tag:blogger.com,1999:blog-33004692.post5127889576249364084..comments2023-10-31T12:58:36.729+01:00Comments on Evil HR Lady: Circuit City's MistakeSuzanne Lucashttp://www.blogger.com/profile/07129772885673695447noreply@blogger.comBlogger14125tag:blogger.com,1999:blog-33004692.post-15908706635473690502009-09-16T18:23:24.523+02:002009-09-16T18:23:24.523+02:00Please read my free eBook called "CIRCUIT CIT...Please read my free eBook called "CIRCUIT CITY SIX - Six Fatal Mistakes of a Once "Good to Great" Company. It can be downloaded at this link: http://www.eamesmgmt.com/CIRCUIT_CITY_SIX_eBook.shtml.<br /><br />Sincerely<br />Don Eames<br />Former Senior Vice President of Best BuyDon Eameshttp://eamesmgmt.com/Don_Eames.shtmlnoreply@blogger.comtag:blogger.com,1999:blog-33004692.post-884784157498688162008-06-28T10:05:00.000+02:002008-06-28T10:05:00.000+02:00I found your blog very interesting. You are talkin...I found your blog very interesting. You are talking here about <A HREF="http://circuitcity.pissedconsumer.com" REL="nofollow">Circuit City</A>. I have found out everything about the company from http://www.pissedconsumer.com. Besides, I read consumer reports on the products and services of the company. I must say – very few positive reviews. Most people are not satisfied with the <A HREF="http://circuitcity.pissedconsumer.com" REL="nofollow">Circuit City</A>, however it is one of the largest consumer electronics retailers in the United States.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-33004692.post-51009644066183340342007-08-17T00:01:00.000+02:002007-08-17T00:01:00.000+02:00Actually, Circuit City doesn't give fixed raises. ...Actually, Circuit City doesn't give fixed raises. You have to perform well to get any raise and perform exceptionally well to get a higher raise. If you did your job properly you got a .25 raise. If you did better than that, .35. If you were phenomenal, .50. So in a way, employees did have incentive to work harder and better. The problem lies with management... and the fact that they suck and make retarded decisions, from the department managers on up to the CEO.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-33004692.post-23309895424855101162007-06-22T17:03:00.000+02:002007-06-22T17:03:00.000+02:00I am a former employee of CC and was laid off back...I am a former employee of CC and was laid off back on March. While my situation may be differnt than others, but I was a top sales in the store fo rmy depatrment and top 10 in the region. From the time I started to work at CC to the time I left sales had increased every month, why? Beacuse customers were refering their friends to us because we were friendly and knowledgeable about (my department Firedog) computers. Since being laidoff I have started my own business and making mutch more money. So there "being paid above market value" for me was complete B.S.Unknownhttps://www.blogger.com/profile/14569443758954228595noreply@blogger.comtag:blogger.com,1999:blog-33004692.post-87410170318380803772007-04-12T22:42:00.000+02:002007-04-12T22:42:00.000+02:00Ah, but the CEO is often compensated on short-term...Ah, but the CEO is often compensated on short-term results, so that's what he's working toward. Yes, I absolutely believe in pay for performance, but that should go all the way up the ladder. A CEO should not get a $1.2 million bonus when he has laid off 1,000 salaried employees and the stock price has tumbled 35% in three months.<BR/><BR/>Not that I'm bitter or anything.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-33004692.post-62987206553637577532007-04-12T13:11:00.000+02:002007-04-12T13:11:00.000+02:00Robert--thanks for the insight and info. That's o...Robert--thanks for the insight and info. That's one messed up company. <BR/><BR/>Rowan--I'm sure that's exactly how that meeting went. What were these people thinking?<BR/><BR/>And it all goes to show that numerous years of bad management can't be fixed easily or quickly.Evil HR Ladyhttps://www.blogger.com/profile/14506069540151526951noreply@blogger.comtag:blogger.com,1999:blog-33004692.post-47380058126109908292007-04-12T12:07:00.000+02:002007-04-12T12:07:00.000+02:00I would love to have sat in on the meeting that pr...I would love to have sat in on the meeting that produced this slipshod, lazy-ass solution to the compensation problem.<BR/><BR/>"OK folks, let's wrap this one up quickly shall we? How about if we install a civil service compensation system? That should keep everyone happy."<BR/><BR/>"Couldn't we end up with a bloated, overly expensive, non-producing workforce after some time has passed?"<BR/><BR/>"It's possible, I suppose. But we can always dump a bunch of them if that happens. Look, can we take a vote on this? I propose the civil service approach; if we don't go with that, we're going to have to stay and discuss this for aaaaaaages - and I have a golf game this afternoon. Show of hands?"Rowan Manahanhttps://www.blogger.com/profile/14419782365041965920noreply@blogger.comtag:blogger.com,1999:blog-33004692.post-70643578185201981252007-04-12T04:43:00.000+02:002007-04-12T04:43:00.000+02:00Great post!!A major piece missing from the recent ...Great post!!