Denver Department Stores Case Study

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Denver Department Stores Case Study Colby Lowery, Alan Koepke, Kenneth Lindsey Jr. MGT 824 February 28, 2014 Jeff Cohu Denver Department Stores Case Study Identified Symptoms: • Cut-Throat Environment: unhappy employees, unfriendly environment. ➢ Lack of input by sales personnel. Mr. Cornwall had no clear expectations or goals for employees. • Customer dissatisfaction: Customers felt pressured and harassed. Had to ask repeatedly for help by different sales people. ➢ Individual sales became too competitive. • Lack of Organization: Poor inventory on sales floor, store appeared to be “messy.” ➢ Sales personnel became self-interested. Employees were overwhelmed and felt they needed to be on the sales floor at all times. • Ethical Violations: Some sales reported were greater than total cash register receipts ➢ Employees were pushed to be results and sales oriented. • No camaraderie between the sales personnel: Not willing to help each other out during down times, slow periods. Clerks would attempt to steal sales from other departments. • Employees felt pressured to make sales. • Poor communication after Mr. Barton discontinued the tally system. ➢ Employees felt management failed to represent their best interests. ➢ Poor communication by management. There was a lack of input requested from sales personnel. Problem Statement The problem, in this case, stemmed from declining department sales and inappropriate business practices that created unpleasant work conditions and significant reductions in employee productivity. There was poor communication between management and employees and the tally system incentivized individual goals rather than the group goal. This methodology caused

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