Formal report on the current management challenges faced by Georetailer.com and the
suggested management proposals and recommendations.
This report has been prepared by (Name) and is intended for the management of
Georetailer.com:
Introduction:
Georetailer.com is an online retailer that operates out of three fulfillment centres and a head
office, selling products such as clothing, home, beauty and electronics. The work fulfillment
centres are described as very repetitive and mind-numbing as there are no opportunities to vary
in the tasks that are completed which range from storing products, packing orders, dispatching
m
orders and handling customer returns. A point-based system has been employed to reduce
negative behaviour and improve punctuality with three points in a 90-day period leading to a
co
written warning, and 5 points in a 90-day period leading to dismissal. There is also a rating scale
performance appraisal system, but this is not fit for purpose as there are no recognition or
training opportunities and managers do not take the appraisal seriously. Employees at the head
s.
office are tasked with updating the website and running the customer care line, during which
they are tightly supervised by management. Although there is no appraisal system, employee
te
performance is measured using a customer feedback survey, and similar to the fulfilment
centres, there’s no opportunity for recognition or career progression.
no
The performance of the business is significantly less than the industry average, suggesting that
they’re suffering from severe challenges in management. From more than double the industry
ss
average labour turnover to 80% of employees not enjoying working at Georetailer.com, this
report aims to highlight the current management backed by the data in Figure 1 and 2, along
with the proposals and recommendations to address them, in order to best position the
ne
Georetailer.com to achieve its business goals.
Business Goals:
si
The business goals of Georetailer.com are:
bu
● Achieve 5% net profit margin annually
● Customer satisfaction should be at 90% or above
● Maintain a positive business culture with high employee satisfaction
ec
Referring to the data in Figure 1 and Figure 2, it is clear that Georetailer.com has a long way to
go in order to achieve their business goals. The current net profit margin figure is just 3.6%,
bt
1.4% less than their goal. Customer satisfaction is 67.1% and the business goal is to ensure this
figure is at least 90%. Employee satisfaction is also suffering, with just 6% of employees saying
that they enjoy working at Georetailer.com. The business also has a customer focused mission
which states “Always the best quality products, chosen especially for you.”.
© BTEC Business Notes | btecbusinessnotes.com
FOR EXCLUSIVE USE OF PURCHASER ONLY
For college/institutional use or distribution, contact:
1
, The analysis of current management challenges, proposals and recommendations will be with
these business goals in mind and the impact on them. This will provide the management of
Georetailer.com with an understanding of how their current situation and management principles
is negatively impacting the business goals, and how the suggested proposals and
recommendations can aid in the achievement of them.
Current management challenges faced by Georetailer.com:
1. Unsuitable autocratic management style
m
The first management challenge that Georetailer.com faces is an unsuitable management style.
co
In both the fulfillment centers and the head office, an autocratic management style, where all
decisions are made by top management without involving employees in the decision-making
process is employed. Although this style of management does have the advantage of quick
s.
decision-making, it often leads to high levels of labour turnover, such as the 75.3% turnover
Georetailer.com faces, as employees do not feel valued and their concerns go unheard.
te
The autocratic management style was shown in the fulfillment centres when employees try to
set up social events, but are always shut down by management. The point-based system also
no
showcases the “controlling” function of management, which is common under an autocratic
style. In the head office employees are managed under the autocratic style as they have clear
tasks that they must complete each day and are not empowered to make their own decisions.
ss
This has caused an imbalance to John Adair’s Action Centred Leadership Model, which states
that an effective approach to leadership will balance three key responsibilities: task needs, team
needs and individual needs. Clearly, the management of Georetailer.com is too focused on
ne
achieving the “Task” hence the point-based system and employees having no autonomy. This
overlooks “Team” and “Individual” needs which is evidenced by the fact that in Figure 2 80% of
employees disagree with the statement “I feel supported working at Georetailer.com” and 82%
si
of employees disagree with the statement “Leaders of Georetailer.com are considerate of my
wellbeing”.
bu
This management challenge is having a direct negative impact on the third business goal;
maintaining a positive business culture with high employee satisfaction as without the
ec
management of the business listening to, addressing and involving employees in
decision-making, the concerns of employees go unheard, leading to them feeling unvalued and
unsupported by the business. This has ultimately led to the statistic that 80% of employees do
bt
not enjoy working at the business.
2. Poor motivation
The workforce of Georetailer.com suffers from poor motivation as a result of several levels of
Maslow’s Hierarchy of Needs not being met, and due to the absence of hygiene factors as part
© BTEC Business Notes | btecbusinessnotes.com
FOR EXCLUSIVE USE OF PURCHASER ONLY
For college/institutional use or distribution, contact:
2
suggested management proposals and recommendations.
