Performance Management Of RadioShack

pages Pages: 4word Words: 890

Question :

MGT702 Assignment 3

Case Study- Report

This assignment can be completed individually or in a group (maximum of 3).

Option 1: Choose an organisation where you currently or have previously worked  and provide a report that justifies the need for improvement of performance management, coaching and delegation across the business. The report should draw on relevant academic and evidenced based management literature and discuss current trends and issues in the area. Four key results areas (recommendations) should be developed in the report.

Option 2: Consider the Flight Centre Case Below.

Flight Centre Australia have recently been in the news for the wrong reasons.

You/your group has been employed to provide a report and a series of recommendations on how to better manage staff performance appropriately. You are required to provide a report that justifies the need for improvement of performance management, coaching and delegation across the business. The report should draw on relevant academic and evidenced based management literature and discuss current trends and issues in the area. Four key results areas (recommendations) should be developed in the report.

Format: Report Style (Basic). Content includes: Cover Page, Executive Summary, Introduction (no formal sub headings required in the introduction), Body, Recommendations, Conclusions, and References. 

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Answer :


Executive Summary 

The research paper offers a better insight into the performance management of RadioShack. Performance management is crucial for the companies which gives them the much needed framework to work with. The research shall deal with various issues that RadioShack has in their performances that has restricted them to earn healthy profits. Literatures have been derived from various sources to support the improvement level with subsequent amount theories supporting it. Lastly, recommendations have been provided to improve the current performance related issues.


Performance management is defined as the process through which the managers and the employees work together for achieving the plan that has been made. This management process helps in monitoring and reviewing the employees' overall contribution to the organization which they have made for achieving the objectives (Gerrish, 2016). The fundamental goal is to promote and improve the effectiveness of the employees. The management process is bit continuous in nature where every manager, employee work together to achieve a specific goal. Performance management helps in building a system where all the employees can work together and will be guided by a proper system so that the output is of high quality. The process enables the management in taking certain decisions in regards to operational activities or any other matter which will have the deeper effect on the daily workings of the company. Based on this, the research will focus on performance management of RadioShack. Proper theories will be developed to highlight the performance management and help RadioShack to increase the performance so that their performance increases for better development of the company. Development will help the employees to feel motivated to work in an organization. Current trends and issues of performance management will be highlighted in the context of RadioShack which will be supported by several recommendations to improve their current performance. 

Organization's Background 

RadioShack Corporation is known to be one of the largest retailers of electronics in the United States which was founded in 1921 in Boston. It's operations are spread throughout the country. The company was formerly known as Tandy Corporation and is known for retailing different  kinds of goods and services namely, electronic parts, satellite systems, computer parts, telephones and many more. The CEO of the company is Gordon Briscoe and the company is headquartered in Texas, United States.  The company's main  mission is to expose new  technology to the consumers in the electronic market. It's main vision is to be the best retailer of America, to become a noted corporate citizen and to be the most desirable company offering employment in America. It caters to the consumers residing in the United States and Mexico. According to the current records, the company has 425 independent locations across all the countries that it is serving. It is known to have an estimate of 27,500 employees working under it. It was known to have an annual revenue of $3,434.30 millions in it's last fiscal year (RadioShack.2018). 

Current trends and issues 

The HR professional of RadioShack is more focused on increasing the performance management. Observing the trends will certainly give an indication to the fact they are more focused on employees rather than focusing on the process. The trends that can be observed are being discussed below:

  • The attention shall move from quantity to quality of conversations and feedbacks. This will certainly give insights into managing the performance level of the employees where regular check ins are made compulsory so that the employees receive real time feedback. It gives the employees the much needed framework which gives them real time feedback. Thus, the level of bureaucracy can be eliminated and provide a solid training ground for the managers of RadioShack. The issues can be identified through this effective and real time feedback (Chowdhary et al., 2014). 
  • The performance management system will be more and simpler. The process of work needs to complex free which shall help the employees to understand the process easily. For instance, General electric performance system should be followed by RadioShack which will give them a proper framework for making their performance management level simpler. It will facilitate them to make certain progression in the market which will be flexible to work with, and meaningful discussion can be held for higher appraisal process (Arnaboldi, Lapsley and Steccolini, 2015). 
  • The trend of paying bonuses will change a lot depending on the performance level of the employees. This shall indicate a productive workforce for RadioShack. It will certainly help RadioShack too handle production related payment problems which will ultimately save the time of everyone. Mainly the efforts of the employees need to be highlighted where top performers will be given more priority rather than everyone (Van Dooren, Bouckaert and Halligan, 2015).

