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 …show more content…
Historically, the company’s leaders considered factors such as tenure, relationship, and performance when making major decisions. During the restructuring under Denton, only an employee’s abilities and capabilities were taken into account. Furthermore, the vice president of human resources was unaware of some of the changes, including the closure of Delarks Madison store. Long standing sales associates were dismissed without warning in order to make room for new salespeople, whose tactics aligned more with the new CEO’s strategy of pushing sales. The employees believed that upper management was looking solely at financial statements to make decisions and treating them as numbers instead of respected …show more content…
The bonus should come in installments so that they are compelled to stay and improve the company. Additionally, all employees should be able to participate in an employee stock program to improve their perception of organizational support. Owning stock in the company will create a sense of company ownership and value to each employee, thereby discouraging associates from quitting their jobs.
To conclude, the new CEO of Delarks made drastic policy changes that caused the company’s greatest asset, its employees, to feel betrayed and undervalued leading to low morale, lack of productivity, and threat of abandonment. This lack of trust can be overcome by increasing communication between employees and management, valuing employee feedback, and allowing employees to benefit from the company’s success. As a result of these changes, the associates will work together effectively, improve productivity, and bring continued success to Delarks in the
Most of Delarks employees have a negative perception of the company due to psychological contract breach. Before Denton took over as CEO, Delarks …show more content…
Historically, the company’s leaders considered factors such as tenure, relationship, and performance when making major decisions. During the restructuring under Denton, only an employee’s abilities and capabilities were taken into account. Furthermore, the vice president of human resources was unaware of some of the changes, including the closure of Delarks Madison store. Long standing sales associates were dismissed without warning in order to make room for new salespeople, whose tactics aligned more with the new CEO’s strategy of pushing sales. The employees believed that upper management was looking solely at financial statements to make decisions and treating them as numbers instead of respected …show more content…
The bonus should come in installments so that they are compelled to stay and improve the company. Additionally, all employees should be able to participate in an employee stock program to improve their perception of organizational support. Owning stock in the company will create a sense of company ownership and value to each employee, thereby discouraging associates from quitting their jobs.
To conclude, the new CEO of Delarks made drastic policy changes that caused the company’s greatest asset, its employees, to feel betrayed and undervalued leading to low morale, lack of productivity, and threat of abandonment. This lack of trust can be overcome by increasing communication between employees and management, valuing employee feedback, and allowing employees to benefit from the company’s success. As a result of these changes, the associates will work together effectively, improve productivity, and bring continued success to Delarks in the