Department of Business Studies and Information Technology

Management 110
Lecturer: Mr. Roger Gopaul

Case Study

Group members: Richard John 00010469

Lamir David Vanessa Alleyne Deslie Romany Keeia Fraser 00012031 00010325 00010469 00010472

Wilsons Do-it-Yourself Store Part A

REPORT
The Wilsons Do- It -Yourself store is a large family business. Although there are the presence of two other Do-It-Yourself (DIY) stores on the outskirts of town, trade is holding up. However, they have been experiencing some problems within the organization. This report will illustrate the arisen problems, why have these problems occurred and how they can be solved. Firstly, one of the problems identified is that there are poor channels of communication between directors and staff. This problem has arisen because there is not any fixed collaborative methods of communication implemented within the organization. Mediums of communication are to be implemented such as meetings, this will be an effective way in which feedback can be obtained from both staff and directors. Also, memorandums, formal reports and e-mails will help clarify this problem. Furthermore, although these channels are focused on a sole receiver, use some degree of information signals and dont sanction response it can be used nonetheless, but ensuring that mechanisms for riposte are created like suggestion boxes and questionnaires to disclose how workers feel. Additionally, The sales are fairly good at the Wilsons Do-it-Yourself Store and their prices are significantly higher than their competitors. Sales are fairly good because

their prices are considerably higher than that of their competitors. This is a result of perfect competition. The solution to this is for the directors to restructure the pricing plan.

Moreover there is the presence of centralized decision making. The directors make all the major decisions and are seldom seen around the store unless there are problems. Also, no one asks the employees their views or ideas. Although centralized decision making has it advantages it also comes with disadvantages. In the Wilsons case the higher levels of the organizations management just did see it fit to delegate authority to individuals at the lower levels. This may be because of the organizations culture. The clarification to this is to decentralize the decision making process. With decentralized decision making, this will mitigate the burden on the upper levels, those of lower rank will feel increased job satisfaction and greater use will be made of workers skills and abilities. Furthermore, another quandary identified is the need for staff appraisal. As a result of a lack of interaction, the directors have inadequate information about the employees and their job performance. Therefore the directors dont know how the employees should be appraised. The managers at the DIY store should apply suitable compensation based on job performances. This approach will definitely increase output and cut labor expense. Incentives motivate employees to work and encourage them to understand the importance of their work. So by introducing appraisals to employees this will identify their training needs and assist in the edifice of correct job descriptions. Additionally, the store is in urgent need of refurbishing and customers experience difficulty parking their cars. Since sales are fairly good this means that they have a low

cash flow and thats why any renovation or extension of the stores facilities can take place. With increased sales and the attainment of cash in the organization the store can obtain a new look and create convenience to their customers. Moreover, a modern stock control system is needed. Again this has occurred because of financial difficulties due to poor sales. Thus, when there is cash in hand they can modernize and update their working systems which will be very beneficial and efficient. Another big problem identified is the need for storage space and the lengthened period of time in which customers have to wait on delivery. Customers have to wait so long for delivery because of the lack of storage facilities and poor service from manufactures. With money flowing in the organization it will be easy managers to address the storage problem. As quoted from the text of Richard Daft When this is done it would be best to initiate the use of just-in-time inventory. This type of systems reduces raw material inventories are kept to a maximum because goods are produced only as used to service the next stage of production. In the Wilsons case the next stage of production would be producing the item ordered for delivery, with this in hand it will hasten the delivery process and increase storage space. Furthermore, one other immense crisis identified is the leaving of staff. Workers are leaving because of all the problems that have arisen ;lack of communication, no appraisals, sub level working conditions and the assumptions that that workers held that the Wilsons was in the process of selling out their business and that they the workers would be dismissed. In order for the directors of the DIY store to retain its workers there are some steps to be taken immediately. They must hold a large meeting concerning all

the allegations made. Then they (The employees) must be made aware of the changes scheduled to take place concerning the working environment, the organizations culture, the motivational incentives and most importantly the communication mechanisms to be put into operation.

PART B
How can Wilsons ensure that this type of problem does not recur?
Firstly, with speedy execution of the mentioned solutions the organization ought to be operating palpably better than it did before. So all it takes now is for this current environment to be maintained and the appropriate controlling of all activities within the organization. In addition, the Wilsons should create a mission statement for the organization. This is necessary because it will define the basic business scope and operations that distinguishes it from similar types of businesses. For instance with the Wilsons having competition, employees may tend to feel insecure towards their work. With the existence of a mission statement this will give reason to subsistence of the company and hence the reason the role of each worker will be defined and a sense of direction will be instilled in the employees of the organization. Furthermore, managers should monitor and maintain the communication levels and evaluate its effectiveness in delivering accurate, timely and important information. With this in place all that is needed is the enhancement of these mediums an the elimination of ineffective ones. Most of the identified problems stems from the root cause which is the lack of communication contained by the business. In conclusion, from this report that it is vividly understood why such problems have arisen at the Wilsons do it yourself store. The organization needs to change their culture. For example,

some ways in which cultural change can be attained is by having the directors become positive role models, setting the apt character through their performance and conduct. Revamp the communication process to make parallel with new ethics. Also, reform the reward system to encourage the acceptance of a new set of principles. In general it takes a collaborative effort to ensure that there is an upkeep in the positiveness and efficiency at the Wilsons Do IT Yourself Store.