Lisa Berne
Analytical Paper
431 Workplace Change
Dr. Markowitz

Introduction
        An organizational study may be achieved by analyzing the workplace structure and utilizing images to understand and interpret the work environment.    According to Morgan, one way to reveal occupational methods is to observe organizations through the lenses of a related metaphor.  Images can give a better understanding of the workplace and also bring forth new possibilities to improve the organization.

History of Dillard’s
         The concept of the Dillard’s corporation originated in 1938 when William Dillard, Sr. opened his first clothing store in Nashville, Arkansas.  After a successful ten years, he opened his first Dillard’s store in Texarkana.  Mr. Dillard then acquired several large department stores and in 1964 he formed the new corporation, Dillard’s Department Stores, Inc.  The company continuously spread throughout the country by buying already existing stores and building newly constructed stores in shopping mall locations.  The corporation has never been merged or sold.  Dillard’s currently employs approximately 80,000 workers for its 360 stores, which are located in 27 states across the country (Appendix A).
         My position within the organization is sales associate.  This job entails customer service, and merchandise sales to the customer, while maintaining an hourly sales quota.  The position also involves placing and maintaining merchandise on the floor and marking down out of season merchandise for a slight reduction (Appendix B).
 Organizations As Machines
         Morgan’s machine metaphor uses the image of a machine to reveal the tightly controlled closed style of management in order to “Plan, organize, and control, control, control” (1997, p. 26).  The concept of the machine metaphor evolved from Weber’s notion of bureaucracy.    Weber studied the controlled working environment and noted how such control affected both individuality and productivity.  Weber believed that this controlled structure was similar to that of a well-oiled machine in operation, systematically performing repetitive functions for successful production.  Weber’s notion of bureaucracy was characterized by efficiency, speed, and rigid control through strict levels of hierarchy, rigid rules and regulations and the division of tasks among employees.  Although Weber understood that bureaucracy was effective, he believed that the rigid method of control dehumanized workers.  Bureaucratic organizations would then rationalize its rigidity through necessity of profit and product demand.
         Existing problems of bureaucratic organizations are explored through Morgan’s perspective of the mechanistic metaphor.  Some aspects of the machine metaphor are the hierarchical system’s inability to cope with uncertainty, the rigid control utilizing rules and regulations, and the organization’s failure to adjust to a changing environment (1997, p. 28, 29).
         Dillard’s is organized through clearly defined hierarchical levels (Appendix C).  Centralized management is responsible for all decisions.  The store manager is at the top level of authority, followed by the operations manager and subsequently the department sales managers.  Significant decisions originate from the highest levels of authority.  The sales managers ensure that those decisions are implemented throughout each separate department.  Sales associates report to their area sales managers when a problem arises.  Each area is considered to function separately and independently.  Area sales managers hold independent meetings, unrelated events, and individual markdown schedules (Appendix B,D).  Employees complete tasks according to set rules and regulations.  The area department managers supervise the sales associates as well as the business in their individual department.  The area managers prepare the department for the business day.  The goal is to maintain an acceptable level of profit for his or her area and to motivate the associates to advance their sales volume.  The associate maintains a tidy department, tags items for markdowns, and places merchandise on the floor, although their major responsibility is to help the customers.
         One problem with the bureaucratic environment is the failure of an organization to cope with uncertainty in the workplace, which may occur when strict levels of hierarchy exist.  Employees are expected to perform within the rigid boundaries of their standard work duties based upon their positions.  A mechanistic environment plans on smooth routine functioning at all times.  When the inevitable problem arises, the well-planned routine is disturbed and confusion sets in.  The mechanistic organization has not given its workers the ability or the creativity to overstep the set boundary lines to search for a solution.  Because the solution is not predetermined with a methodical approach, no one knows what to do.  The uncertainty causes workers to hide problems that occur rather than handle them at the time when they occur.  Each worker would prefer to forward the responsibility of the problem up to the next link in the chain of command rather than cope with the problem.  Because the mechanistic environment is not programmed to deal with uncertainty, the problem does not reach an effective and productive solution.
