Organizational Behavior Analysis of Casual Togs Inc
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This report provides an analysis of the organizational behavior of Casual Togs Inc, a fashion apparel producing firm for women. It discusses the problems faced by the firm, causes of the problems, suggestions for change, and recommendations for preventing future problems.
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Running head: ORGANIZATIONAL BEHAVIOR Organizational Behavior Name of the Student: Name of the University: Author Note:
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1ORGANIZATIONAL BEHAVIOR Executive Summary: The report is a discussion on the analysis of an organizational behavior of Casual Togs, a fashion apparel producing firm for woman. The report commences with a discussion on the various problems faced by the firm along with providing an insight on what led to such problems. The report also discusses on how the president of the company, Cy Geldmark, can be persuaded to undertake changes. The report provides suggestions on prevention of the future problems in terms of the management practice, structural change and the response of the firm to the changes in the competitive environment. The report however ends with recommendations on how to overcome the challenges of the fashion industry.
2ORGANIZATIONAL BEHAVIOR Table of Contents Introduction:....................................................................................................................................3 The Major Problems Facing the Firm:.............................................................................................3 Causes for the Problems:.................................................................................................................5 How Cy was Persuaded to Change:.................................................................................................6 Prevention of Future Problems In Terms of:...................................................................................7 Management Practice:..................................................................................................................7 Structural Change:........................................................................................................................8 Responding to the Changes in Competitive Environment...........................................................9 Conclusion and Recommendations:..............................................................................................10 References:....................................................................................................................................11
3ORGANIZATIONAL BEHAVIOR Introduction: The aim of report is to discuss the organizational behavior of Casual Togs Inc, a fashion women apparel-producing firm as provided by a case study. The discussion in this report revolves around the mentioned firm that has presently landed into some major problems due to certain situational factors and lack of efficiency of its owner in dealing critical situations. Cy Geldmark found, Casual Togs, a reasonably priced women apparel shop headquartered in the Midwestern city.He was also the principal stockholder and an innovator who pioneered the concept of mix and match that helped in coordinating the ideas of the fashion ensembles.This helped the client with a reasonable means in building a complete wardrobe with both the casual and formal clothes. The presence of trend setting designer style and standard quality helped in propelling the firm towards a prominent position.The firm experienced a rapid expansion in the past five years and ensured setting of the production plants in the southern states including one unit in Arkansas for capitalizing on the wage rates of those areas. The report initiates by providing an insight into the problems that the firm face. There is also discussion about the causes that led to the arousal of such problems. One will also be able to find an insight into suggestions provided to CyGeldmark in persuading the change. The report also puts forward suggestive measures in preventing the future occurrence of the problem in the context of management practice, structural change and the response to the changes in the competitive environment. One will also be able to find necessary recommendations for overcoming the challenges persistent to the fashion apparel industry.