This report has been prepared by (Name) and is intended for the management of
Georetailer.com:
Introduction:
Georetailer.com is an online retailer that operates out of three fulfillment centres and a head
office, selling products such as clothing, home, beauty and electronics. The work fulfillment
centres are described as very repetitive and mind-numbing as there are no opportunities to vary
in the tasks that are completed which range from storing products, packing orders, dispatching
m
orders and handling customer returns. A point-based system has been employed to reduce
negative behaviour and improve punctuality with three points in a 90-day period leading to a
co
written warning, and 5 points in a 90-day period leading to dismissal. There is also a rating scale
performance appraisal system, but this is not fit for purpose as there are no recognition or
training opportunities and managers do not take the appraisal seriously. Employees at the head
s.
office are tasked with updating the website and running the customer care line, during which
they are tightly supervised by management. Although there is no appraisal system, employee
te
performance is measured using a customer feedback survey, and similar to the fulfilment
centres, there’s no opportunity for recognition or career progression.
no
The performance of the business is significantly less than the industry average, suggesting that
they’re suffering from severe challenges in management. From more than double the industry
ss
average labour turnover to 80% of employees not enjoying working at Georetailer.com, this
report aims to highlight the current management backed by the data in Figure 1 and 2, along
with the proposals and recommendations to address them, in order to best position the
ne
Georetailer.com to achieve its business goals.
Business Goals:
si
The business goals of Georetailer.com are:
bu
● Achieve 5% net profit margin annually
● Customer satisfaction should be at 90% or above
● Maintain a positive business culture with high employee satisfaction
ec
Referring to the data in Figure 1 and Figure 2, it is clear that Georetailer.com has a long way to
go in order to achieve their business goals. The current net profit margin figure is just 3.6%,
bt
1.4% less than their goal. Customer satisfaction is 67.1% and the business goal is to ensure this
figure is at least 90%. Employee satisfaction is also suffering, with just 6% of employees saying
that they enjoy working at Georetailer.com. The business also has a customer focused mission
which states “Always the best quality products, chosen especially for you.”.
© BTEC Business Notes | btecbusinessnotes.com
FOR EXCLUSIVE USE OF PURCHASER ONLY
For college/institutional use or distribution, contact:
1
, The analysis of current management challenges, proposals and recommendations will be with
these business goals in mind and the impact on them. This will provide the management of
Georetailer.com with an understanding of how their current situation and management principles
is negatively impacting the business goals, and how the suggested proposals and
recommendations can aid in the achievement of them.
Current management challenges faced by Georetailer.com:
1. Unsuitable autocratic management style
m
The first management challenge that Georetailer.com faces is an unsuitable management style.
co
In both the fulfillment centers and the head office, an autocratic management style, where all
decisions are made by top management without involving employees in the decision-making
process is employed. Although this style of management does have the advantage of quick
s.
decision-making, it often leads to high levels of labour turnover, such as the 75.3% turnover
Georetailer.com faces, as employees do not feel valued and their concerns go unheard.
te
The autocratic management style was shown in the fulfillment centres when employees try to
set up social events, but are always shut down by management. The point-based system also
no
showcases the “controlling” function of management, which is common under an autocratic
style. In the head office employees are managed under the autocratic style as they have clear
tasks that they must complete each day and are not empowered to make their own decisions.
ss
This has caused an imbalance to John Adair’s Action Centred Leadership Model, which states
that an effective approach to leadership will balance three key responsibilities: task needs, team
needs and individual needs. Clearly, the management of Georetailer.com is too focused on
ne
achieving the “Task” hence the point-based system and employees having no autonomy. This
overlooks “Team” and “Individual” needs which is evidenced by the fact that in Figure 2 80% of
employees disagree with the statement “I feel supported working at Georetailer.com” and 82%
si
of employees disagree with the statement “Leaders of Georetailer.com are considerate of my
wellbeing”.
bu
This management challenge is having a direct negative impact on the third business goal;
maintaining a positive business culture with high employee satisfaction as without the
ec
management of the business listening to, addressing and involving employees in
decision-making, the concerns of employees go unheard, leading to them feeling unvalued and
unsupported by the business. This has ultimately led to the statistic that 80% of employees do
bt
not enjoy working at the business.
2. Poor motivation
The workforce of Georetailer.com suffers from poor motivation as a result of several levels of
Maslow’s Hierarchy of Needs not being met, and due to the absence of hygiene factors as part
© BTEC Business Notes | btecbusinessnotes.com
FOR EXCLUSIVE USE OF PURCHASER ONLY
For college/institutional use or distribution, contact:
2
