Business Management
Introduction
Businesses that are lucky to begin operations and operate profitably within the first two years should rely on a solid foundation based on responsive strategies if they are to maintain their success trajectory. The company, AM Shoe Shoppers, has been operating for eighteen months and is considerably doing well. The enterprise has been lucky to have survived this crucial phase without a clear strategic roadmap. It can be argued that the initial focus of buying in bulk and selling at a discount price made it possible for the company to weather formational challenges. However, as the company grows, there is need to embark a strategy development process that is informed by sound research and analysis. This paper seeks to develop a mission statement and vision for the company, highlight a proposal for the code of ethics, recommend a reward system, and propose a managerial approach to dealing with underperforming employees.
The foundation for developing sound strategies relies on the knowledge about what the company is doing, also known as the mission, and how the organization will go about it, referred to as values. When these elements are made clear as early as possible, they are capable of holding the company together even as times may call for the adjustment of strategies and goals to fit with changing market needs (Darbi, 11). The mission, vision, and values can be changed over time, but the intent remains unchanged, and the business gains complete clarity when faced with the need for making critical business decisions impacting its future.
Since it is the first time that AM Shoe Shoppers is embarking on this undertaking, it is important to note that the initial mission, vision, and value propositions may sound abstract to most people. At best, these statements will look like the conceptualization of wishes and dreams, but once they are rightfully crafted, they will provide the basis for building a strong foundation of consensus for the enterprise. The starting point is to establish a planning team and set the schedule. To ensure efficient navigation through this phase, it is important to avoid confusing mission and vision. The mission statement highlights the core purpose of the organization, that is, the reason for existence and is best stated in the present tense. On the other hand, the vision statement outlines the desired state, that is, where the company wants to go, and in most cases is stated in the future tense. However, it may be possible to have values interspersed throughout both these statements, but an effective value statement should stand out regarding clearly delineating the guiding principles of the business, and clearly spell out how the staff are expected to behave and interact (Darbi, 18).
Proposal for Code of Ethics
A code of ethics is a set of principles and practices that an organization believes in and strives to live by (Schwartz, 322). The code does not stand alone and is supported by a company’s mission statement and other specific policies guiding employees and stakeholders on the organization’s mission and how everyone associated with the organization is expected to uphold conduct. The code addresses specific nuances of the respective industry and points out the broader goals for social responsibility. All businesses irrespective of their size can benefit from enacting a code of ethics. A starting point in developing a code of ethics is to decide on the values that are considered to be important as well as discovering an organization’s boundaries. To get it all right, the HR or the person mandated with developing the code of ethics must solicit broader participation from employees in creating the code. Employees should be allowed to have a say as well as be sufficiently informed why the code is important. It is recommended that anonymous input is solicited from employees on situations that they have been in, during the eighteen months that the company has been operational, that made them uncomfortable. Care should be taken not to make the code of ethics too vague or too specific. It is a mistake for a company to aim at cracking down small details as employees may resent the endeavor (Schwartz, 327).
For a company the size AM Shoe Shoppers, it is prudent, to begin with addressing certain ethical dilemmas. It is proposed that the company will have a no dating within the organization policy. This will make it possible to avoid relationship complications that are likely to occur in the event of harassment or sexual misconduct. Another ethical pitfall that will be taken care of in the code of ethics is nepotism. It is considered that unchecked nepotism is likely to result in employee dissatisfaction or discrimination suits. In the unlikely event that there is a challenge in drafting the content of the code, it is advisable to consult an ethicist or an HR specialist as opposed to lawyers. Lawyers are considered not to be ethical persons as most of their decisions are based on constructing legal arguments that can be argued in courts based on whether the issues involved are legal or illegal.
Once a code of ethics has been successfully written, it is the duty of HR to ensure that someone is put in charge to ensure its application and continuous updating. This person can either be referred to as an ethical officer or a compliance officer, and the character of the identified person is important since they are expected to be reliable, have excellent interpersonal skills, and have an unwavering commitment to the organization’s success. The person needs to have access to top leadership or the organization’s board for facilitating periodic updates or when a problem necessitates. The officer should also be responsible for the system for monitoring and reporting misconduct. Just as it is the case for creating the code of ethics, this system should involve anonymous input as whistleblowers are likely to have concerns touching on the effects of identification on their careers. To check on the performance of the reporting mechanism as well as evaluate the adherence to the code of ethics, performance reviews should provide a forum for eliciting feedback. Once the status of the mechanisms is evaluated, the company should respond by offering solutions to identified challenges as well as ensuring that the processes involved remain dynamic so as to allow for changes as the business changes (Schwartz, 329).