         Dillard’s is suffering from a deficit due to heavy shoplifting that occurs in the store.  It is common to see entire stacks of clothing suddenly disappear.  The stolen items will later be revealed in print as missing when doing department markdowns.  Because the problem of shoplifting is not a preplanned method of operation, employees are puzzled about which steps to take to handle the problem.  The management has developed a theft log sheet (Appendix E).  However, many of the associates are not informed of the existence of the log sheet.  Those who do know of the sheets are hesitant about using them because the department manager does not like to see that theft has occurred.  Therefore, associates often feel as though they need to hide the fact that the theft has occurred.  An associate mentioned,
          A lot of times we fill in the empty slots with other clothes when a stack has
          been stolen.  Nobody knows what to do because the department managers
 don’t know what to do with the logs.  They get into trouble from the store
  manager if they lose a lot of merchandise, so they feel like they are stuck.
          And so do we.  Even the store manager gets it from his bosses.
No one wants to report the loss and take responsibility; therefore, the theft log sheets remain mainly unused.  An area department manager revealed, “The loss will be made up for when it comes time for inventory.  The numbers have to be fabricated so that we don’t show too much of a loss.  We pad it because we have to.”
         The upper management has taken a slightly distant approach toward solving the problem.  The company refuses to use innovation to solve the problem.  The store is not equipped with surveillance cameras, and employs only one security guard for each shift.  A sales associate reveals, “While the security guard is on one floor of the store, we can see the groups of shoplifters go to the other floor to get away from him.  It is impossible for one security guard to be in all of these places at once.”
         Another problem with the bureaucratic environment is the dehumanization of workers that results from the excessive amount of rules and regulations that are utilized for corporate organization.  This may occur when the mechanistic organization expects each individual employee to conform precisely to its preconceived notion of a given position.  This preset routine does not allow for creativity and innovation and treats workers as if they are objects rather than humans.  Inflexible policies and strict order may control every aspect of business down to the slightest detail.  Although rules and regulations are developed for efficiency, severe inflexibility may negatively affect workers and production.
         The employees are dehumanized under Dillard’s strict organizational control of the salary system.  Managers control the behavior of the associate by constant surveillance of their sales per hour figure, which is acknowledged through a computer printout (Appendix F).  Through the rigid policy of the quota system, the associate is controlled from all directions.  The department manager and the upper management use this system as a method of behavior control.  They maintain that the quota system is one of the main reasons why it is essential to conform to the rules.  If associates do not make helping a customer their top priority, they will most certainly receive a reduction in their hourly salary (Appendix G).  If associates are caught in conversation with each other, management will threaten with the rules concerning the quota system.  A sales review takes place every six months, which will then establish the associate’s hourly wage.  If the sales maintenance goal is not reached, the associate will then receive a reduction in hourly wage.  The robotic perception of workers demonstrates Dillard’s mechanistic philosophy and dehumanizes the associates.  This rigidity does not allow for innovations to flow concerning the benefits of a new system.  Employees would like to change the quota system, however the practice remains intact.
         The failure to adjust to a changing environment is another problem resulting from the bureaucratic organization.  Inevitable environmental changes occur on a constant basis.  An organization’s success requires flexibility to acclimate to its surroundings and maintain a constant flow with the changes that occur.  Because mechanistic organizations operate with preset goals in mind, the exchange of ideas cannot take place in order to adjust to the surroundings.  The mechanical method is to continue on course without noticing the adjustments necessary for increased production.
         Dillard’s failure to adjust to changing trends in the market reveals a closed style of management.  The employees widely believe that the reason for the low volume of customers shopping in the store is the low incidence of reduction sales on merchandise.  Dillard’s fails to follow marketing trends in the business environment.  Famous Barr, Dillard’s competitor at the mall, advertises heavily for reduction sales, utilizing a wide diversity of advertising strategies (Appendix H, I,J,K,L).  This method has been proven to entice customers into the store, thereby raising the volume of profit.  Many customers claim that they are satisfied when they believe they are getting a solid bargain.  The analysis of marketing trends combined with customer satisfaction is partially what allows the competitor to lead in sales profits.  Associates have noted the common occurrence of customer complaints about the lack of reduction sales and coupon offers at Dillard’s (Appendix M).  However, Mr. Dillard believes that his customers will see through these sale “gimmicks” and that customers actually prefer what the slogan refers to as “every day prices.”  Therefore, the company continues with the same course of action.  A department sales manager stated,
     When we think we have a good day, Famous is having a million dollar
                day, which is over 5 times as much.  We will never even have a day like
                that.  This company needs to get with it and use the ads and the
                coupons.  Every time Famous has a coupon sale I have to tell customers
                that we don’t honor coupons.  My department cannot make a profit
                without some kind of help in reaching the public.”
