1. Theories Explaining Under-Performance
A. The Expectancy Theory
Overview: Proposed by Victor Vroom, the Expectancy Theory suggests that an individual's performance is influenced by their expectations of the outcomes of their effort. This theory hinges on three key components: expectancy (the belief that effort will lead to performance), instrumentality (the belief that performance will lead to rewards), and valence (the value placed on the rewards).
Application to Lovely Locks: If the sales team at Lovely Locks is under-performing, it might be due to low expectancy (team members feel their efforts won’t lead to improved sales due to lack of training or tools), low instrumentality (they believe that even if they perform well, rewards are not forthcoming), or low valence (the rewards offered may not be meaningful or motivating to the team).
B. The Job Characteristics Model
Overview: Developed by Hackman and Oldham, this model outlines five core job characteristics that influence motivation and performance: skill variety, task identity, task significance, autonomy, and feedback. When these dimensions are lacking, employees may experience low motivation and, therefore, subpar performance.
Application to Lovely Locks: Analyzing the sales team’s roles may reveal deficiencies in one or more of these characteristics. For instance, if team members are not able to utilize a variety of skills (skill variety), or if they lack autonomy in decision-making, this could lead to disengagement and under-performance. Additionally, insufficient feedback may lead to uncertainty about performance standards, which could further hinder motivation.
2. Plan to Address the Poor Performance of Star
Identified Reason for Under-Performance
Through the analysis, one specific area of under-performance identified is the lack of engagement and motivation due to low instrumentality and insufficient feedback concerning performance.
Actions Required
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Enhance Expectancy through Training:
- Action: Implement a comprehensive training program for Star. This program should focus on product knowledge, sales techniques, and customer relationship management.
- Rationale: By enhancing skill levels, Star’s belief in the ability to perform well (expectancy) will increase, which should improve performance.
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Establish Clear Performance Metrics:
- Action: Define clear, measurable performance goals for Star, and ensure that these are communicated effectively.
- Rationale: Clear metrics will support Star in understanding what is expected and how performance ties to rewards (instrumentality).
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Create a Feedback Loop:
- Action: Schedule regular one-on-one meetings to provide constructive feedback on performance, recognizing achievements and outlining areas for improvement.
- Rationale: Continuous feedback will guide Star toward better performance and increase motivation by acknowledging progress and addressing concerns in real-time.
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Revise Reward Structure:
- Action: Reassess the incentives and rewards associated with performance. Consider introducing bonuses for exceeding sales targets or non-monetary rewards such as recognition programs.
- Rationale: A reward structure that is perceived as valuable (high valence) will encourage Star to strive for better performance.
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Monitor and Adjust Strategies:
- Action: Regularly review the effectiveness of the changes made in training, feedback, and reward structures. Make adjustments based on performance data and feedback from Star.
- Rationale: Ongoing monitoring ensures that the strategies remain effective and responsive to Star's needs, fostering an adaptive and supportive work environment.
By implementing this plan, Lovely Locks can aim to significantly improve performance through targeted support and engagement strategies for Star, addressing the root causes of under-performance effectively.
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