COMMON SENSE MANAGEMENT

Sure profits are good, and that is the purpose of business, BUT!! Management's first job is managing the business. The ultimate test of management is business performance. Achievement and knowledge is a necessity. Management is practise, rather a science. A manager, whether running a mom and pop store to running a Wal-Mart, is the life-giving element in every business. Without a strong manager, his/her leadership, the resources of production remain just that, resources of production, and never become production. With competition at an all time high, the quality and performance of management determine the success of the business, and the life of the business. Management is the specific organ of business.

Management must always place economic first. Every decision, every action, management must justify its existence and its authority by the economic results that is produces. Some consider non-economic results such as happiness of the members of business, the workers, contribution to the welfare and happiness of the members of business, the workers, as a great thing, is successful business management, and yes it does contribute a part in success, but if management fails to produce economic results, if it has failed to supply goods and services that the consumer needs and wants, and at a price the consumer wants with little or no hassle, and at the price the consumer is willing to pay, then management has failed if it does not improve or even maintain the wealth producing capacity it has entrusted management to do.

With all this in mind, I question management as to why the same reasoning does not apply here. We have cuts in staff in order to save a few thousands of dollars, but nobody is taking notice that for every two thousand dollars saved in staff cuts, four thousand dollars is lost in sales as consumers are not being satisfied and catered. WHY??

Cutting staff limits the amount of goods and services the consumers need and want, because there is nobody to stock shelves. Cutting staff on registers limits the consumers ability for a happy, satisfying and quick shopping experience, as they grow tired in waiting in lines. Consumers will get disgusted and disenchanted and they leave carts full of groceries and walk out of the store. Not only does this cause a loss in sales, but a loss in products as food spoilage occurs. Cutting staff limits a clean store. Consumers expect to have clean floors, clean shelves, clean parking lots carts available at all times, consumers expect clean restrooms. With no or limited staff, consumers will just make a U-Turn and walk out and possibly not come back and go to a competitor that actually does the above.

The notion of making, for example, $7 million dollars in profits for a quarter, management should consider making $6 million in the quarter and allow for the rest of the profits to go back to the work-force in order to achieve the best consumer service possible. By managing with common sense and with a little wisdom, the consumer will be satisfied and will keep coming back as it is being served and catered. With times being tough there needs to be a focus on how to get consumers, not making them leave. This is management!