Santa Claus Comes for Failed Business Executives
The Washington Post had a good story on the dealings of the electronics retailer Circuit City. Unfortunately, it was buried in the business section where no one will see it. It should have been plastered at the top of the front page.
The basic story is that last March, the wise men who run Circuit City came up with the brilliant idea of laying off their more senior salespeople, who get $14-$15 an hour, and replacing them with new hires who get around $9 an hour. It turns out that this move was not very good for business. One of the reasons that people go to a store like Circuit City, rather than buying things on the Internet, is that they want to be able to talk to a knowledgeable salesperson. Since Circuit City had laid off their knowledgeable salespeople, there was little reason to shop there.
Apparently Circuit City came to this same conclusion earlier this fall and tried to hire back some of the people it had dumped. In any case, things have not gone well for the bottom line. The company is now losing money and its share price is down more than 75 percent from its value earlier this year.
We all know what happens when you mess up in the dog eat dog world of big business -- you get retention awards (that's because your stock options aren't worth anything). The Post reports that Circuit City's executive vice-presidents will get retention awards of $1 million each. That's 35 years worth of pay for one of sales clerks who earned $14 an hour. And that's just the bonus.
This touching account of Santa Claus visiting Circuit City's executive suites belonged on the front page of the Post and every other newspaper. What better way to get in the Christmas spirit?
--Dean Baker
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COMMENTS (68)
My career goal has always been to reach the ranks of incompetent executive management. Once there, it doesn't matter what you do, the money just keeps on rolling in. These executives are my heros. $1M is not enough for this master piece of business acumen though.
Posted by: bah_humbug | December 22, 2007 1:40 PM
I'll offer one data point for you.
I stopped shopping there last June, when it took three associates to figure out how to sell me a GPS I had orderded online and was only there to pick up.
Posted by: mdhatter | December 22, 2007 2:17 PM
Re: the re-hiring thing, it was actually even stupider than that. They fired all of their competent employees, then asked them to come back and be re-hired as entry-level employees, sans any of the benefits or pay they had accrued in however many years of service.
Posted by: Dan | December 22, 2007 2:22 PM
I stopped shopping at Circuit City after that genius move, because I figured that any company that would treat their employees that badly wasn't going to be very interested in customer service, either, and it's not like their prices were that amazing to begin with.
Posted by: Mnemosyne | December 22, 2007 2:25 PM
Thank you for pointing this our...Last week, I bough an item at Circuit City store and was stunned at the incompetence and youthfulness of the sales people. Now I know why...
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Posted by: Hank Essay | December 22, 2007 2:29 PM
The question that the Post should have asked is "Why should these incompetent mismangers be retained?"The clearly should be fired.
Our corporations are being managed like cleptoracies.
Posted by: CaptainVideo | December 22, 2007 2:38 PM
This spring, shopping at Circuit City was like walking through a museum of items for sale, without anyone to help you. There were clusters of people positioning themselves to be next, around the only sales people in the store, until giving up and walking off as I did.
Posted by: putnam | December 22, 2007 2:40 PM
Too funny. I was trapped in consumer hell with the redshirts over at CC for days--finally gave up, called tech support, and got some lady in India to call the store on my behalf. She straightened 'em out in half an hour.
I'm actually glad they were so useless in retrospect. $9 an hour in Manhattan? You'd BETTER not give it your all.
Posted by: borehole | December 22, 2007 3:44 PM
There is always the possiblity that these exe. vp's who got these retenion bonuses were a.) the ones who hadn't been fired b/c of the wage f*up and/or b.) essential to the turn around of the company and eventual return to profitablity...
Actually, nevermind. A coproration could never do such a non-evil thing; they're too busy sitting in their corporation buildings, being all corporationeey....
Posted by: Anonymous | December 22, 2007 4:20 PM
"The Post reports that Circuit City's executive vice-presidents will get retention awards of $1 million each. That's 35 years worth of pay for one of sales clerks who earned $14 an hour."