<BR/><BR/>A major piece missing from the recent coverage of the layoffs at Circuit City is that this is not the first time that they have completed a “wage management initiative” – an interesting choice of doublespeak directly taken from their March 28, 2007 press release.<BR/><BR/>In fact, the electronics retailer unveiled and implemented a similar cost cutting move at least once before, as reported in the February 6, 2003 edition of The Wall Street Journal. The firm announced then that 3,900 commissioned sales staff were being retro-recruited and replaced with less expensive newbies. Lackluster financial performance – and a need for a revamped sales strategy – were provided as official explanations.<BR/><BR/>Circuit City’s most recent staffing lobotomy signals the presence of more systemic and chronic performance issues that layoffs alone will not cure. The firm’s press release underscores their need to reduce SG&A expenses, and to eliminate non-value added work, laudatory goals, but it has seemingly “made the same mistake twice,” and may be caught in a downward, inescapable vortex. <BR/><BR/>Other bloggers, and the popular press, including the New York Times, have thoroughly detailed the employee relations fall-out that can be expected, which are certainly obvious and need no further chronicling. What has not received enough attention however, is the long trail of research, such as that undertaken by Kim Cameron of the University of Michigan, and Wayne Cascio of the University of Colorado, that convincingly calls into question the long term effectiveness of workforce management strategies that rely heavily or exclusively on labor cost reduction as a transformational strategy. The odds for improved business performance increase significantly only when cost reduction and improvement touch all elements of the business, not just the workforce. Maybe Circuit City will employ that thinking going forward. <BR/><BR/>robert edward cenek, RODP<BR/>www.cenekreport.com<BR/>Uncommon Commentary on the World of WorkAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-33004692.post-91714158728404361232007-04-11T23:31:00.000+02:002007-04-11T23:31:00.000+02:00Circuit city will probably lose business over this...Circuit city will probably lose business over this as well.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-33004692.post-91816871408973606032007-04-11T20:43:00.000+02:002007-04-11T20:43:00.000+02:00That the "overpaid" workforce used to be commissio...That the "overpaid" workforce used to be commission tells me that their commission structure was wrong as well. <BR/><BR/>They've definitely had compensation issues for a long time.Evil HR Ladyhttps://www.blogger.com/profile/14506069540151526951noreply@blogger.comtag:blogger.com,1999:blog-33004692.post-77943743957921741762007-04-11T20:23:00.000+02:002007-04-11T20:23:00.000+02:00Anonymous is right about the legacy sales staff be...Anonymous is right about the legacy sales staff being moved to salary and now making up a significant portion of the laid off contingent. The original idea was to mimic Best Buy. My sources say that CC did not do a good or selective job of making that transition and have now decided to (parodying Frost) blow it all to smithereens and have it all made over new.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-33004692.post-65101386826717133332007-04-11T19:18:00.000+02:002007-04-11T19:18:00.000+02:00Evil HR Lady,You should get consultant's fee from ...Evil HR Lady,<BR/><BR/>You should get consultant's fee from Circuit City for this entry. Why? You've caused me to do something I couldn't heretofore do: empathize a little bit with Circuit City's management.<BR/><BR/>TLTim Lacyhttps://www.blogger.com/profile/02896230254720822005noreply@blogger.comtag:blogger.com,1999:blog-33004692.post-35787011059876054532007-04-11T18:14:00.000+02:002007-04-11T18:14:00.000+02:00Circuit City also had a significant number of lega...Circuit City also had a significant number of legacy sales staff that had formerly worked for salary plus commission. When Circuit City did away with commissioned sales, they adjusted employees' hourly rates to compensate them for the lost commissions.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-33004692.post-90503703454292178092007-04-11T16:01:00.000+02:002007-04-11T16:01:00.000+02:00I agree that it is an issue with management. It is...I agree that it is an issue with management. It is their fault that the workers are overpaid, and it is sad to see the workers pay for it because, in the end, they did nothing wrong. They were just a victim of bad management and a poorly designed compensation system.<BR/><BR/>TravisAnonymousnoreply@blogger.com