Tanglewood Case 1

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Tanglewood Casebook Founded in 1975, Tanglewood is a chain of general retail stores featuring items such as clothing, appliances, electronics and home decor. Tanglewood, which targets middle- and upper-income customers, has grown with a strong base of employee participation, customer satisfaction and profitability. The company’s core values are responsible financial management, clear and honest communication, and always keeping performance and customer service in the forefront. The company’s culture varies from most of their major competitors by emphasizing employee participation and straight talk. However, Tanglewood has encountered some challenges. The corporate staffing function has not been strong, and the role of corporate HR is to primarily act as an advisor to each regional manager. Moreover, the growing number of stores means that local leadership is becoming inefficient. The need for a central planning body in staffing is seen as an important way to maintain the Tanglewood experience, and centralization will serve to create staffing operations efficiencies. Case One: Tanglewood Stores and Staffing Strategy The staffing strategy requires making key decisions about acquisition, deployment and retention of Tanglewood’s workforce. Thirteen decisions are identified and discussed below. Acquire or Develop Talent Tanglewood believes that their success comes from their strong culture which has to be passed on to the future. Therefore, the develop talent approach would be the most appropriate to ensure that the company maintains its productive workforce. Also because Tanglewood wants its employees to be self sufficient and think like managers, they already emphasize on a knowledge sharing culture which ensures honest communication at all levels. Employee suggestions are valued and the upper level managers have ample opportunity to observe the

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