Assuming that the genii behind the plan hired the same number of new employees to replace the dumpees (a 1:1 ratio), the difference in savings to the company would be much less.
Or, to express the labor cost differential between a $9/hr employee and $14/hr employee as $5, that million dollar retention award would equal realized savings after 96 years.
I wonder if anyone will even remember that Circuit City existed a century from now.
Posted by: Ereshkigal | December 22, 2007 4:41 PM
Time to warm up the guillotine.
Incompetence at the top is a precursor to revolution.
The VPs who got the bonuses and especially the board members who approved ought to be a fine field test for the Doctor's humane machine.
Posted by: cal1942 | December 22, 2007 5:30 PM
Doesn't "retention bonus" mean they pay you fto keep coming to work? Oh, wait, there's already a word for that.
Posted by: Avedon | December 22, 2007 8:29 PM
This is such a slap in the face for those of us who got laid off in March. Our store was lucky, only two of us got laid off. Me, who was 3 days from getting married, and one other Senior- who was 2 WEEKS from having his first child born. Now I know it wasn't their goal to ruin lives, I can't imagine execs not foreseeing a huge lump of money in the Circuit City crystal ball. How could you not see news like this coming...
Posted by: Damon Young | December 22, 2007 8:36 PM
I guess this is how one stays in the top 1%.
Posted by: Steve J. | December 22, 2007 10:37 PM
If I were a betting man, I'd wager that Circuit City will be joining CompUSA in the Dead Pool, that is unless a buyout shop scoops them up. CC stock was 30.36 June 2, 2006 and closed at 4.75 on Friday, Dec 12, 2007. That's an 85% decline in 18 months.
Nice work, lads!
In some parts of the world, that would earn the Board a Stockholder's Lawsuit.
Posted by: Mike | December 22, 2007 11:46 PM
I don't buy at Circuit City because of stupid mail-in-rebates. BestBuy switched to Instant Rebates a long time ago and is the best local electronics store. Their stock is kicking a$$ too!!
Posted by: Mike | December 22, 2007 11:48 PM
Let us not forget that just a few years ago they canned all of their commission based sales people too. I guess it's important to run a technology sales business with as little technology knowledge as possible. Hmm, now it's no wonder that so many people opt to but TVs at Costco. At least Costco doesn't pretend to have knowledgeable sales people.
Hmm, I wonder if their internal theft problems are caused by employees not being able to afford lunch.
Posted by: Jay | December 22, 2007 11:48 PM
"I wonder if anyone will even remember that Circuit City existed a century from now."
A century from now? Try 15 years.
Posted by: Adam | December 23, 2007 12:11 AM
FYI to Anonymous - no senior execs were fired, at least according to the text of the article. It was senior sales reps who were canned. The execs who made that genius decision were the ones who received the retention bonuses. I find your assumption that these same tycoons will lead the company back to profitability touching, if a tad naive...
Posted by: jjcomet | December 23, 2007 12:53 AM
They've just demonstrated the best way to kill morale. Expect more good people to leave CC in the coming days.
Posted by: sl | December 23, 2007 1:05 AM
Dear Circuit city give me full control of you internal workings and a million dollars and I will pull you out of a slump and put you back on top. With my G.E.D I will make you billions.
sincerely yours,
dellic
Posted by: deathdellic | December 23, 2007 2:16 AM
Philip Schoonover, the CEO and former executive vice president at Best Buy, was brought in to help Circuit City compete with Best Buy. It was his idea to fire all of these people in an attempt to do so.
But I think Forbes says it best.
Now please explain how firing all those people helped them out.
Posted by: mattH | December 23, 2007 3:55 AM
This sure convinces the store employees that working hard isn't worth the effort. I learned that in the retail world, doing half-assed is the best way to go. I worked at EB Games when I discovered this. One month, Microsoft would be on promo, and we'd kill our monthly goals. The following month, it would be like THQ and the good titles weren't included. Because we did so good the month before, our goal was drastically raised. We failed to meet that new raised goal miserably. The month after that, we lost over half our hours. I went to working 5 hours a week. So what did I learn? Never should have worked hard the month that Microsoft was on promo.
