Ann Taylor Stores -- a New York-based retailer of upscale women's clothing -- is using a new computer scheduling system that assigns the busiest and most desirable hours to employees with the strongest sales numbers. Those with less success on the selling floor get far fewer and less desirable hours when new schedules are posted.
Building on success in controlling inventory and other retail operations, new software programs are being used to manage another critical asset for stores -- sales people. While the systems can help improve productivity, Wharton faculty and others warn that they are no substitute for hands-on management when it comes to dealing with employees.
Wharton marketing professor Stephen J. Hoch says the Ann Taylor system is like "squeezing blood out of a turnip" and goes a long way toward alienating employees. Erin Armendinger, managing director of Wharton's Jay H. Baker Retailing Initiative, describes the initiative as "a case of something that has its roots in a good idea [but that has been] taken too far."
'The Worst of Dilbert'
While the softening economy may give employers a stronger hand in employee relations, retailers historically have difficulty attracting and retaining qualified workers because the industry pay scale is so low, Hoch points out. "Ann Taylor, and the retail environment in general, is not the only place where people can work. This system potentially creates a hostile working environment. It's the embodiment of the worst of Dilbert."
Hoch acknowledges that Ann Taylor's new scheduling system may be one way to reduce labor costs. "It can be self-fulfilling. If you give people just a few [off-peak] hours, they will look for another job. Maybe that's what [corporate executives] want." He also acknowledges that technology-based information can be valuable to managers, but only if the value is clearly understood throughout the company.
[continue]
Page 1 of 7
> >>