Case $4$: Mitchells Hardware

Akeelah Mitchell, a recent graduate with a degree in business management, was facing a significant challenge as she took the reins of her family's century$-$old hardware store, Mitchell's Hardware. Located in a small, tight$-$knit community in rural Texas, the store had been a local institution for generations. It provided everything from nuts and bolts to gardening supplies and kitchenware.

Akeelah's great$-$grandfather, Henry Mitchell, had founded the store, and it had always been known for its warm, customer$-$friendly environment. Henry had instilled in his employees a sense of community and a commitment to treating customers like family. Over the years, this approach had made Mitchell's Hardware a beloved institution in the area.

However, times were changing rapidly. Big$-$box retailers and online shopping had encroached on the small$-$town charm that had sustained Mitchell's Hardware for generations. Akeelah felt the pressure to modernize the store and adapt to the changing retail landscape.

With a firm belief in the importance of innovation, Akeelah decided to implement a series of changes that she believed were necessary to ensure the store's survival. She introduced new technology systems for inventory management, point$-$of$-$sale operations, and even an online store. Akeelah believed that these changes would streamline operations, reduce costs, and attract a younger, tech$-$savvy customer base.

Akeelah also made adjustments to the employee structure. She implemented a new performance$-$based pay system that was designed to reward employees for meeting sales targets and providing exceptional customer service. To further cut costs, she eliminate the middle managers positions and reduced the store's reliance on part$-$time employees, instead focusing on hiring a smaller team of full$-$time staff members who were expected to multitask across different departments.

As she implemented these changes, Akeelah was met with mixed reactions from the employees. While some embraced the opportunity to learn new skills and adapt to the changing retail landscape, others were resistant to the alterations. They felt that the changes were eroding the family$-$oriented, community$-$centered values that had been the store's hallmark for generations.

Customer feedback also began to change. While some customers appreciated the convenience of online shopping and the efficiency of the new systems, others missed the personalized service and sense of belonging that the store had traditionally provided. Some long$-$time customers expressed their concerns that Mitchell's Hardware was losing its soul. They missed seeing some of the familiar faces around when they visited the store.

Feeling torn between her commitment to modernization and her desire to honor the store's legacy, Akeelah decided to seek outside help. She hired a retail consultant to evaluate the situation and provide recommendations for the way forward.

The consultant conducted interviews with employees, customers, and Akeelah herself. After thorough research and analysis, the consultant proposed a comprehensive plan that included a balanced approach. The plan emphasized the importance of maintaining the store's core values while strategically integrating modernization efforts to meet the changing needs of the community.

Now, Akeelah faces a difficult decision. Should she follow the consultant's advice and attempt to strike a balance between tradition and innovation, or should she continue with her initial modernization efforts, risking further employee and customer dissatisfaction? The fate of Mitchell's Hardware hangs in the balance as Akeelah grapples with the complex challenge of preserving the past while preparing for the future.

Questions

Discuss three organizational behaviour concepts covered in this module that apply to the case. $(20$ marks$)$