This is how all retail seems to work. Employees are never rewarded for working hard. Then you see shit like this happen and you just want to throw up. If the employees never worked hard and earned their annual raises, they would still have a job.
Posted by: Tendonut | December 23, 2007 4:17 AM
I hate to say this, but retail electronics are dead. The days of the experienced salesman who can put you into the right goods and who earns a commission by selling you exactly what you want are done. It's really sad, but its how it has gone. Retailers have cut so hard that the incentives for employees to really perform are just not there. Also, you can often find merchandise online much cheaper. Ironically, a friend of mine who worked for a stint at Best Buy was frustrated when the regular retail prices offered on sites like Newegg were cheaper than his cost at Best Buy, including the employee discount!
Posted by: Acidradio | December 23, 2007 5:21 AM
It's interesting how deeply have sunk the Big Three tech retailers in the USA: Best Buy with its "blue polo-shirt" overkill, CompUSA bankrupcy and totall sell-out, and now Circuit City hit with yet another misplaced attempt to (fill in your own).
Posted by: Tereza Perverza | December 23, 2007 9:44 AM
RE: Acidradio
You are correct to a point. But then when I want to buy an item, I want to physically see it prior to purchase. Going to BestBuy, Circuit City, or other shops is good for several reasons. 1. Merchandise is available for inspection. 2. Those salespeople can tell you which models have high return rates. 3. Difficult questions for some may be answered simply by sales help even with limited experience, leading to purchases meeting intended needs and higher satisfaction.
Bottom Line: Corporate greed is an ever expanding lust similar to a cancer that consumes all till the manufacturing base is destroyed. Then outsourcing is the only option. We cannot stop the changes from happening, but can only Vote when the elections come about. There is only one candidate that will make those corporations accountable for their actions. A simple search on the internet will tell you who he is.
Posted by: OldPhart | December 23, 2007 4:02 PM
it is an all too common part of the new American management style that is killing the economy. Reward incompetent upper level mangers who make brain dead decisions while squeezing every bit of incentive and reward out of the bottom and the middle levels in order to reward the top
Posted by: Kevin | December 23, 2007 4:48 PM
i went this morning to buy a new digital camera and camcorder for a family member for Christmas. i drove right past CC and went to another store directly because of the way they laid off their better salespeople.
i voted with my wallet.
Posted by: chris | December 23, 2007 6:32 PM
Boycott?
Posted by: fredblotnic | December 23, 2007 8:42 PM
Do you really want to retain someone who has just tanked the business?
Posted by: BC | December 23, 2007 9:19 PM
fuckers..
Posted by: D | December 23, 2007 10:52 PM
Man, it's things like this that make me embarrassed to be part of Corporate America sometimes.
Posted by: Yuppie | December 24, 2007 12:04 AM
This is not limited to retail; I had a friend who worked for United during their bankruptcy, who was amazed at the massive retention bonuses for execs paid supposedly to keep them from jumping ship to another airline....even though those airlines were also in or near bankruptcy and paying retention bonuses to their execs to keep them from jumping. And this was while the rest of the employees were taking 20% pay cuts to keep their jobs.
Posted by: Fraud Guy | December 24, 2007 2:49 AM
I got a solution DO it like in europe.. NO FRIKEN REFUNDS!!!
WTF do we have refunds here for ?? for leeches to use product and return it never keeping it??
I work in retail and thank god Nintendo finally woke up and no more flooding of product = Less returns and refunds = Less morons abusing product
Again look up NAR ( nintendo auto replen) All retailers had a Nintendo visit last year either you offerered no refunds or you can't order product
No EXCEPTIONS
Retailers on NAR
Best Buy
Wallmart!!!!
