Management of RadioShack Corporation - Assignment Example

? Final Case Study Analysis Introduction RadioShack Corporation is regarded as an American based retail store which deals with the products relating to consumer electronics. The company offers greater customer services with the intention of attaining superior profitability along with enhancing overall productivity. It has been viewed that the company tends to accomplish its predetermined business targets by delivering broad assortment of product choices to its worldwide customers (RadioShack Corporation, 2013). The company has been viewed to terminate its employees due to the reason of its turmoil business position and other important aspects. The case of “You’ve Got Mail…And You’re Fired! The Case of RadioShack” can be regarded as an important case linked with the aspect of human resource (HR) which concerns about firing or terminating huge figure of employees from their respective jobs (Thinkstock, n.d.). With this concern, this paper intends to evaluate as well as to explain the issues or problems that pertained in the aforesaid case relating to RadioShack. Moreover, a set of proposed solutions would also be provided to the management of RadioShack for the purpose of dealing with the identified issues in future. Evaluation and Explanation of the Issue Relating to the Case In the year 2006, the management team of RadioShack took the decision of terminating a certain portion of its employees owing to the reason of its extreme financial turmoil condition. In this regard, it has been apparently observed that a figure of 400 personnel attached with the company received an ultimate message through e-mail which was "The work force reduction notification is currently in progress. Unfortunately, your position is one that has been eliminated." The unofficial translation: "You're fired." (Forbes.com LLC., 2013). The major issue of the case can be viewed to be the procedure which the management of RadioShack followed to terminate or to lay off its employees. Initially, it is required to recognize the main causes of the company to terminate its personnel. It can be apparently observed in this similar background that the year 2006 was a year of mixed fortune for RadioShack, as the company suffered a heavy net loss owing to its ineffective operational activity. Once viewed to be a giant in the electronic market, RadioShack was experiencing tough competitions from its chief business market contenders like Best Buy and CompUSA among others. Majority of the stores of RadioShack that were located in Canada have been viewed to shut down due to heavy net loss faced by the company. It is worth mentioning that changes in the economy can also affected RadioShack vastly resulting in low consumer spending on electronic products. Failure to adopt as well as to execute effectual business strategies in complying with customers’ demand also contributed in financial loss that suffered by the company. It has been viewed that the company was experiencing from turmoil condition and thus failed to compete with its major competitors by a considerable level (RadioShack Corporation, 2006). Thus, it can be affirmed that the aforementioned aspects were the main causes that eventually made the company to lay off or terminate its employees by a considerable level. In order to conclude the issue of the case concerning the process of terminating employees, it has been apparently observed that the management of the company adopted as well as executed the method of e-mail for terminating its employees. In this similar concern, 400 personnel belonging to RadioShack have been viewed to receive an e-mail in which the following message had been portrayed. The message was "The work force reduction notification is currently in progress. Unfortunately, your position is one that has been eliminated." The unofficial translation: "You're fired." (Forbes.com LLC., 2013). This particular message via e-mail relating to the procedure of terminating the employees can be regarded as the major issue of the case. The termination procedure which introduced as well as executed by the management of RadioShack was termed as major issue owing to the reason that it has been broadly criticized by various individuals attached with labor unions. The criticism reflected that the process of terminating the employees which followed by the company i.e. e-mail is an outrageous way towards treating human beings in a workplace. It is to be mentioned that terminating employees is not so much easy for the managers belonging to different companies. In this similar context, lay off of employees through conducting e-mail can be often viewed to be a critical factor affecting management as well as labor relations by a considerable level. According to various individuals attached with different labor unions, terminating employees through the process of e-mail is often considered to be disrespecting the personnel in a workplace by a considerable level (Forbes.com LLC., 2013). Thus, on the basis of the above discussion, it can be affirmed from a broader perspective that the process of terminating employees via e-mail can be regarded as one of the major issues or problems for a particular company like RadioShack. Solutions There are certain effective solutions that need to be followed by the management of RadioShack to mitigate the aforementioned issue concerning the termination procedure of employees through e-mail. In this similar concern, one of the solutions that the management of the company can follow is to recruit employees by designing “Employment at will” policy, so that no questions or doubts arises between both the employees and the employers at the time of termination. Though firing personnel through e-mail is duly considered to be an easy way of fastening the procedure of electronic notification, still it unfavorably affects the interrelation between the management of a company and labor relations at large (Shelstad, n.d.). Apart from designing the aforesaid policy, the management of RadioShack can focus upon developing the communication procedure. In this regard, the facet of communication is principally described as a procedure through which valuable information can be exchanged between various people or individuals effectively within a specific workplace (Guffey, 2009). It is quite essential to develop an effective communication procedure by the managers of different companies for the purpose of accomplishing several opportunities and also for mitigating any sort of risk or issue relating to operations. With this concern, it can be suggested that the management of RadioShack can establish as well as develop an effectual communication system in order to mitigate or handle the issue efficiently in future. It can be strongly believed that with the establishment along with the development of an effectual communication procedure, the management of the company can handle the issue concerning the termination process of its employees that has been conducted through e-mail. This can be justified with reference to the fact that the significant aspect of an effectual communication procedure entails certain imperative functions like coordination, effective exchange of information and most vitally sharing of feelings along with emotions among others (Thinkstock, n.d.). Conclusion From the overall analysis, it can be affirmed from a broader outlook that the termination procedure via e-mail of the employees is duly regarded to be affecting the affiliation between the management of different companies and labor relations by a greater level. In this regard, it has been viewed that the management of RadioShack also faced the issue concerning the termination procedure of its employees that has been conducted through e-mail. In order to mitigate the issue or handle the problem in future, the management of RadioShack needs to adopt as well as to execute certain effective business strategies. These strategies might comprise designing an “Employment at will” policy and most significantly establishing as well as developing an effectual communication mechanism within the company. Thus, it can be concluded that the aforesaid strategies might ultimately support the management of the company can effectively deal with or handle the issue in future by a greater level. References Forbes.com LLC. (2013). You've Got Mail: You're Fired. Retrieved from http://www.forbes.com/2006/08/31/leadership-radio-shack-management-cx_tw_0831layoffs.html Guffey, M. E. (2009). Essentials of business communication. United States: Cengage Learning. RadioShack Corporation. (2013). Our company. Retrieved from http://www.radioshackcorporation.com/ Shelstad, J. (n.d.). Communication. You’ve Got Mail…And You’re Fired! The Case Of RadioShack, pp. 175-198. Thinkstock. (n.d.). You’ve Got Mail…And You’re Fired! The Case of Radioshack. Managing Stress and Emotions, pp. 147-230. Read More