Reimagine That: J.C. Penney Has Morale Problem
If there is a head scratcher story of the year this just might be it.
A lot of mistakes have been made at J.C. Penney since Ron Johnson and his team took over at the department store chain. While many point to changes in pricing and promotion as the why behind plummeting sales at the company (Q3 comp sales down 26.1 percent), another reason may have been spelled out in Penney’s recent SEC filing.
The company pointed to the loss of workers whom Penney has found "difficult to replace." Workforce reductions were brought about through firings and attrition.
According to a Bloomberg News report, workforce reductions have meant that more responsibility is being piled on the remaining employees and that even more may be asked of workers in the future as further cuts may be in the offing. The possible changes "may negatively impact communication, morale, management cohesiveness and effective decision-making, which could have an adverse impact on our operating efficiency."
- J. C. Penney Company, Inc. Reports 2012 Fiscal Third Quarter Results – J. C. Penney Company, Inc.
- J.C. Penney Sees Risks in Morale, Efficiency as Workers Exit – Bloomberg News
- Penney Eliminates Commissions – RetailWire
Do you think J.C. Penney management has lost or is in danger of losing the faith of its employees? What would you recommend Penney do to address its morale problem?