The competitor’s variety of advertisements and sales reveals their ability to adjust to the changing interests of the customers resulting in corporate success.

Organizations as Culture
         Corporate culture consists of the norms, values, beliefs, attitudes and traditions of the organization.  Workplace culture originates from the goals of the company and the means used to achieve those goals.  Expectations of established behavior sets precedence throughout the organization, which then influences the decision making process and thus methods of operation.
         Uncertainty within the environment affects the culture within the organization by diminishing control within Dillard’s hierarchical structure.  Department managers attempt to maintain Mr. Dillard’s corporate philosophy of the “honorable customer.”  However, shoplifters often pervade the store on a regular basis.  Mr. Dillard does not acknowledge the shoplifting problem within the store.  He believes in respecting the customer rather than blaming a “customer” for missing merchandise.  Because each member of hierarchy is untrained regarding any shoplifting problem, the blame is passed along to each level and the dilemma continues.
         Experience reveals to the associate that the crime problem is a continually occurring event.  The newer associates rush to call for security as the shoplifters calmly and methodically choose the clothing and fill their bags.  The associate becomes increasingly anxious as the security guard is nowhere to be found.  As the shoplifters peacefully continue the process, the nervous associate dashes to find help from a more experienced associate.  However, the experienced associate fails to seem interested in the current dilemma.  The employee with experience fully understands the corporate attitude concerning shoplifting and therefore does nothing to deter the crime.  Because of the game that is played of shuffling the blame, the problem is not solved but instead ignored.  Apathy results as the associates realize over time that the theft problem has no solution and the process will continue.
         Dillard’s mechanistic operation creates a precedent of ethnocentrism.  This is the notion that one’s set of beliefs is superior to another’s.  A type of tunnel vision is established in which the organization believes that its behaviors are considered typical and the behaviors of others are not.  Dillard’s management delegates the job of marking down the selected prices of merchandise to the associates.  The merchandise is selected by computer and the associates methodically mark down each piece of merchandise by using the computerized gun.  When the customer purchases an item that is marked down, the tag is scanned and the price will automatically be entered into the computer.  This is the only type of reduced merchandise that Dillard’s has (Appendix D).  The company does not believe in special reduction sales or events that may entice the customer.  Therefore, the merchandise will not be marked down unless it has been in the store for a specified amount of time.  The department managers cheerfully wave the markdown sheets as they give them to the associates for completion.  They declare that customers will be happy to see the newly marked prices.
         However, Dillard’s does not perceive the customer’s point of view.  Associates have heard customers ask for coupons and reduction sales, but Dillard’s does not believe in them.  They believe that their method is best and that their prices are lower than other stores to begin with.  Dillard’s manages the customer’s complaints in a mechanistic fashion.  The customer is told that we do not practice such gimmicks at our store, and our everyday prices are better than the other stores.  This ethnocentric behavior causes Dillard’s to believe that its methods are better than their competitor, Famous Barr.  When asked about the lack of sale coupons at Dillard’s an area manager said, “Those coupons at Famous give their associates free reign.  They can use them for items that are not supposed to be reduced and that is poor management.  Those coupons bring in customers, but the trouble is more than it’s worth.  Those associates should not have that much control over manipulating prices.”
         Dillard’s mechanistic control over its employees’ time also contributes to their ethnocentric behavior.  The employees must use the time clock when leaving the store, as well as for lunch breaks.  This creates indifference among the employees for the organization’s lack of trust toward the workers.  However, the management at Dillard’s believes that Famous Barr is not structured for maximum control.  Dillard’s believes that Famous Barr’s relaxed environment leads to loss of control over the employees and the decision making process.  An area manager maintains, “Famous lets their associates leave for lunch whenever they please and come back whenever they please.  If these guys did that we wouldn’t be able to keep the store open.  There are reasons why we use time clocks and these things.”  However, the employees at Famous Barr are pleased with the trust that the organization instills in its workers, which leads to greater efficiency and production.  Although the competitor’s methods bring success, Dillard’s rationalizes that their approach to business is superior.
