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This is to certify that the

thesis entitled

The Relationship Between Sales Employee,
Career Stage, and Labor Productivity

presented by

Vanessa Prier Nickliffe

has been accepted towards fulfillment
of the requirements for

 

 

M. S. degree in Merchandising Management

 

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Dated/[ml 011101010

0-7639 MS U is an Affirmative Action/Equal Opportunity Institution

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DATE DUE DATE DUE DATE DUE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1/98 W959.“

 

 

A PlL

A PILOT STUDY "OF THE RELATIONSHIP BETWEEN SALES EMPLOYEE
CAREER STAGE, LABOR PRODUCTIVITY AND
COMPENSATION PLANS
By

Vanessa Prier Wickliffe

A THESIS

Submitted to
Michigan State University
in partial fulfillment of the requirements
for the degree of

MASTER OF SCIENCE

Department of Human Environment 8: Design

1993

ABSTRACT
A PILOT STUDY OF THE RELATIONSHIP BETWEEN SALES EMPLOYEE
CAREER STAGE, LABOR PRODUCTIVITY AND
COMPENSATION PLANS
By

Vanessa Prier Wickliffe

This study investigated the relationship of career stage and compensation
plan to the productivity rates of retail salespeople. The study further sought to
validate an instrument in a retail context in which it was not initially developed.
Sixty questionnaires were administered to sales associates affiliated with two retail
department stores. A response rate of 50 percent resulted. The level of
productivity of these sales associates could not be differentiated by career stage
position. Productivity rates of sales associates were found to differ by type of
compensation plan used in regard to the ratio of actual sales to assigned, department
and store sales. Finally, the Career Concern Inventory for adults scale was found to

be a reliable but not valid measure of career concerns for this retail sample.

To
my mother, Mary R. Kelley
and my dearest friend
Joyce Jones

iii

 

 

 

Jc

Br

SUp

ACKNOWLEDGEMENTS

The author realizes that without the assistance and cooperation from many
people, this could not be done. A special thanks to Dr. Karen Cummings and Dr.
Joshua Bagakas for their guidance and expertise. Thanks to Felicia Robinson,
Bridget Woods and Charles Corley for their friendship, help and support throughout
this endeavor. Lastly, I thank my family, especially Donald and Mary Prier for their

support.

iv

TABLE OF CONTENTS

CHAPTER PAGE

I. INTRODUCTION

Introduction ..................................... l
Backgron ..................................... 1
Significance ..................................... 2
Statement of the Problem ............................ 3
Purpose of the Study ............................... 3
Objectives of the study .............................. 3
Research Questions ................................ 4
Theoretical Framework .............................. 4
Conceptual Definitions .............................. 9
Research Assumptions .............................. 9
Delimitation of the study ............................ 9
Organization of Chapters ............................ 11
11. REVIEW OF LITERATURE .............................. 12
Salesperson Characteristics ........................... 13
Career Stage Models ............................... 14
Model of Life Development. .......................... 14

CHAPTER PAGE

Career Stage Model ........................... 15
Salesman’s Career Cycle ....................... 15

D Performance and Productivity ......................... 17
The Nature of Performance ...................... 17

The Nature of Productivity ...................... 19

Retail Labor Productivity ....................... 21

Career Stage and Performance ......................... 24
Retail Compensation Plans ........................... 29
Retail Compensation Plans & Labor Productivity ........... 30
Summary ....................................... 30
III. METHODOLOGY ...................................... 34
Research Design .................................. 34
Population and Sampling Procedure ..................... 35
Method of Data Collection ........................... 35
Research Propositions .............................. 37
Operational Definitions ............................. 37
Instrumentation ................................... 37
Statistical Analysis of the Data ........................ 39
IV. RESULTS AND DISCUSSION ............................ 40
Response Rate .................................... 40
Sample and Instrument Characteristics ................... 41
Results of Hypotheses .............................. 53
Post-hoc Examination of validity and Reliability ............ 59

vi

CHAPTER PAGE

V. SUMMARY, CONCLUSIONS,

IMPLICATIONS, AND RECOMMENDATIONS ............... 62
Summary of Procedures ............................. 64
Summary of Findings
and Conclusions .................................. 65
Implications ..................................... 70
Recommendations ................................. 7O

BIBLIOGRAPHY ...................................... 72
APPENDICES ........................................ 76
Letter to Retailer .................................. 76
Sample Questionnaire ............................... 78
Thank You Letter to Contact Representatives .............. 86
Vita ......................................... 87

vii

LIST OF TABLES

TABLE PAGE
1.1 Career Stage Characteristics ............................... 5
4.1 Sample Characteristics ................................... 43
4.2 Department Store Characteristics ............................ 46
4.3 Individual Sales History .................................. 47
4.4 Calculated Productivity Rate ............................... 50
4.5 Compensation Plan ..................................... 51
4.6 Instrument Analysis ..................................... 52
4.7 Career Stage and Labor Productivity ......................... 54
4.8 Compensation Plan and Producutivity ........................ 56
4.9 Factor Loading of Items .................................. 57
4.10 Mean Career Concerns Scores by Career Stage .................. 61

viii

LIST OF FIGURES

FIGURE PAGE
1.1 Career Stage Model for Retail Salespeople .................... 10
2.1 Career Achievement Model .............................. 16
2.2 Organizational Role/Behavior Model ........................ 18
2.3 Retail Organizational Role/ Behavior Model ................... 20

ix

 

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Chapter 1

INTRODUCTION

For decades, retailers and other business and government officials have focused
on productivity and more specifically labor productivity. The importance of labor
productivity is based on the consensus that mankind is the reason for marketing
activities as well as a means of creating those activities (Ingene, 1982). Labor
productivity is of great importance to retailers because labor costs far exceed all other
merchandising expenses in operating a retail store (Mark, 1971). Because of the
utilization of goods and services produced by man and the high cost of labor to produce
these goods and services, it is of great importance to retailers and marketers to identify,
recruit and maintain a strong workforce consisting of the best qualified workers.
Moreover, maintaining a strong, productive workforce requires an understanding of
employees regarding changes that occur as they progress through a chosen career.

Background

Productivity studies extend as far back as the 1960’s (Hall, Knapp & Winston,
1961). In the beginning, productivity had two purposes: political and statistical
(McAnally, 1963). The political purpose used labor productivity data to question the
usefulness of a particular business enterprise. Today, however, greater emphasis is

placed on the statistical purposes. There was a time when people were satisfied with

1

2

judging the success and efficiency of an enterprise by its profits, but when the desire
arose to compare industrial efficiency between different countries, manpower was felt
to be the best measure of productivity (McAnally, 1963). Hence, labor productivity
began to be measured by the quantity of things produced against the manpower to
produce them (Hall, Knapp & Winston, 1961). Beginning in the 1960’s and continuing
through the 1980’s, research focused on the impact of market forces on productivity or
changes in productivity over time (George, 1966; Good, 1984; Hall, Knapp & Winston,
1961; Ingene, 1982 & 1984; Lusch & Moon, 1984; Ratchford & Stoop, 1988).
Continually, studies are deve10ped to compare market forces relative to employee sales.
Significance

By the year 2000 it is predicted that the service industries--such as healthcare,
education, government, advertising, communications, retail trade, insurance, and
fmance—-will be a leading creator of new jobs and new wealth (Crooks, 1989). During
this. same time span, America will continue to age and the makeup of the labor force
will continue to change. There will be 45 million workers ages 45 to 64 by the year
2000 (Kotulak, 1990). As Americans are living longer, their job tenure is lengthening.
Moreover, retailers have acknowledged an increase in the number of salespeople making
a career of entry-level positions. This has created a change in labor costs, which are
a retailer’s greatest investment (Cron, 1984). Because retailers want to achieve and
maintain a high return on investment, it is imperative that high levels of productivity

are evoked from the salespersons.

3

Motivating employees toward high productivity can be done more efficiently and
effectively if management better understands how people change and develop over the
span of a career.
Statement of the Problem
Sales associate productivity is an important issue for retailers (Cron, 1988).
High levels of productivity can be dependent on the proper use of human resources.
The focus of most human resource departments is the training and development of sales
associates as high producers. However, the problem is that training and development
programs do very little to determine what underlying factors may influence levels of
productivity of sales associates.
Purpose of the Study

Retailers continually acknowledge the importance of labor productivity.
Knowledge to help in the improvement of sales associate’s productivity is needed. The
purpose of this study was to examine the relationship between full-time salesperson’s
career stages and their labor productivity rates. This study also examined retail labor
productivity rates by compensation plans. Lastly, the study tested the validity and
reliability of a career development instrument in a retail setting.

Objectives of the Study

The objectives of the study are:
1. to determine the productivity rates of full-time salespeople.
2. to identify the career stage position of full-time salespeople.

3. to identify the compensation plans for full-time salespeople.

4

4. to determine if full-time salesperson’s productivity rates differ by their career
stage position.

5. to determine if full-time salesperson’s productivity rates differ by their
compensation plan.

6. to test the career stage instrument in a retail setting.

Research Questions

1. Will the productivity level of retail salespeople vary among the career stages?
2. Will the level of productivity differ by the sales associate’s compensation plan?
3. Will the instrument be reliable and valid in a retail setting?

Theoretical Framework

A career is a lifelong process that includes the preparation for and choice of an
occupation (Cron & Slocum, 1986). Researchers in sociology, clinical psychology, and
vocational psychology suggest that an individual’s career can be viewed as a series of
stages (Dalton, Thompson & Price, 1977; Super, 1957) [See Table 1.1]. Researchers
suggest that an individual’s career concerns, developmental tasks, personal challenges,
and psychosocial needs vary as progression occurs between stages. Issues regarding
each concern occurs within each career stage. However, an individual is placed in a

particular stage based on the level of importance of these issues.

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6

Most identify these stages as exploration (preparation, trial, early career),
establishment (development, mid-career), maintenance (maturity, late-career), and
disengagement (decline) (Cron, 1984; Cron & Slocum, 1986; Cron, Dubinsky &
Michaels, 1988; Jolson, 1974; Rosen & Jerdee, 1990). A discussion of the major
issues, tasks, challenges and needs that researchers have suggested are associated with
each career stage follows (Cron, 1984; Cron, Dubinsky & Michaels, 1988; Dalton,
Thompson, & Price, 1977; Milkovich & Boudreau, 1988; Super, 1957).

