Ann Taylor Labor Allocation System - PowerPoint Presentation

Slide1

Ann Taylor Labor Allocation System

A review of labor management ethics Slide2

Background

AnnTaylor

Stores Corp.

1

installed their new Ann Taylor Labor Allocation System (Atlas) in 2007

Atlas replaces the old process of managers personally allocating labor schedules

The system analyzes “performance metrics” of an employee

Examples of these metrics include:

Average sales per hour

Dollars per transaction

Atlas then schedules the most productive sellers to the busiest hours

Also, Atlas allocates more productive salespeople with favorable hoursSlide3

Benefits

The company expects to:

Increase efficiency

Improve productivity

Boost revenues by turning more store browsers into buyers

Reduce number of workers during less busy times and allocating more for high-traffic hours

Atlas was created in response to other retailers that have implemented similar IT systems to stay competitive

Nearly a year after Atlas was rolled out, 76% of store managers believed that Atlas was better than the traditional processSlide4

Ethical ProblemsDehumanizing the managerial process

Employees are finding it hard to schedule their lives, as Atlas schedules shorter shifts

Sometimes employees who commute from far away might get 3-hour shifts, barely enough to compensate for the cost

Unlike traditional store managers, Atlas doesn’t provide time for personal commitments

The constantly changing schedules do not guarantee fixed income for employees. Hence they are finding it harder to set monthly budgets

Atlas sets sometimes unrealistic expectations for salespeople (dollar transactions per hour)Slide5

Ethical ProblemsUnfair way of ranking & rescheduling sales personnel by productivity levels

Ranking & rescheduling sales personnel by productivity levels causes problems:

When an employee’s sales-per-hour falls, so will their ranking

This causes the employees’ schedule to change to lower traffic hours

As a result, the employee finds it even harder to boost his/her rankings

This produces a vicious cycle that will end up eating into an employee’s paycheckSlide6

Ethical ProblemsManipulating workplace behavior – in the wrong way

Atlas encourages aggressive sales approaches, with some employees stealing sales from others

Implementing Atlas may have neglected the qualitative aspects of the sales workforce, that are equally important as the quantitative aspects

The general welfare of workers is neglected

Employees who rely on their work at

AnnTaylor

may find themselves in a difficult situationSlide7

Ethical ProblemsManagement’s disregard for workers’ welfare

Management apparently doesn’t care about employees’ welfare

In an interview with the Wall Street Journal, one executive quipped, “Giving the system a nickname, Atlas, was important because it gave a personality to the system, so [employees] hate the system and not us.“

This suggests that management is aware of the problems faced by employees but chooses to ignore them

Some critics have even likened Atlas to “treating workers like inventory”Slide8

Possible Improvements

While improving operations, companies should take into account the well-being of employees

Generally, in the fashion retail sales force, quality service is of great importance

Management could look into the problems faced by employees

and reprogram Atlas to take into consideration:

Employees’ availability and scheduling preferences

Allow more flexibility and manual overrides by store managers when necessary

Implement warning system – Employees will be put on probation before having their rankings dropped

Allow employee feedback for further adjustmentsSlide9

Bibliography

Thomson Reuters. (2008, December 3).

AnnTaylor

Stores Corp (New York Stock Exchange)

. Retrieved December 3, 2008, from Reuters Finance: http://www.reuters.com/finance/stocks/companyProfile?symbol=ANN.N&rpc=66

O'Connell, V. (2008, September 10).

Retailers Reprogram Workers In Efficiency Push

. Retrieved November 30, 2008, from The Wall Street Journal: http://online.wsj.com/article/SB122100270555417001.html

Everitt

, L. (2008, September 11).

Ann Taylor Finds Upside in Treating Employees Like Inventory

. Retrieved December 3, 2008, from BNet.com: http://industry.bnet.com/retail/1000195/ann-taylor-finds-upside-in-treating-employees-like-inventory/#comments

Wolfe, D. A. (2008, September 18).

Retail Scheduling Software Could Harm Employee Morale, As Well As Customer Service

. Retrieved December 1, 2008, from EmploymentBlawg.com: http://www.employmentblawg.com/2008/retail-scheduling-software-could-harm-employee-morale-as-well-as-customer-service/