Interclean Generic Benchmarking

Running head: InterClean Generic Benchmarking InterClean Generic Benchmarking Anabel Garcia [Additional Authors] University of Phoenix MBA 500 Abstract Circuit metropolis: Anabel Garcia Issue At the beginning of the 2007 fiscal year, Circuit City (CC) denote that it would layoff more than 3,400 of its highest paid employees (Business Week, 2008). The goal of this reduction in personnel department was to reduce internal costs by eliminating a king-size percentage of CCs upper and middle management. The master(prenominal) issue with this reduction is CC has lost most of its expert employees and customer satisfaction has plummeted. CC needed to make changes in order to cut costs, but it failed to integrate staffing practices with strategy (Dreher & Dougherty, 2001). The expiry of this and many other failures at the upper management take aim is CC shares have fallen 28% in the wear year. Strategy The strategy CC chose to use seemed quite simple. Fire its employees and re-hire them at a lower market rate wage (Business Week, 2008). This would doubtlessly save the organization a great deal of silver and CEO Philip Schoonover thought it was an excellent solution. The problem was CC failed to crystallize it was firing its key customer service representatives.

The employees who made get to with the customers on a daily basis were being allow go. Results The result of CC firing thousands of employees is it saved money on salaries, but lost a great deal more in sales while increasing customer dissatisfaction. CC failed to integrate staff practices with strategy. These practices require an organization to characterize explicitly its business strategy then make judgments about if existing staffing practices appear to be aligned with strategic orientation. CC fired personnel but failed to see the effects these cuts would have on staff and its ability to satisfy customer needs. The result of this finale is CC shares tumbled to $4.80 during trading on December 21, 2007 hitting a new... If you want to get a full essay, order it on our website: Orderessay

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