Exploration

The exploration stage is considered to be the beginning of an individual’s
relationship with the work world. During this stage, an individual is concerned with
finding an occupation in which he or she can succeed and grow as an individual (Cron
& Slocum, 1986; Super, 1957). This stage also includes developing an understanding
of self (a period of self discovery) and finding ones place in the community
(Cron,]984). When an individual accepts an entry-level position, very little knowledge
of skills and abilities needed to become a success on the job is known. Therefore, in
order to become a contributing part of the organization, the individual attempts to match
his or her talents with those required by the job (Cron, 1984; Cron & Slocum, 1986).
Thus, the exploration stage occurs when the individual learns, follows, is taught and
depends on others for help (Milkovich & Boudreau, 1988). Finally, the employee seeks
support, peer acceptance and a challenging position within the organization during this

stage.

Establishment

The second stage is the establishment stage where a commitment is made to an
occupational field (Milkovich & Boudreau, 1988). Efforts are focused on stabilizing
oneself and establishing a secure place in an organization (Super, 1957). The individual
has learned the fundamentals of the job and the primary developmental emphasis is on
using learned skills to increase productivity (produce superior results) as well as to
achieve financial and personal success (Cron & Slocum, 1986). Other developmental
tasks of great concern include: developing creativity and innovativeness and adjusting
to working with greater autonomy. Personal challenges include producing superior
results on the job in order to be promoted and balancing the conflicting demands of
career and family (Cron, 1984; Cron, Dubinsky & Michaels, 1988; Super, 1957). The
psychosocial needs of a person at this stage include achievement, esteem, independence
and competition (Cron, 1984; Milkovich & Boudreau, 1988).
Maintenance

Once a person has established himself/herself in a career, the next stage is
maintenance. During this stage, the individual’s career concerns include holding on to
what has already been achieved and reassessing one’s career with the idea of possible
redirection (Cron, 1984). The organization begins to draw on the individual’s wisdom
and perspectives. Also the individual is expected to serve as a mentor and role model
for younger employees (Dalton, Thompson & Price, 1977; Milkovich & Boudreau,
1988). Developmental task concerns include developing a broader view of work and

organization, while maintaining a high performance level (Cron, 1984). Maintaining

8

a high level of performance requires adapting to changes, keeping current with new
developments, and acquiring special knowledge and new skills (Cron, Dubinsky &
Michaels, 1988). Personal challenges for persons at this stage include: (a) maintaining
motivation although possible rewards have changed; (b) facing concerns about aging
and disappointment over what one has accomplished; and (c) maintaining motivation
and productivity (Cron, 1988). The psychosocial issues inherent in this stage include
the individual’s reduced interest in competitiveness, security in one’s job, and taking
responsibility for others (Cron, 1984; Dalton, Thompson & Price, 1977; Milkovich &
Boudreau, 1988).
Disengagement

The final stage of ones career is disengagement. This stage is considered to be
the completion of one’s career or withdrawal from the organization (Milkovich &
Boudreau, 1988). The developmental tasks include: establishing a stronger self-identity
outside of work and maintaining an acceptable performance level (Cron, 1984; Dalton,
Thompson & Price, 1977). Personal challenges include the ability to accept career
accomplishments as they are and adjustment of self-image. The major psychosocial
needs include: an individual’s ability to successfully detach from the organization as
well' as the organizational world (Cron, 1984).

As a salesperson progresses through the stages, it is noted that various factors
relative to career concerns, developmental tasks, personal challenges and psychosocial
needs vary in importance. The variation in the importance of these factors may cause

a variation in the performance/productivity of the salesperson.

 

9

Therefore a modified version of the Super (1957) and Levinson (1986) model is
offered [See Figure 1.1].
Conceptual Definitions

Productivifl - "any innovation or measure, manipulation, change, or adjustment that
can improve the performance of retailer for a given combination of
resources (Samiee, 1990, p. 56)."

Career - "the individually percieved sequences of attitudes and behaviors
associated with work-related experiences over the span of a person’s life

(Hall, Knapp and Winston, 1961, p. 4)."

Career Stages - "an established period of an individual’s career as predicated by
present career development."

Compensation plan- the method of pay used as an incentive or compensation for
work done in a retail establishment as a sales associate.

Research Assumptions

All individuals who choose a career develop that career through stages;
therefore, as a person progresses in age, the development of the chosen career
progresses. Further, the longer a person holds a sales position, the more likely they will
consider it a career.

Delimitation of the Study

This study only examines full-time salespeople in a retail establishment. Full-

time sales associates are examined because they are more likely to develop a sales

position as a career.

10

 

 

 

 

Career Choice |.__*

 

 

Career Stages
Exploration
EstabYshment

Maintenance

Disengagement

 

PRODUCTIVITY‘

Sales Volume
New Customers
Customer Contacts
Initiative
Resourcefulness

 

 

 

Figure l,l. Career stage model for retail salespeOple.

 

11

Organization of Chapters
Chapter I provided an abstract of the present study, its background, significance
and theoretical framework. A statement of the problem, purpose, objectives, research
questions, conceptual definitions and research assumptions were also presented.
Chapter II contains a review of literature relative to each of the research variables.
Chapter 111 describes the research methodology. In Chapter IV the findings as they
relate to the proposed hypotheses are discussed. Chapter V summarizes the study and

offers recommendations for future studies.

Chapter 2

REVIEW OF LITERATURE

There is evidence that as humans progress through life they choose a career
to support needs that are "human constructed". That is, human constructed needs are
those which are identified by man as necessary for everyday living and cannot be
supplied by the natural environment. As life progresses, so does one’s chosen
career. The development of a chosen career through specified stages has been
examined and researched by several scholars. Moreover, research has examined this
progression through career stages and the effects of this progression on salesperson
job performance. Most of this research has focused on how work-related
perceptions, attitudes and motivation vary across career stages. Overall, salesperson
performance is the center of most research studies instead of the actual level of
productivity produced as this progression occurs.

Motivating employees toward high levels of (productivity is an important
managerial goal in any organization. In order to evoke the best level of productivity
from all employees, it is necessary to investigate variables that may relate to any
variation of productivity. This literature review first examines salespeople’s
characteristics followed by established models of career stages. This is followed by

a review of research which investigates the relationship between performance and

12

l3

productivity. An overview of productivity and the importance of measuring

productivity is also explored in this section, and is followed by a discussion of retail

labor productivity. Next, research concerning the relationship between career stage

and performance is explored. The types of compensation plans and there

relationship to labor productivity in the retail indusu'y are also discussed.
Salesperson Characteristics

The aging of America has changed the makeup of the workforce and the
characteristics of persons who normally fill entry-level positions. Youth, ages 16-24,
are those who normally embody the traditional retail sales position. However, the
decrease in the number of youths ages 16-24 and an increase in the number of
workers ages 45-65 causes a differential makeup of the entry level workforce
(Davids, 1988; Wendling, 1988).

Retail sales associates also are characterized as people who have interest in
sales work, a neat appearance, and the ability to communicate clearly. Their main
responsibilities are to assist customers with their selections and purchases
(Occupational Handbook, 1992-93). Persons filling the entry level position require
no formal education and or other qualifications. Generally those filling these
positions are students, retirees, and persons wanting to supplement their income
(Occupational Handbook, 1992-93). However, some seek employment in retail as a

prospective career.

14
Career Stage Models

Research concerning career development is based on models developed by
Levinson, Darrow, Klein, Levinson and Mckee (1978), Levinson (1986) and Super
(1957) and Super, Zelkowitz & Thompson (1981). The Levinson, Darrow, Klein,
Levinson and McKee (1978) model, relates to individual career decisions, while
Super’s (1957) model relates to individual job attitudes. Another model deve10ped
by Jolson (1974) describes the career of employees as being cyclical. Only the
Levinson, et. a1. (1978), Super (1957, 1981), and Jolson’s (1974) models are the
most relevant to the current study and will be explored in greater detail.

Model of Life Development ‘

Levinson (1978) and his colleagues performed in-depth interviews with 40
men over a two-year period and proposed a model of life development. The central
thesis of this model is that people (men), no matter what occupation or background,
will grow through specific life stages during which there are different crucial
activities and psychological adjustments that must be completed (Omstein, Cron &
Slocum, 1987). This model also suggests that these periods are closely associated
with one’s biological age and identifies four "life eras"- childhood (0-20), early
adulthood (20-40), middle adulthood (40-60), and late adulthood (over 60).
Research utilizing this model focuses on an individual’s career adjustments as

influenced and moderated by age.

15

Career Stage Model

Super’s (1957, 1981) model of career deve10pment suggests that an
individual’s career grows through life stages; however, this author states that the age
of transition is very flexible and that each transition can involve a recycling through
the stages. Super’s (1957) formulation of career stages is determined by an
individual’s current circumstances and perceptions whereas Levinson’s et.al (1978)
model is based strictly on age.
The stages include exploration (age 15 to 25), establishment (age 25 to 45),
maintenance (45 to 65) and decline (65 and older).
Salesman’s Career Cycle

Jolson’s (1974) salesman’s career cycle implies that a salesman’s career
develops through stages identified as preparation, development, maturity and decline
[See figure 2.1]. Jolson (1974) suggests that a salesman can repeat any stage or the
entire cycle any number of times. The movement between stages is measured in
terms of revenues and profits produced by the salesman. The salesman uses criteria
of personal earnings, longevity, security, personal and family pleasures as well as
other ego builders as measures to determine actual positions in the cycle. Under
ideal conditions, the slope of the career curve in the preparation and development
stage is steep, the time period of the maturity stage is substantial, and decline arrives

as automatically as old age.

l6

Achievement Level

 

 

Time Units

CD Preparation Stage
® Developth Stage
® Maturity Stage

6) Decline

Figure 2.1. Career achievement model representing the progression of salesman’s
career development.

Note. This figure is from "The Salesman’s Career Cycle" by MA. Jolson, 1974,
Jogal of Marketing, 38,39.

17

Performance and Productivity

The ability to use natural and human resources efficiently and effectively is
the basis for the success of marketing institutions as well as the success of an
economy which allows for a comfortable standard of living. The issue of
productivity and performance emanates from these activities in the marketing field,
thus making it necessary to understand their significance.
The Nature of Performance

In Figure 2.2, the nature of performance is examined. An organization ’3 role
is to produce and distribute goods and services for the larger society. The complex
task of distributing items rests on the shoulders of the retailing industry where jobs
are divided into smaller, specialized components. In organizations, group roles are
created and tasks are defined for each category. Performance expectations
(dimensions of performance/role behavior), then, are determined by organizational
structure (Miner, 1988). Hence, performance can be expressed as the extent to
which an individual meets the expectations regarding how he or she should function
or behave in the job (Miner, 1988). A set of expectations about what a person
should do is identified as their individual role in the organization and is measured
and evaluated by their actual workplace behavior (Miner, 1988). Workplace
behavior includes: quality of output; quantity of output; time at work; and

cooperation with others.