Institutionalizing a Reward System for Employees
The proposed reward system for AM Shoe Shoppers will focus on identifying the behaviors that have a significant impact on company performance. Some of these activities may touch on behaviors that enhance customer relationships and expanding the managerial skills for employees. While compensation planning and management will remain a core focus of the reward system, the company will institute an incentive compensation plan linked directly to company goals and for respective periods. As the reward system matures, the company will evaluate the potential for a longer-term reward scheme that is linked to a form of equity ownership for key individuals.
Benefits will form a major component form a major component of the reward system, and the company will aim to match or exceed the benefit levels associated with its key competitors. It is expected that a responsive benefits-based reward system will be instrumental in attracting and retaining better-performing employees. For the company to remain objective in implementing this component, the services of an external consultant may be sought so as to broaden the array of potential benefits (Armstrong et al., 9).
While compensation and benefits will remain a big part of the proposed strategic reward system, it is expected that they will not dilute the significance associated with both recognition and appreciation since they are considered fundamental elements of an optimal reward system. Armstrong et al. (12) argue that the two elements have been relegated by most organizations, and the trend is worrying since they are considered low-cost but high-return components of a winning reward system. Employees will endeavor to know what the company feels about their performance and conduct. Recognition implies offering acknowledgment to employees “before their peers for specific accomplishments achieved, actions taken, or attitudes exemplified through their behavior (Armstrong et al., 18).
Managerial Approach for Dealing with Underperformance
While AM Shoe Shoppers will strive to implement a winning strategic reward system, it is expected that cases of underperformance are likely to show up since excellent shoe selling is not a simple task. Underperformance, also referred to as poor performance, manifests itself in the workplace some ways. Firstly, when there is unsatisfactory work performance, meaning that performance of duties is not to the required standards. Secondly, when there is non-compliance relating to laid down procedures, rules, and policies. Thirdly, when there is a display of unacceptable behaviors in the workplace. Fourthly, when there are disruptive or negative behaviors impacting on co-workers.
When dealing with underperformance, management should be careful not to confuse it with misconduct. Misconduct relates to serious behavior that may warrant instant dismissal or police involvement such as assault or theft. It is advised that whenever employers come across a potential case of misconduct, they should seek specific advice regarding how to proceed with such a matter before taking any action. As much as possible managers and top leadership should avoid the temptation to act on emotions that are likely to result from an incident, and use all their skills and experience to ensure that subsequent action is based on professional ethics and wide legal evaluation (West et al., 74).
The management of underperformance calls for employers to be sensitive to resulting employee motivational issues that are likely to affect the level of performance in a workplace. Some key factors should be considered such as the fact that most underperforming employees are desirous to improve, and that employees who have to carry the burden of their poor performing peers may lose their motivation. An effective approach to performance management should be based on the provision of adequate opportunities to address identified issues as well as generate potential solutions. This paper proposes a procedure that relies on identifying the problem at hand, assessing and analyzing the issues involved, meeting with the employees involved to discuss the issues, jointly devising a solution, and continuously monitoring performance (West et al., 80).
Conclusion
Works Cited
Armstrong, Michael, and Tina Stephens. A handbook of employee reward management and practice. Kogan Page Publishers, 2005.
Darbi, William Phanuel Kofi. "Of mission and vision statements and their potential impact on employee behaviour and attitudes: The case of a public but profit-oriented tertiary institution." International Journal of Business and Social Science 3.14 (2012).
Schwartz, Mark S. "Effective corporate codes of ethics: Perceptions of code users." Journal of Business Ethics 55.4 (2004): 321-341.
West, Damian, and Deborah Blackman. "Performance management in the public sector." Australian Journal of Public Administration 74.1 (2015): 73-81.
