Dave's Sporting Goods

Dave Kennedy got into business the old-fashioned way—he inherited a sporting goods store when his father passed away nearly two years ago. The business was perfect for Dave because he grew up with the business and loved all kinds of sports. From baseball to duck hunting, Dave knew everything necessary to run the business and more. Dave's father had built the store from the ground up, and last year, he grossed nearly $2 million in sales.

The business had 10 employees: 4 full-time and 4 part-time. One employee worked in the warehouse area, and another worked in a small office, handling basic bookkeeping and administrative work. The other employees worked as sales assistants, which included ringing up sales, stocking shelves, and answering the telephone. The employees all loved Dave's father. Although he was demanding of his employees, he was quick to compliment them when they did a good job. Although there was little room for professional advancement at the store, his father paid the employees above-average wages and a year-end bonus. He also did his best to accommodate employee scheduling requests.

Dave tried to manage his employees the same way his father did, but it just didn't seem to work. Employee turnover was on the rise, and each time he had to replace an employee, the business would incur additional costs for advertisement and training. There was also a six-month learning curve before a new employee would become knowledgeable in all aspects of the store. The store was into the new year, and Dave was evaluating its performance for the past year. Not only had sales decreased for the first time ever, but employee expenses were much higher as a result of employees leaving and the need to hire replacements. Dave did not understand what the problem was and decided to have a meeting with all his employees to try to find out what he should do.

The meeting started out quietly, and at first, Dave thought maybe it was not a good idea. However, after a few minutes of prodding questions, the employees seemed to have formed sides against each other. On one side, the employees who had been at the store for a long time seemed to resent the newer employees, whereas the newer employees did not seem interested in the store. To them, it seemed that it was just another job. After an hour of the sides arguing against each other, Dave realized that he was not getting anywhere and ended the meeting. On the way home, he began thinking about his employees and how he could improve the situation and get the store back on track.

Discussion Questions

1. What problems do you see in how Dave manages his employees?
2. Do you think that the meeting with employees was a good or bad idea? Why?
3. Why do you think that Dave's father's management style worked, but Dave's management style didn't?
4. If you were Dave, what would you do to reset the culture in the store?

There are several problems with how Dave manages his employees:
Lack of effective communication, Failure to adapt management style, Inadequate employee engagement. The meeting with employees was both a good and a bad idea

1. There are several problems with how Dave manages his employees:
Lack of effective communication: Dave does not seem to effectively communicate with his employees, as indicated by the rising turnover and employees forming sides against each other.

Effective communication is essential for fostering a positive work environment and ensuring everyone is on the same page.
Failure to adapt management style: Dave's father's management style might have worked for him, but it doesn't necessarily mean it will work for Dave. Each individual has their own management style, and Dave needs to find a style that suits his leadership skills and the needs of his employees.
Inadequate employee engagement: Dave's employees do not seem engaged or motivated to work at the store. It could be because they do not feel valued or see opportunities for growth and advancement. Engaging employees through recognition, opportunities for development, and creating a positive work culture is crucial for their job satisfaction and productivity.

2. The meeting with employees was both a good and a bad idea:
Good idea: The meeting provided an opportunity for Dave to hear his employees' concerns and get insights into the issues at the store. It allowed him to understand their perspectives and gather information that can help him make informed decisions.
Bad idea: However, the meeting turned into an argumentative and unproductive environment. It seems Dave was not able to effectively facilitate the discussion and prevent sides from forming against each other. Ending the meeting was the right decision as it wasn't leading to any meaningful resolution.

3. Dave's father's management style worked because he had built the store from the ground up, and the employees had a strong connection with him. They were likely more motivated and loyal to the business. Additionally, Dave's father paid above-average wages, provided year-end bonuses, and accommodated scheduling requests, which created a positive work environment. On the other hand, Dave seems to lack the same level of connection and engagement with his employees, which could be why his management style is not as effective.

4. To reset the culture in the store, Dave should consider the following steps:
Improve communication: Implement regular team meetings to ensure everyone is on the same page and address any concerns. Encourage open and honest communication channels to foster a positive work environment.
Foster employee engagement: Recognize and reward employees for their hard work. Provide opportunities for growth and development, such as training programs or cross-training to expand their skills and responsibilities.
Build a sense of teamwork: Encourage collaboration and teamwork among employees. Foster a supportive environment where employees can rely on each other and work towards common goals.
Evaluate and adapt management style: Dave should reflect on his own management style and make necessary adjustments. Seek feedback from employees and be open to new ideas and approaches.

Dave's management style has led to several issues within the store, including rising turnover and decreased sales. By improving communication, adapting his management style, and fostering employee engagement, Dave can reset the culture in the store and work towards getting it back on track.

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