Sears

Sears

Created by:

Neissy Rosas, Imelda Sandoval, Edson Cantu, Milton Servin

Sears believes diversity is important to their business and incorporate a “5 Pillar of Diversity” model that mirror their beliefs of sharing ideas, experiences, talent, and respecting each other.

Leadership

Motivation

Motivation is the driving force that causes a series of changes in direction, intensity and persistence of effort toward achieving a goal. It has been shown to have basis in physiological, behavioral, cognitive, and social areas.

Sears recognizes and supports eleven associate networks that help reinforce this diverse culture. These associate networks improve the search for additional talent and emphasizes professional development, cultural awareness and networking. The eleven associate networks that are currently supported by Sears includes:

• Asian Network
• Associate Gospel Choir Network
• Associate Military Support Network
• Emerging Professionals Network
• GLAS Network
• Green Associate Network
• Latino Resource Group
• Parents @ Work Network
• Women in Leadership Development:

These associates help meet the diverse cultural needs, allow associates or employees to increase sales, and also meet the vast diverse consumer requests and needs.

• Edward Lampert, is an American businessman and investor.
• Before starting working in Sears, he was the director of AutoNation, Inc. and AutoZone.
• Lampert has served as chairman of the holding company, and recently took up the role of CEO as well.

Lampert controls nearly half of all shares through his fund ESL Investments. Eddie Lampert apparently owns a $1.7 billion dollar stake in the company, distributed the store into thirty business units.

Under this structure, each unit had its own president, chief marketing officer, board of directors, and, most important, its own profit and loss statements meaning that all thirty units were like one single business.

This did not seem to work since they were losing money every year

• Sears previous employee rewards system used to award employees for years of service not on performance.
• Now, Sears envelops the total rewards approach because it links three of the five key elements: compensation, performance, and career development.

• When it comes to job satisfaction, Sears’ employees are highly motivated.
• Sears has implemented a Total Rewards Approach based on financial and non-financial, direct as well as indirect, extrinsic and intrinsic rewards to improve compensations strategies and reinforce its core values.

Sears, Roebuck & Company values their employees so much that they offer many benefits not only for their employees but for their families as well.

Some of these benefits are:

• 10% Employee discounts
• medical plans
• retirement plans

Sears Mission Statement

Sears, Roebuck & Company is an American multinational department store chain.

Leadership Style

"We are committed to improving the lives of our customers by providing quality services, products and solutions that earn their trust and build lifetime relationships."

Edward Lampert has been classified as one of the worst CEOs and his leadership style has lead the company with negative effects since Sears has continued to struggle, Lampert has repeatedly spun off its various assets and stores into independent entities, including Land’s End and Sears Automotive Leaving bondholders at risk.

• Current CEO of Sears is Edward Lampert.

• The founder of Sears was Richard Sears

Vision statement of Sears

Sears Holdings sales, revenue and earnings have all continued to deteriorate. A BusinessWeek profile of the company last year criticized Lampert for pitting divisions against one another. This, according to the article, has discouraged divisions from collaborating.

• Edward Lampert is more of a production-oriented leader since he is emphasizes more on the technical and task of a company. Not taking into consideration the relationship between departments and need of the shareholders and staff.

"To be the preferred and most trusted resource for the products and services that enhance home and family life."

• Sears merged with Kmart in

2005 becoming Sears Holding Company.

• Sears headquarter is located in Hoffman Estates, Illinois, in Greater Chicago.

Sears Holdings, a Top Fortune 500 Company:

Sears Holdings appears in the 2008 Fortune 500 company listing.

Every year Fortune the American business magazine compiles, ranks and publishes a list of the top 500 U.S. public corporations based on their gross revenue.

• Right now sears is located in the 71 place of this list.

Sears Organizational Culture

Diversity

Salaries

• Also, the “C2 Culture” give empowerment to the associates to satisfy the customer needs.
• Associates are not allowed to say “no” to customer requests.

The salaries and wages Sears offers are pretty good.

• Sears organizational culture is stated to be Members First, Own It, Embrace Feedback, Show Pride, Learn and Innovate, Earn Trust, and Be Authentic.
• However, with the differences in management and organizational goals, the organization culture has changed; the past organizational culture of Sears was based on consumers and given consumers the best service possible.
• According to Consumer Affairs, 86 percent of customers are unsatisfied with Sears' customer service. That gives it a worse rank than competitors like Macy's, Kohl's, and JCPenney. Consumer Affairs implies that "Right now, it's easier to steal something from Sears than to buy something,"
• The lack of customer service has put Sears in trouble and has lead sears facing bankruptcy.

• The starting pay for a part-time cashier employee is $7.50.
• For a sales associate the average starting pay is $8.16.
• While the average assistant retail store manager salary is $45,000 yearly.
• Sears Company also offers paid time off.
• plus promotions and bonuses

On average, Sears’ employees’ job involvement is high due to all the benefits and rewards the Company offers.

Individual recognition is an important element in this new culture.

-At the beginning and end of each day, Mr. Trevino, gathers his associates and holds a “value meeting” to recognize an associate for good performance.

-Also, on the daily clock out employees are encouraged to click the mood button that corresponds to their end of the day mood. These moods gets measured daily and gives the manager an insight to his employees overall satisfaction.

In 2013 Sears of McAllen was ranked #1 in the region on employee job satisfaction.

• Diversity, or the inclusion of employees with different age, race, gender, ethnicity, religion, disability, personalities and values have been recognized by many companies as an important strategy that brings access to wide range of skills, ideas, and abilities and Sears is no exception.

Sears and its affiliates pride themselves in being an Equal Opportunity Employer and do not discriminate against any individual based on race, religion, gender, disability and any other protected status granted by federal, state, and local law. Sears recognizes and capitalizes on this strategy. It prides itself on a creating, accepting, and expecting a diverse culture.

Employee Satisfaction

Sears human resource department provides a website called 88sears, where employees can find information on benefits, online training, forms, company email, employment opportunities, and file grievances.

• Sears has hired an independent company to train all managers and all associates in the company on the “C2 Culture” according to Rudy Trevino, store manager of Sears at the Plaza Mall in McAllen, Texas.

" The “C2 culture” is a culture that encompasses implementing and maintaining an environment where employees like coming to work everyday, creating a supportive culture where employees are able to speak to their manager about any problem, conflict, or suggestion without fear of retaliation or termination".

Our Recommendations to Sears:

Video

• create a better plan to increase consumer satisfaction, provide employees with the tools they need to satisfy consumer’s needs.

• Change the central management of the industry for one that have the same objectives and strategic goals that the organizations vision.

• Sears is considered a good company to work for. We see that Sears takes employee engagement into account providing them with benefits and rewards to increase their satisfaction.
• However, Sears is not able to provide customers with the same satisfaction and that is one of the main reasons of the bankruptcy situation that Sears is facing because without consumers revenues do not exist. Also, the CEO of Sears has been considered one of the worst CEO’s since he is not able to integrate the units.

• Integrate the different units and provide structure that these stores are starving for.