Essay on Summary Of Problems At X Corporation

923 Words Jul 27th, 2015 4 Pages
SUMMARY OF PROBLEMS AT X CORPORATION:

Mrs. Jones 's concern over the declining customer satisfaction prompted her to seek my assistance in solving this issue. In my fact-finding mission, I found the key area that requires improvement in order to solve this problem. The issue is the drastic change in performance goals and organizational structure due to Mr. Smith 's personal career goals. Mr. Smith has his eye on Mrs. Jones 's job once she retires. A member of the board told Mr. Smith that a drastic increase in sales would help his chances of promotion. In order to improve his chances of replacing Mrs. Jones, Mr. Smith implemented stretch goals, a technique that he learned in a MBA class, to push his sales team to their limit. He changed performance goals from team-based to based on individual sales numbers. In doing so, he changed the organizational structure from one of teamwork and collaboration to one of competition and individualism. This pinned the members of the sales team against one another and resulted in sabotage, stealing customers, and hiding information. They began misrepresenting products, hiding contract commitments, and not informing customers of price increases in order to improve their personal sales numbers. While the result is an increase in short-term sales, the impact is long-term.

RECOMMENDATIONS FOR SOLVING THE PROBLEM:

1) Switch the sales goals back to team-based.
The cause of the decreasing customer satisfaction is the sales team 's reluctance to…

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