Loblaws
Future Shop ( aka Best Buy)
Circuit City
Eb Games
Europe Retailers
NONE ON NAR!!!!
they can order at any time BECAUSE THEY DONT HAVE FU_CKIN REFUNDS THERE . Exchange only
So i guess they don't have too many jackasses reselling there
Warning to buyers/returners
Your days of buying a product then waiting till the last day of return then getting your back back then going to another retailer and doing the same shit are over morons. Vendors have 400 million customers in Europe now with no friken refunds there WTF why do you think product is getting less to the stores?? Wake up !!!
Posted by: James L | December 24, 2007 3:29 AM
Borders did this too several years ago. Offered all store-level managers a get shafted or get lost pay reduction policy. That absolutely ruined their "bookstore family" customer service. Now they give negative reinforcement "incentives" to employees to quit before long term benefits can kick in.
Posted by: Armand | December 24, 2007 6:35 AM
Shooting them in the head is a possible solution! Who are these morons who think they can squeeze the staff. Hunt them down and KILL them... That is a message they will understand.
Posted by: J.L. Lee | December 24, 2007 12:25 PM
A couple of the comments above reminded me of a story about FDR. I think it was during his first run for president, and I think it's a story he told to make a point. He was somewhere out west and he asked a local farmer or rancher, "What are people talking about in your part of the country?"
The guy replied, "Well, Frank, I am sorry to say they are talking about revolution." I love that line. I can hear the rancher's drawl.
Posted by: Eleanor | December 24, 2007 1:46 PM
"I hate to say this, but retail electronics are dead"
Yet Apple stores are thriving. I guess they did it right...
Posted by: charles | December 28, 2007 6:05 PM
Wow, some of you guys must be lucky, I never found a knowledgeable salesperson there, even before the layoffs began.
Posted by: Movie Maker | December 28, 2007 6:09 PM
So I have a basic question:
How can you keep "knowledgeable" technical sales people at 9-14 bucks an hour? I worked in retail for a couple of years after the dot com bust. A good number of my coworkers were all overly qualified and we found ourselves rewarded by using our technical backgrounds to make experienced recommendations for people that had questions about technical issues. (We weren't making much money.) As the industry is coming back ... most of us have had to leave because we couldn't survive on that salary.
Posted by: Josiah Carberry | December 28, 2007 6:49 PM
Speaking from personal experience this is the second time CC has done this in the last 4 years; though the first time they didn't fire their employees directly, they just cut the top wage earns' pay to match non-commissioned sales pay. There was a mass exodus then too.
CompUSA pulled a similar stunt on at least 3 occasions that I know of.
Posted by: Brian | December 28, 2007 6:50 PM
We see this happening more and more often because the people taking the reins at this big corporations are fresh out of universities with business degrees and no actual experience doing real work in the stores they oversee so they have no respect for the "worker bees." Only 2 decades ago, it was commonplace for corporations to promote from within. You used to hear stories all the time about smart and savvy folks moving up the company ladder, from the lowest positions up into the corporate echelon which meant those in the upper ranks deserved to be there by virtue of their work ethic and the ability to produce results. But that doesn't happen now because somewhere between 10-15 years ago we shifted to honoring education over experience and achievement. I have nothing against school. It's necessary for everyone, but we've tilted too far in favor of education and no longer value experience and hard work and this is the attitude that filters down from the top when this happens. You can't run a company with a bunch of do-nothings who think they earned their spot in the corporation because of the degree mom and dad helped them pay for. Companies like Circuit City need to clean house of these overeducated corporate morons, and start putting some value on hard work and intelligence instead of laying them off.
Posted by: M Andrews | December 28, 2007 7:04 PM
Another fine example of the Moron Principle... Once a moron gains a foothold inside an organization they are prone to promoting other morons beneath them (lest they be discovered). This goes on for some time, eventually reaching a geometrical progression. By the way, the fastest way for a moron to rise to power is to show complete incompetence in their assigned role. Instead of being terminated, they are moved up the chain where they can do "less damage". It's all downhill from there.
Posted by: Bruno | December 30, 2007 10:22 AM
This scenario is an artifact of business school training. MBA programs teach a number of fudamentally incorrect premises; seek any means to optimise profit, business financial skills rather than domain knowledge is the important deciding factor, measure and reward performance over a short term, correlation (rather than causality) is the yardstick.