         The mechanistic method of operation affects the cultural environment by shaping the attitude of the employees.  Because the Dillard’s employee is in the public eye, a positive outlook is considered to be crucial (Appendix P).  However, the employee’s positive attitude often turns negative once the new associate has practiced the sales per hour quota system for a short time.  Competition ensues among the associates as each tries to maintain a difficult “sales per hour,” or “sph” quota.  This quota system builds distrust among employees.  The mechanistic practice of a regular maintenance of a sales quota forces the employees to work against each other on a daily basis.  The standard practice forces the workers to behave in a machine-like manner in which the hourly quota becomes more important than the other workers.  This environment compels the associates to steal sales and practice “backstabbing.”  This behavior results in a culture of pessimism.  Sales are infrequent due to lack of high sales volume within the corporation.  A sales associate in the children’s department maintains that the competition is fierce, “This is a dog eat dog environment.  You better stay with your customer here, because the minute you turn your back, they will be stolen from you.”
         The cheers by management to increase sales do not reverse the negative attitudes that develop among the sales associates.  The store manager holds ceremonial monthly sales meetings along with a complimentary breakfast.  Dillard’s realizes the friction and the pessimism among the associates as a result of the mechanistic quota system that is in place.  However, the company rationalizes the quota system by using an optimistic slogan as quoted by the managers, “It’s all up to you!  You can make it happen!”  This phrase refers to the “raise goal.”  The company offers a raise to those who can maintain a sales goal that is much higher than their hourly quota.  Managers attempt to motivate associates to achieve the “raise goal,” however this goal is nearly unattainable in reality.  (Appendix F, G).  The raise goal is the mechanistic method of attempting to increase the sales in the store, thereby increasing the profits for the corporation.  The associates commonly feel that management is deceiving them by playing a wild game with their salary.  They have developed mistrust for the company due to a decrease in their salary.  When management attempts to use the raise goal as “bait” for a higher salary, the pessimism increases because they know that it is unattainable.  However, employees are cheerful and cooperative at the meetings, due to their obligation to maintain a positive appearance.  The store manager holds the ceremonial meetings due to pressure from the owner to enforce a positive attitude so that the number of sales grows.  These meetings are mandatory for all employees.
         Department managers are expected to help the manager reenforce the positive attitude onto their associates.   The associates falsify their optimistic attitude and also their interest in the organization.  The truth of their feelings is that they believe the organization is trying to swindle them.  When discussing sales goals, an associate mentioned, “The sales quota system is why we have so many people leaving the store.  The whole idea that we can reach their raise goal is a hoax.  The company is not doing well; therefore, what we really get is pay cuts.  Then we all hate the place before we finally leave.”  Because a pessimistic attitude has developed among the associates, their communication with customers has decreased.  The customers have sensed their cynicism, which has in turn decreased the number of customers in the store.  The rigid hierarchical control of the salary system has a negative effect on the workers and, as a result, the organization’s productivity and profit margin.

Possible Organizational Strategies
Organization as Brains
         By transforming the current structure into a multifaceted organization, Dillard’s may set in motion a new course of action.  According to the brain metaphor, the organization consists of many different parts that make up the whole.  The image of the holographic design has many dimensions to the structure of the organization.  Each part has its own specific information, and each part overlaps with the other parts to share knowledge with each other.  The double-loop process of understanding the norms and developing new ones allows for flexibility.  This type of organization looks for new solutions to problems rather than adhering to the same norms.