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4ORGANIZATIONAL BEHAVIOR The Major Problems Facing the Firm: The most sensitive problem faced by the apparel-producing firm has been the returns. Around 40 percent of the total shipments faced a return. The reasons for the returns lay in the late delivery of the garments added with an inaccurate style of forecasting that led to error in the scheduling process of the production. There was no coordination between the shipping coupled with the inadequate means of production. There was also disparity between the delivery dates of the customers and order taken by the salesperson. The firm also faced issues related to quality that resulted in most of the returns. Some are of the viewpoint that the customer did not go into argument with the salesperson mentioning the quality issues and mentioned late delivery as the reason for not accepting the product. However, one has to remember that there exist in total five disparate selling season common to the fashion apparel industry. During which a short deadline is set for undertaking order, production and delivery. The sales of the first two weeks, also known as pilot sales, help in determining the quantity and styles of production during the particular season. The failure of determining the pilot sales can saddles the garment stock of Casual Togs which would have to be disposed offmostly through loses. Concerning the situation, Cy Geldmark, realized that the decisions should depend on a situation. Thus, he initiated decisions related to the policies and operating decisions along with ensuring permission to the heads of departmental to take necessary decisions based on situations without the necessity for any sort of consultation. However, the managers and the vice president of the various departments hardly paid any heed to his repeated requests and ensured undertaking a daily discussion on the progress and changes in the trends of the seasonal products.Such sessions were filled with emotional outburst amongst the various personnel belong to a part of the management. Most of the meetings remained
5ORGANIZATIONAL BEHAVIOR unscheduled and informal as different group met the president at different timing. The group were informal and mostly had problem line functioning. Decisions were immediate and the changes implemented once thought off without even giving it a second thought. In case of any sort of disagreement towards a particular decision from the other departments, there was always, a rebellious attitude and shouting followed for its establishment. During the interactions, Cy Geldmark, mostly remained impassive who only gave his comments after arguments of the participants. This also acted as a factor in the initiation of the problems in the fashion apparel- producing firm for women. Causes for the Problems: Too much of leniency in dealing with the personnel of the firm led to the problematic situation. Cy Geldmark of Casual Togs also failed in creating a remarkable mark with suppliers. Judy, the sister of Cy Geldmark, who was also the vice president was another reason for Casual Logs to land up in a problem. However, the formal organizational chart mentioned her as the treasurer who informally approved the expenditures beyond $1000. Judy however had substantial power, as she was one of the founders who owned around 12 percent stocks of Casual Logs. She not only intruded into the daily sessions but also often proposed changes that were expensive. She also ensured making changes in all departments that resulted in adverse impact on the working schedules, commissions of salespersons and even the copier paper. She resorted to the hire and fire of the employees without informing the managers and mostly countered their advice. In addition to this, she was also abrasive and enjoyed public display of vulgarity. She was increasingly loud and received full support from his brother in carrying out the activities.
6ORGANIZATIONAL BEHAVIOR Again, Cy Geldmark decision of appointing Bill Smith for providing aid to Andy, the treasurer, also resulted in the clashes of ego and contributed to the dispute. Bill Smith’s willingness in implementation of the newer methods due to his better training received much rejection from Andy. Andy was of the view that the methods implemented by the new person who not go down well with the president of the firm since he was much unfamiliar with the approach adopted. Andy rejected the newer methods and believed in sticking to his traditional means thereby providing an aid in multiplying the problem. The new and experienced market analyst, Stan Levine, whose methods also found similar rejection from the senior people has experienced similar situation. How Cy was Persuaded to Change: Cy Geldmark can be persuaded to change throughinitiation of a purposefor him to believe in (Covey 2013). It is therefore necessary for him to understand the roles of the actions that would help in unfolding the drama of fortunes of the firm and thereby trust in its worth. He must also decide upon the actions that make actions worth and thereby provide an explanation for undertaking the change. He can be persuaded toincorporating the changein the day-to-day workculture(Ward2016).Heshouldpossessleadershipcapabilitiesforcombatingthe intolerance of the employees. He should also initiate measures for conditioning them in expecting change on a regular basis. He should also encourage the teams in discussing the processes and brainstorming the smaller changes that leads to an effective process. Conditioning not only helps in opening the minds of the employees but also involves them in the process of change. He must also initiate learning to employee environment through various means that will help the work force in interacting and contributing in different manner. He can be persuaded to communicate the changebefore it actually occurs since proper communication impacts the
