Appendix 1 Case Study: Australian Hardware

Appendix 1 Case Study Australian Hardware Australian Hardware

Appendix 1: Case study – Australian Hardware Australian Hardware (a simulated business) is a large and expanding hardware and homewares retailer with approximately 140 stores located across Australia. In its vision statement, Australian Hardware states that it intends to ‘lead the hardware and home-improvement market in Australia within five years’. In order to realise this vision, the organisation intends to: build market share by focusing on the customer experience; control direct and indirect costs through efficient internal processes; establish the reputation of Australian Hardware as a socially and environmentally responsible company; lead by example in embracing cultural diversity in the workforce.

These strategic organisation-wide directions are implemented from senior management down, in the form of performance expectations for managers and employees at every level of the organisation. Australian Hardware realises that the success of the business rests on its people. For this reason, the organisation insists that managers build effective teams by responding to the needs of employees. Such needs include safety and security, fairness, flexibility, skills development and self-actualisation. Satisfying such needs will allow employees to focus more effectively on work tasks and customer needs.

In addition, Australian Hardware encourages managers to take a flexible approach to meeting performance targets and to set goals in close collaboration with employees. To implement strategic directions and advance Australian Hardware’s values, managers are expected to lead employees by modeling positive behaviours and attributes. This mindful approach to leadership and management is intended to encourage employees to follow the example in their interactions with colleagues and customers. To lead and inspire people, managers must demonstrate keen emotional awareness and promote positive team-building behaviours in others. You are the new General Operations Manager of the Wollongong, NSW store and you are ready for a challenge.

You are directly responsible for managing general sales and checkout staff, administration staff and a human resources officer. You report to the Store Manager, who is responsible for all areas of store responsibility (Timber, Plumbing & Electrical, Gardens and Homewares departments and general operations). For more background to this assessment task, Australian Hardware simulated business information, including business and operational plans, financial information, and policies and procedures, can be located online at:

Appendix 2: Case study scenario questions For the following case-study scenario questions, put yourself in the position of the new general operations manager and answer the questions accordingly.

Scenario A Your Store Manager has had a stressful month. It is the end of the financial year and sales revenue in the Timber and Plumbing & Electrical departments is down on targets, almost certainly due to increased competition from smaller competitors for trade contractors’ business. Just this week, the Store Manager held a meeting in which she yelled at all the department managers (including you) and instructed them to work out a way to improve revenue. Obviously, the outburst did not make much sense as the department managers, in such a large business, do not have the capability to raise much revenue directly. Marketing and distribution innovations that could have an effect are mainly a head office responsibility.

The Wollongong store’s inability to counter the threat from smaller, nimbler trade suppliers has been the main reason for the revenue deficit. Naturally, the atmosphere around the store and in the management team is subdued and a few managers have discussed leaving the organisation; other managers have responded by pushing unreasonable sales demands onto their sales staff. You are now feeling pressure to do something to address the concerns expressed by the Store Manager. You don’t wish to act contrary to budget planning nor increase pressure on the team to offset poor performance in areas beyond their control. In your opinion, this leadership behaviour was disrespectful to all the managers, created unnecessary concern about job security and undermined trust.

There has been a clearly negative flow-on effect down through the store, which is now affecting people at a lower level. You are justifiably angry at the manager’s behaviour and blame her for making a bad situation worse with poor leadership and poor emotional awareness. In your consideration of this scenario, provide a written response to the following: 1. In approximately 80 words, outline what may have occurred in the Store Manager’s emotional journey and her subsequent response in the meeting. 2. Describe at least two of the principles of strong emotional intelligence that the Store Manager did not demonstrate in this scenario. 3. Provide at least two strategies that she could have considered while planning the meeting and link these to probable productive results for the business. 4. Managers in your direct reporting line have asked you to share their anxieties following the meeting with the Store Manager. List 6–10 sequential bullet points that would provide a well-planned approach to guide this conversation with the Store Manager. 5. Outline at least three potential benefits for store performance if morale could be lifted across the team. 6. Review the final paragraph of the case study and describe in approximately 75 words how you would model positive leadership behaviour based on emotional intelligence theory.