There are several potential causes of management control problems that may have affected Game Shop, Inc. These causes can be explained based on the discussions provided in the required textbook for the unit, as well as the lecture and workshops:
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Lack of clear goals and objectives: Game Shop, Inc. did not have a clear set of goals and objectives that were communicated effectively to employees. This lack of direction can result in confusion and misalignment of efforts, leading to inefficiencies and poor performance.
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Ineffective performance evaluation: The previous owner did not conduct regular performance evaluations, which made it difficult to assess employees’ performance and provide feedback. This can lead to a lack of accountability and a lack of motivation for employees to improve their performance.
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Inadequate training and development: Game Shop, Inc. did not provide sufficient training and development opportunities for its employees, which can result in a lack of skills and knowledge needed to perform their jobs effectively.
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Poor communication: The previous owner did not communicate effectively with employees, which can lead to misunderstandings and a lack of trust. Poor communication can also lead to a lack of feedback and recognition, which can affect employee motivation and job satisfaction.
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Lack of incentives: Game Shop, Inc. did not provide sufficient incentives for employees to perform well, which can result in a lack of motivation and effort. Incentives can also help to align employees’ goals with the organization’s objectives and improve overall performance.
In conclusion, the management control problems at Game Shop, Inc. can be attributed to several factors, including a lack of clear goals and objectives, ineffective performance evaluation, inadequate training and development, poor communication, and a lack of incentives. By addressing these issues, the new owner, Mr. McDonald, aims to improve the company’s performance and create a more motivated and engaged workforce.
