SCHAEFFER’S HARLEY-
DAVIDSON AND MOTORSPORT
Schaeffer’s Harley-Davidson and MotorSports is a family owned business that has been
operating for 50+ years that sells Harley-Davidson and KTM motorcycles, Can-Am vehicles and
parts, accessories, and riding apparel. The Harley and MotorSports stores are at two different
locations but operate as one business. These stores operate in a functional organizational
structure, meaning the employees are grouped in their area or specialization. The structure starts
with the owners at the top, then the general manager, then the department managers, and finally
the staff. There are six departments in both stores; finance, parts, sales, motor clothes, rentals,
and service. The managers and staff in these departments have an advantage of specialization of
skills and knowledge in their specific department. Although the staff has the skills and
knowledge to perform their jobs effectively, there is still a problem with this knowledge being
translated to performance.
In a functional organizational structure there are specific disadvantages that can have a
negative impact on the company and Schaeffer’s Harley-Davidson and MotorSports is showing a
direct correlation to many of them with the problems they are encountering. The employees are
regularly performing the same job and according to Kimberly Melnick, they are not motivated to
reach outside their comfort zone and be challenged (K. Melnick, phone interview, November 6,
2018). This could be related to the fact that they are bored and are no longer enthusiastic about
the jobs they are performing (Usmani). There has also been a major disconnect in
communication within and between departments. This can be directly related to the functional
structure because when communication is poor throughout the departments it can cause poor
inter-department coordination, this ultimately decreases flexibility and innovation (Usmani). Ms.
Melnick stated that the employees are in it for themselves and are not considering the dealership
and its long-run goals (K. Melnick, phone interview, November 6, 2018). In functional
case, according to Ms. Melnick, the staff seems to be comfortable with where they are in the
business and do not care to make or carryout departmental goals. When decisions cannot be
made or carried out by the staff this puts all the pressure on the managers to make these
decisions, on top of what they are already in charge of. It is common in a functional structure that
managers make decisions autocratically (Usmani). In this situation the managers at Schaeffer’s
have no choice but to make decisions without the team since the team is not willing to put in the
effort themselves. There are currently a lot of problems that Schaeffer’s Harley-Davidson and
MotorSports is facing, and the way the business is structured puts a significant amount of
pressure on the managers and owners to keep the stores functioning properly when the staff
The main problem Schaeffer’s Harley-Davidson and MotorSports is facing is a very high
turnover rate over the past two years. This puts the owners and the managers in a position to
terminate workers whom cannot successfully perform and aid in the advancement of the
business. As the manager of both sales and finance Kimberly Melnick knows the ins and outs of
both stores day to day operations and believes the high turnover rate stems from the lack of
communication, the employee’s inability to be challenged, and the employee’s view of personal
gain over company gain (K. Melnick, phone interview, November 6, 2018). All these flaws
cause a negative effect on storewide sales and puts all the pressure on the managers and owners
the problems Schaeffer’s Harley-Davidson and MotorSports is displaying, additionally, how they
can be solved. The concept of communication competence can help us understand the lack of
communication within the company. Communication competence focuses on the idea of active
listening, non-defensive communication, and empathy; as explained by Ms. Melnick the staff is
lacking in all these areas. Another concept that could aid with the communication problem is the
idea of dysfunctional conflict. Right now, the employees are not confronting the communication
problem, ultimately making it worse and creating a defensive work environment. The
understand and solve the employees’ unwillingness to take on challenges. The employees are
comfortable with where they are within the business and do not possess the want to develop their
own goals. The employees value what is necessary to keep their job and to receive incentives,
but they do not value the overall advancement of the business or acknowledge how their actions
are affecting the business as a whole. When it comes to solving the employees’ view on personal
gain over company gain, it can be linked to the idea of self-enhancement in Schwartz’s Value
Theory, extrinsic motivation, and McGregor’s Theory X and Theory Y. All these concepts are
directly related to why the employees at Schaeffer’s Harley-Davidson and MotorSports only
concern themselves with their own personal gain rather than the betterment of the dealerships.
