ROWE and Flexible Work and Success at Best Buy
I. Point of View:
Consultant
II. Statement of the Problem:
ROWE program has a difficulty of implementation for retail employees compared to employees in corporate offices and nonretail jobs.
III. Objective/s: 1. To identify what are the factors that the ROWE program for retail employee is more difficult to implement.
IV. Areas of consideration:
1. With increased productivity, as claimed by the ROWE program, employer expectations of outcome by employees may rise.
2. Retail industry is usually dependent on when the costumer wants to purchase their product, so if the person at the retail store isn’t there when the costumer is there because
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7. In theory, ROWE program would work for anyone whose work is project or task based, regardless of whether the employee is an individual contributor or part of a team.
8. After two years, Best Buy saw a 77 percent increase on average in involuntary turnover across three ROWE departments. Meaning, the number of people the company fired for underperformance soared
9. As to legal issue is concerned. ROWE program is complicated when it comes to issues such as nonexempt hourly workers. Law requires that hourly workers log the time they work so that they can be paid overtime if necessary.
V. Conclusion & Recommendation:
ROWE had several kinks that needed to be ironed out before the program could become a workplace standard. One of the biggest concerns about ROWE was that the difference between the work and personal time of the employees could become blurred. ROWE requires manager to set clear goals and objectives. It requires manager to plan ahead and clearly communicate.
The new design required a system in which all employees’ schedules could be accounted for and that everyone is in communication with one another. Invest in technology so that it’s easy for employees to work remotely. This was done through the use of cell phones, since they never knew when or who was in the office and by the managers being informed of their employee’s schedules for that week.
The new emphasis placed upon managers trusting their
Employee burnout and turnover was high. After the ROWE program’s implementation, productivity has increased and voluntary turnover has decreased. The Culture of Best Buy Prior to the implementation of ROWE at Best Buy, employee morale was low; the turnover rate was high, employees worked very long hours. “The company’s culture used to embrace long hours and sacrifice”. Employees spent a lot of time in impromptu meetings called by management. Employees were called upon to complete reports with little or no notice. Some employees stated they spent little time with their families and worked even when they were not physically in the office. The system at Best Buy before ROWE was work, work, and more work. Employees seemed to be working 24hrs a day. Now, with more control of their time, employees are more productive. They are able to decide when and where they want to work. The change has also helped them to confront some biases in the workplace. Deciding whether or not to extend the same benefit to hourly employees exposed how some managers felt. They resisted because of their belief that it was not for everyone, some people needed to be held to the old system.
The retail sectors are specializing in the selling of products that the consumers need in specific times and places. However, it is hardly the retailer's responsibility to produce the goods. The retailers just act agents, as they get the products to the consumers. Industrial retailing will focus more on the sale of small quantities of the products to the buyers. Transformational processes are not integrated in the retailing processes, as the retailers neither produce nor manufacture any goods. Initially, retailing was just transacted in stores and shop. Presently, technological upgrades and developments have affected the retailing process positively, leading to the use of electronics to do transactions. In most cases, the retailers will transact with cash specifically during payment of the products (Retail Council of Canada, 2009).
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2) Will the benefits gained from the program improve employee motivation enough to warrant the expenditure?
Working in retail, entails patience and knowledge of the products in the store. Customers should
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As we all know, the retail industry is very crucial and is highly competitive. As this company
Retailing is one of the largest industries in the United States and accounts for approximately 10 percent of the gross national product. A retailer is someone who purchases items from a supplier or wholesaler for re-sale at a profit. The retailer earns his or her living by making a profit on the re-sale. Retailers purchase a product, mark up its cost, and advertise it for sale. The mark-up process is the key to the retailers business because if the product is marked up too high, consumers will not buy it. If it is marked too low then the retailer will have lost profits and the supply may be quickly exhausted. Another key to the retail business is knowing what the customer needs or wants and when, how much the customer is willing to pay for the product, what the competition is charging, and where to find the product at the best possible cost to make a profit.
[“Look at why big companies die,” says Shari Ballard, Best Buy’s executive vice President, retail channel. “They implode on themselves. They create all these systems and processes--- and then end up with a very small percentage of people who are supposed to solve complex problems, while the other 98% of people just execute. You just can’t come up with good enough ideas that way to keep growing.”]
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But what are the consequences for the employees ? The new system scheduling time work is totally irregular and unpredictable which may decrease the employee’s job stability and potentially create financial hardships. The result was a computerized system that totally