18

 

Organizational Role

1

Group's Role

 

 

 

 

 

 

 

 

lndividual's Role

 

 

 

 

Dimensions of Performance
Role Behavior

 

 

 

 

Quality of Output
Quantity of Output
Time at Work
C00peration with Others
Figure 2.2. Organizational Role/ Behavior Model
Note. This drawing is based onreadings from Organizational

Behavior: Performance and Productivig by J. B. Miner,
1988, New York: Random House.

19
The Nature of Productivig

The efficient use of resources is an important issue in any business.
Productivity has been defined as, "the relationship between the quantity of goods and
services produced and the amount of labor, monetary capital, and natural resources
used in production (Miner, 1988 p-21)." The importance of productivity varies from
the industrial level to the individual level. On the industrial level, productivity
growth leads to declines in costs and prices, while on the organizational level,

productivity is essential to profits and ultimately to the company’s survival. The

 

group or team level must create a productivity level sufficient to meet company
expectations in order for it to continue to exist. Finally, an individual’s increase in
productivity can contribute to self-fulfillment, financial rewards, and a higher
standard of living. The method of measuring productivity also varies accordingly.
Measuring productivity on the industrial, company, and group level is based on how
efficient resources are used according to the actual output, compared to competitors
and the established goals of the industry, company. However, on the individual
level, productivity is the same as performance and the terms are used

interchangeably (Miner, 1988) [See Figure 2.3].

20

 

Organizational Role

 

 

 

 

Y

Group’s Role

 

 

 

 

 

I

L Individual’s Role

 

 

Dimensions of Performance
Role Behavior

 

Quality of Output
Quantity of Output
Time at Work
Cooperation with Others

 

 

 

 

Producrivity J

 

Figure 2.3. Retail Organizational Role/ Behavior Model.
Note. This drawing is a modified representation of the original

Organizational Role/ Behavior model based on the readings

from Organizational Behavior: Performance and Productivity
by]. B. Miner, 1988, New York: Random House.

2 1
Retail Labor Productivig

Retail labor productivity has been a major issue for decades. During the
1980’s, retailing was considered to be a major contributor to the United States’
productivity decline. Labor productivity is of great importance to retailers because
retailing is an intensive labor and inventory business. Additionally, labor
productivity has continued to be lower in retailing than in any other economic sector
(Bucklin, 1978b; Samiee, 1992; Takeuchi & Bucklin, 1977). Research concerning
productivity explore areas such as food & clothing ( Hall, Knapp & Winston, 1961;
Takeuchi & Bucklin, 1977); Store size (Good, 1984); store location (Lusch & Moon,
1984); advertising, (Lusch & Moon, 1984); and wage (Lusch & Moon, 1984,
Schwartzrnan, 1971). The measure of productivity in retailing utilized in previous
studies was sales per employee. The level of analysis was sales employee’s in
aggregate retail trade.

Hall, Knapp and Winston (1961) began this research stream using per capita
income as a productivity measure. This study indicates that per capita income
significantly affects labor productivity. Hall, Knapp, and Winston (1961) concluded
that higher income influences consumer shopping patterns through increased
automobile ownership. An increase in automobile ownership allows for increased
shopping areas, thus causing increased competition among stores. Higher-income
households value their time so they are likely to buy in higher quantities; hence,
enhanced labor productivity. This is supported by Ingene (1982) who used data

gathered from the National Retail Hardware Association. Further indications of the

22
Hall, Knapp, and Winston (1961) study suggests that higher savings are possible due

to higher capital availability. Employees expect higher wages; thus the capital to
labor ratio is higher. Labor is employed more carefully, therefore labor productivity
increases.

A study conducted by George (1966) using seven industry groupings as well
as an aggregate retailing index, support Hall, Knapp and Winston’s (1961) findings
concerning per capita income. Takeuchi and Bucklin (1977) analyzed per capita
income in the United States and Japan and found it to affect labor productivity.
Schwartzrnan’s (1971) study, in which a US. grocery store sample was used, did not
support Hall’s et. al. (1961) findings.

Further discussion of wage as a determinant of labor productivity can be
found in Schwartzrnan (1971) and Lusch and Moon (1984). Both studies suggest
that higher wages create higher productivity. If low wages are paid, low quality
employees would be attracted and low productivity as well as profitability would
result.

Hall, Knapp, and Winston (1961) measured the grth rate of a food and
clothing store in the United States over a twenty year period and found it to
significantly affect labor productivity. Areas with high population growth tend to
have higher profits, and higher profits imply more capital intensive technologies and
superior layouts (Good, 1984). High profit levels are an indication of high labor
productivity. Takeuchi and Bucklin (1977) examined United States and Japanese

growth rates using retail establishments as their sample. They found that the rate of

23

growth did not significantly affect labor productivity. These findings are also
supported by Ingene (1982).

According to Good (1984), grocery store size positively affects labor
productivity. Good (1984) suggests that as store size increases, labor productivity
increases, but only to a certain point. The implications of this is that as store size
increases, labor productivity increases as well. Labor intensity, however, can cause
labor productivity to decline.

Hardware store location was researched by Lusch and Moon (1984). Their
findings suggest that store location is critical in determining and maximizing labor
productivity. Further, the type of store along with store location influences level of
labor productivity.

Capital intensity was examined by Ingene (1984). Increases in capital, when
store size and retail space saturation are held fixed, will increase labor productivity.
Advertising was not found to significantly influence productivity. According to
Lusch and Moon (1984), stores with lower levels of advertising as a percentage of
inventory had higher levels of labor productivity. This negative relationship between
advertising and productivity occurs when the ratio of advertising to inventory is
low.

Other variables that were examined and found not to significantly influence
labor productivity include type of business, accounting practices, labor turnover
rates, presence of unions (Good, 1984) sales per household, sales per geographical

area (Schwartzrnan, 1971) and legal form of ownership (Lusch, Moon, 1984).

24

Career Stage and Performance

The research that is available on career stage is related to job attitudes, work
perceptions, performance, and motivation. The samples used among the studies
consisted of industrial salespersons, public agencies and salaried professionals (Cron,
1984; Gould, 1979; Morrow & McElroy, 1987; Raelin, 1985). Gould (1979)
defined career stages by using age classifications of: trial (under age 30);
stabilization (ages 30 to 44); and maintenance (age 45 and over). Gould’s (1979)
revised version of Super’s (1957) career stages grouped the decline stage with the
maintenance stage. Using 133 employees of a public agency, Gould (1979) sought
to investigate the relationship of job complexity to work satisfaction and
performance over three career stages. The results of the investigation suggest that
ones career stage impacts the relationship between (1) perceived job complexity and
work satisfaction and (2) independently measured job complexity and performance.

Job complexity is defined as the "...extent to which a job: 1) lacks
repetitiveness and routineness 2) provides opportunities for exercising independent
judgement and 3) requires creativeness and originality in the performance of duties
(Gould, 1979, p. 211)." Job complexity is estimated by a self-report measure and a
report done by independent observers who rated job complexity after an extensive
interview with each participant. Gould (1979) found a strong positive relationship
between perceived job complexity and work satisfaction during the trial stage (ages

20-29). This suggests that the level of perceived job complexity affects the level of

work satisfaction of people in the trial stage of their career. More specifically, the

25
less complex the salesperson perceived his/her job to be, the higher the satisfaction

of salespeople in the trial stage. The researcher expected to find a negative
relationship between complexity and satisfaction for the older group (maintenance
stage), however, no support was found for this hypothesis. Further findings
indicated that job complexity was found to be positively related to job performance
in the stabilization stage (ages 30-44) which is considered to be the most creative
stage of ones career. Stabilization is considered to be the most creative stage
because persons in this stage have decided on a career and are attempting to be high -
producers. Because the worker requires greater challenges and responsibilities,
greater job complexity is considered to be a great motivator. Therefore, higher
performers are given jobs that are less routine and have more opportunity for
creativity and are allowed to make independent decisions. The researcher also found
there was no significant relationship between job performance and job complexity in
the trial or maintenance stage. These years are a period of learning and developing
skills which are required in the chosen vocation. Therefore, performance is more
likely to be related to the quality of supervision and coaching received during this
period than to the complexity of the job itself.

Slocum and Cron (1985) tested the career stage model developed by Super
(1957) and suggested that there are four distinct career stages (trial, stabilization,
maintenance and decline) between the ages of 20 and 65 and that each stage has its
own career issues, job—related attitudes, and behaviors. Because Super (1957)

suggested that trial, stabilization and maintenance stages occur during a person’s

26

working life (ages 20-65), the researchers only used those ages as the basis for the
study. Using a sample of 675 salespersons from seven industrial companies, and
attitudinal and career measures taken from previously developed instruments, Slocum
and Cron (1985) found that within each stage, different attitudes and behaviors were
found to predict sales performance. The findings suggest that one’s career stage
impacts one’s attitudes and job behavior. More than those in any other stage, people
in the trial career stage tend to shift jobs more frequently and have a greater
propensity to relocate or leave their present employer to find the right job if it means
a promotion. These findings also support Super’s (1957) findings that persons in the
stabilization career stage have stopped looking for different occupational choices and
that these persons typically move between jobs and companies to advance in their
chosen occupation. Further, the data supported Super’s (195 7) findings that people
in the stabilization stage value their lifestyle moreso than greater increases in
responsibility, pay or more challenging work. Finally, the findings support Super’s
(1957) implications that persons in the maintenance stage have leveled-off in terms
of career aspirations and advancements. Slocum and Cron (1985) suggest that
people in the maintenance stage are more satisfied with their work than people in
any other stage, and people in the trial career stage are lower performers than people
in the other stages.

Cron and Slocum (1986) assessed how job-related attitudes, perceptions of
the work environment, and job performance vary according to a salesperson’s career

stage and the effects of territorial assignments, business strategies, job attitudes,

27

work perceptions, and age on the job performance of people in different career
stages. A sample was drawn from six manufacturers of industrial equipment and
supplies (ranging from building supplies to industrial chemicals) all of which had
entry-level sales positions. The findings indicated that salesperson performance,
regardless of career stage, is affected by their firm’s business strategy and territorial
assignment. Other data suggested that career stage positively affects job attitudes
and work perceptions. Salespeople in the exploration stage lacked job commitment
was reflected by their low job involvement. They were less satisfied with their
work, supervisors, and promotional opportunities than people in other career stages.
Exploration stage people were also found to be lower performers than those in the
establishment and maintenance stage. During the establishment stage, salespeople
were found to be more settled in their career choice and are attempting to build on
that career choice. The change in career focus was accompanied by feelings of
greater job involvement, success, and satisfaction. The findings suggest that people
in the maintenance stage are very positive despite their movement into this stage.
Responses further indicated that maintenance stage salespeople are highly involved
and challenged by their work describing themselves as successful. Most
importantly, salespeople in the maintenance stage generally had high performance
rates. The disengagement stage indicated that these people may disengage from
their jobs before being faced with retirement. It also indicated that job attitudes and
perceptions of the work environment are not associated with performance in the

disengagement stage.