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7ORGANIZATIONAL BEHAVIOR employees and it acts as a major force in overcoming any kind of resistance to change (Fullan 2014). Cy Geldmark can do so by clearly defining the occurrence of the impending change, by offering required support to the employees and through recruitment of team members. Cy Geldmark can be persuaded to initiate changeby including the employees in the process of planning(Chadwick, G., 2013).This is done through an invitation, encouraging questions and by being positive. However, an important aspect for Cy Geld mark would be to measure the effects of change through distribution of the surveys to the employees for gaining feedback through the entire process (Dibrell, Craig and Neubaum 2014).He should also battle the resistance for the change in transforming the employee mindset through strategic and honest communication. Prevention of Future Problems In Terms of: Management Practice: The fashion apparel brand for women, Casuals Togs, the prevented from the future problems by adopting the following changes in the management practice: 1. Managing the expansion of production and sales by identifying mass market or the advantages that the firm has over the other wholesale businesses (Armstrong and Taylor 2014) 2. Considering the adaptability of the present supply chain system from the production to the warehousing and shipping 3. One must consider the power of the various social media platforms like Instagram, Facebook and Twitter (Phua, Jin and Kim 2017). A social media presence acts as a signal to the
8ORGANIZATIONAL BEHAVIOR bigger retailers that the firm is aware of the industry trends. It also puts across a message that the firm cares about maintaining a relationship with the customers. 4. The firm must also consider the profit and pricing margins by choosing the appropriate pricing model can be the most important decisions one might take ( Drury 2016). Although the current model for pricing has worked quite well, however the firm must consider that the profits for the wholesale production behaves in a different manner. 5. The firm can introduce a wholesale technology for supporting the growing needs of the business. The firm can also adopt digital solutions like the enterprise resource planning (ERP), electronic data interchange (EDI) and the business-to-business (B2B) tools for e commerce (Leeflang et al. 2014). Structural Change: Casuals Togs can adopt various structural change for overcoming f the future problems. This involves: 1. Undertaking the decision for changing the direction: Bringing in a transformational change is not a cake work and does not happen overnight (Uy, Yi and Zhang 2013). The change is a gradual process and hence takes time to resonate as a part of the entire firm. Once accepted it helps in meeting newer competencies. 2. By ensuring change of the ambassadors: The decision usually leads to the creation of benefits in the context of the firms as change ambassadors believed to possess higher potential compared to the others.
9ORGANIZATIONAL BEHAVIOR 3. By communicating the vision: This ensures outlining of the roadmap towards the change and helps in clarifying the employee query through defined actions and measurable means 4. By implementing the importance of listening: Carefully listening to problematic areas through the process of intensive interviews represents the best method in understanding and handling issues (Antonelli 2014) 5. By creation of the focus groups: Creation of focus groups helps to understand the change team and also help in nurturing various collaborative relationships. 6. By considering the suppliers: Checking with the suppliers on a periodic basis enables in understanding their efficiency in managing the new system (D'Agostino,Gambetti and Giannone2013).Awell-organizedsystemforchangeimplementationputforwardan opportunity of transformation of the suppliers into trusted partners. 7. Consistency in maintenance of momentum: This ensured through focusing on the success factor on a continuous basis (Antonelli 2014). Thus, there is much emphasis on focusing on every minute details and convey the same to the teams. 8.Sustenanceofthechange:Therequiredamountofvigilanceafterthechange implementation helps in attaining a sustained system. Responding to the Changes in Competitive Environment In the last twenty years, there has been significant evolution of the fashion apparel industry (Kim 2013). The change in dynamics in the fashion industry have enforced retailers in desiring lower cost and ensuring flexibility in the design, speed to market, quality and key
