Morgan-Moe’s Drug Stores
Morgan-Moe’s Drug Stores
6 month study on Performance Management System
Due to customers spending less, low commodity purchases, and location closers employees at Morgan-Moe’s drug store have been insecurity about their jobs was taking a toll on attitudes.
Over the last 6 months, stores throughout the company have used a performance management system to boost morale, respond to employees’ sense of hopelessness and fear, and retain effective employees.
Performance Management System:
* Program I – Traditional Management. Providing employees with little to no information or opportunities for participation. 83 /299 stores (the oldest stores and those in the most economically distressed areas.)
* Program II - Tracks employee absence and sick leave and shares information. 27 / 299 stores (in urban areas and in areas where the workforce was younger on average.)
* Program III - Tracks sales and inventory replacement rates across shifts shares information. 35 / 299 stores (in urban areas and in areas where the workforce was younger on average.)
* Program IV - Tracks the same information as Programs II and III. Managers communicate it in weekly brainstorming sessions, during which employees try to determine what they can do better in the future and make suggestions for improving store performance 67 / 299 stores (in stores in rural areas, and especially where the workforce is older on average)
* Program V - Keeps the idea of brainstorming but doesn’t provide employees with information about their behavior or company profits. 87 /299 Stores (in rural areas, and especially where the workforce is older on average)
(I) Independent / Dependent Variables:
The Most Popular Independent Variables are intelligence, personality, job satisfaction, experience, motivation, reinforcement patterns, leadership style, reward allocations, selection methods, and organization design.
The most popular Dependent Variables are productivity, absenteeism, turnover, job satisfaction, and organizational commitment,
Morgan-Moe’s drug stores Independent Variables are:
* Job Satisfaction of employees- since it will have an effect on the success of each program. * Age of employees- since some of the managers chose the program based on this variable. * Store Location- since some of the managers chose the program based on this variable. * Work Experience- with Morgan Moe’s since you want to retain these employees. * Leadership Styles- this has an effect on which program they chose for their location. Morgan-Moe’s drug stores Dependent Variables are:
* Productivity of selected program- weekly profit per month. * Turnover of selected program- on average for 6 months.
(II) Anything else you’d like to measure as an outcome?
The data is missing key information:
Number of Program Participants- it is important to identify how many employees in each location participated as the assumption here is 100%. This would provide an accurate outcome.
Turnover in $- turnover is more expensive in some locations than others. Losing a tenured employee with valued experience versus an employee whom has been with us for 2 months costs us more.
Graphical Information- having the data plotted on a graph would have provided a better representation. Below is an example.
(III) Which Program is Most Effective / Lest Effective?
Claussen is convinced the most elaborate procedure (Program IV) is the most effective, however it the data doesn’t support this selection.
Program V is the most effective program because it has the highest number of stores participating at 29%, has the 2nd lowest turnover rate (21%) with the best SD (12%) of the turnover rate, has the highest weekly profit ($14,000) with lowest SD ($2,400), and it staff costs relative to its profit is positive. Program IV has the most...
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