Take any operation add an MBA and you will have a short term gain followed by many quarters of loss.
Posted by: D. Kumhyr | December 30, 2007 11:25 AM
"Take any operation add an MBA and you will have a short term gain followed by many quarters of loss."
Isn't there a president with an MBA who has been proving this maxim?
Posted by: arborman | December 30, 2007 5:20 PM
I worked for Circuit City up until 2001. They started downhill when they dropped major appliances, for more computer equipment. Then they started the copy Best Buy look for their stores, and get rid of the commissioned sales personnel. It was terrible. The low pay keeps quality sales people away from many places like Circuit City. Take notice of the steep turnover in employees at these stores. The turnover is incredible, and I believe they like it that way. After being away from the Circuit City store I once worked at for two years, I could only find one employee that I worked with. This last layoff finished that person off...
Posted by: Johnny C. Kitchens | December 30, 2007 6:48 PM
A lot of this does come down to employers looking after employees who look after the company. Simple really.
However, *some* management tends to see things in terms of dollars instead of people (and employees are the largest expense to a compnay). To some degree they are right, but it must be *balanced* with employees wellbeing.
I remember a quote from a baker in a small town in Australia who was making millions from only 1 store. Yes a baker. He said, "employees are the most important thing I can sell becuase they sell". He also said it was important to train staff and someone asked him "What happens if you spend the money and train someone and they leave??". He replied, "What happens if I save the money, don't train them and they STAY!?".
Posted by: Juzzy | December 30, 2007 7:19 PM
RE:Posted by: James L | December 24, 2007 3:29 AM 'I got a solution DO it like in europe.. NO FRIKEN REFUNDS!!!'
Thats totally WRONG! I live in Germany (2nd most important mkt on the planet), and the law states that you have 2 weeks to return anything, no questions asked for a full refund.
Additionally, you can return anything (yes, anything) for a replacement for 2-3 years, depending on the item.
90% of the salespeople have a 3 year training in their field of sales, and their education is updated quartely...
Posted by: Auslander | December 31, 2007 4:52 AM
Well, unions aren't going to save us, so what's the solution? Eventually the executive bonuses for crap performance will get bad enough that shareholders will do something about it.
The SEC did its part by approving new rules strengthening disclosure of executive comp, so that shareholders know exactly how much executives are paid. Now shareholders have to do their part.
http://www.sec.gov/news/speech/2007/spch012307rcc.htm
Posted by: Elle | December 31, 2007 1:45 PM
The first poster was spot-on. It seems there is literally no downside once you reach a certain level in the corporate hierarchy. Or rather, your downside is limited to the tens-of-millions, instead of the hundreds-of-millions.
Seeing the recent graph at Washington Monthly showing that our ever-increasing GDP and productivity gains have only benefited the top 5% of the population perfectly illustrates what's wrong.
http://www.washingtonmonthly.com/archives/individual/2007_12/012733.php
I'd be fine with CEOs earning gobs of money if the rest of the population could at least get a reasonable piece of the pie too. Or if when the CEOs mess up they get hosed like the rest of us.
We're at the point where even Adam Smith himself admitted the free-market/invisible hand breaks down. Where corporations are so large, and corporate interests so entrenched that the market forces cannot regulate themselves.
We've got to stop letting the Grover Norquists screw over our economy. Time to elect some Democrats and then make them work for us.
Posted by: jcricket | December 31, 2007 8:01 PM
Manufacturer of worm gear boxes, helical gear boxes, right angle gear boxes, gear reduction boxes, industrial gearboxes, worm wheel and worm shaft, worm gear, spur, helical and bevel gear, racks and pinion, other mechanical engineering power transmission equipment.
Posted by: Manjoor | January 3, 2008 7:25 AM
OldPhart says, "We cannot stop the changes from happening, but can only Vote when the elections come about."
followed by, chris, "i drove right past CC and went to another store directly because of the way they laid off their better salespeople. i voted with my wallet."
