People's Home Gadgets

1. Provide advice to Paula regarding the nature of the HR system she should recommend for the customer service representatives at the six stores.

There is a problem that PHG has faced employee turnover issues the figures indicates over the 70% more than management's expectation. To reduce, turn over issues I'd like recommend an improvement of entire salary systems employees get their salary based on their performance, it makes high turnover issues that mean a representative who has remarkable ability when he sailing PHG stuffs. However, other people who can't sales as much as sales top representatives ended up they got a lowest salary. So I recommend Paula to do establish fixed salary policies regardless of their sales abilities.

2. Identify a key strategic performance driver for this organization.

They have strategic performance drivers based on low costs- high quality policies. It indicates a core concept of competition. In other words, it is called Cost leadership strategy. By lowering costs, they are able to get a high market positions more that other competitive. To maintain that position they always consider in respect of cost benefits.

3. How do the customer service representatives contribute to the strategic performance driver you identified?

The company gives representatives a discretion which is able to provide lower prices by cutting margin of percentages. It was a unique policy. Finally, it makes them to maintain cost leadership so illustrated policies could give company a competitive edge in the market. A processes that establishing Strategic performance is following.