Posted at 10.06.2018
This essay contrasts the possible reasons behind the decline of the supermarket's performance. It argues the major problems that might cause this decline and exactly how more effective operation management might deal with these problems. Bad inventory management might be considered a reason behind cost increases, or being out of products which brings about losing customers and as a result leads to a decline of the supermarket performance. Employees play an important role of the success of any business. Dealing inefficiently with employees might be one of the reasons which cause the performance decline. Training, efficient job design and compensations plays important role of attracting more qualified employees and get the benefits of retaining the skilled ones. The profitability of the supermarket, mainly be based upon customers. However, to attract new customers and retaining the current ones, the supermarket will need to have a good customer's care department which handles the customers' needs. Good shopping environment and well organized products with interesting offers will attract customers and encourage them to keep shopping with the supermarket. Competitors could play a huge role on the decline of the supermarket performance. When competition reduce prices or prove better qualities, the supermarket will lose customers therefore of the, the supermarket might also lose employees. This essay targets the value of the operational manager on dealing with the decline of the supermarket performance and exactly how to use the strategies and methods to be able to attain the best performance for the supermarket.
The decline of the grade of services and performance of the supermarket should be well managed and perfectly solved as the supermarket is one of the visible supermarkets in Australia. To be able to solve this problem more accurate, it is strongly recommended to identify what could be the problem and also to analyse the major factors that might cause this problem in order to find the best answer for it. However, scientific problem solving is the best approach of taking a good control of the condition. To be able to identifying this issue, super market management should undertake a SWOT analysis for the branch. However, this can help the management to truly have a good view of the problem from external and internal. SWOT analysis is a way used to appraise the Opportunities, Threats, Strengths and, Weaknesses concerned in a project or in a business enterprise. It involves specifying the purpose of the business project and identifying the inner and external factors that are favourable and unfavourable to achieve that objective (Miller. M 2007). Your choice makers have to verify whether the objective is achievable. If the objective is not achievable, different objective must be chosen and the process repeated. The goal of SWOT analysis is to classify the internal and external factors which are important to achieve the goals. SWOT analysis might be utilized in any decision making conditions whenever a desired objective has been defined (Mengel. M, Sis. B & Halloran. P 2007).
Problem solving techniques help managers to conduct a precise analysis of the issues that face the supermarket. However, these skills give the management good begin in the business problem (Zudilova. E 2005). By following the problem solving techniques, it is strongly recommended to test the possible problems which may cause the decline of the product quality and performance of the supermarket. One of the major problems which can cause reduce on the supermarket performance is bad inventory management. Inventory management is a strategy and system which manage inventory requirement, provide replacement techniques, set targets and report inventory status which handles functions associated to the management of material (Minner. S 2002). Good inventory management helps the supermarket to keep running products. However, customers always find their required goods. Because of this, the super market will keep customers satisfaction. Also good inventory management helps the supermarket to reduce its costs because, it can help to reduce defects of the inventory goods and keep running of the goods (Adida. E & Perakis. G 2005).
In order to have a good inventory management, the super market should have a well managed warehouse that decrease the inventory damages and have a good way of measuring inventory so the warehouse has a clear view of the inventory quantity and reduces the chance to be out of inventory. The system of inventory proportionality is most suited to inventories which remain hidden by the consumer. As contrasting to keep complete systems where a retail customer like to see whole shelves of products they prefer to buy. Inventory proportionality is utilized effectively by just in time (JIT) mechanized processes and retail applications in the place where the product is hidden from customers (Axsaer. S 2006). Just in time (JIT) represents alternative approaches in enhancing the effectiveness and efficiency of an organization operations functions. It is a procedure for achieve excellence in a manufacturing company based on continuous elimination of waste and regular improvement in production. JIT is a philosophy, which encompasses virtually all business processes and functions within the supply chain. The major focus of JIT research has been in the regions of manufacturing implementation (Kreng & Wang 2003).