An overall concept that can be useful is the idea that the employees and managers see their
After solving these problems and applying the desired organizational concepts there are a
few recommendations that Schaeffer’s Harley-Davidson and MotorSports could benefit from. A
throughout the workplace. This could help eliminate the employees’ defensiveness towards one
another and their managers. The second recommendation is to set the employees up for success
by allowing the staff to create their own goals with little help from the managers. The final
recommendation is to create team sales games to create friendly competition between the
employees. These problems, concepts, and recommendations will be expanded upon throughout
this report.
Schaeffer’s Harley-Davidson and MotorSports has been experiencing a high turnover rate
because employees are not motivated to reach outside their comfort zone and be challenged. This
causes a negative effect on sales and puts a great amount of pressure on the managers, especially
when trying to reach their desired goals set by the company. The employees are solely focused
on personal gain over the organizational advancement. With this lack of motivation, all channels
of communication are at a standstill, no one is communicating with the managers what they need
In the desired state, the company wants the employees to have a sense of equity, which in
turn can increase satisfaction and motivation. Ideally, managers would like the employees to set
their own goals and want to reach them, so they feel more accomplished, not just because they
are doing what is expected of them by their supervisors. The motivation for employees to
achieve success at something they have created will be higher, this will be due to the fact that
they know what is attainable for themselves specifically. Managers would like to see more
well-oiled, selling machine. Also, willingness to do the job they are hired to do without monetary
or other incentives is a major key to them maximizing sales and ultimately helping the company
boost revenue.
The gap appears between employees and management not communicating as effectively
as management would like them to be. Also, employees are not properly motivated according to
the supervisors. The current state and desired state can be measured by the turnover rate
decreasing by at least 20%. Our ideas to improve communication within the company will make
the employees feel more valued and be more motivated, this in turn will give them what they
desire to stay with the company. Once the employees feel heard and motivated they will not be
the Sales and Financial Manager, Kimberly Melnick. Ms. Melnick has a well-rounded
perspective on the organizational challenges that are being faced by the organization because she
works at two of the Harley-Davidson and MotorSports locations and is in the shops to see what
is going on day-to-day with the employees. The business that we chose is about two-hours away
in Carleigh’s hometown so we chose a phone conference as the optimal option to interview Ms.
communicating in the business world and is an important skill that the Savvy Six would like to
possess upon entering the business world after graduation. We found that the phone conference
was a great way to be in contact with Ms. Melnick since she left the communication channel
open for us to contact her with any further questions via phone or email.
Schaeffer’s Harley-Davidson and MotorSports has been facing a problem with turnover
of employees over the past two years, this can be attributed to many problems that the
organization is facing internally according to Ms. Melnick. The first problem mentioned is the
communication channels between employees are closed off because they are not willing to listen
to one another. The employees often let their emotions get in the way of making sales and when
there is any sort of pressure they are unable to perform. Some employees simply do not care at
all while others take everything that is said to heart and as a personal attack. The second problem
is the lack of ability or motivation for the employees to create their own SMART goals because
the employees do not care if they advance within the organization and are complacent about the
challenges that the organization is facing and do not believe that these problems affect them or
their job. During the off-season employees should still be focused on keeping in contact with
customers and planning for sales but instead they become stagnant. The third problem is the
general motivation of employees, they are solely motivated by rewards and incentives, even
when it comes to simple tasks that are expected of all employees such as answering the phone
and washing dirty units (K. Melnick, phone interview, November 6, 2018). It has also been very
difficult to keep the employees motivated during the off-season; although they are given the tools
to contact customers, they do not because they see this task as beneath them (K. Melnick, phone
