be higher than before. Staff will be able to understand most products and can easily cross-sell products. The main disadvantage is that the process is time consuming and staff may use thecertificate obtained to seek employment elsewhere and possibly leave the company. The main benefit is that it will foster productive competition which will create space for innovation and creativity. Teamwork will be improved and there will be less friction between management and subordinates (Landers, et al 2017). The final advantage is that it is much cheaper than giving all subordinates in the department a bonus or a raise. The main disadvantage is that it can distract from the main goal of a competitive environment and can easily become cutthroat if not well supervised. This is particularly true for future junior managers who wish to obtain a management degree. The company can fund part of the costs and find another education-based organization to sponsor an employee every two fiscal years based on the set goals. The main benefit is that it would not only help young managers become professionals but also improve the level of professionalism offered in stores (Zhang et. al 2014). The main disadvantage is that it would be a long-term project that would take time and take the person away from their desk. This will put more pressure on other subordinates who will have to cover for the one taking the classes. The human resources department must first take the time to know and understand employees based on their passion, needs and career goals. This can be done by making them complete questionnaires about themselves and each other and analyzing them properly with the help of their immediate supervisor (Bijman, et al 2014). By understanding the workforce, HR can then easily tailor some of the incentives to individual specifications and therefore ensure employee loyalty. The HR department can involve staff in the decision-making process, particularly on issues that directly affect them such as working hours and changes (Bijman, et al 2014). Employees tend to respond positively when they feel heard, rather than when they feel like management is simply dictating policies without seeking to hear their side of the solution (Zhang et al. 2014). The HR department should work to ensure that staff are convinced to buy into the company in terms of stock whenever possible. Shares can be bought and sold after a significant period of time and during the period in which the company will ensure staff loyalty. The human resources department can determine in several ways whether the non-traditional incentive system is working. The effectiveness of policies should be tested by analyzing the desired end results and whether they were achieved. For example, the main end result is to ensure staff loyalty. Loyal staff will always seek to know and understand the company's products and culture and will always work to achieve company goals. Loyal staff will always represent a positive image of the company in all aspects and will never seek to tarnish the brand. All of this can be observed in the way a staff interacts with customers, other staff and the company infrastructure. Reducing friction between management and subordinates is also another way HR can determine whether implemented policies are working effectively. A reduction in the number of visits and calls from the union president may mean fewer complaints are reported. The opposite also means that the policies implemented do not.