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.