Remaking JC Penney's Organizational Culture

            
 
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Case Details:

Case Code : HROB093
Case Length : 19 Pages
Period : 2004-2007
Pub Date : 2007
Teaching Note : Available
Organization : J.C. Penney, Inc.
Industry : Retailing
Countries : USA

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Fixing What Might have Broken Contd...

A band of "office police" reporting to the Human Resource (HR) department ensured that the employees complied with the rigid rules. Moreover, due to the recent turnaround, the mood of the employees was not "forward-thinking" as they were pleased that a major disaster had been averted.

Ullman realized that this mood and the rigid culture were not conducive to attaining the ambitious plan set by the company. He felt that the rigid culture at JCP was intimidating new recruits, resulting in a high turnover, and acting as a hindrance in attracting talent. So in conjunction with the newly appointed HR chief Michael Theilmann (Theilmann), Ullman started an initiative to redefine the culture at JCP.

Human Resource and Organization Behavior | Case Study in Management, Operations, Strategies, Human Resource and Organization Behavior, Case Studies

Various symbolic changes were made in 2005. These included a campaign called 'Just call me Mike!', in which the company encouraged the employees to call their superiors and co-workers by their first names. Other changes included a relaxation in dress codes, cubicle décor, and disbanding of the "office police". JCP followed up these symbolic changes with setting up a more democratic and inclusive climate and taking some training and development initiatives.

The most notable among these were the 'Winning Together' principles (WTP) and the 'Retail Academy'. The WTP laid down codes for employees working at JCP. It borrowed from and built upon a similar code established by the founder of JCP in 1913. The main difference between the two was that while the earlier code had been restricted to profit-sharing members of JCP, WTP was more inclusive and included all the employees.

The Retail Academy was similar to a graduate college where high potential JCP employees were trained in a variety of retailing and leadership issues by top level managers including Ullman.

By the end of 2006, the results of the culture change initiatives were clearly visible. JCP was able to attract enough talent. Graduates from premier design and retail schools showed an interest in working with the company.

The impact on the bottom line was also visible as JCP posted its 15th consecutive quarter of sales gains at the end of fiscal year 2006.9...

Excerpts >>


9] "JC Penney Beats Estimates," www.nytimes.com, February 23, 2007.

 

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