VERGO RETAIL DEPARTMENTAL STORE

Vergo Retail Departmental Store

Vergo Retail Departmental Store

Introduction

Organizational behavior has become important because companies must learn to adjust in a changing market that is competitive and brutal. Administrators did not involve themselves with organizational behavior until their behavior impacted on productivity, sales and profit. Companies are beginning to pay more attention to organizational behavior as an important aspect of training and development of the workforce. Organizational behavior is made up of many parts. Each part forms a different chain of thought that promotes the study of organizational behavior. Organizational behavior can make a difference in an organization. A successful manager-employee relationship is done through understanding values, attitudes and behaviors of each person. In this paper we discussed about the Vergo Retail departmental store organization culture and behaviour.

Company background

Vergo Retail departmental store a strong ethical chain of department stores, selling clothes, food and hardware, faces insurmountable obstacles to its survival as many of the structural factors that have provided the basis for the company's success are under threat. Radical changes in the retail market make the company to loose ground in market share and, consequently, to have to reconsider all elements of its activities. Hence, as an attempt to recover, Vergo Retail's managing director proposed to remodel staff attitudes and set customer care as the primary focus of activity, in other worlds to adopt a more flexible firm model.

Methodology

Flexible Firm Model Implications

Formal organization, organizational culture, structure and characteristics of the employees are key variables constraining the entire change process. The flexible firm model will enable Vergo Retail to remove hierarchical levels and to introduce a flatter organizational structure, which may lead to reduced costs. This structure may increase the quality of working life, as it draws on many people's skills and expertise necessary for rapid decision-making. Moreover, with the flexible structure, decentralized management and control will be increased.

Some decisions will be made by individual smaller centers, whilst centers still report to the central control. This situation will give divisional managers some freedom to experiment with new ways of working and make decisions as best fits the circumstances at the time as they 'know best' how to act in their own local sphere of responsibility. But, it is worth noting that because flat organizations have fewer levels of management, with fewer supervisors and middle managers, vertical communication between the workforce and senior management may be hindered (Winston, 2005).

Job Design

In general, employees resist a change as they fear will take away something of value. A proposed change in job design, structure may lead to a real or perceived loss of power, prestige, pay, or company benefits. The fear of personal loss is perhaps the biggest obstacle to organizational change. Undoubtedly, according to propose that all the employees' full-time contracts will become part-time will cause job insecurity. This arises from the fact they will loose all the privileges and benefits previously had and moreover will feel treat of loosing their jobs, as their contracts ...