Case Study: MusicCo is large music retailer with over 100 stores across Australia. A pivotal role in the MusicCo organisation is the store manager. Store managers serve in two main roles: 1) to lead and support the store staff to ensure customer demands are met; and 2) develop and mentor store staff to maximise business revenue and growth. There is a store manager employed in each MusicCo store. The role performed by the store manager is complex and these individuals have ultimate decision-making authority and are held responsible for ensuring a profitable operation. In the past, it has taken employees an average of 10 years to reach the position of Store Manager within MusicCo. Typically, store managers are in a given position for a limited number of years, before they are expected to move to another position or store location in the organisation.
The key role requirements expected of store managers are that they must be able to: (i) successfully engage in operational leadership of large teams (most stores have over 60 employees); (ii) possess a deep understanding of store operations; including, knowledge about corporate strategies, product supply chains, stock management, branding and marketing; HRM practices; accounting and reporting; and be able to motivate and engage staff. They are expected to be innovative to meet and manage customer demands, satisfy employees and increase sales revenue. Store Managers need skills in leading and motivating their employees, have the ability to deliver excellent customer service and possess strong financial acumen resulting in positive financial results.
At a recent State Conference, the HRM Director overheard some recently appointed new Store Managers discuss how they did not think they had the skills, competencies or knowledge to perform satisfactorily in their new role, despite the fact they had been employed at MusicCo for more than 10 years! They were worried about achieving their organisational goals, doing the right things and also managing their employees.
Until now, MusicCo did not have any policies or procedures or well-defined language about Store Manager performance. Formal performance management and development provided to employees as they progressed into their roles as store managers was inconsistent, with some individuals placed in ‘sink’ or ‘swim’ situations. In addition, the overall business was performing moderately in the current market, there were no significant increases in revenue for the past 2 years. Some Stores were only just achieving their financial targets, whilst other stores were just underperforming financially.
MusicCo’s Corporate HRM Director wants to implement and design a more effective performance process that will address the performance management needs and developmental needs of its store managers with the aim of increasing organisational performance leading to improved financial results.
© 2019 Jane Boeske USQ School of Management and Enterprise
Tasks Required:
You are required to act as the Human Resources (HR) Advisor to address the issues and provide recommendations at MusicCo. What advice would you give to the HRM Director?
Task 1: What is a reward? Discuss and provide a definition of employee rewards including non-financial and financial elements (include in your answer the components outlined by a ‘Total Rewards Approach’ in Shields et al. (2020, pp. 13 – 17)). Then, in relation to the Store Managers role at MusicCo, list the extrinsic and intrinsic rewards in Table 1 and then discuss why you have chosen these rewards and how these will be of benefit to MusicCo. Ensure you use and reference Shields et al. (2020) from Module 2 in your response. (650 words)