Magement and Leadership - Essay Example

Top management at Target is responsible for decision making. Business strategy involves choosing the direction in which the company should go, regarding marketing and sales. Often this is where major decisions are made on branding strategy. Target has chosen to build the brand around the name and logo, as opposed Wal-Mart’s strategy of remaining the low cost leader. Target does not specialize in specific brands or types of products, though it does own its private clothing label. Gerald Storch, Targets vice chairman, explained that “the company had faced three strategic choices to tackle the increased competition in the retail market: to specialize, to become the low-cost producer, or to differentiate Target chose the third option and decided to reposition itself as a mass merchandiser of affordable chic goods” (Barwise & Meehan 2004). For Target, this means that prices are not lower than competitors such as Wal-Mart. It has been said to outperform other discount retailers in store cleanliness, environment and shorter check-out lines. While this may not be important to all customers, it means something to the market segment Target is after. This segment is younger, better educated and more affluent, according to Storch. Affordable ‘chic’ products line the shelves, while the retailer repositiond itself as a more upscale discount store. The trendy goods Target now offers require reorganization of merchandising and supply chains. As the top decision makers develop the strategy, it must be sold to managers of the various departments. In turn, those managers must be able to convey the image to regional and local managers, who actually oversee the day to day operations of stores. Though decisions such as the one Gerald Storch explained are corporate management decisions, repositioning also requires leadership. In order to convey the vision or concept of the new branding strategy, executives like Mr. Storch need to thoroughly explain and show managers the new direction Target has taken. All marketing, logistics, IT, sales and merchandising departments must understand how the changes affect their jobs and those that they manage. They must learn new product lines and styles. Those who manage automated supply chain processes must update product and supplier databases to incorporate them into the current system. Marketing and branding efforts must coordinate all media channels to reflect the new image. It is especially important with the changes, that managers not only explain the changes and how to adapt to them, but also to lead others with a positive attitude and willingness to change. This is important to those who are involved in implementation of the changes. However, the outlook does move down the chain of command. So regional operations managers and store managers also need to keep a positive attitude during the change process. This helps to keep a positive outlook for assistant managers, team leaders and general hourly employees. Target uses a two fold process for operations of each store. A manager, assistant manager, shift or team leader and guests services manager have specific functions. Managers are responsible for all aspects of store operations. Assistant managers also perform functions involving overall store operations such as hiring, directing, supply chain tasks and problem resolution. All store managers are referred to as store team leaders, which implies that they do more than just oversee store operations. A leader generally motivates, helps and trains others. A description of a listing for store team leader states “You’ll hold the ultimate responsibility for delivering a positive experience throughout a clean, fully stocked store with fast, fun, and friendly service” (Jobster.com). Shift leaders are responsible for motivation of those working their shift. They are often expected to solve routine issues, train employees and deal with customer complaints. Guest services specifically provide customer service functions such as assisting customers in finding merchandise, answering questions regarding products and other activities. Other store positions may include Security Support Specialist, Building Services Specialist, HR Generalist, Cash Office Specialist, Pharmacy Technician, Photo Lab Specialist, Reverse Logistics/Receiving Specialist, Sales Floor Specialist, Signing Specialist and Target Protection Specialist. It would seem as though team or shift leaders are the employees most responsible for employee attitude and morale, as they work closely with other employees, performing the same tasks. They must also set examples for the others, with a positive outlook, hard work and general ‘can do’ attitude. Though those who work directly with employees are in the best position to lead, Managers must also lead in some ways. Attitudes of the highest ranking employees often affect the entire work environment. Though Human Resource Specialists take part in hiring processes, store team leaders are responsible for making sure that all customers are satisfied. This means that hiring dedicated, motivated and customer service oriented employees is key to success of each store. It would make sense that store team leaders make final determinations on which applicants will fit within the store’s culture. Target pays its hourly employees roughly just below $8.00 an hour to start. “Target relies on part-time workers. This schedule may work well for some students and retired people, but it contributes to a dearth of full-time, fully benefited, stable employment” (Lydersen, 2006). As most hourly employees work part time, they are not necessarily eligible for benefits. Without benefits and raises of .50 annually, there is little left to motivate employees, other than a positive work environment. The culture must be positive and welcoming in order for employees to come back. The store team leader sets the tone for the culture of the work environment. If a worker senses hostility, favoritism or racism there is not much motivation to put forth the best effort one can. As a leader, the store manager or team leader must set examples for others to follow. Refraining from sexist, racist or otherwise hurtful remarks is the best way to establish a cooperative work environment. Beyond speech and attitude, work ethic is also another factor that influences employees. As a manager, the store team leader must show by example that hard work and determination are desirable qualities. This is done by displaying such qualities. It is also done by rewarding those who exhibit such qualities with consistency. There are many ways to reward those who perform well. Recongition, such as in Target’s