The Case of Minding the Store
1.0 Intro In troduc ductio tion n Empowerment is the process of enabling or authorizing an individual to think, behave, take action, and control work and decision making in autonomous ways. It is the state of feeling self-empowered to take control of one's own destiny. Empowerment means providing freedom for people to do successfully what they want to do rather than getting them to do what managers want them to do. Empowerment is a “pull strategy” rather “push strategy”. It refers to giving up control and letting others make decisions, set goals, accomplish results and receive rewards.
2.0 Case Cas e Summe Sum mery ry
On January 1, Ruth Cummings was formally named branch manager for the Saks Fifth Avenue store in a suburb of Denver. Her boss, Ken Hoffman, gave her this assignment on her first day: “Ruth, I’m putting you in charge of this store. Your job will be to run it so that it becomes one of the best stores in the system. I have a lot of confidence in you, so don’t let me down.”
One of the first things Ruth did was to hire an administrative assistant to handle inventories inventories.. Because this was such an important part of the job, she agreed to pay her assistant slightly more than the top retail clerks were making. She felt that having an administrative assistant would free her to handle marketing, sales, and personnel matters—areas she felt were crucial if the store was to be a success. Within the week, however, she received a call from Hoffman: “Say, Ruth, I heard that you hired an administrative assistant to handle inventories. Don’t you think that is a bit risky? Besides, I think paying an assistant more than your top salesclerk is damaging to morale in the store. I wish you had cleared this with me before you made the move. It sets a bad precedent precedent for the other stores, and it makes me look like I don’t know what is going on in the branches.” Three weeks later, Ruth appeared on a local noontime talk show to discuss new trends in fashion. She had worked hard to make contact with the hosts of the show, and she felt that public exposure like this would increase the visibility visibility of her store. Although the TV spot lasted only 10 minutes, she was pleased with her performance and with the chance to get public exposure. Later that night at home, she received another phone call from Hoffman: “Don’t you know the policy of Saks? Any TV appearances made on behalf of the store are to be cleared through the main office. Normally, we like to have representatives from the main store appear on these kinds of shows because they can do a better job of plugging our merchandise. It’s HRM 631
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The Case of Minding the Store too bad that you didn’t notify someone of your intentions. This could be very embarrassing for me.” Just before Easter, Ruth was approached in the store by one of the salesclerks. A customer had asked to charge approximately $3,000 worth of china as a gift for his wife. He had been a customer of the store for several years and Ruth had seen him on several occasions, but store rules indicated that no charge could be made for more than $1,000 for any reason. She told the customer that she was not authorized to okay a charge of that amount, but that if he would visit the main store in Denver, maybe arrangements could be made. Later in the day, an irate Hoffman called again: “What in the world are you thinking about, Ruth? Today we had a customer come into the main store and say that you wouldn’t make a sale to him because the charge was too much. Do you know how long he has been a customer of ours? Do you know how much he spends in the store every year? I certainly hope we have not lost him as a customer because of your blunder. This makes me very upset. You’ve just got to learn to use your head.” Ruth thought about the conversation for several days and finally decided that she needed to see Ken Hoffman. She called his secretary to schedule an appointment for the following day. By reading the case “The case of Minding the Store” it seems that Ken Hoffman tried to empower Ruth by giving her the responsibility of that store. But after few time he started interfering in Ruth’s activities about the store and broke some of the guidelines related to empowerment & delegation and Ruth on the other hand took some such decision which also violets some guidelines by her own. As a result, both of them felt the need to sit together and discus the issues that are creating problem in their working area. In this report we tried to figure out the problems regarding empowerment and delegation between Ken Huffman and Ruth.
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The Case of Minding the Store 2.0 Guidelines related to empowerment violated in this case: There are nine specific ways to foster empowerment. Ken Hoffman didn’t follow these rules and thus failed to produce a sense of competence choice, impact value and security.
The first rule that Ken Hoffman violated was Articulating a clear vision and goals. When Ruth Cummings was made the branch manager, she was told to make the store one of the best in the system. He failed to share the vision of where the organization is going and how Ruth can contribute as an individual.
