Organizational Behavior: Challenges and Solutions for Myer

Running head: ORGANIZATIONAL BEHAVIOR
Organizational behavior
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1ORGANIZATIONAL BEHAVIOR
Introduction
The current business scenario is posing a good number of challenges for the
contemporary business organizations. One of the major challenges is the frequent change in the
market trends and preferences and aligning the employee approaches accordingly. These
challenges are also taking a toll to the profitability of the organizations. In this case, it is
important for these organizations to initiate the proper approach of organizational behavior in
order to overcome these challenges (Lazaroiu, 2015). Myer is one of the leading departmental
stores operating in Australia. They are considered also as one of the major profitable units but in
2018, their average profitability took a hit and got reduced by about the 52 percent. This is
actually impacting in their long term viability.
This essay will discuss about the major problems being faced by Myer and the specific
problems that are causing reduction in the profit margin of them. On the basis of the identified
problems, a few recommended steps will be discussed, which will ensure the long term viability
of Myer. In addition, the solutions will be based on the two different organizational behaviors.
This will ensure that the internal management approach of Myer is aligned with the business
problems of them.
Identification of the problems
One of the major problems for Myer identified is the poor work ethics of the employees
in offering the effective services to the customers. There are number of instances identified
where the customer services of them are accused for the dissatisfaction of the customers. It is
reported that the employees especially the front line partners in the Myer stores are not
cooperative with the customers and they are not assisting in their buying process (Lee, Wang &

2ORGANIZATIONAL BEHAVIOR
Trappey, 2015). Thus, the existing customers are not coming back and retention level of the
customers is also going down for them. Another problem that is external in nature is the
emergence of the online marketplace. These online sites are offering more conveniences to the
customers, which is already affecting the offline based retailers such as Myers and this issue is
getting coupled with terrible customer service of Myer. Thus, the existing customers of Myer are
opting for the online marketplaces. Another major challenge for Myer is in terms if the
marketing factor. The major staples selling brands for Myer are the Van Heusen and Calvin
Klein but these brands are now increasingly initiating forward integration of their own in order to
gain sales revenue and market exposure (Filip, 2013). This is due to the reason that the space in
the departmental stores such as Myer is limited for these brands while having the exclusive
stores will increase their presence in the market. Thus, the more will be the forward integration
of these brands, the more will be the competition for Myer in the market along with reduction in
their product portfolio. This is reducing their competitive advantage in the market.
Contributing problems in decreasing the profits
Among all the problems and challenges being identified in the above section, the major
contributing factors are the reduction in the service quality to the customers and increase in the
customer complaints. It is reported that the uncooperative employees of Myers causing
dissatisfaction among the customers. In addition, the customers are also complaining about the
service standards in the stores (Sun & Kim, 2013). For example, complaints have received that
customers are standing in queue for payment but staffs are not there in the counter. This is also
amplifying the issues and dissatisfaction of the customers and they are increasingly opting for the
other substitutes. Thus, reduction in the customer traffic in the stores is affecting the profitability
of Myer. It is reported that the as of 2018, Myer faced the loss of US$ 486 million and sales got