interview, November 6, 2018). The employees are self-interested and do not care about the
success of the business, when they are about to make a sale they are excited and engaged but do
not want to put in the work that builds up to the sale or the follow-up procedure that come
afterwards. Overall, the lack of communication within the business seems to be the biggest
the lack of progressive communication. This is a result of recommendations that are made are
taken as an attack rather than a suggestion, this leads to a defensive reaction and a tense
environment in which the employees look out for themselves, perhaps in fear of starting
arguments with their co-workers if they were to speak up. As stated in the textbook, “A national
survey of 400 employers and 613 college students revealed that more than 80 percent of
employers and 75 percent of students believe oral and written communication skills are
important for workplace success,” (Kinicki, 2018, p. 337). This is an important statistic to
consider, as it creates a direct link to the company’s turnover and the lack of communication,
hindering the company’s full potential. A concept that can be linked to the issue is that of
empathy. According to Ms. Melnick, the employees have an issue with all the areas of
communication competence; they don’t appear to care enough to ask questions and engage in
active listening, they get defensive when others don’t agree with them, and they lack empathy in
caring or trying to understand other viewpoints that differ from their own. The lack of
communication can also be viewed as an unspoken form of dysfunctional conflict that cannot be
confronted or resolved until people are willing to mention it rather than just avoiding it, thus
allowing it to get worse. Since employees get defensive, it is easy to conclude there isn’t a
psychologically safe climate in which people can speak their minds without dealing with
negative repercussions since their co-workers may react defensively or with aggression, leading
to incivility that douses the motivation and creativity of those affected by this tense environment.
With this lack of communication between employees and managers, the employees lack
the incentive to create their own goals since they are comfortable with where they are and the
company goals as a whole may not be clearly communicated to them, causing them to perform
their daily tasks without giving much thought to it. Overall, the company appears to be lacking in
performance management; they fall short in the defining a concept we believed could be linked
to this is a lack of valence, which is an aspect of the Expectancy Theory. The employees may
value their outcomes in the sense of incentives and their pay, but do not seem value their
outcomes in terms of how it could affect the whole business. There also appears to be low
organizational citizenship behavior since nobody does their part to delegate meaningful work and
only does the minimum work required to keep their jobs, which is linked directly to a high
turnover rate, another issue that Ms. Melnick presented in the interview (Kinicki, 2018, p. 61).
However, the third issue of employees seeming to be motivated by rewards rather than
achievement and progression can be identified as the most important. This issue can be explained
by three key concepts: the self-enhancement dimension of Schwartz’s Value Theory, extrinsic
motivation, and McGregor’s Theory of X and Theory Y. The textbook defines self-enhancement
as, “pursuit of one’s own interests and relative success and dominance over others (power,
achievement)” (Kinicki, 2018, p. 47). While the employees don’t desire power over one another,
Ms. Melnick expressed concerns about the employees only wanting to better themselves and put
in the minimal work needed to gain extrinsic rewards without caring about how better off other
employees or the company are after a sale occurs. This ties into McGregor’s Theory since the
employees get excited about making a sale to get paid their commission, but are not very willing
to deal with the pre and post transaction stages or even engage in simple tasks if they are not
required to do it. This puts the employees under the Theory X category since they are only
motivated by rewards, but do the minimal amount of work and cut corners where they can as
positions like group work rather than teamwork. Each employee is more interested in their own
personal gain rather than considering how their performance – or lack of – effects the other
members of the organization, making each member accountable for their own success instead of
the success of the business as a whole. While Ms. Melnick did not mention the direct use of
group or team projects, we believe that there is an informal group formed between members in
the same department. Even if it is not directly stated that all the employees are connected, they
all influence the performance of the business, giving them all a common goal that connects them.
