Worked example 1
Retail chain wants to motivate store staff to improve customer service without large permanent wage rises. Recommend a motivation package.
Show solution outline
Financial (limited cost):
- Team monthly bonus if store hits mystery-shopper score — shared success, small % of payroll.
- Employee discount — low marginal cost, valued fringe benefit.
Non-financial:
- Empowerment to resolve customer complaints up to $50 without manager — faster service, esteem.
- Recognition scheme — employee of the month, visible board (esteem, Mayo social).
Evaluation: Avoid pure commission on sales — may push hard selling and damage customer orientation.