Employees' problems could be a major reason of the decline of the supermarket performance. Among these problems could be employee insufficient skills. In this problem the employee really lacks the abilities very important to the satisfactory performance of employee duties, or if another issue is negatively the ability to perform. Often, when a manager assumes that someone is not able to execute a job for insufficient skill. Another problem could be an employee who works at a slow pace as a slow work pace can be being among the most difficult problems to resolve unless you have standards or goals against which to compare actual performance (Aaron P et al 2009). Employees who are difficult to be managed employ a bad effect on the supermarket performance as the employee who is difficult to control can make big problems. They could be disruptive to the progress of the supermarket (Raymond. A 2009).
Employee engagement is the intended of employee surveying. Further, survey is the first step in building a value chain that brings about forging the type of organisational environment that supports and contributes to its success. Employee surveys can assist in increasing staff retention, lowering absenteeism, increasing productivity, and increasing profitability. Survey outcomes reflect how employees perceive their work, management, the recognition and rewards they receive, and the communication ethos of the supermarket retail branch. When making employee survey there are certain factors that ought to be taken into consideration. It should be well planned with important points which may suggest procedures improvements. An effective employee survey starts with a specific communication plan which defines spectators segments, key messages, timing, and responsibilities. Design and relevance are essential; it should include key factors which can be of concern to employees. Effective follow-up must be ensured, and monitored and accountable (Sanchez 2007).
In order to resolve these problems, the supermarket must do different strategies which helps to increase the employees performance. Job rotation can be an approach which helps on the development of the management. It really is design to move employees throw a schedule of their time and different duties which helps employees to get more insights and experiences. At the same time, it can help employees to reduce the level or work boringness because they are changing their responsibilities in order to reduce the task similarity as it is the main reason of creating boringness for the work (Ortega J 2001). Job enrichment is a powerful approach as it is an try to motivate employees giving them the opportunity to use the range of these abilities. It could be contrasted to job enlargement which simply escalates the range of tasks without changing the challenges (Grant A 2007).
Another approach which helps to improve employee performance is job enlargement. It's the process which the supermarket extends the duties and duties of employees. This process helps employees to be motivated through reversing their specialization. Which means that when employees' duties increase, this will help them to raise the degree of their skills. So rather than doing repeated work they'll perform different and many tasks. Because of this this can help those to be motivated by doing more efforts to understand how to cope with the new duties so they'll cooperate more together to focus on these duties and will be more interested to make the work as best as they can (Heize, J & Render, B 2008).
The successful applying of these strategies helps in employee attraction. It's the ability to attract the best employees ensures client satisfaction, satisfied staff, retention of the supermarket knowledge and learning and effective succession planning. In order to attract the best qualified employees, the supermarket management should make a good rewarding system such nearly as good salary, bonuses, and intensives. Training current employees and appearance after them will really helps to build their loyalty to the task, nonetheless it help affect on their behaviour toward the supermarket (Kickul J 2002). By applying this concept will help on employee retention. Examining why is employees unhappy is important. However, considering employee work satisfaction, morale, positive motivation, and retention. Pay attention to employees and provide opportunities to allow them to talk to company management. If employees feel safe, they will tell what is on the minds. Work culture must encourage trust for successful two means of communication. Good salary, enough vacation and holidays, and instruction compensation are three basics in employee retention (Kemelgor B 2008).
One of the effective tools of measuring employees' performance is balance score cared. It really is a strategic management approach which is designed to be employed by management to keep a an eye on the employees' performance and just how they may be doing their job. The purpose of this method is to alert managers if there is a department or section that includes a lack on its performance. In so doing, management will know which department or whom employees aren't doing their job on the correct way. It measures the management of the time which is enough time that work should take to be achieved perfectly. So if there is insufficient management of their time it will appear to the management a report about what was the condition with this section (Kalpan. R & Norton. D 2007). Through the use of this measure on the various sectors of the supermarket, it will be easily to learn which department has a lack or decline of its performance, consequently of this, it is not hard to shrink the defaults of the section and fix it over a prober way (Arora. R 2002).