28

Cron, Dubinsky and Michaels (1988) examined the influence of career stage
on salesforce motivation (as measured by the Expectancy Theory). A self-
administered questionnaire was distributed to 227 salespeople employed by a
manufacturer of commercial and residential building materials and supplies. The
findings suggest that a salesperson’s career stage is not related significantly to higher
order reward valences or to expectancy estimates, but is significantly related to
lower order valences and instrumentalities. Age was found to be inversely related to
the valence for promotion, the sales quota expectancy, and the promotion
instrurnentality. That is, younger salespeople have a greater desire to be promoted
and they feel that if they work harder, they will be more likely to exceed their sales
quota. Additionally, younger people feel that they will be promoted if they surpass
their performance targets. Further, these findings suggest that exploration stage
salespeople do not feel they will be rewarded for being effective performers.
Exploration salespeople were found to have the lowest levels of performance in both
dollar volume of sales generated and percent of quota achieved. For the
establishment stage, it was found that promotion is an important aspect of the
success ladder. Promotion signifies personal growth as well as corporate
acknowledgement for a job well done. Findings for the maintenance stage do not
support the view that these individuals are passive. With the exception of
promotion, maintenance stage salespeople are found to be similar to establishment
stage salespeople, and have higher average sales volumes and quota percentages than

salespeople in the other three career stages. Cron, Dubinsky and Michaels (1988)

29

also indicated that people in the disengagement stage are found to perform at
minimally acceptable levels. Salespeople in the disengagement stage are also found
to have a low desire for pay increases and their performance relative to quotas are
likely to be below average.
Retail Compensation Plans

The consensus among sales executives and human resource managers is that
compensation is the most important element in a program for the management and
motivation of sales associates (Steinbrink, 1978). The available findings, however,
focus on determining the apprOpriate method needed to improve sales associate’s
productivity and therefore increase profits. Presently, stores are using wage-plus—
commission and commission-only compensation plans (Bivens, 1989; Dunkin, 1989;
Gilrnan, 1992). The commission plan allows the salesperson to be paid in direct
proportion to their sales (Steinbrink, 1978). Such a plan includes straight
commission and commission with a draw'. This compensation plan has several
variations, which includes: base salary, base salary plus commission on all sales;
salary plus bonus on sales over quota, salary plus commission plus bonus and
commission only (Steinbrink, 1978). Base salary for retail sales range from $4.25
(minimum wage) to $6.56 an hour (Occupational Handbook, 1992-93; Wright &
Dwyer, 1990). However, base pay can be found to be higher in areas where
retailers find it hard to attract and retain workers. Commission rates vary by type of

establishment and merchandise sold (Occupational Handbook, 1992-93).

 

1Base salary.

30

Retail Compensation Plans and Labor Productivity

Over the years, retail sales commissions were a fairly simple, non-
controversial concept and seemed to work well (Gilman, 1992). However,
controversy has arisen relative to the effectiveness of commission compensation
plans. Some retailers cite problems such as lower productivity and job
dissatisfaction of sales associates followed by a sales-by-intimidation erosion of
customer loyalty and retention (Gilman, 1992). Others find that commission plans
entice high-producing salespeople and consequently higher profits (Dinkins, 1989).
Because the findings are conflicting, retailers are seeking the help of their human
resource departments to develOp programs that will enhance the commission plans.
The improvement of the commission plans would help to attract productive
salespeople and aid in training them to retain customers.

Summary

A review of literature indicates that sales associate’s performance level is an
important issue in the retailing industry. Researchers suggest that several factors
may influence this productivity rate, which include: 1) the current makeup of the
workforce; 2) the career stage position of the sales associate; and 3) the effects of
market forces on productivity.

Researchers suggest that the aging of America has changed the makeup of the
workforce, in general, and the entry level workforce in particular. An increase in
current life span has generated a greater number of workers between the ages of 45

and 65. This factor, along with the decline in the number of workers between the

31

ages of 16 and 25, has caused an increase in the number of years spent in entry-level
positions.

Current research concerning career stages examines its relationship to and/or
effects on work perceptions, job attitudes, performance and motivation. The findings
suggest that career stage position positively affects work perception, job attitudes,
performance and motivation.

During the exploration stage an individual attempts to find an occupation in
which growth and success is possible (Cron & Slocmn, 1986; Super, 1957). Once
the individual chooses a career, he or she goes through a period of learning and skill
development (Gould, 1979). Workers in this stage, therefore, are perceived as lower
performers than those in other stages (Cron, Slocum & Michaels, 1988; Slocum &
Cron, 1985). Moreover, the worker’s performance level may be dependent on the
amount of supervision and coaching received from superiors (Gould, 1979). Other
findings indicate that salespeople in the exploration stage with lower perceived job
complexity have higher job satisfaction (Gould, 1979). More specifically, the less
complex the salesperson perceives his/her job to be, the higher their job satisfaction.
Another finding indicates that salespeople in the exploration stage have a higher
propensity to relocate and leave their present job because they are searching for the
right job and promotions (Slocum & Cron, 1985).

During the establishment stage, a commitment has been made to an
occupational field and the main focus of the worker is to use the learned skills to

increase their productivity levels as well as achieve financial and personal success

 

32

(Cron & Slocum, 1986). Thus, the establishment stage is considered to be the most
creative stage because workers are concerned both with developing creativity and
innovativeness as well as adjusting to working with greater autonomy (Cron &
Slocum, 1986)..— Job complexity was found to be positively related to job
performance. Sales associates in this stage are continually motivated by jobs that
are less routine and more complex as well as opportunities to be creative and
independent in decision-making (Gould, 1979). However, promotion was found to
be an important motivator in this stage because it signifies growth and corporate -
acknowledgement of a job well done (Cron, Slocum & Michaels, 1988).

Sales associates in the maintenance stage are found to be very similar to
those in the establishment stage, with the exception of the importance of promotion
to the salespeople in the establishment stage. Career aspirations and the need for
advancement has leveled-off. Moreover, salespeople in this stage are found to be
more satisfied with their work than people in any other stage and generally have
high performance rates.

The final career stage is the disengagement stage. Salespeople in this stage
may separate themselves from their jobs before they are faced with retirement.

Here, salespeople are found to perform at minimally acceptable levels, have low
desire for pay increases and perform below average relative to quotas.

Another factor found to affect salespeople’s productivity are market. forces
(competitive and environmental). Although many market forces were found to affect

the productivity of salespeople, wages, store size and location were found to be the

33

major contributors to the level of productivity evoked from salespeople. Further,
conflicting evidence was found relative to the use of commission compensation
plans. While some believe that a commission compensation plan may lower labor

productivity and customer retention, others believe contrary to the aforementioned.

 

Chapter 3

METHODOLOGY

The first section of this chapter describes the research design used in the
study. The next section describes the population and sample selected for the study.
Third, the method of data collection is described followed by a statement of the
research propositions. The final sections include operational definitions,
instrumentation and the appropriate statistical analyses used to test the research
questions.

Research Design

In order to carry out the objectives of this pilot study, a cross-sectional
survey research design was used. A pilot study is a smaller scale version of a
proposed investigation (Grosof & Sardy, 1985). An appropriately planned pilot
study will help the researcher to avoid and minimize errors. A pilot study helps to
improve instruments and data collection procedures, identify sources of error, try out
a variety of designs as well as a variety of data analysis techniques, check coding
procedures and verify documentation. A cross-sectional study is used to investigate
growth and/or change in cohorts at one specified time. A problem with cross-
sectional studies is that data collected at that given time are used to explain

causality. This may not allow the researcher to identify other major factors that

34

 

35

occur over a period of time.

A survey is a method of collecting information about a human population by
means of a standardized questionnaire. A sample survey examines a portion of the
chosen population and is expected to represent the whole pOpulation. Survey
research can be used for descriptive, explanatory, and exploratory purposes. It
generally is used in studies that have individuals as the unit of analysis. Surveys can
also be used to measure attitudes and orientations of a large population (Babbie,
1992)

Population and Sampling Procedure

The sample for this study was drawn from the retail industry. The type of
retail establishments were department stores. The researcher chose department stores
as the population to draw from because of the great number of department stores in
the retail industry. The actual sampling frame was established by identifying
salespeople who were employed at least one year with their current company and
who were employed full-time. Further, only those entry-level salespeople identified
as having an available record of sales for the previous year were included.

Method of Data Collection

A letter asking the retail organization’s participation in the research project
was mailed to the human resource managers [See Appendix A]. Enclosed with the
letter was a copy of the proposed questionnaire to be administered to the
salespersons [See Appendix B]. The data were collected at a specified time,

conveniently arranged by the human resource manager. At the specified time, the

36

researcher passed out the questionnaire and explained the method of completion.
The participants were also told by the researcher that complete anonymity and
confidentiality would occur relative to their answers, and the information would only
be processed in an aggregate form. This was further relayed to the participants in a
letter attached to each questionnaire. Although the data processing procedures were
explained, some participants were still reluctant to participate. Their reluctance was
further shown by refusing to place identification numbers on the questionnaire
and/or requesting to keep the questionnaire. Each department manager participated
in the study by completing an evaluation form on all of their fiill-time employees.
This procedure was necessary in order to assure anonymity and confidentiality. The
data requested regarding each firll-time sales associate included: actual sales,
assigned sales, type of compensation plan, the amount of pay and the commission
rate. The form filled out by the manager concerning the participants was then
matched to the questionnaires by employee identification number. The human
resource manager was asked to volunteer information concerning the annual sales
volume of the individual departments and the store, along with the total number of

full-time and part-time employees.

 

 

 

lI—"

In

DEC:

Pm

37
Research Propositions

Specific questions were developed from the research objectives outlined
previously. The questions are as follows:
R,. A salesperson’s

a) assigned sales productivity level

b) department sales productivity level and

c) store sales productivity level

differ by his or her career stages position.

R2 A sales associate’s level of productivity will be differentiated by the type of
compensation plan.

The Career Concern Inventory for Adults will be valid in a retail sales
setting. -

R». The Career Concern Inventory will be reliable in a retail sales setting.
Operational Definitions

Labor Productivig - the ratio of individual actual sales quotas to assigned,
department and store sales over a previous one-year period.

Career Stage . - the measure of the importance of an individual’s concerns
(i.e., career concerns, developmental task, personal challenges
and psychosocial needs) at a given point in time (Super, 1957,
1981)

Commnsation plan - the method of wage incentive or compensation (salaried,
hourly, hourly plus commission, straight commission).

