Motivational Situation at Asda
Asda is one of the biggest and leading grocery retail stores in the UK. They first got their start in 1920 in Northern England as a simple dairy farm. Over the years they expanded into Grocery Super Stores and had a total of 200 stores. Asda main selling point was, to sell at lower cost and sell as much as they can. But due to the 1991 economic changes and lack of communication through the executive’s department, the company began to fail. Going from 1 billion surpluses in 1987 to 1 billion in dept. by 1991. In the hopes of avoiding bankruptcy and complete failure, Asda needed to do something fast. The arrival of Archie Newman was the best thing that could have happened to Asda.
This is the situation Archie Newman …show more content…
Top executives had their offices located in another department away from their reporting’s. And this caused a disconnect with the real problems Asda was dealing with. The executives got too big and stopped caring about any problems associated with the company. They started focusing more on themselves and how they could make their job at Asda more comfortable. The trading department had layers and layers of unnecessary managing directors and they became too dominant in their department. All of these problems caused a lack of communication between the stores, marketing, financing, and the buying …show more content…
Employees felt as though the stores became too bureaucratic and just started telling the managers what they wanted to hear. In order to fix this, Asda needs to start “fostering informal communication” (Griffin, 314). As Ricky W. Griffin explains in his book Organization Behavior, “Open communication also allows information to be communicated when its needed rather than when the formal information system allows it to emerge.” (314) That way subordinates will feel as if they can openly communicate with the top management and have a sense of mutual trust.
When I was working for a company called Root Industries, I recall everything worked out great. We called everyone by our first names, and we had one huge office that the managers, secretary’s, and employees shared. It was a very friendly atmosphere, but we still all knew who was the boss and we got things done. As David Bennett explains in his article about, Grocery Store Decisions, “How people perform is the function of how they are made to feel and that 's directly connected to the leader that they work for in that
Asda is one of the biggest and leading grocery retail stores in the UK. They first got their start in 1920 in Northern England as a simple dairy farm. Over the years they expanded into Grocery Super Stores and had a total of 200 stores. Asda main selling point was, to sell at lower cost and sell as much as they can. But due to the 1991 economic changes and lack of communication through the executive’s department, the company began to fail. Going from 1 billion surpluses in 1987 to 1 billion in dept. by 1991. In the hopes of avoiding bankruptcy and complete failure, Asda needed to do something fast. The arrival of Archie Newman was the best thing that could have happened to Asda.
This is the situation Archie Newman …show more content…
Top executives had their offices located in another department away from their reporting’s. And this caused a disconnect with the real problems Asda was dealing with. The executives got too big and stopped caring about any problems associated with the company. They started focusing more on themselves and how they could make their job at Asda more comfortable. The trading department had layers and layers of unnecessary managing directors and they became too dominant in their department. All of these problems caused a lack of communication between the stores, marketing, financing, and the buying …show more content…
Employees felt as though the stores became too bureaucratic and just started telling the managers what they wanted to hear. In order to fix this, Asda needs to start “fostering informal communication” (Griffin, 314). As Ricky W. Griffin explains in his book Organization Behavior, “Open communication also allows information to be communicated when its needed rather than when the formal information system allows it to emerge.” (314) That way subordinates will feel as if they can openly communicate with the top management and have a sense of mutual trust.
When I was working for a company called Root Industries, I recall everything worked out great. We called everyone by our first names, and we had one huge office that the managers, secretary’s, and employees shared. It was a very friendly atmosphere, but we still all knew who was the boss and we got things done. As David Bennett explains in his article about, Grocery Store Decisions, “How people perform is the function of how they are made to feel and that 's directly connected to the leader that they work for in that