Leadership Essay

263 Words2 Pages
Case Analysis 1. Case Summary: Mary Kay Cosmetics Inc is international manufacturer & distributor of premium skin care, hair care and body care products. The company is in dilemma of employee incentive program cost reduction without hampering its employee morale, motivation & to increase sales volume same time. Actors Name | Designation | Year | Mary Kay | Chairman | 1985 | Richard Rogers | President & CEO | | Dick Bartlett | President & COO | 1987 | Richard Rogers | Chairman & CEO | | Barbara Beasley | Sales group executive VP | | 2. Issues and Problems Problem-Containing further program cost increase without upsetting the powerful incentive system that was firm's primary source of growth and success. It is the problem of exercising control while at the same time delegating decision-making authority. Managers commonly need to make decision under conditions of uncertainty and therefore need to assess what kinds of actions are optimal, from the firm's perspective and implement them. If different managers within the same firm react differently to similar situations the organization may have difficulty executing its basic strategy. There was the stiff competition to become director among consultants without developing the competency of facing challenges. Role of Beauty Consultant * Order products | * Sell products to customer | * recruit new consultant | Solution: 1. Reducing total car program costs (especially VIP Costs) as a percentage of sales. 2. Redirecting dollars behind other elements of its incentive compensation plan for greater cost effectiveness. 3. Providing reward and recognition for a range of performance levels that was broad enough to meet the varying career interests and prospective beauty consultants 4. Motivation from upline to downline
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