Full-Tirne - sales associates working a minimum of thirty hours per week.
Instrumentation
In order to examine the relationship of productivity to career stages, it is
necessary to identify the actual career stage of participants. To accomplish this

portion of the study, a revised version of Super’s (1957) Career Development Adult

38
Form (CDAF) will be used. The original Super (CDAF) instrument was developed

in 1957 and revised in 1981 by Super, Zelkowitz and Thompson. The revised
version is called "Career Concerns Inventory For Adults" (CCI) which is a self-
report inventory that focuses on awareness of and concern for career development.
The 60-item inventory uses a five-point Likert scale to identify the level of concern
for the task. A rating of "1" (I have not thought seriously about this) indicates that
the issue has not yet been a concern, while a "5" (no longer a concern) indicates that
the issue was addressed in the past. A rating of "3" (a growing concern at this time)
indicates that the issue is of current concern and therefore, places the individual in a
career stage. Those stages are identified as Exploration (Q1 - Q15); Establishment
(Q16 - Q30), Maintenance (Q31 - Q45); and Disengagement (Q46 - Q60).
Responses for each stage were averaged across the 15 items in each stage.
Respondents were then classified according to the smallest absolute deviation from
an average score of three for the fifteen questions in each stage. The CCI
instrument was used in Cron and Slocum, 1986; Omstein, Cron and Slocum, 1985;
and Cron, Dubinsky and Michaels, (1988). The labor productivity portion of the
instrument was developed by the present researcher. Labor productivity is measured
as the ratio of actual sales to assigned sales (prodasn), actual sales to department
sales (prodet) and actual sales to total sales (prodstr) of departments (which
represents the store sales) that participated in the study. The sales associates sales
figures were used as a measure of productivity because retailers base pay evaluations

on sales produced. Demographic data were also collected in order to establish

 

 

 

 

39

background information relative to the firm and to the salespeople. This information
included age, ethnicity, marital status, head-of-household, income, previous job held,
tenure in previous job, present job title and tenure in present job.
Statistical Analysis of Data

The analysis of collected data will necessitate the use of several types of
statistical procedures. Frequency calculations were used to analyze demographic
data. The Analysis of Variance (ANOVA) procedure was used to determine whether
the productivity level of sales associates differs by career stage and compensation -
plan. Factor analysis was used to determine the dimensional stability of the Career
Concern Inventory. Cronbach’s (1951) Alpha was used to measure scale reliability
for purposes of internal consistency. The analyses were performed on SPSS on the

CMS mainframe at Michigan State University.

 

Chapter 4

RESULTS

The purpose of this study was to examine the relationship between retail
labor productivity and career stage of full-time salespeople. A second purpose of
the study was determine if levels of labor productivity could be differentiated by
career stage and compensation plan. A final purpose was to determine the validity
and reliability of an instrument not previously used in a retail sales setting. A
description of the response to the survey, including sample and instrument
characteristics, is provided in the first section of this chapter. Findings from each
statistical procedure used in the analysis are examined. Discussion of the results are
also included.

Response Rate

In order to acquire the necessary sample, letters were mailed to 35 retail
establishments in the mid-Michigan area (again, See Appendix A]. Three stores
responded to the request, however, only two stores participated. The researcher and
the human resource manager identified a day, convenient to the firm, whereupon the
volunteers and the department managers could complete their portion of the
questionnaire. Further, to assure anonymity and confidentiality, the participants were

asked to read a cover letter before completing the questionnaire. The letter

40

41

expressed how confidentiality and anonymity would be maintained. The researcher
collected the completed questionnaires and forms from the participants and the
human resource managers. As well, appreciation was expressed through the offer of
a one dollar bill for their participation. Finally, a gift was mailed to each human
resource manager, along with a letter expressing appreciation for their participation
in the study [See Appendix C].

A total of 60 questionnaires were administered. However, problems such as
incomplete questionnaires, inconsistent availability of sales figures and the inability
to match employee questionnaires to department manager’s evaluations of the
employee, produced a usable response rate of 50% (n=30).

Sample and Instrument Characteristics

Table 4.1 lists respondent characteristics. The mean age of the sample in
years was 37.72 with a standard deviation of approximately 13.8 years. Eighty-three
percent of the respondents were white, with 93 percent being female and
approximately 36% of the sample completing high school. The modal estimated
income occurred in the range of $10,000 to $14,999 annually. Approximately 40%
of the respondents identified themselves as head-of-household. Fifty percent of the
participants indicated their job title as being sales associate and their tenure on the
job as being 1-5 years. Table 4.2 lists the departments participating in the study:
coats & dresses, cosmetics, jewelry, lamps & gifts, misses sportswear, petite, styling
salon, women’s sportswear and window coverings. Also included in Table 4.2 are

annual sales of the departments and the number of full-time and part-time sales

42

associates in each department. Table 4.3 groups the participants by department as
well as their respective identification number. Further, it lists their individual,
actual, assigned and department annual sales. The individuals are ranked by their

assigned sales figures within each department.

43

TABLE 4.1
Sample Characteristics

 

 

Variable N %
Age
20-30 13 45.0
3 1-40 3 10.0
41-50 4 14.0
51-60 9 31.0
Sex
Male 2 6.7
Female 28 93.3
Education
High School 11 36.7
Bachelor 8 26.7
Master’s 1 3.3
Doctoral 0 0.0
Professional 5 16.7
Other 5 16.7
Income
<$9,999 7 23.3
$10,000-$14,999 10 33.3
$15,000-$19,999 7 23.3
$20,000-$24,999 5 16.7
$25,000-$29,999 0 0.0
$30,000-$34,999 0 0.0
$35,000-$39,999 0 0.0
$40,000> 1 3.3
Ethnicity
Black 5 16.7
White 25 83.3
Head of Household
Yes 12 40.0
No 18 60.0

44
TABLE 4.1 (Continued)

 

 

Variable N %
Marital Status
Single 8 26.7
Married 15 50.0
Divorced 6 20.0
Widowed 1 3.3
Current Job Title
Salesperson l 5 50.0
Manager Assistant 7 23.3
Merchandising Assistant 4 13.3
Beauty Advisor 2 6.6
Jewelry 1 3.3
Tenure in Current Job Title
<Less than 1 year 3 10.0
1-5 years 15 50.0
6-10 years 5 17.0
11-15 2 6.6
16-20 years 2 6.6
>greater than 20 years 3 10.0

45
TABLE 4.1 (Continued)

 

Variable N °/o

 

Previous Job Title

Sales 10 33.3
Beauty Advisor 7 23.3
Receptionist 1 3.3
Photographer 1 3 .3
Store Manager 3 10.0
Supervisor 1 3.3
Housewife 1 3.3
Student 1 3.3
Catalog Coordinator 1 3.3
Restaurant owner 1 3 .3
Consumer Correspondent 1 3 .3
Bookkeeper 1 3.3
Prep. Cook 1 3.3
Tenure in Previous Job Title
<Less than 1 year 9 30.0
1-5 years 10 33.3
6-10 years 7 23.3
11-15 years 3 10.0
16-20 0 0.0
>greater than 20 years 1 3.3

 

N = Frequency of response; % = Percentage of responses.

46

TABLE 4.2
Department Store Characteristics

 

Number of Employees

 

‘Department Name Sales Volume Full-Time Part-Time
Coats & Dresses 3$2,140,000 9 4
Cosmetics ’8 800,000 8 3
“$1,450,000 7 8
Jewelry 3$1,565,000 8 4
4$2,450,000 9 3
Lamps/Gifts ‘$1,126,000 3 3
Misses Sportswear 432,950,000 10 9
Petite 4$ 831,000 3 2
Shoes 3$1,600,000 8 6
Styling Salon ‘3 125,000 21 0
Women’s Sportswear 3$4,000,000 12 6
4$3,625,000 12 4
Window Coverings 3$3,137,000 8 4
4$3,000,000 8 4

2DEPARTMENT STORE # 1 = $25,000,000
2DEPARTMENT STORE # 2 = $48,000,000

 

IThe list of departments included in the study; 2Total annual sales of all the
departments in the store; 3 Store #1 annual department sales; ‘Store #2 annual
department sales.

47

TABLE 4.3
Individual Sales History

 

 

DEPT. NAME ID Number Assigned Actual Department
Sales Sales Sales
Cosmetics 14002 $ 53,000 $ 47,000 $ 800,000
14102 $ 73,125 $ 87,000 $ 800,000
Coats & Dresses 10201 $ 44,520 $ 67,564 $2,140,000
12301 $100,275 $143,990 $2,140,000
1 1001 $1 12,929 $178,049 $2,140,000
Jewelry 11801 $ 24,000 $ 28,000 $1,565,000
11901 $ 37,430 $ 64,662 $1,565,000
10801 $ 92,151 $169,504 $1,565,000
14302 $ 96,000 $130,000 $2,450,000
10501 $ 96,449 $126,720 $1,565,000
Lamps & Gifts 14202 $100,285 $ 84,000 $1,126,000
Misses Sportswear 14602 $210,000 $300,000 $2,950,000
Petite 14502 $210,000 $248,810 $ 831,000
Shoes 11301 $ 87,281 $104,000 $1,600,000
10901 $ 97,100 $112,373 $1,600,000
13902 $106,971 $179,000 $1,450,000
11401 $175,000 $149,000 $1,600,000
10101 $185,000 $190,849 $1 ,600,000
Styling Salon 13101 $ 12,064 $ 17,053 $ 125,000
13701 $ 17,473 $ 13,621 $ 125,000
13501 $ 20,336 $ 27,648 $ 125,000
13601 $ 22,032 $ 19,229 $ 125,000
13401 $ 23,378 $ 20,915 $ 125,000
13301 $ 24,192 $ 30,646 $ 125,000

TABLE 4.3 (Continued)

48

 

 

DEPT. NAME ID Number Assigned Actual Department
Sales Sales Sales

Women’s Sportswear 12701 $235,000 $244,000 $4,000,000
12902 $240,000 $260,000 $3,625,000
12601 $245,000 $261,000 $4,000,000

Window Coverings 12501 $121,713 $165,490 $3,000,000
11601 $245,490 $226,193 $3,000,000
14402 $250,000 $334,000 $3,000,000

 

All sales figures are annual.

49

The productivity scores of each participant are listed in Table 4.4. As indicated by
the table, the salespeople’s level of productivity is greater among the ratio of actual
sales to assigned sales, than the ratio of actual to department and store sales. The
types of compensation plans reported included wage-plus-commission, 80% (n=24)
and commission-only, 20% (n=6) [See Table 4.5].

