Analysis Of Harry Denton 's New Ceo Essay

1083 Words Dec 7th, 2014 5 Pages
Delarks’s new CEO, Harry Denton, has transformed the near bankrupt chain of department stores into a trendy and profitable business full of buying customers. However, in order to arrive at its current success, Denton forced the company through some major changes. Due to a lack of discernment as a new and inexperienced CEO, the longstanding clothing retailer is now facing tremendously low employee morale and the threat of abandonment by key leaders and management personnel. Despite the financial and market gains, the company is experiencing low morale as a result of corporate restructuring and layoffs.

Most of Delarks employees have a negative perception of the company due to psychological contract breach. Before Denton took over as CEO, Delarks had a longstanding unified culture within the company. Senior employees often created a family atmosphere amongst the workers; workers retained employment due to morale instead of achieving sales goals. Delarks had a no layoff policy that employees had come to understand and respect. However, under Denton’s leadership, the company abandoned this policy without first re-educating its employees. Employees were laid off without a solid understanding of the company’s new expectations. The change in tradition left employees feeling like victims of a breach of trust and the survivors of the layoffs were left with a negative view of the new leadership.

Another factor contributing to employee’s negative perception of organizational…

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