Employee of the Month program is one way. Merit raises, beyond the usual cost of living raises given annually is another way. Though Target does not give merit raises, many companies who do so have found it the best way to retain top workers. Employees still need to feel appreciated and useful. So a combination of merit raises and recognition are probably the two most factors in keeping good employees motivated and wanting to come to work. Another workplace concern culture and diversity. Target’s web site claims it is a diverse organization. The store team leader must set the example in how others should be treated. Though there are some employees who will bring their own beliefs, attitudes and prejudices, no matter what the culture is like. This is when the team leader becomes a manager, in controlling the effects of such attitudes on others. This can be done with educational efforts, such as cultural sensitivity training. Those with prejudices and views that can affect all employees should be dealt with in one manner or another. If sensitivity training is ineffective, the store leader should make decisions such as written warnings and termination. For store team leaders who behave in racist or prejudices manners, corporate management should become involved and either bring about changes through education or termination. This had not been a serious issue for most Target stores. Though schedules and tasks are left to store team leaders, most have made allowances for religious and cultural beliefs, even respecting workers objections to handling pork items, in its SuperTarget stores. Corporate management makes decisions about store policies. There has been much criticism about Target’s merchandise return policies. Customers are allowed two returns per year without a receipt, on merchandise valued at $20 or less. Some may see this as harsh, yet retailers in the past have taken returns for merchandise bought elsewhere. This is a decent policy, as long as it is uniformly applied. Managers should take care that Reverse Logistics/Receiving Specialists do not pick and choose which customers can to return merchandise. Nearly all stores require a receipt for merchandise return. For specific Target brand items, return policies should be reviewed, as goods can not be purchased at other retailers. Such decisions are made at the corporate level, so there is not much individual store team leaders or managers can do. Carrying one’s own brand of merchandise or product is an effort to drive brand image. It makes little sense not to stand behind one’s own brand of merchandise when branding is an integral part of the company’s marketing strategy. Without such a policy, Target may soon discover that customers have no incentive to try its brand. Target has opened several super centers or SuperTarget stores throughout the US. Those stores also carry food items beyond what is sold in the snack bar, Starbucks Or Pizza Hut chains located in some stores. Food items, particularly those that are perishable require special handling. Many Target employees are unfamiliar with such handling and storage of food products. Corporate management should have specific procedures spelled out for the handling of food items. It should ensure that all locations handling food train employees on proper care. Target aims to win over a particular segment or type of customer. In addition to branding efforts, merchandise that is considered trendy or ‘chic’ provides appeal to its target market. With prices slightly higher than other discount retailers like Wal-mart or Kmart, quality should be a step above the competitors. Oddly, many of the products are the same brand names and of similar quality. There are some brands with slightly higher quality, though this is not consistent throughout most stores. Buyers and supply chain specialists at the corporate level make decisions on what merchandise is purchased, to an extent, by choosing the brands and names the company wants to carry. Within each store, managers or team leaders have some flexibility in ordering of merchandise. Those products that are found to be faulty, of poor quality or simply undesirable by customers should be omitted from the store’s orders. Managers are responsible for the customer’s store experience. That experience can be spoiled by a faulty or poor quality item. It should therefore be a store manager’s duty to make sure the most desirable and best quality merchandise is offered. Many chain retailers have eliminated product ordering from individual stores, in an effort to streamline supply chain activities. It then becomes the manager’s job to communicate with corporate decision makers about any merchandise or product that is less than desirable to consumers. Target has no serious complaints of forcing employees to work off the clock or in Stores where all doors, including emergency exits are locked. It faces the same challenges of other retailers. Corporate marketing and repositioning decisions are made similar to those of competitors. Target has an opportunity, however, to become more employee friendly, thereby earning a reputation as a more desirable place to work. Just as branding has become one of its core competencies, so can workplace culture and employee satisfaction. Beyond specific attitudes and actions of individual store leaders, Target corporate managers have an opportunity to provide not just ‘chic’ or trendy merchandise, but also to provide ‘chic’ or trendy workplace attitudes, with upbeat, creative, autonomous employees who are highly valued. “We’ve turned into a nation of consumers, not citizens,” says Bernie Hesse, UFCW organizer. “We need to make retailers and employers bring back the old social contract where if you work hard and give them full time, they have to treat you with some degree of dignity and pay you enough that you don’t need to worry about your basic needs all the time” (Lyderson 2004). The Container Store is often cited as one of the best retailers to work for, with livable wages and better than average working conditions. Target offers the shopping experience, the feel and some of the brands that customers want. It has an opportunity to do better by creating a more upscale work environment. Leaders and store teams who feel more upscale will sell the upscale attitude or feel more easily to customers. References Barwise, P & Meehan, S. (2004). Bullseye: Target’s Cheap Chic Strategy. Harvard School of Business. Jobster.com. Retrieved August 16 2007 from http://www.jobster.com/find/details/for/job/38683715?lid=js_result&lpos=js_01 Lydersen, K. (2006). Target: Wal-Mart Lite. Retrieved August 16 2007 from http://www.corpwatch.org/article.php?id=13508 Read More