Red Spots Market’s Company

1 January 2017

How should Fosdick respond to the immediate situation? Fosdick had faced the pilferage fact at the workplace. He was the witness as clerks were walking with opened cases of sweeties, mustards, cheese, soft drinks, bread and etc. His reaction to the pilferage fact should definitely be clear and hard. He should express his surprise to these circumstances and show the disapproval of the fact by refusing the sandwich. Otherwise his decision to accept the sandwich would make him the participant of the pilferage.

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What controls might have been used by Red Spot Markets to reduce or eliminate the problems discussed in the case? The problem expressed in the case seems to be serious. One troublemaker involves almost the whole group of employees into the pilferage. The more terrible is that he tries to legitimize the fact like normal. To address properly this critical situation, the Red Spots needs to take corrective actions. First of all it needs to clearly articulate work rules to avoid employee engaging from unproductive and potentially disruptive work, but that isn’t still enough.

To be effective the rules must be enforced. For that reason the company should communicate, enforce those rules, establish the closer control on workers and suspense any precedent of pilferage. Question N3 What longer-range steps should Fosdick take to control the operations of the Providence distribution center? Reading this case Bigellow seems to be the real leader in the warehouse rather anyone else. He is the person who sets the work pace in the warehouse: ,,When he felt good things hummed; when he was not feeling well or absent work dragged”.

Considering these circumstances there’re much and heavy work Fosdick needs to arrange for long-term. The situation should be changed thoroughly as Tom Bigellow shouldn’t be the person who dictates rules. Fosdick should implement the proper management style and system so his manager authority should be upward rather Bigellow’s and everyone else. Question N4 What longer-range steps should Fosdick take to improve the Providence distribution center’s productivity? As we assume the one troublemaker involves almost the whole group of employees into the pilferage act.

That’s why the worker productivity becomes lower and shrinkage appears higher respectively. Fosdick should keep himself awake and help establish the pilferage disclosure and productivity measure mechanisms. But unless Bigellow sets the rules and encourages others to disorder nothing seems to be changed. I don’t see the point why this person should be kept by the company if he arranges such problems and is the direct reason of worker productivity shrinkage. Question N5 What longer-range steps can Fosdick take to reduce the distribution center’s high rate of shrinkage?

While reading the case I have such sense that company has no any proper mechanisms to react against disorder, despite the fact is obvious. Fosdick needs to alert and ensure that no any shrinkage would be endured any more. Moreover he should encourage employees not to get involved in destructive act by suggesting bonuses or other incentives as the reward in exchange of honest workers. To sum up, Fosdick needs to ensure proper supervising, disclosure and reward mechanisms to reduce the high rate of shrinkage. Question N6

Assume that Fosdick decides that the practice of free lunches from the open cases of goods must be stopped. Develop and present arguments he should give in a meeting with a union shop steward. First of all the practice of free lunch without permission is theft referred as pilferage-employee theft. That’s why the shrinkage rate is higher in the warehouse and employee productivity lowers respectively. Besides, throughput per worker hour is detected to be 4% lower than in Newburg warehouse. That’s why the Providence center is associated to be the more problematic and costly warehouse.

As the reasons are important it requires immediate reaction, control and correction not to get worse even more. Question N7 Assume, instead, that you are the union shop steward. Develop and present your argument that the free lunches represent a long-standing employee benefit enjoyed by the distribution center’s employees, and that management’s attempt to stop them is a breach of an unwritten contract and will be resisted Free lunches have some advantages too. First of all, employees don’t spend money in meal and it is more motivational factor for them.

Also, they don’t have to go outside; they can eat inside the company and save time. Moreover, all workers will eat together that helps to communicate, share ideas, problems and to become a friendly work group, where everybody will have same vision and goals Question N8 Much of the situation described in the case seems to revolve around the personality of T. D. Bigelow. How should he be treated? Why? For us Bigellow is very complicated person that agitates people toward disorder and pilferage. Despite his ability to get employees to work I think that he should be fired.

There’re dozens of other reasons supporting our decision: Spotty attendance; Doesn’t work if he’s not on the right mood-tired or irritable; He might even sleep without carelessly during the heavy and busiest work hours; All these facts indicate to his personality as irresponsible and careless employee. Respectively, Fosdick should establish his strong management authority and replace him as far by bearing Bigellow’s caprices the company legitimizes irrelevant behavior that might become the reason of self-destruction.

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