The career stage subscale characteristics are detailed in Table 4.6. As
previously referred to, each career stage consisted of 15 items. The mean scores for
each of the stages ranged from a low of 2.52 to a high of 3.54 (the possible range
was one to five). The coefficient alpha scores computed for the instrument in this
study were: Exploration, 0: =.96, Establishment, 0: =94, Maintenance, ac =.93 and
Disengagement, cc =.89. The number of participants in each stage consisted of
Exploration--16.7% (n=5), Establishment-43.3% (n=4), Maintenance--23.3% (n=7)
and Disengagement--33.3% (n=10). Approximately 13% (n=4) of the participants
could not be placed in a specific career stage. These participants had similar mean

scores in more than one career stage.

50

TABLE 4.4
Calculated Productivity Rate

 

 

ID No. Prodasn Prodet Prostr
10801 1.85 .11 .01
11901 1.76 .04 .01
13902 1.70 .13 .01
11001 1.59 .09 .01
10201 1.55 .01 .00
12301 1.44 .07 .01
14602 1.43 .10 .02
13101 1.42 .14 .00
14302 1.35 .05 .01
14402 1.34 .11 .02
12501 1.32 .05 .01
10501 1.31 .08 .01
13301 1.29 .25 .00
11301 1.21 .07 .01
11801 1.17 .02 .00
10901 1.15 .07 .01
14502 1.14 .30 .02
12902 1.08 .06 .02
12601 1.07 .07 .02
10101 1.03 .12 .02
12701 1.02 .08 .02
11601 .92 .14 .02
13401 .91 .17 .00
14002 .89 .01 .00
14202 .84 1 .08 .01
13601 .86 .15 .00
11401 .86 .09 .01
13701 .82 .11 .00
13501 .71 .16 .00
14102 .64 .06 .00

 

Prodasn=actual sales + assigned sales; ProdeFactual sales + department sales;
Prodstr=actual sales + store sales.

51

TABLE 4.5
Compensation plans

 

 

Variable N %
Wage + Commission
$4.50
7% 18 60.0
8% 2 6.7
10% 3 10.0
$5.30
7% 0 0.0
10% 1 3.3
Commission only
55% of annual sales 6 20.0

 

f = Frequency of response; % = Percentage of responses.

52

TABLE 4.6
Instrument Analysis

 

 

CCI No. of Items Mean SD Alpha N
Exploration 1 5 3 .54 .96 .96 5
Establishment 15 3. 1 1 .76 .94 4
Maintenance 1 S 3.00 .7 l .93 7
Disengagement 15 2.52 .73 .89 10
Unidentifiable - - - - 4

 

53

Results of Hypotheses Testing
Anova. Analysis of Variance was used to examine the differences among mean
scores from groups of subjects. The dependent variable in this study was labor
productivity. The independent variables were career stage and compensation plans.
The mean score for salesperson labor productivity within each career stage was
compared to every other career stage in order to determine the differences between
the means and the significance of those differences (p S .10). These results are

shown in Table 4.7.

R1, A sales associate’s assigned sales productivity level differs by his or her
career stage position.

A comparison of the means show that while the salesperson’s assigned sales
productivity level was found to differ with the prospective career stage, it was not
significant (p > .10). This research question, then, was not supported.

R“, The sales associates department sales productivity level will differ by his or
career stage position.

The sales associate’s department sales productivity level differs with respect
to career stage position; however, these differences were not significant (p > .10);
terefore, this research question was not supported.

Rlc The sales associate’s store sales productivity level will differ by his or career
stage position.

The sales associate’s store sales productivity level was not found to
significantly (p > .10) differ with respect to career stage position. This research

question was not supported.

54
TABLE 4.7

Career Stage and Labor Productivity

 

Career Stages

Labor Productivity

 

Prodasn Prodet Prodstr

Exploration

mean 1.184 .073 .010

SD .346 .029 .005
Establishment

mean 1.309 .112 .009

SD . 1 13 .098 .009
Maintenance

mean 1.367 .084 .011

SD .437 .047 .006
Disengagement

mean 1.093 .119 .011

SD .233 .075 .008

F = 1.19 .734 .036

 

Prodasn=actual sales + assigned sales; Prodet=actual sales -:- department sales;

Prodstr=actual sales + store sales; *p S .10.

55

R2 The sales associate’s level of productivity is differentiated by the
compensation plans, wage-plus-commission and commission-only.

The sales associate’s level of productivity, with regard to assigned sales
was found to differ significantly by the compensation plan, wage-plus-commission.
Further, as shown in Table 4.8, the salesperson’s level of productivity in regard to
the ratio of actual sales to department sales [Prodet] (p S .10) and the ratio of
actual sales to store sales varied significantly [Prostr] (p S .10). This research
question was therefore, supported.

R3, The Career Concern Inventory will be valid in a retail sales setting.

The validity of the CCI used in this study was tested using the Principal
Components Factor Analysis procedure in order to determine the concerns of the
retail sales associates. While Super (1957, 1981) identified four concerns (career
concerns, developmental tasks, personal challenges and psychosocial needs) in his
career stage model, a previous study by Slocum and Cron (1985) identified twelve
concerns (crystallization, specification, implementation, stabilizing, consolidating,
advancement, holding, updating, innovating, decelerating, retirement planning and
retirement living). Six factors (concerns of retail sales associates) were developed as
result of the Principal Component Factor Analysis and they are listed in Table 4.9
along with their respective item loadings and alpha coefficients. An evaluation of
each set of questions reveals a particular concern within the questions, therefore the
identified concern is used as the factor name. The six factors indicate that retail
sales associates concerns vary from those developed in previous studies. Therefore

this research question is supported.

56

TABLE 4.8
Compensation Plans and Productivity

 

Level of Productivity

 

Compensation plans Prodasn Prodet Prodstr
Wage + Commission
mean 1.23 .084 .012
SD .311 .058 . .006
Commission only
mean 1 .00 . 1 63 .002
SD .282 .046 .0005
F = 2.75 9.68* 15.52*

 

Prodasn=actual sales + assigned sales; Prodet=actual sales + department sales;
Prodstr=actual sales + store sales; *p S .10.

 

 

57
TABLE 4.9
Factor Loading of Items
Factor Items Loading Coefficient
Alpha

Identification .95
8. Finding a line of work that appeals to me. .836
3. Finding what line of work I am really suited for. .804
4. Learning more about various kinds of opportunities

that might be Open to me. .753
2. Deciding what 1 really want to do for a Living. .729
43. Deciding what new fields to open up and develop. .706
9. Making sure of my current occupational choice. .595
6. Choosing among the best career alternatives

I now see. .571
11. Getting started in my chosen career. .568
13. Meeting people who can help me get started in

my chosen field. .529
7. Choosing a job, among several that interest me,

that will provide the most challenge. .501
Implementation .91
32. Holding my own against the competition of new people

entering the field. .681
15. Making specific plans to achieve my current career

goals. .654
47. Concentrating on things I can do as I get older. .632
14. ' Finding the opportunity to do the kind of work I

really want to do. .516
12. Deciding how to qualify for work I now want to do. .513
Stabilization .94
21. Developing a reputation in my organization. .735
20. Making my position in the organization secure. .734
19. - Achieving stability in my occupation. .733
22. Making a reputation in my line of work. .691
18. Doing things that will help me stay in

my chosen job. .690
37. Attending meetings and seminars on new methods. .632
26. Planning how to get ahead in my line of work. .605
38. Visiting places where new developments can be

seen. .534

58

TABLE 4.9 (continued)

 

 

Factor Itans Loading Coefficient
Alpha
Redevelopment .93
42. Finding out about new opportunities as my field
changes. .757
45. Developing special knowledge or new skills to help me
improve on the job. .745
46. Developing easier ways of doing my work. .704
44. Developing new skills to cope with new needs and
opportunities. .701
5. Learning what skills and training are required for
certain jobs in which 1 think I might be interested. .557
16. Settling down in a job that I can really stay with. .507
Advancing/Maintaining .92
30. Advancing to a more responsible position. .831
31. Maintaining the occupation position I have achieved. .791
40. Getting refresher courses. .735
41. Identifying new problems to work on. .666
27. Getting ahead in the organization. .666
39. Taking part in non-work (leisure time) activities that
will help me keep up-to-date with my work. .520
17. Making a place for myself in my organization. .464
Retirement .89
57. Having a good life in retirement. .865
55. Setting aside enough assets for retirement. .853
53. Making sure 1 can have a good life when I retire. .774
54. Talking to retired friends about the problems they
faced and the adjustments they made when they
retired. .769
56. Finding an area of the country to retire. .737
60. Doing things I have always wanted to do but never
had the time for because of my work. .712

59

R3,, The Career Concern Inventory will be reliable in a retail setting.

Coefficient alpha scores were used to determine the scale reliability for
purposes of internal consistency. Because the instrument reliability had not
previously been established in a retail setting, new scores were necessary to
determine reliability. The coefficient alpha scores computed for the instrument in
this study were: Exploration, 0: =96, Establishment, 0: =.94, Maintenance, 0: =.93
and Disengagement, 0: =89 [refer to Table 4.6]. These reliabilities were all well
above the acceptable criterion of :t.70 (Hair, Anderson & Tathum, 1987); therefore,

the instrument can be used to identify career stage position of retail sales associates.

Post-hoe Examination of Validity and Reliability. A post-hoc examination of the
newly identified career concerns for retail sales associates was performed to
determine the validity and reliability of the new concerns. As noted earlier in this
study, individuals are lodged into a particular career stage depending on what
concerns predominate, thus, the AN OVA procedure was used here as a method of
validating that certain concerns significantly dominate (rendering it important for
individuals) each career stage. Table 4.10 lists these results.

The identification concern varied across the four career stages and is important
for those in the exploration stage. Implementation, establishment and
advancing/maintaining also varied across the four career stages and was found to be
most important to those in the establishment stage. Sales associates positioned in

the maintenance and disengagement stage did not report a significant and distinct set

60

of concerns.
Coefficient alpha scores were computed to measure scale reliability for
purposes of internal consistency (again, see Table 4.9). The scores suggest that the

scale is a reliable measure of career concerns for retail sales associates.

TABLE 4.10
Mean Career Concern Scores by Career Stage

 

 

Concerns Exp Est Mai Dis F
Identification

mean 2.760 3.275 3.586 4.150 2.71

SD .568 .492 1.20 .958
Implementation

mean 2.200 3.050 3.257 3 .760 .03*

SD .583 .341 .964 1.014
Stabilization

mean 2.250 3.156 2.607 3.538 4.07*

SD .870 .313 .623 .864
Redevelopment

mean 2.400 2.958 3.405 3 .500 2.22

SD .641 .286 .912 .962
Advancing/Maintaining

mean 2.486 3.000 2.980 3 .657 2.30

SD 1.048 .849 .878 .744
Retirement

mean 2.133 2.208 1.905 2.733 .28

SD .767 .985 1.075 .717

 

Exp= Exploration (n=5); Est= Establishment (n=4); Mai= Maintenance (n=7); Dis=

Disengagement (n=10); *p .<_ .10.

