jc penny's organisational structure
DESCRIPTION
REMAKING JCPENNEY’S ORGANISATIONAL CULTURETRANSCRIPT
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CASE PRESENTATION
REMAKING JCPENNEY’S ORGANISATIONAL CULTURE
GROUP MEMBERS:
ABHISHEK KUMARDEEPSHIKHA
MAYANK NARANGPRIYANKA DUGAR SHIVANI TAMOTIA
URMI MOGRA
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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
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1924• Incorporation as JCPenney
Company
1930• 1452 stores, 25000 employees
denoted as Associates
1951 • Revenue: US $ 1 Billion
CONTD…
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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
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TURNAROUND AT JCPENNY
1999-2004 : Turnaround orchestrated by Questrom and Castagna
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EXISTING CULTURE
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Formal & Rigid Structure
Absence of Open Door
Policy
Prominence of Managerial
Ladder
Strictly Formals
Office Police
Motto: ‘The Penney Idea’
Also known as HCSC
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INITIATIVES TAKEN
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No Abrupt Changes
Appointed Theilmann as Executive VP
Long Term Plan – “Making JCPenney a great Place to Work”
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Launch of “Just Call Me Mike” campaign
Relaxation of Dress Code
Disbanding of Office Police
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Introduction Of Afternoon Offs on Fridays
Emphasized the word ‘PEOPLE’
Issue of New Security Badges
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Launch of Winning Together Principle
2005: First Associate Engagement Survey, First Christmas Party
Leadership conferences for Store Managers
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Implementation of Open Door Policy
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TRAINING & DEVELOPMENT
Identification of ‘Hypos’
Establishment of Retail Academy , 2006
Harnessing IT in Training
Brand Repositioning as “Everyday Matters”
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LEADERSHIP STYLES
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Enforcer Visionary
Deal Maker Serial Entrepreneur
Administrator
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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
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CONTD…
28 New Stores
Hike in Stock prices by 10 Times
Improved Job Satisfaction
Low Employee Turnover
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LEARNINGS
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Motivation for change
Data Collection, Diagnosis &
Problem solving
Planning strategy for
change
Intervening in the system
Reinforcement & follow up
Monitoring & Evaluation
ABAD’S MODEL
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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
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