The second blunder caused by Mr. Hoffman was not Fostering personal mastery experiences. By successfully accomplishing a task, defeating an opponent, or resolving a problem, people develop a sense of mastery. Hoffman should have helped Ruth feel increasingly empowered by helping her develop an awareness that she can succeed.
Modeling is another way to empower people. Hoffman didn’t demonstrate the correct behavior that Ruth should follow. Without the proper modeling, Ruth couldn’t presume that the task could be done, it is within her capabilities and success is possible. As Hoffman worked at the main office and Ruth worked at a branch, It wasn’t possible for Huffman to show her how to accomplish work or to frequently demonstrate success. Hoffman should have made it possible for Ruth to be able to communicate with other successful branch manager who could have served as a role model.
Another technique that was not followed by Ken Hoffman was Providing Support. In order to help others experience empowerment, social and emotional support is needed. If people are to feel empowered, managers should praise them, encourage them, express approval of them and reassure them. It is important to express confidence in employees by supervising them less closely. In this case we see that, Hoffman didn’t support Ruth in any ways. Instead he became very irritated each time Ruth took ant decision by herself.
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The Case of Minding the Store Creating Emotional Arousal helps replace negative emotions such as fear, anxiety or crabbiness with positive emotions such as excitement, passion or anticipation. Lack of emotional arousal makes it difficult for individuals to feel empowered. In order to increase the sense of empowerment, periodic social gathering should be held. All official communication need not be formal. Hoffman did exactly the opposite. He communicated with Ruth only when he had any complains.
Information is one of the most crucial management “power tools”. Mr. Hoffman neglected an important part Providing Information of empowerment. When managers provide their people with more rather than less information they gain a sense of empowerment and are more likely to work productively, successfully and in harmony with the manager’s wishes. Ruth wasn’t provided with any information regarding the norms of the store. She had no idea what rules are followed by branches. She wasn’t given clear direction regarding how much power she has.
Providing Resources is another important aspect of empowerment. When Hoffman gave Ruth the responsibility of running the whole store, he should have given her authority to spend money on things she considered to be important. In the case we saw that Ruth hired an administrative assistant to handle inventory. She needed the administrative assistant to free her to handle marketing, sales and personnel matters. These were the things crucial if the store was to be a success.
The empowered people should be able to connect to outcomes . Ruth appeared on a local noontime talk show to discuss new trends in fashion. She wanted to promote the store. Hoffman didn’t like this idea. According to him any public appearances should be made by the main office. He is not letting Ruth take direct control.
Finally, Hoffman didn’t Create Confidence in Ruth. He did not exhibit reliability, consistency, fairness, personal concern, competence and expertise.
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The Case of Minding the Store 3.0 Guidelines related to delegation violated in this ca se: There are ten principles regarding how to delegate. Some of these principles were violated by Hoffman and Ruth. 1. Delegate completely Hoffman should have clearly specified the constraints under which the tasks will be performed. Every organization has rules and procedures, resource constraints or boundaries that limit the kind of action that can be taken. Hoffman should have specified precisely the level of initiative expected. There are five levels of initiative. Hoffman should have explained which of the following were applicable to Ruth.
I.
Wait to be told what to do: Take action only after specific directions are given.
II.
Ask what to do: Some discretion is provided to subordinates in that they have some control over the timing of the task but not its content.
III.
Recommend, than take action: This alternative is more empowering because subordinates are given some freedom over both the timing and the content of the delegated task.
IV.
Act, then report results immediately: Subordinates are given the freedom to act on their own initiative, but they are required to report to the manager immediately upon completion to ensure that their actions are correct and compatible with other organizational work.
V.
Initiate action, and report only routinely: Subordinates receive complete control over timing and over content of the task assigned.
2. Allow participation in the delegation of assignments Hoffman needed to have a clear understanding with Ruth while deciding what task is delegated to her and how she should do it. He should have decided to provide her with the opportunities to decide when tasks will be completed, how accountability will be determined, when work will begin, or what methods and resources will be used in task accomplishment.
