Tanglewood Case 1
02/17/2015
Tanglewood is in need of an update to their human resource functions. As the company has grown, they have found that their human resource system may be archaic. Tanglewood is in need of a new plan that will be modern but will still match their mission statement that they set out to follow even in modern times.
Tanglewood's mission is:
“Tanglewood will be the best department store for customers seeking quality, durability, and value for all aspects of their lives. We are committed as a company to providing maximum value to our customers, shareholders, and employees. We will accomplish this goal by adhering to the core values of responsible financial management, clear and honest communication, and always keeping performance and customer service in the forefront.”
By reading the case, Tanglewood strongly values customer service. Tanglewood believes in the customer experience and face-to-face interactions. Tanglewood believes that the online ordering portal is an extension of the brick-and mortar store not a replacement. The physical stores are their competitive advantage. In-store sales build long-term relationships with customers.
Tanglewood is likely to benefit from highly customer orientated individuals. Tanglewood does not view their online sales as a competitive advantage. Tanglewood believes that their store experience will continue to bring customers back on a continual basis. In order for Tanglewood to uphold this philosophy, they must make their store better than any other. The best possible way to do this is to have the best individuals working for the company. Tanglewood does not need individuals with high technical skills. Tanglewood needs employees that have compassion and can uphold their mission of great customer service.
The most common positions at Tanglewood are shift leaders, operations associates, and store associates. These employees are the "face" of the store. These employees are going to need to be able to think quick on their feet, be personable, and be able to represent the company in a professional manner. Department managers need to be able to multi-task and delegate tasks. These positions require more knowledge of business and processes. Department managers should know how to manage employees and know how to streamline processes. At Tanglewood, department managers are in charge of running their own departments and employees.
Staffing Levels
Acquire or develop talent
Acquiring or developing talent can both be beneficial to the company. I think that a mixed approach should be given. Developing talent raises employee morale. If employees know that they have opportunities for improvement, they will perform better and stay with the company longer. Developing talent is also beneficial because they are developed to the company's specification. Acquired talent already may have the knowledge but they have the ideas of the company they worked for. The atmosphere may have been completely different at the previous job. Developing talent can be costly to a company. The training of these new employees can be timely and expensive
Acquiring talent can also be beneficial for Tanglewood. Tanglewood can hire individuals that have the technical skills that are necessary to perform the job. This talent may not need nearly as much training as someone who is being developed by the company. Acquired talent may also come in and have fresh ideas that internal employees do not have. Hiring external candidates, especially for management roles, helps to avoid biases that internal employees have.
Tanglewood may benefit from a mixed approach depending on the position and the candidates available internally. I think that there should be opportunities for advancement to all employees. Sometimes, there just are not employees that have the skills necessary for management positions. Newly created positions would benefit from external hires.
Hire yourself or Outsource
Tanglewood would benefit from hiring the employees themself. Outsourcing would have another company hire employees that they feel would be best suited for Tanglewood. Tanglewood needs to hire employees with a particular attitude. Many positions do not require high technical skills. Tanglewood needs employees with untrainable skills. Managers that work for Tanglewood may have a better idea about the personality needed for the positions than an external source will. Outsourcing hiring may be a good option for jobs that are high skilled because they may be aware of what the total package the company needs.
External or Internal Hiring
As stated earlier, there are both positive and negative to external and internal hires. Because Tanglewood values customer relationships, they need to have highly motivated individuals. Employees who believe they have opportunities for advancement will be happier and have a better moral. Tanglewood should try to hire internally when possible.
Core or Flexible Workforce
Tanglewood already focuses on a core workforce. A core workforce are full or part-time employees. A flexible workforce are employees such as temporary workers or seasonal workers. These workers are generally used as needed. Tanglewood already uses a core workforce. They believe that this will create a better motivated worker. This is a good policy to have. Temporary workers usually do not feel a part of the company. A flexible workforce may be necessary during the holiday season to meet higher demands of sales.
Hire or Retain
Tanglewood should work on retaining employees. A high retention rate means that a company has few employees leaving. This is great because it means fewer employees need to be trained and the business is running smoothly. A high retention rate looks great on a company because customers love seeing familiar faces. It can add to the atmosphere of great customer service. When companies have a good reputation, they can usually hirer the best candidates.
National or Global
Tanglewood have many options on outsourcing globally or staying national. Tanglewood may want to hire nationally if they are not finding the types of employees that they are looking for nationally. It is a long shot to say that there are no qualified candidates nationally.
Attract or Relocate
Tanglewood should work on attracting new employees to its stores. It is much cheaper to attract employees than it is to move the building. When Tanglewood is building new stores, they should be very cognoscente of their surroundings and do ample research to see if the locations will not only attract customers, but also proper employees who can perform the jobs.
Overstaff or Understaff
Tanglewood should really work on being properly staffed. Tanglewood should not be understaffed. Being understaffed can cause friction with workers. Understaffing normally causes the current workers to work longer hours or to be over worked. This can cause many mistakes and frustration with the workers.
Overstaffing may sometimes be an option if Tanglewood is expecting employees to leave. Overstaffing may also be an option of Tanglewood is trying to stockpile talent. Overstaffing can cause problems with workers and not enough hours or work. People lose motivation when they are bored with their work.
Short or Long Term Focus
Tanglewood needs to focus on both the short term and long term goals of the company. Tanglewood needs to focus on making sure that there is currently enough staff to operate but should always look to the future and where they want their company to be in 5, 10, or 15 years from now. Tangelwood needs to make sure that the short term goals will combine to meet a long term goal. Meeting current labor shortages will be short term. Finding and developing talent may be long term. Having paths for employees, will give the employees direction as well and meeting long term goals for the company.