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10ORGANIZATIONAL BEHAVIOR strategies for maintaining profitable position in the ever demanding market(Turker and Altuntas 2014). The fashion firm like Casuals Togs can however respond to the changes in competitive environment by adopting the following means that will help it in preventing problems. Ensuring Proper Pricing: It is necessary for the firm to determining the pricing of its products at a level that ensures profitability of the business and prevents customers from looking at the competitors Avoidance of Price War: Low prices allow customers to buy more. However, it provides with no guarantee that the customer will choose a particular product (Galbraith 2015). The war of prices leads to the reduction of the profit margins and prevalence of low prices in the market. Maintenance of Quality and Service:It is however important for maintaining a higher levels of service and quality (De Nisco and Warnaby 2013). Supply of lower quality products makes the customers unforgiving and result in switching towards the competitors. Efficient Marketing and Sales Team: Presence of a good quality sales team and a concrete marketing plan serves as an excellent combination for communicating the product benefit to the customers (McDonald and Wilson 2016). Growth of business takes through securing the newer customers. This aspect further enhanced through an effective marketing and sales strategy. Conclusion and Recommendations: Thereportendsbythrowinglightintothechangesthatisimplementedinthe management practice, structural change and response to the changing competitive environment will prevent the company from future problems. The report also provides an insight on the means
11ORGANIZATIONAL BEHAVIOR adopted for persuading the owner of Casual Logs in undertaking the change. The report also takes one through the various problems faced by the firm and the reasons for such occurrence. The followingrecommendationsmade for the fashion apparel firm in overcoming the challenges: Dealing with Fast Fashion:Fast fashion refers to a concept where the garments made for consumers get disposed in shorter time scale following the change of trend. Such clothing lacks quality and is available at cheaper rates.This is avoided by adoption of Circular Production Model, an innovative solution, ensuring the complete recycling of the original fibers. The model also helps in decreasing the carbon footprint. Prevention of Use of Non Biodegradable Synthetic Yarns: In recent times there has been too much cultivation of the fibers for meeting the demands and this has led to the use of pesticide. This is prevented by making professionals honor ethical practice. Even people should stop supporting mindless fashion. There should also be regulation undertaken by the government on the use of pesticides and support excessive cultivation of fiber.
12ORGANIZATIONAL BEHAVIOR References: Antonelli, C., 2014.The economics of innovation, new technologies and structural change. Routledge. Armstrong, M. and Taylor, S., 2014.Armstrong's handbook of human resource management practice. Kogan Page Publishers. Chadwick, G., 2013.A systems view of planning: towards a theory of the urban and regional planning process. Elsevier. Covey, S.R., 2013.The 7 habits of highly effective people: Powerful lessons in personal change. Simon and Schuster. D'Agostino, A., Gambetti, L. and Giannone, D., 2013. Macroeconomic forecasting and structural change.Journal of Applied Econometrics,28(1), pp.82-101. De Nisco, A. and Warnaby, G., 2013. Shopping in downtown: The effect of urban environment on service quality perception and behavioural intentions.International Journal of Retail & Distribution Management,41(9), pp.654-670. Dibrell, C., Craig, J.B. and Neubaum, D.O., 2014. Linking the formal strategic planning process, planningflexibility,andinnovativenesstofirmperformance.JournalofBusiness Research,67(9), pp.2000-2007. Drury, C.M., 2013.Management and cost accounting. Springer. Fullan, M., 2014.Leading in a culture of change personal action guide and workbook. John Wiley & Sons.
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13ORGANIZATIONAL BEHAVIOR Galbraith, J.K., 2015.The new industrial state. Princeton University Press. Kim,B.,2013.Competitiveprioritiesandsupplychainstrategyinthefashion industry.Qualitative Market Research: An International Journal,16(2), pp.214-242. Leeflang, P.S., Verhoef, P.C., Dahlström, P. and Freundt, T., 2014. Challenges and solutions for marketing in a digital era.European management journal,32(1), pp.1-12. McDonald, M. and Wilson, H., 2016.Marketing Plans: How to prepare them, how to profit from them. John Wiley & Sons. Phua, J., Jin, S.V. and Kim, J.J., 2017. Gratifications of using Facebook, Twitter, Instagram, or Snapchat to follow brands: The moderating effect of social comparison, trust, tie strength, and networkhomophilyonbrandidentification,brandengagement,brandcommitment,and membership intention.Telematics and Informatics,34(1), pp.412-424. Turker, D. and Altuntas, C., 2014. Sustainable supply chain management in the fast fashion industry: An analysis of corporate reports.European Management Journal,32(5), pp.837-849. Uy, T., Yi, K.M. and Zhang, J., 2013. Structural change in an open economy.Journal of Monetary Economics,60(6), pp.667-682. Ward, J., 2016.Keeping the family business healthy: How to plan for continuing growth, profitability, and family leadership. Springer.