3. Establish parity between authority and responsibility
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The Case of Minding the Store The oldest and the most general rule of thumb in delegation is to match the amount of responsibility given with the amount of authority provided. The assigned responsibility should be accompanied with a corresponding amount of discretion to make decisions and authority to implement those decisions. Huffman clearly did not follow this rule. He gave Ruth the responsibility to run the whole store but did not give her any authority. 4. Provide adequate support for delegated tasks When authority is delegated to subordinates, managers must provide as much support to them as possible. Hoffman should have continuously provided relevant information and resources to help Ruth accomplish tasks. 5. Focus accountability on results Once tasks are delegated and authority is provided, managers generally should avoid closely monitoring the ways in which subordinates accomplish task. This guideline was clearly violated by Huffman. Even after the delegation he expected Ruth to discuss every decision with him. He focused on the methods Ruth was using instead of the results it would bring. 6. Avoid upward delegation Managers must conscientiously resist all upward delegation in which subordinates shift responsibility back onto the shoulders of the superior who did the initial delegating. Managers who fail to forestall upward delegation will find their time being tie up doing subordinates work rather than their own. In this case we see Huffman is worried about all the decisions made by Ruth. He cannot focus in the main office if he is too much bothered about the branch.
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The Case of Minding the Store
4.0 Specific agenda items that Huffman and Ruth should discuss In their meeting Huffman and Ruth should discuss how this delegation can be effective. They should seek answer to the following questions. 1. Does Ruth have the needed information? 2. Do Huffman and Ruth share common value? 3. Who would be responsible for decision making? 4. Does Ruth’s responsibility matches her authority? 5. Is Ruth getting the support she needs? 6. Who is accountable for the result?
In their agenda they should decide using the following model
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The Case of Minding the Store Deciding when
Deciding to Whom
Deciding how
Subordinates have needed information
(Alternatives)
Begin with the end in mind
Involve no one Commitment is crucial Subordinates’ capabilities will be expanded Common values are shared
Delegate completely
Consult with other individuals, but decide alone
Allow for participation
Let the team decide
Match authority with responsibility
Participate as a member of the team
Work within the structure
Sufficient time is available Effective Outcomes of Delegation
Provide support Focus accountability on results
Readily acceptable assignments Delegate consistently High morale and motivation Avoid upward delegation Organizational coordination and efficiency Clarify consequences Increased problem solving abilities More discretionary time for managers Stronger interpersonal relationships Successful task completion
5.0 Factors in acquiring necessary elements of empowerment Although Huffman delegated the responsibilities of a branch to Ruth, he is reluctant in accepting Ruth’s decisions. In order to solve this problem, Ruth must find out the reason behind Huffman’s unwillingness to empower Ruth. There are 3 main reasons behind this. Attitudes about Subordinates
Managers often believe their subordinates are not competent enough to accomplish the work. Ruth must convince Huffman that she is capable of handling the job and taking decisions.
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The Case of Minding the Store Personal Insecurities
Some managers fear they will lose the recognition and rewards associated with successful task accomplishment if they empower others. Ruth has to make Huffman understand that they have the same vision of making the store successful. Need for control
Non empowering managers also often have a high need to be in charge and to direct and govern what is going on. Ruth has to convince Mr. Huffman that she will not be able to perform successfully unless he gives her the authority needed with her new responsibility. In order for managers to empower others successfully, they need to have five attributes. Empowered people can not only accomplish task, but they also think differently about themselves. The dimensions are given below. Five Core Dimensions of Empowerment DIMENSION
EXPLANATION
1
Self-efficacy (believe to be, able to perform the task, capable of putting forth the necessary effort, no outside obstacles will prevent accomplishing the task)
A sense of personal competence
2
Self-determination (people feel self determined when they can voluntarily and intentionally involve them in tasks rather than being forced and prohibited from involvement)
A sense of personal choice
3
Personal control ( a sense of personal consequence, refers to a perception of impact, to effect a change in desired direction)
A sense of having impact
4
Meaning ( people value the purpose or goals of the activity in which they are engaged)
A sense of value in activity
5
Trust ( people are confident they will
a sense of security
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The Case of Minding the Store be treated fairly and equitably)
Huffman can only be sure that Ruth is properly empowered after she has all the core dimensions of empowerment.
