Employee Morale: My Lullaby, Fifteen Years Later

Marcia Morgado
Revised by: Nancy J. Rabolt , Judy K. Miler

Business Case
Source: Bloomsbury Fashion Business Cases
DOI: 10.5040/9781474208796.0066
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After opening a small family-owned specialty store fifteen years ago, a husband, John, and his wife, Jenny, have grown their single store into a specialty store chain of four locations and forty-five employees. Jenny is the general merchandise manager and vice president of advertising and public relations and John is the vice president of finance, control, and store operations. Jenny’s mother, Martha, is the vice president of personnel, with training, evaluations, hiring, and firing under her management. Management job descriptions and the roles and responsibilities of all the stores’ employees are clearly defined. All management are paid a salary, and sales personnel are paid greater than minimum wage but are offered no further benefits or incentives. Despite the success of the company, the employee morale is low and there is high employee turnover. The owners want to change the organizational structure to help alleviate these problems.

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