In 2004 when Myron Ullman took over the company he found the company culture to be rigid and formal. Employees addressed their superiors by the last name, were expected to dress formally, and were not allowed to decorate their cubicles in any way (Anderson, 2006)
Organizational behavior is affected by culture to a certain degree. The culture of the organization sets the "climate" of the organization and this has a significant effect on the behavior of individuals within the organization (Chaneta)
This most recent change in the market is forcing JC Penny to not only change where and how it does business, it is forcing it to rebrand its entire product line up. In addition to sweeping changes in the brands that it offers and product offerings, JC Penny has also changed its company logo as well (Damas and Schendel, 2012)
Theories in organizational behavior are closely linked to psychology and sociology. Understanding group and individual behavior helps to improve organizational performance by managing individual behaviors (Mullins, 2005)
One can look it trends in retrospect, but the human mind is complex and difficult to categorize in such a way that will allow us to predict exact behaviors in the future. Therefore much research and organizational behavior exist in theory at the current time (Miner, 2002)
Control mechanisms make work an unpleasant place to be. When employees feel that they have no choices and that all decisions come from the top down, it will harm engagement and a feeling of teamwork within the organization (Pelligrini and Scandura, 2008)
As to the pricing, starting in February of this year (2012) all items at Penney's are lower by about 40% from what they were. Anne D'Innocenzio writes in the Associated Press that Johnson's approach is to offer "Every Day" low prices, a "Monthly Value" discount program on certain merchandise, and "Best Price" promotions the first and third Friday of the month (when most shoppers get their paychecks) (D'Innocenzio, 2012, p
1). Conclusion Johnson believes that the previous Penney's strategy of offering items "…at a high initial price" but marking them down a few weeks later was "insulting," which is why he believes that his "simplified pricing" will work (Girard, 2012)
By the turn of the century, most "punitive legislation had been overturned," Whitaker explains. The JC Penney brand was launched in 1902 by twenty-six-year-old James Cash Penney, who was said to be a religious man who was "…disenchanted by a retail environment overrun by snake-oil salesmen, saloons and murky pricing" (Mattioli, 2012)
By the turn of the century, most "punitive legislation had been overturned," Whitaker explains. The JC Penney brand was launched in 1902 by twenty-six-year-old James Cash Penney, who was said to be a religious man who was "…disenchanted by a retail environment overrun by snake-oil salesmen, saloons and murky pricing" (Mattioli, 2012)
How does the new pricing strategy complement Penney's merchandising and promotional strategies? The new pricing strategies that Johnson is launching meshes very well with his promotional innovations. First of all, as Jennifer Reingold writes in CNN Money, while the pricing strategy is "risky" it is also "ambitious," and it is Johnson's legacy to ambitiously take chances based on his uncanny knack of knowing what will work in retail environments (Reingold, 2012, p
7%) but those gains are dwarfed by Macy's stock gains (47%), so some serious changes were needed. As to the pricing, starting in February of this year (2012) all items at Penney's are lower by about 40% from what they were
Moreover, Tamilia writes that the department store was one of society's more "democratic institutions" and besides offering customer services that had previously been unheard of (restaurants, restrooms and reading rooms) the department store in America "…liberated women and gave women their rightful place in society." In fact, the author continues, because of department stores, jobs became available for women that "opened career opportunities" in various professional fields and department stores "…changed society's values in accepting that women could go and shop on their own" (Tamilia, p
Author Jan Whitaker presents a slightly different perspective of the beginnings of the department store era. In the late 19th century small merchants were bitterly opposed to department stores and in order to fight back against the big stores "…aggrieved grocers" started rumors that "…the big stores intoxicated women customers with liquor by the glass" (Whitaker, 2006)