Chapter 5

SUMMARY, CONCLUSIONS, IMPLICATIONS & RECOMMENDATIONS

The focus of retailers and business industries has been on labor productivity.
Retailer’s interest in labor productivity stems from the fact that labor is its most
costly expenditure, which by far exceeds their merchandising expenses. Moreover,
retailers have continued to lag behind manufacturing and service industries in growth
productivity. The productivity of sales associates is measured as their level of
performance in the retail industry. Other factors found to influence the
productivity/performance of sales associates include: 1) the current make-up of the
workforce; 2) market forces; and 3) the improper utilization of employees by human
resource departments.

The make-up of the workforce has and will continue to change through the
year 2000. The aging of America has been cited as the major cause of changes in
the workforce. Increasing life spans have generated greater numbers of workers
between the ages of 45 and 65, while a fewer births have caused a decrease in the
number of people between the ages of 16 and 35. Traditionally, retailers have
depended on the 16-24 age group to fill entry-level positions. However, the
aforementioned changes have generated a new mixture of age groups within the

retailing workforce. Further, because of the increased longevity of workers, retailers

62

63

are finding that sales associates are increasing their tenure in sales positions. Entry-
level sales jobs are generally made up of students, retirees and persons attempting to
supplement other incomes. Persons working as sales associates are required to have
no formal education and/or other qualifications. The ability to assist customers with
their selection and purchases, as well as being able to work long and odd hours are
the major requirements. The literature review revealed that sales associate’s
productivity was found to be affected by competitive and environmental market
forces. The market forces found to significantly affect labor productivity include:
wages, store size and store location. Wages offered by the retail industry are said to
significantly affect labor productivity. Lower wages are said to attract low
producers while higher wages are said to attract and retain higher producers.
Another factor found to affect levels of productivity of sales associate’s is the
improper utilization of available human resources. Human resource (HR)
departments are developed to support the missions and goals of the firm and not
those of the salespeople. Growth and development of sales associates within their
sales position is not the main focus of the HR departments.

Career development has been the focal point of many researchers. Some
researchers indicate that salespeOple progress through stages as they develop within
their chosen career. The successfirl progression within a chosen career is based of
the individual’s career concerns, personal challenges, developmental tasks, and
psychosocial needs. Four stages of development include the exploration stage,

establishment stage, maintenance stage and the disengagement stage. The four

64

concerns vary in level of importance among the stages. Further, the issues relative
to the career concerns may vary among the career stages.

The focus of this study was to determine if a salesperson’s assigned,
department and store productivity level differs by career stage position. A second
focus of the study was to test a previously developed instrument in a retail setting.
Further, the study attempted to determine if a sales associate’s level of productivity
could be differentiated by compensation plan. Previous studies examine the
relationship and/or influence of career stage on work perceptions, job attitudes,
performance and motivation. This review of literature revealed no research that
examined the relationship of retail salespeople’s labor productivity to career stage.
Further, no research was identified that examined the productivity of individual
salespeople within a business making comparisons among salespeople as opposed to
comparison among firms. This chapter provides a summary of the findings and
conclusions based on the results of the study. Additionally, implications of the
present study and recommendations for future studies are offered.

Summagy of Procedures

Two retail stores in the Mid-Michigan area agreed to participate in the
research project. The human resource managers of the two stores solicited
volunteers from all departments in which records of salespeople were continuously
recorded. Questionnaires were distributed and collected by the researcher on the
premises of each store. Data were collected relative to the study’s independent

variables, career stage and compensation plan. The dependent variable, labor

65

productivity, was measured as the ratio of actual sales to assigned, department and
store sales. Further, demographic data were also collected.

In a pilot study format, a cross-sectional research design was used to acquire
the necessary responses. Useable questionnaires reflected a response rate of 50
percent (n=3 0). The instrument used to determine the career stage of individual
sales associates was developed by Super (1957) and revised by Super, Zelkowitz &
Thompson, (1981). The productivity instrument was developed by the researcher.
The managers were requested to list the individual’s actual and assigned sales, along
with their average hours worked and type of compensation plan. Lastly, the human
resource manager was asked to complete a form which indicated the stores annual
sales volume, number of full-time and part-time employees and square footage of the
store [See Appendix B].

Summafl of Findings and Conclusions.

The retail sales associates surveyed ranged in age from 20 to 60. Other
features of these sales associates include: a greater number of females (93.3%);
income levels which ranged from less than $9,999 to $24,999; and primarily high
school educated individuals (36.6%). A greater number of sales associates with high
school diplomas is reflective of the retail industry which traditionally has required
little or no training for sales positions. Sixty percent of those surveyed indicated
that they were not head-of-household, all of which were female. This suggests that
their income was secondary and considered to be supplementary, therefore, the

importance of their job would differ from those who are head-of-household and

w

66

those who consider their job a career.

This study purports, the salesperson’s assigned, department and store
productivity level will differ by career stage position. An Analysis of Variance
(Anova) of labor productivity and career stage indicated an increase of productivity
level from the exploration stage to the maintenance stage, along with a decrease in
productivity in the disengagement stage. However, no significance (p > .10) in these
differences were found, which suggests that retail salespeople do not experience
major differences in productivity among the career stages.

An Anova was performed to determine if a salesperson’s level of productivity
differs by compensation plan. A salesperson’s level of productivity was found to
significantly (p > .10) differ by compensation plan with regard to the ratio of actual
sales to assigned, department and store sales. Previous studies indicate that
compensation plans such as wage-plus-commission and commission-only have
varying effects on productivity. Findings from these studies offer conflicting results
regarding the improvement of productivity among sale’s associates when
commission-only and wage-plus-commission compensation plans are used. While
some studies suggest that commission compensation plans can improve productivity,
others suggests that these plans can cause problems such as lower productivity, job
satisfaction and high turnover among salepeople, along with the erosion of customer
loyalty and retention. The findings from this study indicate that both wage-plus-
commission and commission only salespeople are high producers. However, wage-

plus-commission sales associates had a higher productivity score than commission-

67

only sales associates.

The instrument used to identify the actual career stage of each sales associate
was the Career Concern Inventory (Super, 1957, Super, et. a1, 1981). It is a self-
report inventory that focuses on awareness of and concern for career development.
The 60-item instrument uses a five-point Likert scale to determine the level of
concern for a particular task. The 60 items are divided into four sets of questions,
which are identified as career stages. Those stages are identified as Exploration (Q1
- Q15); Establishment (Q16 - Q30), Maintenance (Q31 - Q45); and Disengagement -
(Q46 - Q60). The sales associates were classified in a career stage [Exploration
(n=5), Establishment (n= 4), Maintenance (n= 7) and Disengagement (n= 10)] based
on the smallest absolute deviation from the average score of three for the fifteen
questions in each stage. Responses from four sales associates were eliminated
because their pattern of responses did not indicate a definite career stage. Among
those sales associates, a deviation from a mean of three were identical in more than
one career stage. A factor analysis was performed and the Career Concern
Inventory was found to be dimensionally stable. Internal consistency was evident by
the alpha scores (cc ) .70).

A second factor analysis of the sixty questions was necessary to identify the
specific concerns of the retail sales associates. This factor analysis was also done to
determine if the concerns of sales associates were similar to those identified in
previous studies. The findings were that: a) sales associates lodged in the

exploration stage were more concerned with the identification construct; b) sales

68

associates lodged in the Establishment stage were found to associate highly with
implementation, stabilization, and advancing/maintaining concerns; c) person’s
lodged in the maintenance stage were not found to be concerned with maintaining
their position with the business; and d) sales associates lodged in the disengagement
stage were not found to be concerned with leaving the business and retiring.

The identification of a chosen field, that is "choosing a job that interests me,
and that will provide the most challenge" and "finding a line of work that appeals to
me" is an important issue to retail salespeople. The implementation construct is
concerned with "deciding how to qualify for work I want to do", making specific
plans to achieve my cm'rent career goals" and finding the opportunity to do the work
I really want to do". The concerns of the identification and implementation
constructs are similar to those of Super (1957), which suggests that person’s in the
Exploration stage are trying to determine what skills they have and finding a job to
use those skills. Stabilization in a chosen field as a concern of retail salespeople
was viewed as "Making my position in the organization secure", "developing a
reputation in my line of work" along with "planning to get ahead in my line of
work". "Maintaining the occupational position I have achieved" and " getting ahead
in the organization" was also important issues of salespeople. Super’s study also
suggests that person’s in the Establishment stage are more concerned with being
productive enough to establish themselves in the chosen field. The establishing and
Advancing/Maintaining constructs were found to be similar to the Establishment

stage, in that, they are concerned with being productive enough to establish a

69

position in the chosen field and developing a reputation in the industry. In the
retail industry, competitiveness among the salespeople may necessitate the need to
be concerned with stabilizing and maintaining their position. High producers can be
assured a job. The redevelopment of a career as a concern of retail salespeople was
viewed as "developing new skills to cope with needs and opportunities", along with
"developing special knowledge or new skills to help me improve on the job". The
redevelopment construct was found to be similar to the Maintenance stage, in that,
people in this stage are concerned about redeveloping and updating their skills in
order to continue to be competitive among the other workers. Super (195 7)
suggested that people in the Disengagement stage are concerned with sustaining their
job until they have accepted the need to retire as the next step in their life. Retail
sales associates in the retirement stage were not found to be concerned with "having

a good life in retirement".

70

Implications. According to this study, the concerns of sales associates are highly
career-oriented. The identification of a career stage does not indicate the
productivity rates of sales associates; however, the identification of a compensation
plan does help in determining a sales associates productivity rate in regard to the
ratio of actual sales to assigned, department and store sales. Perhaps the higher level
of competitiveness among sales associates and other departments is based on the
type compensation plan, which would create an increase in productivity level. A
valid and reliable instrument is needed in order to determine what programs would
be helpful to improve productivity. Age of sales associates within the stages range
as: exploration (21 -52), establishment (43 ~57), maintenance (22 - 51) and
disengagement (23 -60). This suggests that a sales associate positioned in any career
stage can be of any age and could possibly acquire different levels of productivity.
Recommendations. The following recommendations for future research are offered:
1. In this study, reasons for differentiation in the productivity levels of
salesperson’s are reviewed. Findings regarding level of productivity
differences among career stages differ from those of previous studies. A
replication of the study with a larger sample is needed to determine if career
stage position is a relevant measure of retail sales associates productivity.
2. The concerns of sales associates are suggested as being highly career-
oriented. Future research is needed to determine the actual concerns of retail
sales associates. Further research is also needed to determine the relationship

of these concerns to personal development outside of the work world. This

71

would also allow human resource managers to understand how and why
people change. Pinpointing the actual concerns and their level of importance
would help retailers develop training programs relative to these concerns.
Such information would also help in the development of training and
development programs, as well as benefit programs that actually fit the needs
of sales associates.

