MGT 602 Midterm Examination
October 11, 2011
Devil’s Den is a snack bar located on campus at Mt. Eagle College and is managed by contract with an external company, College Food Services (CFS). The snack bar itself is staffed with employees and managers that are mostly freshman and sophomore students of Mt. Eagle College. Susan was a business student in her junior year and was working at Devil’s Den part-time to earn some extra money. She was troubled by how business operations were being conducted by fellow employees and managers. What she discovered was that there was a lack of business rules in place, employees were taking advantage of and stealing from the store, and the employees were not being held accountable, by anyone, for the illegal activity they were conducting. Employees were allowed free food while on duty, however many of them took advantage of it and extended that privilege to friends and other customers. It was commonplace for anyone to take items from the store for free and with no consequence. Most of the occurrences were happening on weekends and night shifts—the day shift manager was a store manager employed by CFS. All other employees were picked by the student managers. Susan believed that these actions were occurring because of low wages, inconvenient hours, and unfavorable job-related duties. As a result, turnover was high and job qualifications for managers and employees were minimal. The dilemma that Susan faced was that she felt she needed to report this to CFS, but did not want her report to affect the possibility of being promoted to student manager.
Strategic Management Issues Relating to Devil’s Den
Issue 1: Devil’s Den does not have a clearly established or defined vision or mission statement. What direction the company is headed in is decided by the CEO. By establishing a strategic vision, the CEO can set the course for the company and its employees to navigate into the future. As noted by Thompson, Peteraf, Gamble, and Strickland, “company personnel can’t be expected to unite behind managerial efforts to get the organization moving in the intended direction until they understand why the strategic course that management has charted is reasonable and beneficial” (2010, p.71). Although the vision must be clearly understood by all members of the company, they also must understand the company’s current business and purpose. Devising and implementing a mission statement for the company answers the basic question of why the organization exists and describes the needs the organization was created to fill (Grace, 2003). Suggestions and Recommendations: Create an Effective Vision and Mission Statement. CFS needs to establish clear and effective vision and mission statements for Devil’s Den so that all employees fully grasp why Devil’s Den exists, what future that its employees will make for the company, how their individual contributions will get them there, and why that is important. Once a vision and mission statement is established, it must then be communicated to all employees. Once it is communicated to all, CFS needs to put business rules in place that will hold all employees accountable for living up to the vision and mission. In doing so, this should deter employee dishonesty and rebuild employee integrity. Issue 2: Devil’s Den does not have established core values. Core values are the beliefs, traits and behavioral norms that employees are expected to display while executing the company’s vision and mission (Thompson et al., 2010). These core values should clearly state the expectation of all employees and the company with regard to the conduct of company operations and behavior of company personnel. A company with no values for employees to live by invites them to create their own values and most likely will not be aligned with those of the company. As noted by...