Harvard University

Escalade Sports

Escalade Sports originated as the Indian Archery & Toy Company in 1927. Over the last 80 plus years, Escalade Sports has evolved into a highly regarded company within the Sporting Goods industry known for quality products and brands, new product development, unparalleled customer service and quick turn shipping capabilities. Escalade Sports has become a global company and a major player in the Sporting Goods industry through continuous growth, expansion and acquisition. They focus largely on leisure time and family fun activities for the home. Escalade Sports currently features many world class brands including: Goalrilla, Silverback, Stiga, Mizerak Billiards, Atomic, RhinoPlay, Harvard, Accudart, and Bear Archery. They are headquartered in Evansville, IN and have manufacturing facilities in Gainesville, FL, Olney, IL, Raleigh, NC, and Rosarito, Mexico, as well as a procurement office in Shanghai, China. Their manufacturing and sourcing capabilities allow them to provide a wide array of the best quality products at competitive prices. Whatever your sporting goods or home recreational needs, you'll soon find that to their customers they mean business, and to the consumers, they mean Serious Play!

What is Susan's dilemma?

Susan is faced with the dilemma of say something now and get fired (ie: accomplish little but do what's right) or put up with what is happening in an effort to change it when you are in a position of power.

Susan's risk evaluation based on priorities - provides justification for her actions

Risk of being ostracized and/or losing her job

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Risk of allowing people to continue stealing and becoming part of the problem

She has to stand by while no one does anything to correct the problem that she knows is wrong. As a result, of poor management she is left with a decision to make. While her intentions are good she is not sure what is the most effective route to take to accomplishing her goals while still keeping the position.

There is an element of self interest in this case, as with many ethical dilemmas. Susan could approach the co-workers and demand that they stop, this would turn the group against her and eventually be forced from her position.

Alternatively, she could wait until she becomes a manager to change the actions but that would require her to "allow" the activity to continue. This creates a significant dilemma because she must sacrifice personal gain for her employer. She attempts to rationalize "allowing" the action as the best route to changing it. This also provides her with a stable job and the justification sheds light on how she weights her priorities.

What influences her perceptions and behaviour?

She is influenced by management's decision to" ignore" what is happening. She understands that the owners may not be aware but focuses on the positions that have direct authority on the students and workers stealing. While she has no power herself she believes that with a supervisor position she can use some force and change the actions of the group. Therefore, she has rationalized the problem to be a management controlled issue instead of a group norm. She believes that she cannot change the actions of others without the hierarchical authority to do so. It is therefore up to the supervisors to correct the problem and what she believes to be an unsolvable issue until she is in a position to correct the norm.

What influences the perceptions and behaviour of the others in the case?

Others are influenced by the actions of management. No one has told them to stop and some even support the improper action this creates an environment of groupthink and cohesion that forms a "norm."

Because stealing was not cast out from the group as an unacceptable behaviour the group began to accept it. Combined with low wages most employees did not feel a connection to the success of the organization contributing to success of the employee. This created an acceptable environment to "take extra" which after a while became the norm.

Managers did not see a value in going against the norm, this would have caused increased tension with the larger group and forced them to make a decision between friends and a job that didn't mean much. With management allowing the group to continue the action it reaffirmed the acceptability and strengthened the norm.

A Flow circle (1 leads to 2, 2-3, 3-4, 4-5, 5-1... etc...)

1. Stealing is a benefit we deserve2. Accepted by management

3. Observation of acceptance continued stealing reaffirms the belief

4. Foundation of group norm and general acceptance

5. Group norm reduces managements

desire to counter the action which

contributes to general belief (Back to 1)

What should Susan do?

Susan should follow her instincts. She mentions how she was raised to know right from wrong and that this attitude is wrong. The best course of action would be for her to seek the owners, the ones who have an invested interest in the store making a profit. She should make an effort to convince these people that a restructuring is in place, and removing the really bad apples will assist in reducing costs and limiting theft.

If the owners refuse to follow this plan it is likely the business won't stay operational for long. The probability of anyone with the interest of making a profit allowing the employees to continue with this action is low. She will gain the support of the most important player and recognized for solving this largely unknown issue.

Her next step after restructuring the number and duties of employees should be to suggest a bonus program based on theft. It is likely, as suggested in the paper that employees do not feel valued and they are "helping themselves" to the products to gain a sense of return. Instead, have the employees buy into a pay structure that focuses on zero-loss. Employees will regain a sense of belonging and feel rewarded for their efforts.

This is only possible if the "bad apples" are removed from the picture, downsizing occurs, and the group feels that there is a higher gain to preventing theft then there is from committing the crime. This can also be influenced by having semi-regular and random visits from police officers.

Susan needs to apply pressure to the owners so that they will allow her to make some management decisions and to the co-workers to change the norm.

- Daryl.wright