Sunshine Case Essay

632 Words3 Pages
What were the roots causes of the staff’s misbehavior? At Sunshine Fashion, the main manifestations of employees’ misbehavior are fraud and theft by branch managers at the local Chinese market. The root causes of these misbehaviors are both individual and contextual: Individual: * Weak sense of belonging and loyalty to Sunshine (high yearly turnover of branch managers of 20%): Branch managers use Sunshine stores to build personal relationships with department stores and to promote their own brands. * Need to get be better rewarded: theft is a symptom that managers are not well remunerated. Pocketing the difference between price tag, ongoing promotion and cash sales. * Involuntary rotation might not be good for the moral of the employees, lowering their loyalty and increasing their turnover * Lack of charismatic leadership: * Branch managers have no close relationship with their corporate superiors. * Performance evaluation is based on lowering theft percentage, not personal goals to achieve. Those factors result in poor perceived organizational support (OB, p. 110). This perception has a direct effect on employees’ engagement and organizational citizenship behavior towards the goals of the company. Branch employees are not fully committed to the organization (OB, p. 108) therefore the turnover is very high. Contextual: * Recruitment policies: * Managers are hired mostly on “relationships of mutual favor”, and not based on managerial ability or integrity. * Long term personal goals for these people are mainly to flourish their relationships, because that increases their personal value in that market. The goals of the company do not fit managers’ personal goals. * Organizational justice (OB, p. 256) was taken to extremes : * Uniform reward for branch managers did not take into account location and the

More about Sunshine Case Essay

Open Document