These long-term problems have many contributing factors. The first major issue that Company P faces is low sales volume. Although it seemed small on a day-to-day basis, the cumulative amount at month-end was substantial. The greatest contributor to this was the interpersonal relationships between the associates and management and also the associates to other associates. There was a lot of hostility towards the new staff brought in by headquarters. The original employees felt as if they were not appreciated by the company and felt that they could easily be replaced. After the associates saw many of their coworkers get fired, their work mood and attitudes started to become negative. Because of the hostility towards the new employees, some of the new management members used the power from their positions to make sure the associates were doing what they were being told to do. Even though the new management team was using their power to make sure that the behaviors desired from headquarters were occurring, it was still being met with opposition. This caused there to be no downward trust from the new upper management team and make them feel it necessary to micromanage what was being done. The new manager that was brought in tended to speak down to all the other employees causing many people to be offended, even when it was not meant in that way. Huber and Williams say it best in Human Behavior in Organizations (1986), “often it is when and how one speaks rather than what one says that determines the effectiveness of communication.” (p. 476). Though the manager here had not quite grasped that 9
Human Behaviors at Engstrom Auto Mirror Plant and Company P concept when she first was transferred, once she started to get the feel of the employees and the culture, she was able to change her way of communicating. Even though she was able to change herself, many people had already been offended and it was not easy to mend those relationships. The over all negative work mood and attitudes of the employees was visible to the customers causing their shopping experience to be unsatisfactory. Because the employees were discussing personal matters in front of the customers, the customers felt as if their business was not appreciated. This made them go to other stores with better customer service and caused Company P to loose that sale. Another contributing factor was an unfair bonus system. With the bonus system that was set up, only managers received a bonus. When employees found out that their hard work was being rewarded to only their managers, it did not make them want to work harder, since they would not be benefitting. Even though management tried to diffuse the negative attitudes, there was still a large amount of hostility towards new employees. Because of this it was hard to retain new employees for more than a few months causing a high turn over rate. This was the second large issue that the store faced. When they were able to find someone that was competent and loved the job,
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- Fall '14
- Management, Auto Mirror Plant, Engstrom Auto Mirror