Download - JC Penny's Organisational Structure
CASE PRESENTATION
REMAKING JCPENNEY’S ORGANISATIONAL CULTURE
GROUP MEMBERS:
ABHISHEK KUMARDEEPSHIKHA
MAYANK NARANGPRIYANKA DUGAR SHIVANI TAMOTIA
URMI MOGRA
JCP- AN INTRODUCTION
1902• Set up by James Cash Penney• Partnership with Thomas M
Callahal & William Guy Johnson
1907 • Bought partner’s stake
1920 • 312 stores in 26 states
1924• Incorporation as JCPenney
Company
1930• 1452 stores, 25000 employees
denoted as Associates
1951 • Revenue: US $ 1 Billion
CONTD…
CONTD…
1964 • Revenue: US $ 2 Billion
1990’s• Competition from WALMART &
Dillards
2000’s
• COO: Vennesa Castagna• Chairman & CEO: Allen Questrom• In 2004, Mike Ullman succeeded
Questrom
TURNAROUND AT JCPENNY
1999-2004 : Turnaround orchestrated by Questrom and Castagna
EXISTING CULTURE
Formal & Rigid Structure
Absence of Open Door
Policy
Prominence of Managerial
Ladder
Strictly Formals
Office Police
Motto: ‘The Penney Idea’
Also known as HCSC
INITIATIVES TAKEN
No Abrupt Changes
Appointed Theilmann as Executive VP
Long Term Plan – “Making JCPenney a great Place to Work”
Launch of “Just Call Me Mike” campaign
Relaxation of Dress Code
Disbanding of Office Police
Introduction Of Afternoon Offs on Fridays
Emphasized the word ‘PEOPLE’
Issue of New Security Badges
Launch of Winning Together Principle
2005: First Associate Engagement Survey, First Christmas Party
Leadership conferences for Store Managers
Implementation of Open Door Policy
TRAINING & DEVELOPMENT
Identification of ‘Hypos’
Establishment of Retail Academy , 2006
Harnessing IT in Training
Brand Repositioning as “Everyday Matters”
LEADERSHIP STYLES
Enforcer Visionary
Deal Maker Serial Entrepreneur
Administrator
RESULTS
Increase in Job Involvement by 6% in 2006
Increase in operating profits by 22.5% in 2005
Qualitative Talent attracted
Further Increase in Profits by 17.8% in 2006
CONTD…
28 New Stores
Hike in Stock prices by 10 Times
Improved Job Satisfaction
Low Employee Turnover
LEARNINGS
Motivation for change
Data Collection, Diagnosis &
Problem solving
Planning strategy for
change
Intervening in the system
Reinforcement & follow up
Monitoring & Evaluation
ABAD’S MODEL
OTHER LEARNINGS
Commitment of Top Management Vital in Culture Change
Participative Approach
Job Satisfaction Not a Function of Monetary Incentives only
Happy Employees make Happy Customers
Emphasis on Job-Misfit Theory