Question: Question 3 ( 2 5 marks ) Just over a year ago, the sales department in the credit card division of Liz Bank wasrestructured. For
Question marksJust over a year ago, the sales department in the credit card division of Liz Bank wasrestructured. For ease of reference, the department will be called SDCCTwo key aspects of the restructure included: The allocation of sales staff to teams. The introduction of a sales target system.Each team is set sales targets and the results are published internally on a monthly basis. Theteam that sells the most for the month receives a cash bonus. A review has recently beenundertaken to assess the effectiveness of the restructure. The findings have suggested that,overall, there has been an adverse effect on the performance of the Department. It wouldappear that there is hostility between the team leaders. In addition, communication andcooperation between teams has fallen dramatically. The following observations were madeabout each of the three teams in the review: Team A is always the top seller and receives the cash bonus each month. The team leaderof A is highly motivated and team spirit is high. Team members are constantly coming upwith new ideas on how they can increase sales. The team seems to be a very cohesivegroup and regularly organises social events just for its own members. Team B never succeeds in meeting its targets. The team leader does not seem botheredby this, and appears more interested in working out how much longer he needs to workbefore he can retire. Team members have complained about their team leader, and twomembers have resigned. There is a personality clash between the team leader andanother member of the team who is viewed by the rest of the team as the unofficial leader.Absenteeism of team members has increased significantly since the restructure. Team C whilst achieving its targets is always behind Team A The team members are anextremely tightknit group, but have become segregated from the rest of the departmentand are no longer responsive to the work needs of other members of staff in theDepartment. They appear to have their own agenda and tend to reach consensus ondecisions which are often excessively cautious.The Sales Director responsible for the restructuring of the Department is reluctant to makeany changes. However, it is clear that some action is needed to resolve the problemsidentified in the review.REQUIRED:a Discuss the advantages and disadvantages associated with the introduction of the salesteams and sales targets marksb Discuss how the conflicts in the SDCC could be minimised.
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