Management control case study

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1 What were the four main problems facing Janalakshmi Financial Services (JFS)?
One of the main problems JFS faces is the exceedingly high attrition rate among its sales force, causing the greatest bewilderment. This attrition rate, standing at 41%, surpasses the market average of 32%, and it presents a formidable challenge, leaving the organization in a state of great puzzlement regarding how to retain and motivate its sales team effectively, thus impeding the establishment of a customer-focused and performance-oriented culture (Chung & Kak, 2016, pp. 4-5).
Another predicament evident in the provided information is the persistent decline in sales productivity per employee. It is mentioned that due to the HR challenges and issues with human capital policies at JFS, there was a continuous and bewildering decrease in sales productivity per employee. This ongoing decline suggests that the organization needed to achieve the expected results from its sales force (Chung & Kak, 2016, pp. 4-5).
Thirdly, issues surrounding sales officer compensation become apparent. The foundational salaries of sales officers, often deemed inadequate, have left experienced staff financially strained and disheartened. The uniform salary structure, irrespective of differing city living costs, is perceived as unjust, affecting employee well-being and motivation. Moreover, the existing compensation scheme, heavily focused on specific loan types, restricts diversification and may hinder adaptation to evolving customer needs. The practice of "ratcheting," intended to raise targets for top performers, paradoxically raises concerns about demotivation, particularly in high-potential regions (Chung & Kak, 2016, p. 8).
Lastly, there needs to be more emplo...