BUS600 NWalker Wk2 Assgnmnt Topic Identification

8/3/2019 BUS600 NWalker Wk2 Assgnmnt Topic Identification

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Running head: HUMAN RESOURCE MANAGEMENT AND LEADERSHIP 1

Week Two Assignment: Topic Identification

By

Nancy Walker

Instructor: Nancy Waldron

BUS600: Management Communications with Technology tools

Ashford University

January 16, 2011


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HUMAN RESOURCE MANAGEMENT AND LEADERSHIP 2

Inventory shrinkage attributed to shoplifting, employee theft, and product expiration negatively

impact a retailing company's net income. Corporations are largely aware of the problem and

create incentives and security systems for managers to monitor inventory control. However,

many companies neglect to create a corporate culture that optimizes employee engagement to

reduce shrink. Effective training, compensation and incentive structures, especially to ground

level workers who can impact shrinkage more than managers, still need leadership to embed

corporate values to a point that front-line employees feel empowered and similarly care about

protecting company profits. A worker who is apathetic can slowdown work, a soured employee

can do more harm even with best management practices already deployed.

It is hypothesized that a leadership paradigm might be missing. Companies might be able to

reduce shrinkage and improve profitability through compensation or incentive structures that

include strategic rewards for effective inventory control or employee profit-sharing, not only for

management but also remuneration for front-line workers. In addition, corporate culture might

need to move beyond indoctrination and normative values to more effectively communicate

objectives and sustain profitability. Leadership principles incorporated into management policies

and practices might help employees feel more empowered as stakeholders that think outside the

box to improve inventory control and security. Rewards and engagement might work better than

punishment because employees might switch their thinking from serving short-term self interest,

apathy or negative consequences towards innovation and long-term mutual interests.

Since trade publications and academic journals have established a long and broad interest in

corporate profitability and identify inventory shrink as a measurable component, I will review


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industry and management literature to discuss the problem of inventory shrinkage and consider

both common and best management practices already available to reduce shrink. I will also

review organizational psychology and human resource management research to identify possible

correlations with motivation, business ethics and economic models that might suggest further

inquiry into improved employee engagement. My research will hopefully include data from a

local Safeway grocery retailer because I have recently been offered a position to manage the

general merchandise department, and the store manager has agreed to share information for my

project.

I am particularly interested in the organizational leadership topic because I notice that both non-

profit and for-profit enterprises seem to be underserved by a variety of management models and

practices. I also want to be able to produce a viable proposal for my supervisor to perhaps reduce

shrink in my own department. I will need to communicate ideas in a way that considers

management style, subordinate-supervisor roles, and effective communication channels.

inventory shrink is a phenomenon that intersects management, labor, consumers and community.

In all, the Safeway example might help me impact store profitability and illustrate contrasts

between leadership and management paradigms.


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Annotated Bibliography

Baker, T. B. (2009). Towards a new employment relationship model :Aligning the changing

needs of individual and organization. Leadership & Organization Development

Journal, 30(3), 197-223. Retrieved from http://proquest.umi.com/

pqdweb?did=1867609421&sid=5&Fmt=3&clientId=74379&RQT=309&VName=PQD

This case study of an Australian-based re tail travel business to provide a case study

examines and builds on Noer's employment model based on five values (flexible

deployment, customer focus, performance focus, project-based work, and human spirit)

that form a psychological contract with employees. The study also suggests additional

values from the psychological contract literature (commitment, learning and development)

As a result of the findings, Noer's model is extended to eight values.

Bartlett, C. A., & Ghoshal, S. (2002). Building competitive advantage through people. MIT

Sloan Management Review, 43(2), 34-41. Retrieved from http://proquest.umi.com/

pqdweb?did=102779299&Fmt=6&clientId=74379&RQT=309&VName=PQD

This article discusses employees as both human and social capital in relation to job mobility and

the war for talent. Intense competition for talented workers makes it especially important for

managers to redefine relationships with customers, competitors, and to win the allegiance of

employees.

Guthrie, J., & Guthrie, A. (2006). A research agenda for loss prevention. International

Journal of Retail & Distribution Management, 34(11), 873-878. doi:10.1108/

09590550610710264

This paper identifies an extensive body of existing literature and draws attention to a need for

further interdisciplinary research in loss prevention. The findings point to the need to consider


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shrinkage as systemic phenomena that extend across a business from design and planning to

operations. It also identifies the impact of shrinkage on increasing costs, reduced sales and

management.

National survey shows employee theft at a record high. (2004, January). Home Channel News,

30(2), 4, 20. Retrieved from http://proquest.umi.com/

pqdweb?did=541526601&sid=17&Fmt=4&clientId=74379&RQT=309&VName=PQD

Retailers usually educate employees about their roles in a companys loss prevention

strategy at new hire orientation. Nearly 25% of companies polled indicated plans in place

to step up efforts to inform workers. Around 60%o favored training videotapes,

newsletters and "honesty incentives" to keep their front-line employees engaged in the

process. When a store's workforce is in turmoil, its shrink rate is likely to rise. Dishonest

employees usually work less than nine months at a store, and the authors conclude that

employee theft can be linked to employee turnover rates. Inventory shrinkage for

companies with less than 50% annual employee turnover experienced inventory shrink

significantly below the industry mean. Application and monitoring of closed circuit tv

(CCTV and merchandise tagged with electronic acousto-magnetic security (EAS) devices

reduced, but effectiveness varied with management. Radio-frequency source tagging

(RFST), received significant attention after Wal-Mart deployed the technology on all items

by 2005, but RFST was in use at only 10 % of the companies from the study.


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Niehoff, B., & Paul, R. (2000). Causes of employee theft and strategies that HR managers can

use for prevention. Human Resources Management, 39(1), 51-64. Retrieved from

http://proquest.umi.com/pqdweb?did=50581739&sid=29&Fmt=3&clientId=74379

&RQT=309&VName=PQD

Beginning with the premise that nearly $200 billion in U.S. business losses can be linked

with employee theft, many possible causes of employee dishonesty have been discussed

but few prevention strategies have been provided for human resource managers. The

author discusses employee personality characteristics, social environment, flaws in the

organization's control system, and identifies guidelines for theft prevention. Strategies

may involve either top-down control or trust-building experiences for employees and

managers and HR managers are urged to implement strategies that are appropriate for

their organization.

Petrescu, A. I., & Simmons, R. (2008). Human resource management practices and workers

job satisfaction. International Journal of Manpower, 29(7), 651-667. Retrieved from

http://proquest.umi.com/pqdweb?did=1596418721&Fmt=3&clientId=74379&RQT

=309&VName=PQD

This paper uses data from British firms to investigate the relationship between human

resource management (HRM) practices, compensation and overall job satisfaction. The

study finds that several HRM practices raise both variables. These effects are only

significant for non-union members. The paper adds to the empirical literature somewhat

because researchers use two separate data sets to develop its thesis.

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BUS600 NWalker Wk2 Assgnmnt Topic Identification