The Manager's Dilemma

Introduction:

Paul is the manager of an XYZ retail store located in a regional shopping center on the outskirts of Warsaw. After completing two years of study, Paul has held the position of store manager for the past year. An hour ago, the sales division manager called Paul and informed him that the spring inventory shortages in his store were significantly higher than last autumn. The division manager was concerned because other stores are also showing poor results, and consequently, the entire sales division is under considerable pressure from headquarters. Paul was surprised by the shortages in his store; the autumn data had been acceptable, and everything seemed to be in order with the inventory. During the fifteen-minute conversation, the operations manager stated that Paul’s future in the company might be at risk and that it would be better for him to bring the shortage percentage down to an acceptable level before the summer inventory. Paul is worried because he recently received an invitation from the executive development director to participate in a management training workshop scheduled for September at the company’s headquarters. For the last two years, he has been striving for a promotion and does not want to jeopardize his chances now. Paul supervises nine full-time and part-time employees. They have always seemed like responsible subordinates. Their professional background is quite diverse – a few are currently finishing their studies part-time. However, most are long-term senior employees with average career ambitions. For the last hour, while trying to finish today’s “paperwork,” various potential scenarios for further action have been running through Paul’s mind. Ultimately, he decides to write them down and create a list of twenty steps he can take in response to the problem.

Instructions:

Using the scale below (1 – 5), enter the number corresponding to the level of importance you would assign to each of the twenty alternatives in column 1.

1. Very important. You would do this immediately.
2. Important. You would do this when time allows.
3. Average importance. You might do it or not, depending on many other factors.
4. Not very important. You probably would not do this.
5. You would try to avoid this solution.

Action	1	2	3	4	5
Insist that the training specialist retrains the entire sales and warehouse staff on proper checkout and sales control procedures.
Call a meeting of subordinates and firmly state the shortage problem, indicating that “heads will roll” if the next inventory results are not significantly better.
Ask the security department for closer surveillance of your employees.
Call a meeting of subordinates and ask for their ideas and suggestions.
Meet with several members of the sales and warehouse staff to explain the problem.
Place motivational slogans and signs in the warehouse and offices to encourage shortage reduction.
Develop a detailed action plan with your employees aimed at reducing shortage levels in the department.
Relocate or physically secure all high-value inventory items. Continuously monitor your employees.
Tighten bureaucratic control systems in the department without further discussion.
Although such rules do not apply in the store, insist that all employees bring their personal purchases to you for inspection and stamping.
Ask the sales division manager if you can organize an incentive program for your employees to encourage a reduced shortage rate.
You suspect one of your employees, though you have no proof. You must find a way to terminate this person.
Ask each employee to reflect on potential causes of shortages in the department and provide you with written conclusions. Review the best concepts as a group.
Ask the sales division manager to deliver an emotional, fiery speech to your employees about shortages, profits, and job security.
After the first meeting with your employees, meet with them weekly to exchange information and monitor progress.
Make unannounced visits to your store when employees think you are away from the company for the day.
After obtaining sufficient input from your employees, set a goal for the shortage level and monitor it together with the division manager.
Ask the HR manager to raise requirements and provide you with better-qualified, younger employees.
Personally develop a comprehensive list of potential causes for shortages and review it in detail with employees to get their opinions on the matter.
Closely monitor each person’s work and make sure everyone knows they are potential suspects.

Interpretation Sheet – Understanding the Results:

The problem Paul faces is similar to difficulties often encountered by other supervisors. Paul is under strong pressure to take effective action to solve an emerging problem in the department. As with all business issues, time is limited and the range of alternative solutions available is quite broad. The way Paul chooses to handle the shortage problem largely reflects the assumptions he has made about his subordinates and the characteristics of their actions in the workplace. In this activity, you play the role of Paul. The actions you consider important or unimportant reflect your own attitude toward your employees and your belief (or lack thereof) that they should be included in the process of supporting management in your department.

Douglas McGregor, a business psychologist, provides a convenient method for understanding the types of assumptions managers make regarding their subordinates. He identified two sets of common behaviors and attitudes, which he called Theory X and Theory Y.

Theory X (People naturally usually…)	Theory Y (People naturally usually…)
1. Dislike overworking and work as little as possible.	1. Work hard to achieve a goal they are committed to.
2. Avoid responsibility.	2. Accept responsibility within the above commitments.
3. Are not interested in achieving anything.	3. Have a strong desire to achieve something.
4. Are incapable of directing their own behavior.	4. Are able to direct their own behavior.
5. Are indifferent to organizational needs.	5. Want the success of their organization.
6. Prefer to be directed by others.	6. Are not passive or submissive to control, but prefer to make decisions regarding their own work.
7. If possible, avoid making decisions.	7. Will make decisions within their commitments.
8. Cannot be trusted or relied upon.	8. Do not fail if we trust and rely on them.
9. Are indifferent to organizational needs.	9. Want the success of their organization.
10. Find motivation in money or other benefits.	10. Are motivated by interesting and challenging goals.
11. Do not change after reaching maturity.	11. Are able to change and grow.

Theory X and Theory Y represent conceptual extremes that are mutually exclusive. While individual supervisors may represent a “pure” Theory X or Y approach, their attitude is most likely to lean toward X or Y or be a mix of both theories. Before scoring your answers, take a moment to mark your own attitude toward the X/Y philosophy on the scale below. You can then check how your actual results compare to your expectations; this will give you some insight into the accuracy of your self-assessment. You can also ask others for their opinions on how they perceive your behaviors. Many people’s self-assessment often does not correspond at all to how their behavior is perceived by others.

Your initial self-assessment (1-10):

(1 – Theory X, 10 – Theory Y)