The general manager reviewed your analysis of a successful company and was impressed with your work. As a result, you have been asked to provide recommendations for a management improvement plan for a struggling company.
focus on a struggling company and make your recommendations in a management improvement plan. Be sure to focus on the company at the time of their struggle. Your recommendations will show how management performance, employee perception, and organizational success intersect.
select a company from the list of suggested companies provided in the Final Project Two Unsuccessful Companies and Search Terms document. Search terms are provided. These search terms will help you conduct research to learn more about the struggle of your chosen company.
Profile of a Struggling Company
Assess how the management planningpractices interfere with or prohibit the organization’s ability to optimally function. Use the fundamental principles of management in your explanation.
Describe how the employees’ perception and organizational culturehave been impacted by management’s performance. Consider the connections between management and its impact on culture.
Explain how communication has played a part in management’s inability to increase employee performance. Consider the connections to specific communication barriers that exist within the organization.
Management Plan Recommendations: For this section of the summative assessment, you will make recommendations for the management improvement plan.
Describe how implementing the fundamental principles of management will help to improve the management process within the company. Consider the factors that interfere with or prohibit effective management.
Identify how aspects of the fundamental principles of management will be implemented and communicated to all personnel within the company. Consider this from a training standpoint.
Describe how the application of the fundamental principles of management will lead to increased employee performance. Consider what needs to be improved the most to help increase employee performance.
Explain how applying ethical principles to the fundamental principles of management would be sustained and monitored by the company. Consider using the rational decision-making model to show how this process can help ensure long-term success.
Full Answer Section
- Disorganization and Communication Silos: Complicated ownership structures and a lack of clear communication between corporate leadership and store managers hampered effective decision-making and created a sense of disconnect within the organization. (Organizing Function)
Employee Perception and Culture:
Management's actions negatively impacted employee perception and fostered a toxic culture:
- Low Morale and Disengagement: Feeling undervalued and under-resourced, employees lost motivation and engagement, leading to decreased productivity and higher turnover.
- Fear and Uncertainty: Frequent restructuring and cost-cutting measures created a climate of fear and uncertainty, hindering collaboration and innovation.
- Blame Culture: A focus on blame rather than problem-solving discouraged open communication and risk-taking, stifling employee initiative.
Communication Issues:
Communication played a significant role in management's struggles:
- Top-Down Communication: Important information wasn't effectively communicated from leadership to store managers and frontline employees. This created confusion, frustration, and a sense of being out of the loop.
- Lack of Transparency: A lack of transparency regarding company strategy and financial performance led to distrust and suspicion among employees.
- Ineffective Feedback Mechanisms: Inadequate channels for upward communication prevented employees from raising concerns and providing valuable feedback.
Management Improvement Plan Recommendations:
- Reinvigorating Management with Core Principles:
- Planning: Develop a long-term strategic plan with a focus on e-commerce, store modernization, and employee development. (Planning Function)
- Organizing: Streamline the organizational structure, ensure clear communication channels, and empower store managers to make decisions. (Organizing Function)
- Staffing and Directing: Invest in recruiting and training, improve compensation and benefits, and cultivate a culture of open communication and feedback. (Staffing and Directing Function)
- Controlling: Implement performance metrics to track progress, hold leadership accountable, and continuously improve processes. (Controlling Function)
- Communication and Training:
- Transparent Communication: Regularly communicate company goals, strategies, and financial performance updates to all levels of the organization.
- Active Listening and Feedback: Establish regular two-way communication channels to gather employee feedback and address concerns.
- Management Training: Provide training for managers on effective communication, employee motivation, and building a positive work environment.
- Increased Employee Performance:
- Empowerment and Ownership: Give employees ownership over their work and empower them to make decisions that directly impact their areas.
- Performance Recognition and Rewards: Implement performance-based recognition programs and rewards to incentivize high performance.
- Focus on Growth and Development: Offer opportunities for ongoing training and development to enhance employee skills and knowledge.
- Ethical Management and Sustainability:
- Decision-Making: Utilize the rational decision-making model to consider all options and potential consequences before making choices. This promotes ethical and sustainable practices.
- Monitoring and Evaluation: Regularly monitor progress toward goals and the impact of decisions, making adjustments as needed.
- Ethical Leadership: Foster a culture of integrity and ethical behavior throughout the organization, setting a positive example from the top.
Conclusion:
By implementing these recommendations, Sears Holdings could rebuild a strong management foundation based on the fundamental principles of management. Improved communication, employee engagement, and a focus on ethical decision-making will be crucial for reviving the company's culture and ultimately lead to improved employee performance and a path towards long-term success.
Sample Answer
Company: Sears Holdings Corporation (Formerly Sears and Kmart)
Search Terms: Sears decline, Kmart decline, Eddie Lampert, Sears mismanagement
Analysis of Current Situation:
Sears Holdings Corporation, once a retail giant, has faced a significant decline over the past two decades. Here's how management practices contributed to their struggles:
- Poor Strategic Planning: Management focused on short-term financial engineering under former CEO Eddie Lampert, neglecting long-term strategic planning for a changing retail landscape. This led to a lack of investment in online presence, store modernization, and employee development. (Planning Function)
- Inadequate Staffing and Training: Cost-cutting measures led to understaffing, reduced training budgets, and a decline in employee morale. This resulted in poorer customer service and a negative shopping experience. (Staffing and Directing Function)