Question

Managing the Store

   Ruth Cummings, on her first day of work on 1^st January, was formally named branch manager for the new Saks Fifth Avenue branch store in Washington. Her boss, Ken Hoffman added, "Ruth, I'm putting you in charge of this store. Your job will be to run it so that it becomes one of the best stores in the system. I have a lot of confidence in you, so don't let me down."

   One of the first things Ruth did was to hire an administrative assistant to handle inventories. Because this was such an important part of the job, she agreed to pay her assistant slightly more than the top retail clerks were making. She felt that having an administrative assistant would free her to handle marketing, sales, and personnel matters, areas she felt were crucial if the store was to be a success.

   Within the week, however, she received a call from Hoffman: "Say, Ruth, I heard that you hired an administrative assistant to handle inventories. Don't you think that is a bit risky? Besides, I think paying an assistant more than your top salesclerk is damaging to morale in the store. I wish you had cleared this with me before you made the move. It sets a bad precedent for the other stores, and it makes me look like I don't know what is going on in the branches."

   Three weeks later, Ruth appeared on a local noontime talk show to discuss new trends in fashion. She had worked hard to make contact with the hosts of the show, and she felt that public exposure like this would increase the visibility of her store. Although the TV spot lasted only 10 minutes, she was pleased with her performance and with the chance to get public exposure.

   Later that night at home, she received another phone call from Hoffman: "Don't you know the policy of Saks? Any TV appearances made on behalf of the store are to be cleared through the main office. Normally, we like to have representatives from the main store appear on these kinds of shows because they can do a better job of plugging our merchandise. It's too bad that you didn't notify someone of your intentions. This could be very embarrassing for me."

   Just before Easter, Ruth was approached in the store by one of the salesclerks. A customer had asked to charge approximately $3,000 worth of jewelry as a gift for his wife. He had been a customer of the store for several years and Ruth had seen him on several occasions, but store rules indicated that no charge could be made for more than $1,000 for any reason. She told the customer that she was not authorized to approve a charge of that amount, but that if he would visit the main store, maybe arrangements could be made.

   Later in the day, an irate Hoffman called again: "What in the world are you thinking about, Ruth? Today we had a customer come into the main store and say that you wouldn't make a sale to him because the charge was too much. Do you know how long he has been a customer of ours? Do you know how much he spends in the store every year? I certainly hope we have not lost him as a customer because of your blunder. This makes me very upset. You've just got to learn to use your head."

   Ruth felt stressed and powerless. She thought about the conversation and what happened on her long-wanted new position for several days and finally decided that she needed to see Ken Hoffman. She called his secretary to schedule an appointment for the following day.

1. What type of conflict Ruth is having with Hoffman? How can this be solved? (10 points)
2. Ruth needs some suggestions when she work with Hoffman in the future. Can you make 2 suggestions to improve her personal skills and 2 suggestions to improve her inter-personal skills? Please provide reasons for these suggestions. (16 points)

Answer 1

Ruth is dynamic. She has sufficient business skill. When she employs an assistant Hoffman objected there. But Ruth's reason of employment was just and reasonable. She really needed it. It would be helpful in her work. In the second time there is again objection from Hoffman and he accuses her breaking the company rule. Therefore Ruth begins to followbthe company rule in the case of the customer. But Hoffman also objects there.

It appears that there ia the conflict of ego between Hoffman and Ruth. Ruth's skill may be a threat to Hoffman. He does not want Ruth to be successful and independent. Besides, Hoffman has a nature of dominance. He wants to dominate the others working under him. He does not care the business. Such nature makes conflict between Ruth and Hoffman.

In such case Ruth must take the following steps:

• Ruth must meet with the manager and must clear the matter with him. She must try to make him understand the need of independent skill. She must try to make him understand why she took such decosion and how it would help her in developing the business.
• She should carefully go through the company laws and rule. If there is any points that is not clear to her, she may take the help of company law personnel.

If she gets no solution she may contact with higher authority with detail report.