Even if there are not formal groups, we believe that treating their success as more of a team
success rather than an individual success would benefit their drive to succeed. While all of these
organizational behavior concepts can be applied to the issues, we chose to focus on the issue of
goal-setting and basic communication in our recommendations since we reached the conclusion
that they were the base issues that have to be solved before anything else can be resolved.
e. Stop 3: Recommendations
As mentioned before, a main problem that the employees and managers have been facing
is their lack of communication. The concept found to be linked to the staff's behavior was
communication competence, which demonstrates their inability to actively listen, show empathy,
and have a discussion without becoming defensive. A recommendation to help with this problem
is to implement an open-door policy within company. The suggestion is that managers should
ask their staff to stop by at their convenience at least once a week with a progress report. The
managers should develop a summary sheet which can help them track each staff member's report
as well as any concerns or recommendations. Developing this report allows for every employee
to have a say and takes the pressure off the managers to identify all of the problems. With this
report employees and managers will be able to practice their active listening skills weekly, show
empathy with other coworkers after understanding the entire situation, and create a workspace
that is not defensive but rather a place that encourages openness and cooperation. By having
open communication, it will be easier for employees to let management know what they need to
maximize their efforts and management can provide the staff with helpful feedback in regard to
the employees concerns and recommendations. Another facet of this is, progress reports which
will also allow the entire business to engage in self-awareness, empathy, and adaptability while
creating a safe environment where everyone feels welcome to share their opinions. This
recommendation directly resolves the dysfunctional conflict occurring in the company by solving
Another problem that the Schaeffer’s Harley-Davidson and MotorSports has encountered
employees are lacking in valence, which means the employees value their outcomes in the sense
of rewards and pay, but they do not value their outcomes regarding how their actions affect the
business. Our recommendation to help solve this problem is to have employees take the lead in
creating individual goals that relate to the store's monthly goals, with minimal guidance from
management. This will allow the employees to be challenged along with increasing their valence
towards the business outcomes by working towards a goal for the organization that they
developed. For this to occur, the managers would present the monthly goal to team members and
then each team member is challenged to come up with a weekly or daily SMART goal that
relates to the monthly SMART goal. This will create a recipe for success because each team
member can achieve their own goal on their own terms while simultaneously contributing to the
team. The staff will then have to report to their managers weekly so that the manager can assess
if they are on target to achieve the monthly goal. On the 15th of each month the manager will
announce the next month’s sales goal after which the team formulates their weekly sales goal.
The staff will need to define exactly how they will reach their sales goal and define a tracking
mechanism and report to their manager weekly with their progress. By the close of business each
Saturday, each salesperson must turn in a tracking sheet which shows the results of their actual
goal versus their goal for the week as well as confirming the sales goal for the upcoming week.
By utilizing Expectancy Theory, employees will know exactly what they are working towards.
This recommendation will create a sense of valence for the employees towards the business,
because in order to get paid they need to challenge themselves by creating individual goals while
valuing the business goals. Along with the first recommendation this suggestion will improve the
overall morale of the company by removing stress from both management and employees.
Management will feel less stress because they will no longer have to create individual goals for
each employee but can still oversee their progress. Employees will also have less stress because
they are setting realistic goals for themselves that fit within the company’s monthly goal. If the
employees feel they have equity within the goals, they will not feel forced to reach unrealistic
sales goals.
system that will encourage the employees to be motivated to individually and holistically
succeed for the business. The final recommendation is a way to bring all the components
together whether that be to increase communication, challenge the employees, or change their
view from personal gain to company gain. Right now from what Ms. Melnick has explained, the
employees appear to fall under self-enhancement in Schwartz’s Value Theory. They also display
extrinsic motivation and are motivated as explained by McGregor’s Theory X. With all of this in
mind, we recommend creating a fun monthly team sales game that will motivate the employees
and create friendly competition that will increase their sense of equity in the business as well as
communication. By creating a sales game, not only will this boost motivation, it will put a time-
focused goal that all employees will have to reach. In creating games and competition, this can
settle any discomfort or unwillingness to communicate. The employees will do well in this group
competition because there will be a reward for those who meet their sales goals. The monthly
sales competitions will coincide with the goals set by the employees in our second
recommendation. Teamwork must be prompted so that the environment does not become hostile,
the idea of a game is to let the employees have fun while also bridging their connection with
f. Client Feedback
i. & ii. How did you present your feedback? Did they agree/ disagree with your
Our feedback was presented to Ms. Melnick by means of report through email. The team
then conducted a phone conference with Ms. Melnick on November 24th, 2018 to discuss the
report and answer any questions that she had. Ms. Melnick highly agreed with our assessment of
the problem. She said that the problem was explained very well and in accurate detail (K.