The differences in the age of sales associates and the growing number of
older Americans necessitates the need to determine the relationship between
labor productivity rates and age of sales associates.

The importance of sales associates productivity necessitates a reliable and
valid instrument that would measure productivity. Such an instrument would
allow human resource managers to develop programs based on the needs of
the sales associates. Therefore, future research should examine present
productivity measures and test in a retail setting. Further, sale’s associates
input regarding their productivity may be examined to to identify other

factors that may used as measures of productivity within the instrument.

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APPENDICES

76
APPENDIX A:

Letter to retailer

Dear

Labor costs are generally the highest expense for the retail trade; therefore, it
is imperative that factors which may influence the level of salesperson productivity
are understood.

Because the make-up of the retail labor market continues to change, it is
necessary to understand why and how people develop in their chosen career. Once
an understanding is developed, human resource managers can develop training
methods that will evoke the highest level of productivity from salespeople.

We hope that you can realize the benefit of a study such as this one and will
consent to participate. A detailed agenda for expediting the study is attached.

Thank you very much for your time and I hope to hear from you soon. If
you have any further questions or concerns, please call me at (517) 355-7714. In
appreciation for your participation in this study, a one dollar bill is attached to the
last page of the questionnaire.

Sincerely,

Vanessa Prier Wickliffe
Master’s Student

Karen J. Cummings, Ph.D.
Assistant Professor

77
APPENDIX A (continued):

Plan of action

10.

11.

Send copy of questionnaire to personnel director, requesting
participation in the research project.

Acquire letter of confirmation from retailer.

Identify dates to administer questionnaires to participants.
Administer questionnaires to participants.

Collect questionnaires from paticipants.

Have managers fill forms on participants from their department.

After receiving all questionnaires, the researcher will evaluate them and
determine if they are all usable.

Questionnaires will then be processed for data analysis.
Results of data analysis are written.
Discussion and recommendations are made to retailer.

Findings and recommendations are written for publication.

Optional features:

1.

2.

Pay each participant one dollar after completing the questionnaire.

Pay the managers one dollar for each form completed concerning their

employees.

78

APPENDIX 1%

Sample Questionnaire

Dear Participant:

11 has been predicted that retail indusuy will be one ol the major
contributors to the job market through the year 2000. PeOple are lengthening
time spent in sales positions and we would like to examine what effects this has
on productivity levels. Because labor productivity assures the success of the retail
firm. Hudson's has agreed to participate in a university research project that will
examine possible factors that may influence your level of
performance/productivity as a sales assodate.

We aslcing for your contribution to the study by siruply completing the
questionnaire and returning it to the researcher. Your partia'pation in the study
is strictly voluntary and your response will remain anonymous and confidential.
Only the summarized findings will be made available to store staff.

Thank you very much for your support in our research project and you
can be assured that such support will be beneficial to all involved in the retail

industry.

   
    
 

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1. This section consists of statements about your CAREER CONCERNS. How much
THINKING OR PLANNING have you done in these areas? For each Statement below.
please CIRCLE the scale value which indicates your LEVEL of THINKING or
PLANNING.

1. Have not yet had to think seriously about this

2. A growing concern; Beginning to become important.

3. A strong concern at the present; Actively engaged in this.
4. Still some concern but declining in importance

5. No longer a concern; Past that stage

1. Clarifying my ideas about thetypeof worklwould really like to l 2 3 4 5
do.

2. Deciding what I really want to do for a living. 1 2 3 4 5
3. finding what line of work I am really best suited for. 1 2 3 4 5
4. Learning more about various kinds of opportunities that might be 1 2 3 4 5
open to me.
5. Learning what skills and training are required for certain jobs in l 2 3 4 5
which I think I might be interested.
6. Choosing among the best career alternatives 1 now see. 1 2 3 4 5
7. Choosing a job, among the several that interest me, that will 1 2 3 4 5
provide the most challenge.
Finding a line of work that really appeals to me. 1 2 3 4 5
9. Making sure of my current occupational choice. 1 2 3 4 5
10. Choosing a job that will really be satisfying for me. 1 2 3 4 5
11. Getting started in my chosen field. 1 2 3 4 5
12. Deciding how to qualify for the work I now want to do. 1 2 3 4 5
13.. Meeting people who can help me get started in my chosen field. 1 2 3 4 5
14. Finding the opportunity to do the kind of work I really like. 1 2 3 4 5
15. Making specific plans to achieve my current career goals. 1 2 3 4 5
l6. Settling down in a job that I can really stay with. l 2 3 4 5
17. Making a place for myself in my organization. 1 2 3 4 5
18. Doing things that will help me stay in my chosen job. 1 2 3 4 5
l9. Achieving stability in my occupation. ‘ 1 2 3 4 5
20. Making my place in my organization secure. 1 2 3 4 5
21. Developing a reputation in my organization. 1 2 3 4 5
22. Making a reputation in my line of work. 1 2 3 4 5

 

23.
24.
25.
26.
27.
28.
29.
30.
31.
32.

33.

35.
36.
37.
38.
. 39.

40.
41.
42.
43.

45.

46.
47.

80

I. Have not yet had to think seriously about this.

2. A growing concern; Beginning to become important

3. A strong concern at the present; actively engaged in this.
4. Still some concern but declining in importance.

5. No longer a concern; Past that stage.

Becoming a dependable producer.

Becoming especially skillful in my work.

Winning the support of my supervisor and employer
Planning how to get ahead in my established field of wort
Getting ahead in the organization.

Daing the things that make people want me.

Finding ways of making my competence known.
Advancing to a more responsible position.

Maintaining the occupational position I have achieved.

Holding my own against the competition of new people entering
the field.

Adapting to changes introduced since I became established in my
job.

Keeping in tune with the people 1 work with.

Keeping ahead of the workers below me.

Reading the new literature and publications in my field.
Attending meetings and seminars on new methods.
Visiting places where new developments can be seen.

Taking pan in non-work (leisure time) aetivities that will help me
keep up-to—date on my work.

Getting refresher training.

Identifying new problems to work on.

Finding out about new opportunities as my field changes.
Deciding what new fields to open up or deveIOp.

. Developing new skills to cape with new needs and opporninities.

Developing special knowledge or new skills to help me improve
on the job.

Developing easier ways of doing my work.

Concentrating on things 1 can do as 1 get older.

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1. Have not yet had to think seriously about this.

2. A growing concern; Beginning to become important

3. A strong concern at the present; actively engaged in this.
4. Still some concern but declining in importance.

5. No longer a concern; Past that stage.

49.

51.

52.
53.

55.

58.
59.

Avoiding excess occupational pressures.
DeveIOping more hobbies to replace work interests.

Finding out what types of activities I would really like to engage
in after retirement

Flaming for retirement.
Making sure I can have a good life when I retire.

Talking to retired friends about the problems they faced and the
adjustments they made when they retired.

Setting aside enough assets for retirement.
Findinganareaofthccountry in which to retire.

Having a good life in retirement

Having friends [can enjoy in retirement.

Making good use ofthe increased free time that comes with
retirement.

Doing the things I have always wanted to do but never had the
time for because of my work.

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55555

I]. Please mark the appropriate respome that best describes your performance

Very
Low Average
1. Sales Volume 1 2 3
2. New Otstomers l 2 3
3. Customer Contacts 1 2 3
4. Initiative 1 2 3
5. Resourcefulness l 2 3

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High

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82

[IL Please choose and mark the appropriate bzrckgmund information.

1. Sex
Male
__ Female
Age on Last Birthday
Are you head of household __ Yes __ No
Marital Status
Single Married Divorced Widowed
Cultural Heritage
__ African-American

Caucasian-American

Hispanic-American

Asian-American

Mexican-American

Other

 

 

 

9‘ PP.“

 

 

6. Education
A. High School Diploma or equivalent.
B. Bachelor‘s Degree
C. Master's Degree
D. Doctoral Degree
E. Professional Degree
F. Other

7. Level of Income
A. Less than 9.999
8. 10.000 to 14.999
C. l5.000 to 19.999
D. 20.000 to 24.999
E. 25,000 to 39.999
F. 40.000 or more

8. Your last job title: _.

 

 

 

 

 

 

9. How long were you in that position?
Lessthan 1 year
l-Syears
6-lOyears
ll-lSyears
l6-20years

10. Your current job title is
How long were you in that position?

Less than 1 year
l-S years
6-10 years
ll-lS years
l6-20years
More than 20 years

 

HHH

83

 

 

Retail Labor Productivity Survey

 

 

 

Employee Identification Number Dept #
L Please evaluate the identified employee.
Very Very
Low Average High
Sales Volume 1 2 3 4 S
New Customers l 2 3 4 5
Customer Contacrs l 2 3 4 5
Initiative 1 2 3 4 5
Resourcefulness l 2 3 4 5

[1. Please provide the actual sales and asigned sales figures concerning this
employee for the following months:

Aetual Sales Assigned Sales
January-March
April-June
July-September
October-December

[IL Average numberof hours worked per week

IV. Compersation Plan
_Hourly Wage ___Hourly Wage Amount
_Salaried Salary Amount
_Wage plus Commission Wage Commission Rate

Commission Only ___Commission Rate

 

 

84

l. About your Department

IL Name of the Department

 

8. Number of Employees Full Time __ Part Time __

C. Annual Department Sales

 

 

D. Employee turnover rate of this department

85

ll. About your Store

A. Annual Sales Volume

 

B. Tatal number of Employees

 

C. Store Square Footage

 

 

D. Employee Turnover Rate

Thank you for your Cooperation

 

Store Branch

 

 

86
APPENDIX C

Thank You Letter to Contact Representatives

Dear Mr.:

As times and pe0ple change within the workforce, it is imperative that research
is continued, whereas human resource management can continue to understand those
changes. I write to you at this time to express my deepest appreciation for allowing me
the opportunity to contribute to the field of research relative to retail.

At this time we have condensed the data, analyzed it and are presently writing our
report, in which we will send you a c0py. After all is said and done, we h0pe to carry
out this study on a larger sample, whereas the findings will be generalizable to the whole

retail population.

Please find enclosed a token of our appreciation, and again thank you very much
for your support. Please be assured that you will hear from us in the near future with our
findings.

Sincerely,
Vanessa Prier Wickliffe

Master’s Student

Karen J. Cummings, PhD.
Merchandising Management

 

 

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