         It is possible for the Dillard’s corporation to reorganize its structure to gain the benefits of a brain-like organization.  Each department in the store will have its own specialized information concerning the specific merchandise in their areas.  The central processing unit is where the decisions will be made.  This will involve meetings in which all departments will share information and discuss mutual concerns and future goals.  All possible information will be gathered to discuss as a group.  Each department may have an associate to attend the meeting as a representative to present the department’s ideas and questions.  The associates will alternate as acting representative for their department and will have the ability to present customer’s and other associate’s concerns and suggestions to the central processing unit.  As the associates and the managers present problems, the double-loop method of processing may lead to a new approach in recognizing and questioning the situation.  This open approach may allow the search for a wider variety of solutions to problems at the store.      The process referred to by Morgan as requisite variety maintains that in an effort to manage the outside environmental changes such as the problem with shoplifting, employees of the store will offer their ideas to gain a wide variety of information (1997, p.112).  The organization is continuously searching for harmony with the environment.  Employees may suggest such innovations as the installation of technological cameras throughout the store.  Another idea may be offered such as multiple undercover security guards for each shift rather than one uniformed guard for each shift.
         In order for Dillard’s to grow using innovation, employee autonomy must be present, which is referred to by Morgan as minimum critical specification (1997, p.114).  The organization should only specify what is essential for a new project to take shape.  The innovation should evolve from the employees’ innovations and interactions with each other.  Each department at Dillard’s will be given the opportunity to share information about the problem with the quota system and will be allowed the freedom to initiate new ideas.  One idea that may develop from the holographic structure is the initiation of a team-based quota system.  Each department could approach the system as a team working together toward a common goal.  Department managers may feel that they can then sincerely motivate their associates in a positive and realistic manner.  The associates may also then share information and discuss ideas on improving sales for the department team rather than competing individually and trying to conceal concepts that may facilitate better sales.  Using shared information and working toward a common goal may raise optimism.  This new attitude may increase customer satisfaction, which may lead to increased productivity and profit.
         In working toward a solution concerning the failure to adjust to the changing sales market, it may be necessary to collect as much information as possible about the current marketing and advertising trends.  It may be helpful for Dillard’s to use the double loop process to compare to other successful organizations such as their immediate and close competitor, Famous Barr.  Utilizing the concept of cybernetics may allow Dillard’s to examine their situation and reassess the problem by changing the usual approach.  A possibility may be to consult with advertising agencies and discuss innovations, which could lead to a creative eye-catching approach in advertising.
 
Organizations as Organism
         Organizations that are considered to be organic have the ability to adjust to an environment that is constantly changing.  Organizational flexibility is imperative in maintaining a steady flow with its surroundings.  When something occurs out of the expected norm, the organization accustoms itself and flows with the problem as if it is an automatic response similar to the system of an organism.
        Morgan refers to this process as homeostasis (1997, p. 40).  The concept of homeostasis may succeed in changing the problem concerning the rigid control of the workers.  As the sales market changes, the volume of customers shopping in the store is affected.  When the associate’s “sph” is low, Dillard’s corporate control tightens its grip.  However, when using the concept of homeostasis, the changing environment will also change the operations at Dillard’s.  As the business decreases in the store, the “sph” will automatically decrease.  The system will match the environment as it fluctuates in a positive or negative manner.  Therefore, workers will be treated with respect, and will not be punished for any decline in the sales of the company.
         The strict hierarchical structure of Dillard’s may lead to confusion and hidden problems concerning the loss due to shoplifting.  Morgan clarifies the various methods to reach a solution to a problem as equifinality (1997, p. 41).  Dillard’s may use the concept of equifinality in analyzing their organizational structure and the way in which problems are solved.  The interest in removing several links in the hierarchical chain may lead to a more open and flexible approach to understanding the problems and clarifying the confusion.  When loosening the chain, the changing environment may be viewed from many different levels in the corporation as the changes take place.  From these multiple perspectives, the innovations may flow from all employees, regardless of the level of command.  The problems will not need to be glossed over and pushed up the ladder for fear of retribution.  Breaking down the rigid wall of hierarchy may open the approach to problem solving and may lead to innovative solutions.

Conclusion
         If Dillard’s can focus on stimulating innovation within the corporation, it may be possible to reveal a new image.  This optimism may improve the attitudes of the employees, which may lead to further creativity.  To harmonize with the environment Dillard’s must understand the necessity to continuously observe, innovate and change.  By relinquishing its rigid grasp, organizational goals may be realized.