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Using Retail to Management By Objective and How it can achieve a plan of action

Dayanara Pena

South Texas College

ORGL-4351-KV3-Management Theory II

Dr. Eduardo Pastor

05-02-2023
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Using Retail to Management By Objective and How it can achieve a plan of action

Welcome to The Superstore Retail, a retail business dedicated to providing exceptional

products and service to their customers. At The Superstore Retail, they follow the Management

by Objectives principles developed by Peter Drucker to guide their decision-making and

operations. According to Bikas Kumar Sinha, by setting clear and measurable objectives for each

team member, they ensure that everyone is aligned and working towards the same goals. They

use data-driven insights to set realistic and achievable targets that are aligned with our overall

business strategy, and we regularly evaluate performance and provide feedback to stay on track.

They emphasize the importance of goal setting both for individual employees and for the

company as a whole, focusing on the right objectives to drive success and growth. They

encourage open communication and collaboration among team members, allowing us to identify

opportunities for improvement and work together to achieve our objectives. Prioritizing

continuous improvement, we regularly review our performance and seek out ways to enhance

our operations, whether through process improvements, technology upgrades, or employee

training. By holding themselves accountable to their objectives, they take ownership of their

successes and failures and use them as learning opportunities to drive future growth and

improvement.

According to an article of Bikas from 2021, first, managers believe in setting clear and

measurable objectives for our team members, so everyone is aligned and working towards the

same goals. This includes regular performance evaluations and feedback to ensure we stay on

track and adjust as needed. Second, they emphasize the importance of goal setting, both for

individual employees and the company. They use data-driven insights to set realistic and

achievable targets that align with their overall business strategy. Third, they value
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communication and collaboration, encouraging open dialogue and idea-sharing among team

members. This helps managers identify opportunities for improvement and ensure everyone is

working together towards their shared objectives. Fourth, they prioritize continuous

improvement (Bikas, 2021), regularly reviewing employees' performance and seeking out ways

to enhance their operations, whether through process improvements, technology upgrades, or

employee training. Finally, they hold themselves accountable to their objectives, taking

ownership of their successes and failures and using them as learning opportunities to drive future

growth and improvement.

Here are some positive impacts when following management or objectives: Improved

communication (Markus Bodemann, 2018): By establishing a dialogue between managers and

employees to set objectives, the MBO approach can promote improved communication and

collaboration within a retail business. Better performance measurement: The MBO approach

emphasizes regular performance measurement and feedback, which can help a retail business to

identify areas for improvement and make necessary adjustments.

The negative aspects could depend on the situation for the business but it’s important to

keep a lookout on what is going on: Disengagement: If employees do not feel that their

objectives are aligned with their personal values or career goals, they may become disengaged

and unproductive. Second is time-consuming: Implementing the MBO approach can be time-

consuming and may require significant investment in planning, training, and monitoring.

To create a graph of a 3-year long growth of a business with good management, we

would typically use a line graph or a bar graph. For this example, let's use a line graph. If the

business started in 2020 and has experienced steady growth over the past three years, the graph

might look something like this: This graph shows a steady increase in revenue over the past three
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years, with the business starting at $1 million in revenue in 2020 and reaching $1,500,000

million in revenue in 2021. The line graph helps to illustrate the steady growth trend of the

business over the course of the three years.

Please note that this graph is just an example, and actual growth rates may vary

depending on the industry, market conditions, and other factors.

(Wren, D., The foundations of Henri Fayol’s administrative theory. Management,

Decision 2002) Henri Fayol's 14 principles of management are also highly relevant to the

operations of a retail business like The Superstore. These are some of the key principles that the

retail business follows: Division of work: They believe in dividing the work tasks among their

employees to ensure that each team member has a specific role to play and can focus on their

strengths. Authority: They ensure that each team member has the appropriate level of authority

to carry out their responsibilities and make decisions within their area of expertise. Stability:

They strive to maintain a stable and consistent work environment, minimizing disruptions and
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uncertainty whenever possible. Initiative: They encourage team members to take the initiative

and propose new ideas for improving their operations and customer service. The principle of

subordination of individual interest is also relevant to the operations of a retail business. For

example, if a team member is assigned a task that they may not particularly enjoy or that falls

outside of their usual job duties, they are expected to prioritize the needs of the business and

complete the task to the best of their ability.

The first step is to develop a plan to reduce employee turnover. This involves identifying

the reasons why employees are leaving the company and developing strategies to address those

issues. For example, (Management Principles, 2012) some possible reasons for high turnover in a

retail store might include inadequate training, poor management practices, low pay, or lack of

opportunities for advancement. By identifying the root causes of turnover, the retail store can

develop targeted solutions to address these issues and improve employee retention.

The second step is to organize the resources needed to implement the plan. This involves

ensuring that the store has the necessary staffing levels and training programs in place to support

employees and reduce turnover. The retail store may also need to adjust work schedules, job

duties, or compensation and benefits packages to better meet the needs of employees.

The third step is to lead and motivate employees to support the goals of the plan. This

involves creating a positive work environment where employees feel valued and appreciated.

Retail store managers can promote employee engagement and motivation by providing regular

feedback, recognition, and opportunities for career growth and development. Effective

communication is also important to ensure that employees understand the company's goals and

expectations.
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The final step is to control and measure the effectiveness of the plan. This involves

tracking employee turnover rates over time to determine if the strategies implemented have been

effective. The retail store (Management Principles, 2012), can use metrics such as retention rates,

employee satisfaction surveys, and productivity levels to evaluate the success of the plan and

make any necessary adjustments.

This graph shows a downward trend in employee turnover rates over time, with the rate

dropping from 40% in 2018 to 30%. The graph helps to illustrate the success of the retail store's

efforts to reduce employee turnover by implementing strategies such as better training, improved

compensation and benefits, and enhanced employee engagement and motivation.

SUPERSTORE turnover rate    

Date % Rate

3/1/2013 50%

4/1/2014 70%

4/1/2015 68%

4/1/2016 50%

4/1/2017 75%

4/1/2018 45%

4/1/2019 30%
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In conclusion, the POLC framework can be an effective tool for retail stores to reduce

employee turnover rates. By planning, organizing, leading, and controlling effectively, retail

store managers can create a positive work environment and implement strategies to address the

root causes of turnover. This, in turn, can lead to improved employee retention and a more stable

workforce for the Superstore.

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Reference

Bikas Kumar Sinha, & Srijib Bhusan Bagchi. (2021). Strategic Management, Decision

Theory, and Decision Science: Contributions to Policy Issues. Springer.

Mission and Vision in the P-O-L-C Framework. (n.d.). 2012books.lardbucket.org.

https://2012books.lardbucket.org/books/management-principles-v1.1/s08-03-mission-and-vision-

in-the-p-o-.html

Markus Bodemann. (2018). Management in Public Administration: Developments and

Challenges in Adaption of Management Practices Increasing Public Value. Springer Gabler.

Wren, D. A., Bedeian, A. G., & Breeze, J. D. (2002). The foundations of Henri Fayol’s

administrative theory. Management Decision, 40(9).