6.0 Advise to Huffman as a consultant If I were hired as a consultant to Huffman, I make him understand the relationships among the elements of Empowerment and Empowered delegation.
Guidelines for Empowerment Mastery experiences Modeling
Experienced Empowerment
Desired Outcomes
Self-efficacy Self determination Personal consequence Meaningfulness Trust
Productivity Psychological and physical health Proactively and innovativeness Persistence in work Trustworthiness Interpersonal effectiveness Intrinsic motivation High morale and commitment
Support Emotional arousal Information Resources Connect to outcomes Confidence
Delegation Principles
Empowered Delegation Task acceptance Motivation and morale Subordinate development Discretionary time Strengthened relationships Successful performance
Deciding when to delegate Deciding to whom to delegate Deciding how to delegate
Tips for Successful Delegation •
Be as specific as possible about what you want done.
It's no good hiring someone, telling them you need some help around the office, and then HRM 631
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The Case of Minding the Store complaining because they haven't done what you wanted them to do. Or expecting an accountant to give you good advice when you haven't bothered to sit down with him and talk about where your business is now and where you'd like to see it going. You have to be very clear about what you need done and how you want it done if the delegation is ever going to be successful. •
Let the other person get on with it.
We smile when we hear about the business person who goes on vacation for a week but phones the shop ten times a day every day she's gone, but we’ve all been there. You have to realize that when you delegate something, it's literally out of your hands and you need to avoid interfering with the process of getting it done. As hard as it is, wait for the end product before you judge how successful the delegation has been. •
Do not delegate many tasks at once.
In fact, if delegation makes you uncomfortable, you should start by delegating one thing only. Your delegation comfort level will build over time as you see the job you've assigned completed successfully. Then you'll be ready to delegate something else. •
Do not give up too quickly.
My relationship with my first accountant was not a success. He was competent, but I didn’t feel that he was willing to give me enough of his attention. Rather than throw up my hands and start to do my own accounting again (or worse, putting up with a relationship I was not happy with), I went an d found another accountant that I’m much happier with. When you’re trying to delegate, you’re not necessarily going to find the right person the first time. But you need to persist and find that right person if delegating that task is going to work. Delegation goes against the grain for many small business owners. But if we want both our businesses and our personal lives to thrive, delegation is a skill we have to master.
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6.0 Conclusion
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7.0 Behavioral Guidelines
For empowerment the following guidelines should be followed. 1. Articulating clear vision and goals for others by creating a picture of desired future, identifying specific targets and strategies, establishing goals that are specific, measurable, aligned, reachable and time bound. 2. Fostering personal mastery experience for others by dividing large task into smaller ones and delegate part by part. 3. Successfully model the desired behavior by demonstrating how to accomplish the task. 4. Providing needed support to other people by recognizing and encouraging their work. 5. Arousing positive emotions by fostering an informal relationship. 6. Providing information needed by others to accomplish their work. 7.
Providing resources needed for others to accomplish their work by providing training, technical and administrative support.
8. Connecting others’ work to outcomes and effects. 9. Creating confidence among others by being reliable, fair, caring and honest.
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The Case of Minding the Store For empowered delegation, the following guidelines should be followed. 1. Determining when to delegate by addressing the following criteria
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Do subordinates have the necessary information or expertise? Is the commitment of subordinates critical to successful implementation? Will subordinates’ capabilities be expanded by this assignment? Do subordinates share with management and each other common values and perspectives? Is there sufficient time to do an effective job of delegating?
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References: 1. http://www.accel-team.com/human_resources/ 2. Devid A. Whetten and Kim S. Cameron “Developing Management Skills” Sixth Edition 3. http://sbinfocanada.about.com/od/worklifebalance/a/delegate.htm 4. http://humanresources.about.com/od/glossarye/a/empowerment_def.ht m 5. http://humanresources.about.com/od/involvementteams/a/empowerme nt
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