Tanglewood Case

Part 1: Competitive Environment

Competition

Tanglewood has a number of competitors in their industry, a few of which are of greater concern. Kohl's and Target appear to be moving westward where Tanglewood has a strong presence. These two are of greater concern because they present the threat of direct competition to the stores that they have in the west. Target also has a growth rate that is high like Tanglewood's, albeit less however. (Kammeyer-Mueller 2006,p.5) But with Target moving westward that could impede the growth rate of Tanglewood. Kohl's doesn't have the same growth rate, but do have a higher operating revenue which suggests that their reputation could result in less business for Tanglewood if they were to move west.

Another big factor is the ROI for both Kohl's and Target exceeds that of the ROI for Tanglewood. (Kammeyer-Mueller 2006, pp.5-6) This could potentially cause problems for further expansion if they are able to provide a better investment for people. What could be the saving grace is that Tanglewood specializes in outdoor and natural wood theme to its design in decor. That along with the technology used to make things more convenient for customers could help exponentially. The quality of customer service exceeds that of the two competitors moving west. (Kammeyer-Mueller 2006, p. 6)

Organizational Structure

Tanglewood appears to have a traditional hierarchical organization structure, but this appearance is very deceiving. (Kammeyer-Mueller 2006, pp.6-7) Structurally the organization is very sound, however it may be able to do with some different practices when it comes to staffing. They do not use a flexible workforce extensively and desire a core workforce to maintain their organizational values. (Ibid) It is essential to them, which is not a bad thing but given the rapid expansion maybe something to be tweaked a little. Another issue to look at is what to do about the regional managers. These managers need to be on board 100 percent with the values and direction of Tanglewood.

Organizational Values and Culture

Tanglewood's company values are very distinct from its competitors and have been since day one. They have always stressed the importance of employee participation and teams. (Kammeyer-Mueller 2006, p.9) This is different because most retail stores have a top-down structure. That is a structure that has a boss and employees who are subordinates to the boss(es) of the company. Employees do not typically get involved in organizational decisions within this structure which creates the idea that certain employees are worth more or valued more.

Tanglewood also runs its shifts on a team concept where everyone is encouraged to make suggestions. (Ibid) This reinforces the core value that every employee is the most valuable employee. Nobody is better than another regardless of their position. The idea is quite unique in the retail industry and allows to maintain their culture and values through internal promotion. (Kammeyer-Mueller 2006, p.10)

Human Resources in Tanglewood

The corporate staffing function for Tanglewood has not been the strongest throughout history. HR has traditionally played an advisory role to the store locations, but expansion has produced a need for change. This change is the centralization of corporate. Local leadership is not as efficient for the purposes of the organization. (Kammeyer-Mueller 2006, p.11) In order to produce change, there are some fundamental staffing strategies that will be looked at and suggestions as to how to use them will provide the means to the change.

Part 2: Staffing Strategies - Staffing Levels

Acquire or Develop Talent

This is always a tough decision for any company, especially those who are expanding and face direct competition. Tanglewood is in just that very position and in a way the tough decision is almost made for them even with lots of consideration. They have been buying existing stores that have the same qualified employees that are needed to staff their newly acquired stores. Acquiring the staff from these stores is the best way to keep up with and stay a step ahead of any competition. However, this can be deceptive. Although it may look like these employees already have the necessary KSAOs required for the job but they may have just been skating by. KSAOs are the knowledges, skills, abilities, and other characteristics required to successfully complete a job. (Henemean et al. 2010, p.9)

So this means that Tanglewood may need to use a combination of acquiring talent and developing talent. When it is possible Tanglewood should always be looking to acquire employees. This is because acquired employees are able to hit the ground running and are in no need of training.(Heneman et al. 2010, p.17) Therefore, only when absolutely necessary should Tanglewood be developing employees KSAOs. For example, if they acquire a store and some loyal employees refuse to work for what was once a competitor. Hiring new employees will require KSAOs to be developed.

Lag or Lead System

There is no question which system Tanglewood should be using within their organization. The Lag system; which is when strategic organization objectives and plans are developed and staffing systems are developed to deliver the type/number of employees needed (Heneman et al. 2010, pp.17-18); is the one for them. The Lead system is for organizations that are looking to shake things up and light a fire under employees so to speak. It's when new employees are brought in to make things happen because the organization has been stagnant. (Heneman et al. 2010, p.18) Tanglewood is not looking to change their organization or "shake things up". They are looking to keep the company's core values and culture the same not change it.

If, for example, they were looking to change their culture to a more of an indoor home supplies chain and get rid of the outdoorsy type look and feel to their store and products then a Lead system would be ideal. Otherwise stirring the pot for no particular reason would occur. This could lead to dissatisfied employees and then lower sales in the long run. Which would beg the question, why expand if you are only going to create a bad situation. That is why the Lag system is the right choice.

External or Internal Hiring

The mixture of both types of hiring is unique for Tanglewood. Because of their rapid expansion, external hiring (of outside talent) is needed to ensure all new stores