Strategy

1. A ZERO WAGE
INCREASE AGAIN?
SECTION 1_ GROUP 8
MANISH AGARWAL FT231023
NISHANT RANJAN FT231026
PRAJAKTA RAUT FT231027
PRATHYUSHA CHITTALA FT231028
PRITHIVI T FT231029
PRIYABRATA KUNDU FT231030

2. Case Facts
 The case is about the Owner, Mark’s dilemma on how to deal with upcoming wage review process
 No increments in the last two years resulting in distress amongst the workforce
 Mark reached out to Aaron, the company controller to come up with a plan to manage the allocation of
funds for the process
 Aaron proposes some ways, which Mark is hesitant to pursue
 Mark has two choices if he pursue the process improvement methods proposed by Aaron, he will have
some savings, that he can use for reviewing of wages,
 Minimum 2.5-3.0% increase to all employees
 Appreciate only the top performing minority

3. Outcomes, Mark Wants to Achieve
 Appreciate the people (Aaron, Simon, Kyle), who are outperforming and going that extra mile to get
things done
 Increase motivation amongst the workforce
 Curtail the possibility of theft by workers, if they fell entitled to shop lift because of no salary review
consecutively for a third year
 Appreciate the top performers and set an example to the remaining workers
 Get the workers to align to the company’s values of serving customers to be the top priority

4. Pros and Cons of planned Outcomes
Scenario-1 Scenario-2
Description
Process improvement savings to
give a three percent wage increase
to all employees
Mark uses the
money currently available in the
budget to give raises to Aaron,
Simon and Wesley only.
Pros
• Comforting to all the employees after two years
of no review
• Curtail shoplifting and excuses for leave
• Motivation to work
• The Receipts would feel acknowledged and continue to work
• Will set an example for the fellow workers
• The other workers can see an incentive to contribute more
Cons
• The top performing ones, would feel
unacknowledged
• Would feel demotivated to put those extra
efforts, that make a difference.
• Risk of the leaving the store
• Continued distress amongst other workers
• Chances of increased theft and shoplifting
• People might not show up to work, which might result in
insufficient workforce.

5. What should Mark Do and Why ?
 Mark should work out a reward system to give a basic increment to all the workers but
considerably higher to the top performers
 Basic increment to all can to an extent reduce the distress and curtail the excuses and shop
lifting practices
 The differentiation will motivate the receipts to keep up the efforts and also is an incentive
to the rest of the workers to start performing better
 Mark should also consider laying off some people like Dougie and others who are below the
minimum expected performance and instead hire a new batch for the older pay and train
them under the top performers
 This way , the top performers will be appreciated to raise up to new ranks and will also set
the floor for the less performing workers to have the fear of losing job, if they under perform.

6. Suggested Changes to Reward System
 Well defined Reward system, to consider their shift timings, their frequency of leaves
and the sales they contributed for
 Customer feed back to monitor their assistance in their respective departments
 Record of their additional efforts for the betterment of the store, like Kyle who proposed
changes and other innovations in work methods
 Supervisor system and their feedback of the individual workers
 Online monitoring of their attentiveness during their workhours in the store