McGee Case Study

Sam Capistrant

2/27/18

McGee Case

Introduction

Mary Ellis recently resigned of her sales position, because she felt she was not being rewarded for all of her hard work and dedication. McGee Metals was spit up into three unrelated business groups, where there was a management structure in each division. Employees are concerned of where they will go, and what new positions will be obtained in this complicated business organizational structure.

Problem Statement

How can Mann continue to reward these people if career paths outsides of sales cannot be established?

Issues

Ellis is resigning from her position even though she had a record breaking year in terms of sales and other accomplishments, but she cannot be promoted because she does not meet other qualifications. This is a problem not just for Ellis, but for other employees, because they feel that they do not have much motivation to excel in their positions, if there is no room for growth and promotions.        

Another problem that McGee is facing, is that based on the Hay’s rankings, it is hard to advance to higher level positions. They need to find a concrete and reasonable way that employees can move beyond a grade 12. Many of them work very hard and then plateau at a 12 and find it very difficult to grow, which raises the question of what job responsibilities they should be able to accommodate at each grade.

Lastly, they may need to allocate the territory design of the regional managers more efficiently. Some of the managers have to cover much more area and or more sales volume than other territories.

Alternatives

One way they could solve this is by focusing on growing the Composite division as much as possible. This is expected to grow by 25% over the next 10 years, and there are many ventures popping up all the time. They could give their salespeople incentive to work and grow this department by allowing them to make managerial opportunities in this department, because there may need to be more than one person.

Even if they continue to grow, and all of the positions are filled, they could find a different way to compensate their employees. Even if they technically cannot become regional managers, they could still compensate them better, and allow them to take more responsibilities and strive to grow the company.

In order to make the territory design be more effective and efficient, they could use the idea of creating satellite offices. They already adopted this idea in the Kansas City and New Orleans offices. They could create more satellite offices and allow those salespeople who are having troubles advancing past the 12-14 grade, take responsibility for those locations.

Analysis

There are many different business ventures that could be taken advantage of in order to grow the Composite division to its fullest potential. If salespeople feel that they cannot get out of their position and cannot prove themselves, this would be a perfect opportunity for them to prove their worth. If they do a good job growing this section of the company, this would require more help in management, and could therefore take responsibility and move past a grade 12 and be compensated accordingly.