The Slab Yard Slowdown

THE PROBLEM

The problem, in this case, started from declining department sales and inappropriate business practices
that created unpleasant work conditions and significant reductions in employee productivity.

There was poor communication between management and employees and the tally system incentivized
individual goals rather than the group goal. This methodology caused competition amongst the
employees, causing other store tasks to be overlooked.

Barton is struggling with developing a process to improve the store’s sales and the tally card system did
not increase company sales and was eliminated. Employees did not have clearly defined roles and
responsibilities, which caused bickering amongst each other.

THE SOLUTION

The solution, in this case, is to have a goal setting approach. This approach would provide team driven
success, an increase in customer satisfaction as well as employee job satisfaction. An increase in their
marketing effort would help increase customer traffic and the amount of sales.

Mr. Barton needs to promote team building, and trust and accountability amongst employees. It would
improve the overall company morale and restore the team atmosphere. This would enable all
employees to work towards a common goal. Team oriented goals need to be established. Providing
positive feedback and reinforcement to the employees would help with the lack of trust issues.

ACTIONS

In this particular situation, management should establish productivity goals to increase employee output
within a designated time-frame. Productivity goals serve as external factors known to improve
employees’ innovation, work ethics, and labor creativity. To ensure the effectiveness of this approach
the newly established goals should be measurable, reasonably attainable, specific, and time-bound.
Since department sales are down, head sales clerks in each department could set weekly target sales
goals based on average employee work hours, previous month’s sales records, products shelf lives, and
other measurable variables. This method would give a more accurate description of how many units
departments can expect to sell given their hour restrictions.

Establish a performance-based reward system where employees receive individual compensation for
outstanding performance in particular areas. Other motivational strategies such as a group award
programs can serve as a suitable means of building camaraderie and team integrity (INC, 2015). Key
measurements for individual or group achievements could range from a variety of measurable such as
monthly sales records, customer feedback ratings, and notable performance outputs.

Encourage management to revise existing marketing strategies to include, but not to limit to, product
markdowns, specials, discounts, or price match options for some products. Conduct a thorough analysis
of the market to determine the attractiveness of products available and to decide which market
segments to target. Because of heightened customer complaints due to inefficient business practices,
management needs to revise the sales and communication channels they employ to reach their
respective target audience. Lastly, the implementation of different team-building exercises such as
sponsored events, social outings, team projects, and department functions should improve
communication and employee relationships.

EVLAUATION

A practical approach to measuring the proposed corrective action is through benchmarking. In Mr.
Cornwall initial attempt to correct the sporting goods, hardware, housewares, and toy department
deficiencies he failed to properly analyze existing market trends and other competitor practices. He
immediately blamed the decline in department sales on employee’s performance and employed
inappropriate measures to counteract the adverse effects. Mr. Cornwall’s negligence and irrational
thinking created an influx of customer complaints and workplace tension. Implementing a performance
reward system, productivity goals, and team building exercises can immediately change the workplace
dynamics to encourage production, cohesion, and improve motivation.
Management can measure their effectiveness through providing customer feedback, employee
performance outputs, and workplace interviews. With sales declining beyond Mr. Cornwall’s liking, the
introduction of promotions, specials, sales, and price match programs should improve sales
tremendously. Management can analyze competitor’s prices and create special promotions designed to
outmatch their competitors. Immediately, each department should see a significant increase in their
profit margins.