Question

In: Operations Management

The two owners of a chain of 100 convenience stores seek to improve sales by reducing...

The two owners of a chain of 100 convenience stores seek to improve sales by reducing employee turnover in the stores. The 100 stores are located in Texas, Louisiana, Mississippi, and Oklahoma. Of the $200 million in Gross Sales, turnover costs $4 million annually in lost sales, shortages, training, etc. The owners feel culture is a major problem for the high turnover, along with theft and lethargy among employees in problem stores. If you were to consult with the owners, how does the definition of “culture” and “corporate culture” best help the owners achieve their goal? Do you believe the turnover, theft, and lethargy problems with employees to be more visible or more invisible elements of culture?

Solutions

Expert Solution

Culture is the values that every individual has.

Corporate culture is among the other influences influencing the willingness of a company to evolve, succeed, and involve workers and consumers. Corporate culture is the conglomeration of beliefs, purpose, mission, and the day-to-day forms of contact, engagement, and operating goals that create the corporate environment that pervades the way people function. It is difficult to describe, and much more difficult to get correct. No amount of new furniture, packed kitchens, happy hours, or young, trendy staff will build a community of business.

Research by the University of Southern California and the University of Minnesota reveals business culture is the most significant force pushing creativity over all others.

The truth of the matter is that, on the most fundamental level, an organization is merely a community of people collaborating for a goal — therefore, the creation of organizational culture emerges from the individuals that make up the company, from executives to frontline staff.
If culture is about people, let's take that a step further – what's going in the mind of an individual and how they influence (and are influenced by) others will create a healthy, productive corporate culture or worsen into a harmful corporate culture.
No matter how strong our neural instincts can be, the creation of a healthy, optimistic organizational success culture always requires actual, demonstrable, and observable actions. To promote behavioral improvement includes empathy, open-mindedness, and diversity of respect.

Yes, I believe the lethargy, employee attribution and theft are very much visible. If looked at the culture, a group of motivated individuals is much more likely to have certain visible traits like enthusiasm, loyalty towards the company, etc. Any of these traits are not present among individuals. So, the above-mentioned elements are very much visible elements of the culture.


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