However, with the above trends, RadioShack went down in their business which is due to their lower performance. The reasons are being discussed below:

  • The location of each store was located too close to each other which hampered to determine the performance of each other. This is due to poor inventory performance of the concerned inventory manager
  • The performance levels of the online stores were not good. People preffered other online stores to buy electronic goods which offered significant variances in sales (Kearney, 2018).
  • The shift made by RadioShack to built mobile phones did not give them much joy in the market. The proposition was risky in nature as the performance of a mobile phone store decreases the profitability level decreased drastically. This the result of their lower performance on  various other departments 
  • The changes in the management level did not give them the much needed boost to turn the shares of the company.  The marketing team performance was not that high which decreased the moral level of other employees as RadioShack did not receive enough profit to pay bonuses to other high performers (Ter Bogt, Van Helden and Van Der Kolk, 2015). 

Strategies to improve performance management 

It has been observed that the company needs to employ certain strategies in order to improve it's performance management. It can do so by focusing on adopting two theories namely, the exceptional theories and functional theories. The theory of management by exception is a method of business management which identifies and controls situations that diverge from the business norms. It is divisible into general business application and business intelligence application. If Radio Shacks can adopt this method in the course of it's operations then it can achieve a high level of success in  business performance (Oviatt and McDougall,2018).  The main advantage that this theory will offer to the company is that by following this theory the  problem of organization can be easily identified. It in turn will enable the managers of the company to utilize their energy and time on issues which are more important without accelerating any delay in the daily operations. This is directly related to the process of delegation. Adding to this, there is also a need for coaching. It will enable the company by developing the professional bond between the manager and the employees (Mone and London,2018).  It will also help to increase corporate investment and support. Such a work based on collaboration can easily bring success to the company. The company can achieve innumerable benefits if the managers maintain a relationship of coaching with the sales force. The managers will be able to focus on the major issue of store concentration because of which the company has been incurring huge amount of losses (Soltis Brass and Lepak,2018).  Adding to this, the  method will also help the company to preserve a lot of time because it will give the  managers  the flexibility to focus less on statistics and the need to take a decision  will also becomes less. The  method is also a source of motivation for the employees because the majority of the decisions will be taken by the employees instead of the managers. It will help in increasing profit margins of the company(Kearney,2018). 

The second theory which will help the company to improve it's performance is the functional theory of business management (Hayes, 2018).  It is the most common kind of organizational management. According to this theory, the company must divide it's operations into different sections namely, finance, marketing and engineering. It will result in the strengthening of individual department. It will also increase the operational speed of separate departments because the problems will be handled by expert professionals (Collings,Wood and Szamosi,2018).  It will help the company to overcome management problems that is has been facing and will help in the better utilization of it's resources. It will also help them to combat the issue of product concentration because if the operational sections are divided properly then the production of each sector can be identified properly and manufacturing can be controlled on the basis of that. Adding to this, it can also help to prevent financial missteps which is seen to be a common problem existing within the company's operations. Hence, these are some of the strategies that the company must undertake in order to improve it's performance in the market (Bedeian, 2018). 


From the above research paper we can ascertain that Radio Shacks has been facing certain problems relating to it's performance in the market which it can overcome by adopting the strategies which has already been discussed in the paper. We have also analyzed the different issues  and trends which the company has been facing in detail. Keeping those issues and trends in mind some corrective measures have also been provided. Adding to the corrective measures some management strategies have also been mentioned which is expected to help Radio Shacks in the improvement of  it's performance. The two theories have been given a detailed description along with the advantages. Lastly, recommendations on the ways to improve performance has also been highlighted. If these strategies and recommendations are adopted by Radio Shacks then it can effectively regain it's lost reputation in the market.


Below are the recommendations which will help RadioShack to improve their existing problems and strive towards a better performance level. These are:

  • RadioShack should clarify their goals so that the expectations of the employees are being met. They will be able to have a meaningful target which could be achieved easily
  • The information regarding operations should be shared properly which will increase the moral and their performance levels. The trust level will be increased where transparency shall prevail for the betterment of the organization.
  • The employees should be encouraged to open up channels for communication. Informal meetings can be held so that employees express their ideas. Thus, concerns for the employees can be addressed in the best possible way
  • The effectiveness of high performance should be communicated which promotes higher cultural values within the organization. Thus, a level of trust shall be generated which will build the path for a higher level of employee engagement within RadioShack.


From the above study I learnt about performance management by execution. I realize that it can play a very important role in my life. By executing this strategy in my real life, I believe that I will be able to manage and segregate my tasks more efficiently. It will enable me to focus on important things more and achieve good results.