BAM! you hit it chris. I was waiting for this newstory since the day CC did their first year MBA stunt. Beautiful. The CEO's will pull the building down around them. Sure they may make that money now, but when they are spending it in the Caribbean over the next 30 years because they couldn't get another job, I bet that hole in their stomach will be a haunting nightly reminder. The martinis won't be able to fix that.
Posted by: RevereRides | January 7, 2008 9:28 PM
CC was treating its customers like it treated its long term employees, why shop there ? Customer Service after the sale - poor; Decided to try them again for the holidays - lacked the most current merchandise,but found it at the other two large box chains in Delaware.
Posted by: Toni | February 29, 2008 10:46 AM
Manufacturer of worm gear boxes, helical gear boxes, right angle gear boxes, gear reduction boxes, industrial gearboxes, worm wheel and worm shaft, worm gear, spur, helical and bevel gear, racks and pinion, other mechanical engineering power transmission equipment
Posted by: Manjoor | May 8, 2008 1:33 AM
My son worked there until March of 2008 and this is the exact reason he was let go. Although they weren't very honest about it. He was attending college and the store knew his schedule and had been working around it, until this new policy. Then they began scheduling him when he was in class and writing him up as a no show for work. They used that as an excuse to let him go. He was extremely knowledgable about their electronics and an expert with customer service. Customers would come back to the store to seek him out specificially because of this. He ended up having to leave college with only three weeks left of the semester because he couldn't find employment that would work his hours around his already scheduled classes. He had to pay his rent and car insurance si he had to have a job. His semester was already paid for and he ended up taking incompletes for all his classes. Circuit City is a real disappointment.
Posted by: Mary Williams | September 29, 2008 10:20 AM
Excellet article. The modern (Western) management concepts of vision, leadership, motivation, excellence in work, achieving goals, giving work meaning, decision making and planning, are all discussed in the Bhagavad-Gita . There is one major difference. While Western management thought too often deals with problems at material, external and peripheral levels, the Bhagavad-Gita tackles the issues from the grass roots level of human thinking. Once the basic thinking of man is improved, it will automatically enhance the quality of his actions and their results.
The management philosophy emanating from the West is based on the lure of materialism and on a perennial thirst for profit, irrespective of the quality of the means adopted to achieve that goal. This phenomenon has its source in the abundant wealth of the West and so 'management by materialism' has caught the fancy of all the countries the world over, India being no exception to this trend. My country, India, has been in the forefront in importing these ideas mainly because of its centuries old indoctrination by colonial rulers, which has inculcated in us a feeling that anything Western is good and anything Indian, is inferior. Gita does not prohibit seeking money, power, comforts, health. It advocates active pursuit of one's goals without getting attached to the process and the results.
The result is that, while huge funds have been invested in building temples of modem management education, no perceptible changes are visible in the improvement of the general quality of life - although the standards of living of a few has gone up. The same old struggles in almost all sectors of the economy, criminalization of institutions, social violence, exploitation and other vices are seen deep in the body politic.
The source of the problem
The reasons for this sorry state of affairs are not far to seek. The Western idea of management centers on making the worker (and the manager) more efficient and more productive. Companies offer workers more to work more, produce more, sell more and to stick to the organization without looking for alternatives. The sole aim of extracting better and more work from the worker is to improve the bottom-line of the enterprise. The worker has become a hirable commodity, which can be used, replaced and discarded at will.
Thus, workers have been reduced to the state of a mercantile product. In such a state, it should come as no surprise to us that workers start using strikes ( gheraos) sit-ins, (dharnas) go-slows, work-to-rule etc. to get maximum benefit for themselves from the organizations. Society-at-large is damaged. Thus we reach a situation in which management and workers become separate and contradictory entities with conflicting interests. There is no common goal or understanding. This, predictably, leads to suspicion, friction, disillusion and mistrust, with managers and workers at cross purposes. The absence of human values and erosion of human touch in the organizational structure has resulted in a crisis of confidence.
