Solving The Problem At Toys R Us
Solving The Problem At Toys R Us
A new company, Tru Kids Brands, is now all that’s left of Toys-R-Us, the well-known toy retailer which declared bankruptcy and closed all of its stores in 2017. The path forward for this new company is uncertain at best, as a result of the competitive forces that killed the old brand, but a new CEO and leadership team seek to return to the playing field. This activity is important because it illustrates the important role that organizational behavior principles can play in a surprisingly common situation – reviving a company that has gone through bankruptcy.
The goal of this activity is to get you to think critically about how what you’ve learned can apply to one of the most difficult situations faced by any company in this textbook.
Apply the 3-Step Problem-Solving Approach
Step 1: Define the problem.
Look first at the Outcomes box of the Organizing Framework (Figure 16.12) to help identify the important problem(s) in this case. Remember, a problem is a gap between a desired and a current state. State your problem as a gap and be sure to consider problems at all three levels. If more than one desired outcome is not being accomplished, decide which one is most important and focus on it for Steps 2 and 3.
Cases have key players, and problems are generally viewed from a player’s perspective. You need to determine from whose perspective—employee, manager, team, or the organization—you’re defining the problem. As in other cases, whether you choose the individual or organizational level in this case can make a difference. In this case you’re asked to assume the role of new CEO Richard Barry.
Use details in the case to determine the key problem. Don’t assume, infer, or create problems that are not explicitly included in the case itself. Only use what is provided in the case.
To refine your choice, ask yourself, why is this a problem? Explaining why helps refine your thinking. Focus on topics in the current chapter, because we generally select cases that illustrate concepts in the current chapter.
Step 2: Identify causes.
Using material from this chapter and summarized in the Organizing Framework, identify what are the causes of the problem you identified in Step 1. Remember, causes tend to appear in either the Inputs or Processes boxes.
Start by looking at the Organizing Framework (Figure 16.12) and decide which person factors, if any, are most likely causes of the defined problem. For each cause, explain why this is a cause of the problem. Asking why multiple times is more likely to lead you to root causes of the problem. In this case, for instance, how do competitors factor in to your decisions? What about the value of the brand? Expertise of leadership?
Follow the same process for the situation factors. For each ask yourself, why is this a cause? By asking why multiple times you are likely to arrive at a complete and more accurate list of causes. Again, look to the Organizing Framework for this chapter for guidance. Did particular policies or practices play a role?
Now consider the Processes box in the Organizing Framework. Are any processes at the individual, group/team, or organizational level potential causes of your defined problem? For any process you consider, ask yourself, why is this a cause? Again, do this for several iterations to arrive at the root causes.
To check the accuracy or appropriateness of the causes, be sure to map them onto the defined problem and confirm the link or cause and effect connection.
Step 3: Make your recommendations for solving the problem.
Consider whether you want to resolve it, solve it, or dissolve it (see Section 1.5). Which recommendation is desirable and feasible?
Given the causes you identified in Step 2, what are your best recommendations? Use material in the current chapter that best suits the cause. Consider the OB in Action and Applying OB boxes, because these contain insights into what others have done.
Be sure to consider the Organizing Framework—both person and situation factors—as well as processes at different levels.
Create an action plan for implementing your recommendations and be sure your recommendations map onto the causes and resolve the problem.
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