In order to make employees satisfied and well managed, also to manage the total amount score card application, RECRUITING Management is responsible of the effective management of employee. It's the management of employees which are the most valued assets of the company. Without employees, the supermarket will never be able to do its tasks and cannot achieve its target. Because the supermarket work depends most on employee works, so this asset must be well managed or the business will lose its objectives. The purpose of this management is to keep employees managed effectively and to make sure that employees are content with their work in order to keep retention of the employees and attract more skilled employees (De Cieri et al. 2008). To managed employee effectively, the recruiting management should provide advantages to employees such as training, compensation, intensives, and good rewards. This is the tasks of the human resources department as the control of the employees as it is important assets of the company which helps the supermarket to have the best employee quality (Guthrie. J & Wright. P 2005).
Businesses need to retain existing customers. That is another reason which might affect the decline of the supermarket performance which is client satisfaction. Client satisfaction is a way of measuring how products and services complete by way of a company meet customer expectation. It is appearing as a performance indicator of the business enterprise. It will be measured as a part of the management balance scorecard (Luo. X & Bhattacharya. C 2006). In competitive market, businesses are competing for customer attraction. The amount of competition is high because the best changes of customers tastes. The increase in technology and competiveness, brings about a rise in the customers tastes and customers requirements (Mason & Roger. B 2008). To gauge the success of the business enterprise, is based on the measure of client satisfaction. However, to help make the supermarket successful, it should achieve the best level of client satisfaction. By differentiate product according to customer requirement. For example, making different products with different sale prices and different qualities can help on serving different taste and customer quality lifestyle. As a result, the supermarket will attract different standards customers and various tastes such as age, gender, culture and standard of living. The overall goals for supermarket or any businesses are to find, retain, and attract new customers, nurture and retain those that supermarket already has (Cooil. B et al 2007).
To have a highly effective customer satisfaction, there must be as a person relationship management. It is a generally recognized, extensively implemented strategy for managing and development a company's interactions with customers, consumers and sales prediction. It supports using technology to arrange, mechanize, and harmonize business processes, not only sales activities, but also those for marketing, procedure management, customer services, and tech support team (Gustafsson. A et al 2005). Markets are changing rabidly all the time. It will depend on the type of product which business produces. However business must be active otherwise they'll lose customers. Some of the main reasons which will make markets change rapidly, such as; Customers development of needs and wants, entry of new competitors, new technology, and governments introduces new legislation (Vrontis. D & Pavlou. P 2008).
Another reason, that could cause decline of the supermarket performance, is external environment of the business enterprise. Businesses do not function in a vacuity. They have to act and react to changes beyond your business. These factors which happen outside the business are regarded as an external factors or influences. These factors will affect back the internal functions of the business enterprise. A few of these externalities could be technological, ethical, cultural, social, economical, and legal (Miller & Jordan. A 2008).
By examining these problems, it is strongly recommended of the supermarket management to take some action in order to solve these problems. For inventory management, the supermarket should use clean, healthy, and inventory measurements which helps on keep running inventory which helps more in client satisfaction (Coughlan. P & Coghlan. D 2002). For employee's problems, the human resources management should makes good training, compensation, the different job design approaches (rotation, enlargement, enrichment), and balance score card for measuring departments performance as this all helps and employees satisfaction which therefore brings about employee attraction and retention. For customer's problems, the managements should care about making customers attraction; this may be done by making lessen price, good quality, more promotions, more offers, fast providers, effective customer support, good environment such as lightning and clear organized products, tools for easy shopping such as trolleys, and finally big parking area. For external environment such as competitors, the company should get the features of lowering prices, increasing qualities, effective marketing, wide range of products, supermarket environment, and better customer services which helps in building good customer loyalty (De Cieri et al. 2008).
In conclusion, through the use of certain functions management tools to analyse supermarket retail branch businesses and processes, manager could identify the sources of decline in quality of the service. SWOT analysis helps the management to identify the positioning of the business internally such as inventory management and customers and externally such as competitors. Tools such as good inventory management, balance score card, training employees, compensation, job design, customer care, and managing externalities help on building successful performance of the supermarket. Furthermore, when you are aware of the main element factors that effect on performance, manager could decide the focus, and deal with the problems more effectively. To repair the decline of the supermarket performance, it is recommended to create a good employee loyalty which as a result attract more skilled employee and retain the skilled ones. Also it is preferred to build a good customer service, reduce prices, and make enough promotions will help to attract more customers. However, this will raise the profitability of the supermarket which as a result escalates the supermarket performance.