Western management philosophy may have created prosperity – for some people some of the time at least - but it has failed in the aim of ensuring betterment of individual life and social welfare. It has remained by and large a soulless edifice and an oasis of plenty for a few in the midst of poor quality of life for many.
Hence, there is an urgent need to re-examine prevailing management disciplines - their objectives, scope and content. Management should be redefined to underline the development of the worker as a person, as a human being, and not as a mere wage-earner. With this changed perspective, management can become an instrument in the process of social, and indeed national, development.
Now let us re-examine some of the modern management concepts in the light of the Bhagavad-Gita which is a primer of management-by-values.
Posted by: bhattathiri | October 3, 2008 7:02 PM
I work at circuit city and have now lost my job. It is a sad day for me For I have put alot of effort into giving it my all ever since I first started to work there 5 years ago as a seasonal associate. I was never expected to keep the job so said my Lead supervisor but that did not stop me I continued to give all my effort and work hard so as to make sure to give more reasons to keep me and not to get rid of me. apparently there was only one person wanting me out and everyone wanting me to stay I don’t know what his problem was with me but that’s another story. Once I was finally hired I was so happy and glad that I got a job there for I have always wanted to work there. at that time circuit city was picking up as far as market value people had fun. rough at times but it was still a great atmosphere to work in. Every thing I did from the point of getting hired was give everything my best. I made sure to go beyond their expectations of me. one year later our store was being very profitable. so they wanted to relocate us into a bigger store. we were all excited I know i was. one month before relocating they fired our store manager which imo was a good manager regardless of his problems was probably the only manager who when he saw me working he would always come up to me and tell me how great of a job I did and that my parents must be very proud of me. those type of things only made me want to work harder. It was never about the pay or anything It was about the atmosphere and having people like what i did and how fast I learned that kept me there. so we get a new manager and start to relocate we are offered lots of over time Im on the list and ask to work every day of every hour which was alot when i got my check I invited whole family to dinner including aunts and uncles I was proud of what I and the circuit city associates accomplished. I would always offer to pay for peoples pop and so on. So there we go our grand opening and we are busier then ever we can hardly keep up with traffic. I'm working my tail off making sure to get every load go get or even help a customer in need of help making sure they have a great experience. at them time It was hard to believe we would end up like this. our stock was high everyone was happy in a way. but we also started to see some faults in my view we now had to carry items across the store instead of a loading dock which was a bit of inconvenience for us but no matter we adjusted. So anyways we continued to progress we wanted everything available to our customers so we put out almost every item on display then we got a new store manager cause the one we had went to another store. there we go all of a sudden circuit city wants to change the way we do things lets put the customer first in everything we do lets make sure we make there experience the best they can have. and for a very good portion we did well we set goals and accomplished and even exceeded companies goal. every one was started to have a great time with new process and our stock kept getting higher. then we get a new manager cause the one we got did something wrong. things changed a bit but were for the most part not so bad everyone was still ok. I went to get surgery on my ankle and was out for 3 months. then I come back and we got a new manager cause the old one was apparently getting blamed for the other mangers mistakes so he actually quit. we got a new manager he seemed to be high spirited and he seemed to have very good enthusiasm to work. Told us things will be changing. and we actually liked him for the most part cant speak for everyone else. then comes the day everyone of our senior associates were laid off. I did not find out about it till after a week after it happened. the way I found out was I called a friend and asked him when was the next day he worked. and he told me I was a little mad why what did he do was he doing something the company didn’t like no he was getting paid too much that was his only mistake. I felt bad for friend but felt even worse for a co-worker who seemed to have given alot of effort to making sure he gave great customer service and was all around a very cool guy to work with he was part of the reason why people would come to buy at that store why in the world would they get rid of some one like that. I would have gladly paid him whatever he wanted know how his work ethics and how well he provided for not only the customers but his co-workers as well. So I was mad, sad, and confused. My thinking at the time was what is happening why are they doing this what is the