Reference no: EM133010161

Australian Hardware (a simulated business) is a large and expanding hardware and homewares retailer with approximately 140 stores located across Australia. In its vision statement, Australian Hardware states that it intends to 'lead the hardware and home-improvement market in Australia within five years'.

Australian Hardware encourages managers to take a flexible approach to meeting performance targets and to set goals in close collaboration with employees. To implement strategic directions and advance Australian Hardware's values, managers are expected to lead employees by, first of all, modelling positive behaviours and attributes - those they expect their employees to emulate and embody in turn.

You are the new General Operations Manager of the Wollongong store and you are ready for a challenge. You are directly responsible for managing general sales and checkout staff, administration staff and a human resources officer. You report to the Store Manager, who is responsible for all areas of store responsibility (Timber, Plumbing & Electrical, Gardens and Homewares departments and general operations).

Scenario 1

Your Store Manager has had a stressful month. It is the end of the financial year and sales revenue in the Timber and Plumbing & Electrical departments is down on targets, almost certainly due to increased competition from smaller competitors for trade contractors' business.

Just this week, the Store Manager held a meeting in which she yelled at all the department managers and told you and them to work out a way to improve revenue. Obviously, the outburst did not make much sense as the department managers, in such a large business, do not have the capability to raise much revenue directly. This is because marketing and distribution innovations that could have an effect are mainly a head office responsibility.

The Wollongong store's inability to counter the threat from smaller, more nimble trade suppliers has been the main reason for the revenue deficit. Naturally, the atmosphere around the store and in the management, team is subdued, and a few managers have discussed leaving the organisation; other managers have responded by pushing unreasonable sales demands onto their sales staff.
You are now feeling pressure to do something: to act contrary to budget planning and cut costs or to increase pressure on others to offset poor performance in other areas. In your opinion, this leadership behaviour was disrespectful to all the managers, created unnecessary concern about job security and undermined trust.

There has been a clearly negative flow-on effect down through the store, which is now affecting people at a lower level. You are justifiably angry at the manager's behaviour and blame her for making a bad situation worse with poor leadership and poor emotional awareness.

Review the scenario above and answer the following questions:

a) Describe what you think is the best way to respond to the Store Manager's behaviour. Describe how you would model positive leadership behaviour.

b) Describe the principles of emotional intelligence that the Store Manager did not demonstrate.

c) Describe how the Store Manager should have acted and communicated.

d) Describe the kinds of emotions the Store behaviour may have triggered in the parties involved in that meeting and how her reaction may impact performance in the workplace