Issues and Problems Tanglewood - Case Study Example

Table of Contents Company Profile………………………………………………………… 2 Issues and Problems…………………………………………………….. 2-3 Alternative Solutions……………………………………………………. 3-4 Criteria to Compare Alternatives…………………………………………. 4-5 Optimum Solution………………………………………………………… 5 Implementation Plan………………………………………………………. 5 Work Cited Page…………………………………………………………… 6 Company Profile Tanglewood was founded in 1975 by Tanner Emerson and Thurston Wood. The company operates in the retail industry specializing in clothing, appliances, home décor, and electronics. The stores have an outdoor theme that differentiates Tanglewood from the competition. The company’s mission statement is to be the best department store for consumers seeking quality, durability, and value for all aspects of their active lives. The firm has operating revenues of $7.2 billion while employing nearly 53,000 employees across 243 stores. The company’s target customer is middle to high income customers. Issues and problems Tanglewood was developed by its founders as a family type store where people could come in and find all their shopping needs. The concept helped attract a lot of customers. The store prides itself in offering the best customer service possible. Another part of the working environment that the owners have always been proud of is having a high level of employee involvement. This attribute was a good idea at first, but as the company has grown it has let to administrative problems. It is important in large organizations for the employees to understand the managerial hierarchy. Stores need manages to be accountable to the operating and strategic decisions that occur at the enterprise. During the 1990’s Tanglewood experienced a lot of growth in terms of total store capacity. The firm grew from a 10 store operation to the current 243 stores it operates today. The problem with the growth the firm achieved was that the company did not build its own stores. It was easier for the firm to acquire other existing stores. The strategy that the firm implemented had lots of short term advantages, but it also led to long term consequences. The firm did not have a unified identity due to the fact that there was a blend of many different corporate cultures. The executive managerial staff of the firm did a poor job developing a single corporate culture for the employees to follow. An organizational culture is a system of shared actions, values, and beliefs that develops within an organization that guides the behavior of its members (Schermerhorn & Hunt & Osborn, p.262). A problem the company faced as it grew was that the owners of the firm took an active managerial role without taking on the responsibility of the day to day operations. The owners emphasized more on the strategic side of management. Another inherent problem the company faced was the westward expansion of major competitors such as Target and Kohl’s. The firm had been able to avoid excessive direct competition in the past, but now based on the new market structure the firm has to compete with the major players in the retail industry. The company needs a new administrative strategy to better manage its human resources. Alternative Solutions The employees of a company are its most value asset. Due to the importance of human capital Tanglewood needs immediate help dealing with the staff. An alternative solution is for the company to bring a temporary project manager to oversee the operation. The project manager would have expertise in human resources. This person would meet with all the store managers to begin the process of reorganizing the internal structure of the company. The timeline for implementation of this solution is six to nine months. The project manager would need sufficient time to evaluate the internal operations of the stores. The use of technology such as having e-meetings with the different departmental heads could accelerate the process, but physical auditing of the facilities is necessary. The person would have to visit at least 10% of the stores. A second alternative solution is to hire a human resource consulting firm to take over the full administration of the operation. The firm needs to have an update human resources system in order to compete with giants in the industry such as Sears and Wal-Mart. This solution is not a permanent fix. The human resource managerial staff would take over the operation for six months to one year. During that time the human resource consulting firm would implement permanent changes such as hiring a new managerial team, implementing training and development initiatives, and creating a recruitment plan for future expansion. The third solution for the company is for the owners of the firm to takes a hand on approach to change the corporate culture of the firm. Due to their lack of experience in operations they would need a special committee to guide them. The committee would be composed of five members all of whom would have the minimum credential of holding an MBA in human resources. The face of the change would be led by the founders of the firm, but they brains behind the new strategy would be the committee. Criteria to compare alternatives There are three alternative solutions that the owners and managerial staff of the company must consider. There are several criteria that will be used to compare the solution to find the best alternative. The first criterion considered is cost. Cheaper solutions are more attractive. The second criteria to compare the solutions is how difficult is it to implement the solution. Solutions that are too complex are not attractive. The third criterion to consider is the effectiveness of the solution at promoting teamwork and a healthy working environment. Optimum solution The second solution of hiring a special human resource consulting firm has some flaws. The HR firm could be seen as a threat to the authority of the current management team. Part of the plan requires radical change which could hurt the company more than it helps. The solution of the owners taking a direct approach with the assistance of a special committee was also not selected. This solution is not getting enough people involved in the process. The optimum solution is to hire a project manager to oversee the change management plan. This solution would allow all the key personnel to get involved in the process. The cost associated with this strategy is the lowest because it involves hiring only one person for assistance. Implementation Plan The first step in the process is hiring the project manager. This person has be an expert in organizational behavior and human resources. The selection process for the person would be handled by an outside firm. Once the project manager is hired the person has to meet with all the managers of the firm. Once the meeting takes place the project manager will begin the process of auditing the culture of the firm which could take up to six months. The project manager will prepare a special report for the managers based on his findings. The owners along with managerial staff will evaluate the report and based on majority decision they will decide which recommendations to implement. Work Cited Page Schermerhorn, J., Hunt, J., Osborn, R. 2003. “Organizational Behavior (8th)”. New York: John Wiley & Sons. Read More