point of all this. Time went by I started to get over what had happened but always remembered. people were leaving cause of how they left and were offered better positions and pay at best buy which imo I don’t like very much. which is another thing why in the world would circuit city want to be something I don’t like. I have never shopped at best buy only once to buy a mini fridge for my dad for christmas. which my wanted to go there cause circuit city did not have. So there I am and all of a sudden we our department gets merged with another department and all of a sudden we have no time to complete task and they are telling us that we have to get everything done. we get help from people and just try to do as much as we can. something’s didn’t get done but what can we do we tried there just never seemed to be enough time in the day to accomplish everything. We continue to work thru it meanwhile people start to feel uneasy and we get another wave of lay offs. things aren’t looking too good at that point our stock was starting to come down. we get another manager cause the old one got promoted. the new one got on everyone’s tail and asked for the impossible at times. but I still did what I could at this point we stop focusing on out north start which was the customer and slowly start getting back to about the numbers. the manager was later along with another manager who he took with him which the other one was a good manger but because the store manager would use the other managers numbers he had to go to things aren’t looking to good at that point morale is down. I get surgery on my wrist come back January of 2008. the feel of everything is not good everyone is not likeing the work atmosphere some people try to find ways to leave I still wanted to stay to see if things got better. we have a new supervisor. the year seems to go by fast but our stock starts to hit low's I never paid to much attention to stock and news till I saw our stock at 3 dollars then I started to question and read and keep updates. when our stocks hit a low of under a dollar I was heartbroken because how could a company that at once had its stock above 50 dollars all of a sudden be at under a dollar in just two years what is happening and what are there plans. when we start to hear bankruptcy and delisting those that cared put more effort and passion into trying to get back but not everyone feels the same the feel of the work atmosphere in my opinion was at a all time low. Know here we are with all the that and me trying to keep the hope alive. Circuit city is now closing stores and liquidating its sad to hear some people want it closed. but It feels even worse to know the place where u put and set ur heart and life into is about to close and you will be back out trying to move forward and just make the past just that the past. I can not show you how I feel I can only tell you that I am heartbroken because circuit city was a company I had loved and cared about and I feel bad for all those losing their jobs over some mistakes that we had no control of. I remember from business class when our professor showed us the Maslow’s hierarchy of needs which said keep your employees happy and they will in turn make your customers happy. Did not anyone of the upper management know this. Sorry that I had to type this so long but a professor once told me just speak whets on your mind. this is only a portion of what I feel but I do not want to extend this any longer. Thanks for reading what I had to say.
Posted by: Unknown | January 17, 2009 12:40 PM
Hey - incompetence is rewarded all the time, I'm sure we all have a story or two about a boss who could never do anything right but just kept ascending to greater and greater responsibility (and salaries!). Here's an interesting post about how incompetence in the office is rewarded
Posted by: mrofficeslave | January 27, 2009 2:02 PM
They started downhill when they dropped major appliances, for more computer equipment. Then they started the copy Best Buy look for their stores, and get rid of the commissioned sales personnel. It was terrible. The low pay keeps quality sales people away from many places like Circuit City. Take notice of the steep turnover in employees at these stores.
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Rest easy, I was one of the middle management who was set up with a retention bonus.They reneged on all facets on the bonus and screwed us the same way they they screwed the other employees. Rest assured that one area where circuit excelled in was finding inovative ways to cheat all its employees. Phil Scoonover and jeff marcum wrote the book on how to pay themselves at the cost of the company workforce.
Posted by: chuck stephens | September 3, 2009 9:51 AM
So... meh. this blog post is the first I've heard about the issue, and based on it and reading the Politico article I'd say it's the kind of thing to ask questions about (if Calderone didn't already know that there are a lot of off-the-record list servs around DC like you say, which come to think of it would be a big thing to be ignorant of), but the answers aren't newsworthy. Smoke but no fire.
I just hate seeing "leftists" act like William F Buckley and the National fucking Review. This is why the left has gone to shit, too many damn rich kids and their summer-camp habits brought into the political arena, instead of actual organizing.vxvxc
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