Morgan-Moe’s drugstores are in trouble. A major regional player in the retail industry, the company has hundreds of stores in the upper Midwest. Unfortunately, a sharp decline in the region’s manufacturing economy has put management in a serious financial bind. Revenues have been consistently dwindling. Customers spend less, and the stores have had to switch their focus to very low-margin commodities, such as milk and generic drugs, rather than the high-margin impulse-buy items that used to be the company’s bread and butter. The firm has closed quite a few locations, reversing its expansion plans for the first time since it incorporated. Being that this is uncharted territory for the company, Jim Claussen, vice president for human relations, had been struggling with how to address the issue with employees. In the absence of official information, rumors and gossip have spread like wildfire among remaining employees. A few angry blogs developed by laid-off employees, like IHateMorganMoe.blogspot.com, have made the morale and public relations picture even worse. Morgan-Moe is changing in other ways as well. The average age of its workforce is increasing rapidly. A couple of factors have contributed to this shift. First, fewer qualified young people are around because many families have moved away to find jobs. Second, stores have been actively encouraged to hire older workers, such as retirees looking for supplemental income. Claussen proposed the idea of a new direction for management to the company’s executive committee, and they reluctantly agreed to try his suggestions. Program I am opting out of the new idea, continuing to stay the course and providing employees with little to no information or opportunities for participation. Program II tracks employee absence and sick leave data and shares that information with individual employees, giving them feedback about things they can control. Management takes no further action. Program III tracks sales and inventory replacement rates across shifts. As in Program II, information is shared with employees, but without providing employee feedback about absence and sick leave data. Program IV, the most comprehensive, tracks the same information as Programs II and III. Managers communicate it in weekly brainstorming sessions, during which employees try to determine what they can do better in the future and make suggestions for improving store performance. Program V keeps the idea of brainstorming but doesn’t provide employees with information about their behavior or company profits. Since implementing the system, Claussen has spoken with several managers about what motivated them to choose the program they did. Questions- Answer all Questions 8. Explain the current problem of Morgan-Moe’s drugstores 9. Why the revenue of the company is coming down, what is its impact on Employees motivation 10. As an employee which alternative program you would select, explain the reasons for your selection