Analysis of Avenue Retail’s Management

R.A.D Consulting Ruby B.

Andrew P.David C.

Problem:

Avenue Retail has had recurring problems with management and employee relations.

Purpose:

To analyze possible sources of Avenue Retail’s poor management.

Outline Background

Workplace Culture

Managerial Training

Regulations and Policies

Methods of Manager Job Selection

Background ● Employees turnover due to:

○ Low wages ○ No benefits ○ Irregular schedules ○ Unreliable hours

● However, management is the biggest issue○ Disrespectful interactions ○ Unethical behavior○ Problematic communication

● Low employee morale and motivation ● Poor relations between management and subordinates

Workplace Culture - Company Values

● Jane Sanders founded Avenue Retail with the purpose to be a retailer that “helps people save money and live better.” ○ She claims the company’s culture is how they work together

to fulfill this purpose.● Avenue Retail’s beliefs are:

■ Service to our customers■ Respect for the individual ■ Strive for Excellence■ Act with Integrity

The Real Workplace Culture● Avenue Retail’s beliefs may certainly tailor to the customer but

the employees don’t believe they’re treated with that same level of respect.

● Which has lead to a 70% first year employee turnover rate.

● Suggestions to improve employee satisfaction:

1. Develop a Desired Career Path

2. Provide sufficient compensation for labor

3. Keep frustration with management down

Managerial Training Sources of Management Position Selection

In the Avenue Retail Leadership Academy:

❏ Participants go through 6 weeks of training in which they develop skills in communication, leadership, international scoping, and global thinking.

Issue with this training method:

❏ It’s not enough time to expect a manager to become competent in all these departments.

❏ Employees may not give as much respect.

Regulations and Policies Managers are the ones to enforce policies therefore, they should

know the policies. Employees, but especially managers should be trained in legal issues

regarding:

■ Harassment

■ Discrimination

■ Retaliation

■ Safety

■ Wage and hours

■ Employee privacy

Regulations and Policies continued...Performance Evaluations● Avenue Retail conducts yearly evaluations ● Potential issues: specific feedback, validity, fit with strategy

“Really nothing negative to say, My manager pointed out that I had shown "exceeds expectations" in all categories.”- Sales Associate in Addison, IL

Promotion Policy 3 Basic Criteria

1) An above-average performance rating2) At least one year of job tenure3) A willingness to relocate.

Among these candidates, local supervisors have full discretion over whom to promote.

Methods of Manager Job SelectionHalo Effect: You see an employee doing something right, and assume they will be able to do another task without proof.

It is easy to train how to do things (technical), and more challenging not to teach competencies like:

❏ Leadership❏ Communication skills❏ Ethics❏ Conceptual thinking❏ Innovating thinking❏ Team work oriented

Summary of Analysis

Avenue Retail’s poor management and employee relations may be due to:

1. Lack of employee-friendly workplace culture2. Insufficient managerial training3. Poor enforcement of regulations and policies4. Ineffective methods of management job selection