Barnes and Nobles

Case Analysis – M5A1 – Barnes and Nobles

Instructions
[Learning Objectives Assessed: 6a, 6b]

Chapter 15 – Read the Problem-solving application case, pages 633-634 of the text, Barnes & Noble Faces Its Last Chapter, and answer the three Discussion Questions that follow the reading. In your submission use headings that correspond to the questions.

Directions:
Answer these Discussion Questions:

Define the problem: Remember that the problem is the gap between the desired and the current state. State the problem as the gap and be sure to consider problems all 3 levels, and if one is more important than other levels, then focus on it for parts 2 & 3.

Identify the causes of the problem: Use the procedure in step #2 to determine the cause and explain why?

Make your recommendation for solving the problem: Use the procedure in step #3 for a recommendation and implementation plan.

ANSWER

Analysis of the Barnes and Nobles Case

Definition of the problem at Barnes and Noble

The problems witnessed in the Barnes and Noble case cut across all three levels of the organizations’ framework. To begin with, at the individual level, the employees of the giant bookstore chain have been experiencing increased levels of job dissatisfaction. Arguably, Leonard Riggio, who is the chairman of Barnes and Nobles after stepping down from his positions as the chief executive officer, has been practicing micromanagement on the individuals who assume the role of chief executive officer. This practice has, in turn, resulted in the organization having five chief executive officers from the year two thousand and thirteen to two thousand and eighteen. Notably, although, micromanagement is one of the numerous types of leadership that can be useful in a variety of situations, including on boarding new employees, increasing the efficiency of underperforming staff, managing high-risk regions, and when no one is available to take care of any job (Mishra et al. 2019). However, a long-term relationship with micromanagement can have a significant financial impact. Again, it can also lead to excessive personnel turnover, low morale, and lower production.

In addition, another major individual-level problem at the Barnes and Noble bookstore chain’s that is evident in this case is individual performance. To begin with, in February of the year 2018, the Barnes and Nobles bookstore chain laid off eighteen hundred of its full-time employees to ease the financial burden due to increased debt. This situation creates a crisis in the organization’s working environment as the remaining numbers of employees lack the sense of job security as they are aware of the organization’s instability and that they could also lose their jobs at any moment. Job security is an essential organizational component that highlights the significant disparity in work outcomes (Umrani et al., 2019). Job security, according to a Meta-analysis report by Rhoades and Eisenberger (2002), is a mature organizational support feature that unquestionably improves job performance. On the other hand, job security, according to Probst, Stewart, Gruys, and Tierney (2007), reduces the impact of unproductive actions, hence improving job performance. In like manner, according to findings by Loi, Ngo, Zhang, and Lau (2011), found that job stability positively influenced full-time employee performance. Arguably, when employees believe their employer provides job security, they are more willing to work in order to improve job performance.

On the other hand, lack of innovation is another persistent problem witnessed at Barnes and Nobles bookstore chain’s group or team level as well as at the organizational level. It is evident that at Barnes and Noble, innovation is very poor since the organization has constantly preserved its old business strategies, which are not profitable in the current market. However, they were profitable a few decades ago. For instance, their flagship Union Square branch in New York City still contains CD and DVD areas, which occupy a significant amount of shop space but are frequently abandoned and unattended because they do not draw customers. Again, unlike their innovative competitors who manage independent bookstores that are niche-focused to attract specific types of customers. In essence, Barnes and Noble do not have a unique experience to provide to their customers. This has worsened the major bookseller’s current problem, as independent bookstores are regaining prominence in the American book market.

The causes of performance problems at Barnes and Nobles

The issue of performance problems at the Barnes and Nobles bookstore chain is caused by a number of both person factors and situation factors at the organization. First, Fournet et al. (1966) discovered that positive employee attitudes and employee-centered management of personnel had an improved effect on production in a study of job satisfaction (Harrell-Cook et al. 2017). Notably, due to lack of job security due to the financial crisis at Barnes and Noble, the employees are likely to have a negative attitude towards the organization hence poor performance. Second, the organizational structure is a situational factor that causes poor performance at Barnes and Noble. Important to realize part of the organization’s leadership structure is the chairman Leonard Riggio who has been micromanaging the chief executive officers at Barnes and Nobles, resulting in increased turnovers.

Recommendations for solving the performance problem at Barnes and Nobles

To resolve the performance problem at the Barnes and Nobles bookstore chain, I recommend that the organizations should uphold the hierarchical authority where in this situation, the chief executive officer is the senior-most person at the organization and should not be micromanaged by the chairman. In addition, there should be an elaborate program for division of labor where all the individuals and groups perform specialized tasks; this is aimed at improving creativity as well as innovation at the group or team level and in the long run at the organizational level. It should be noted that when this is achieved, the organization will become profitable hence promoting job security for the employees.

References

Harrell-Cook, G., Levitt, K., & Grimm, J. (2017). From engagement to commitment: A new perspective on the employee attitude-firm performance relationship. International Leadership Journal, 9(1).

Loi, R., Ngo, H. Y., Zhang, L., & Lau, V. P. (2011). The interaction between leader-member exchange and perceived job security in predicting employee altruism and work performance. Journal of Occupational and Organizational Psychology, 84(4), 669-685.

Mishra, N., Rajkumar, M., & Mishra, R. (2019). Micromanagement: an employers’ perspective. International Journal of Scientific & Technology Research, 8(10), 2949-2952.

Umrani, W. A., Afsar, B., Khan, M., & Ahmed, U. (2019). Addressing the issue of job performance among hospital physicians in Pakistan: The role of job security, organizational support, and job satisfaction. Journal of Applied Biobehavioral Research, 24(3), e12169.