A Case Study Analysis on Egan Clothiers.

Running head: A CASE STUDY ANALYSIS ON EGAN CLOTHIERS
A CASE STUDY ANALYSIS ON EGAN CLOTHIERS
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A CASE STUDY ANALYSIS ON EGAN CLOTHIERS1
Description:
Answer 1:
The main priority of Egan Clothiers is the focus on innovation and growth in providing a
superior quality of dress-wear, which is sophisticated, and a high quality of casual-wear as well
as fashion accessories. They put emphasis on providing excellent customer service, collaborating
with the sales teams and demonstrating high levels of innovation. To cut back on the costs that is
decreasing their gross profit margin, the company had to take difficult decisions such as ceasing
to hire any new employees and stopping their expenditure in HR-related activities such as
training.
Egan Clothiers have implemented excellent HR practices. The function of the HR
includes selection, training, performance management and providing rewards to the employees.
The company makes sure that they have selection standards that is better than their competitors.
They maintain an off-site training program that improve the skills of the employees. They have
proper performance management evaluation procedures that includes five categories of employee
performance: superior, very good, good, fair and poor. The reward systems to motivate the
employees. They provide merit increases annually according to the sales performance.
Answer 2:
The problems of the company are that there have been complains that the employees are
not as patient and courteous with the customers as they are expected to be. Secondly,
competition among the departments in the company is negatively affecting the work environment
that has negative consequences on team effort. There is a lack of cohesiveness among the groups.
Thirdly, due to disorganized storage rooms, the merchandises have been damaged or lost. There
has been decrease in absenteeism however, turnover has increased and the employees have been
reported to be lazy.
Diagnosis:
Answer 3:
The practice of feedback is a strong reason that makes the employees unhappy. The sales
of each employee is compared with others, and the data is posted for everybody to see. This is
done on a daily basis. The company feels that it motivates the employees however, contrary to
their belief, the employees are unhappy with this system. They do not want to change the system
because they do not want to identify subjectively. The categories that are assigned to them such
as fair and poor, decreases the morale of the employees. The managers seem to be confused by
the fact that the employees are not motivated though it provides proper feedback to them.
Herzberg’s two-factor theory of motivation proposed that there are motivational factors and
hygiene factors that cause job satisfaction in the employees. When there is both the factors are
high, they provide satisfaction to the employees, when both are low, they provide dissatisfaction.
When the motivation factor is high and hygiene is low, then the employees are highly motivated
however have lot of complaints. In the reverse case, the employees are employees have lesser
complaints and are highly motivated (Alshmemri, Shahwan-Akl & Maude, 2017). This
framework applies to the case study too.
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