Melnick, phone report presentation and feedback, November 24, 2018). The assessment of the
problem was exactly what the Savvy Six discussed with Ms. Melnick in the interview and we
captured all the details of the problems, as well as the possible causes of the issues. She also
mentioned that we analyzed even more details than what was discussed in the original interview
and brought certain issues such as communication to the forefront as the root of the problem. Ms.
Melnick said that we had a complete understanding of the main problems that Schaeffer’s
Ms. Melnick’s feedback was that she loved our report and thought it was extremely
impressive to see how others were able to analyze, critique, and assess the dealerships current
problems (K. Melnick, phone report presentation and feedback, November 24, 2018). She
thought that by having this outside perspective of the issues it opened her eyes to aspects that the
managers and owners might go blind to because they face these problems and situations every
day. Ms. Melnick also took notice to the fact that there are some simple fixes like encouraging
more open communication that need to be addressed as soon as possible so the problem does not
escalate into even more issues for the company (K. Melnick, phone report presentation and
feedback, November 24, 2018). Ms. Melnick also enjoyed the idea of having a fun sales game
that will allow the employees to enjoy themselves at work while also challenging them to meet
goals and communicate with one another. Overall, Ms. Melnick applauded our recommendations
iv. Did they, or are they, planning to implement any of your recommended
solutions? Explain.
Ms. Melnick said that they will absolutely implement our recommended solutions. She
realizes that it is vital for the communication problem to be solved because it has the greatest
impact on other issues that the company is dealing with. She said that Schaeffer’s Harley-
Davidson and MotorSports has been encouraging the team to use SMART goals for a while, but
our recommendation on how to get the employees to develop individual daily or weekly goals
could work better than their previous attempts. Ms. Melnick claims that the employees are
sometimes distracted from what a SMART goal is meant to achieve and often need to be
reminded. But with the recommendation that we have provided it will allow the employees to
have constant practice on the development of SMART goals (K. Melnick, phone report
presentation and feedback, November 24, 2018). Ms. Melnick stated that since we are coming to
the end of the year it is the perfect time to revisit these problems and implement new ideas on
how to solve them. The 2019 planning is in the works and the individual SMART goals gives the
team a fresh new start to accomplish something they had a hand in creating (K. Melnick, phone
g. Team Self-Reflection
Working with a real-life organization was overall a very positive and informative
experience for our group. We found it easier to apply organizational behavior concepts than we
originally anticipated which was a pleasant surprise. As business majors we do not always get to
apply what we are learning in the classroom in real-life, but this report allowed us to do so. It
was a great experience to see what we are learning in the classroom be directly applied to
helping a business. We found it very encouraging that Ms. Melnick liked the recommendations
that we created and is planning on implementing some of our ideas in a real business. This
assignment has had a positive effect on us becoming effective managers because we were able to
see how our knowledge is applied in the business world and we were effectively able to work as
a team to solve a real-life problem. We also gained leadership skills through this exercise
because of the teamwork component which forced us to take on roles as leaders to ensure that all
ii. Has your performance changed over the semester, individually and as a team?
We agree that our team and individual performances have been consistent throughout the
semester. Effort and performance from each team member did not change. Overall, we worked
well as a team but some team members contributed more than others which is our biggest area
for improvement. We did well in the sense that the majority of team members contributed
thoughtful and relevant work that propelled the assignment forward and helped us to achieve.
We also were able to achieve a very high standard and received a perfect score on our last report.
We put in the same amount of effort into this report and our performance has remained
consistent as a team and as individuals, we hope to achieve this standard again on this report.
Bibliography
Melnick, K. (2018, November 24). Phone report presentation and feedback [Savvy Six].
MotorSports is encountering?
a. There has been a high turnover rate for the past 2 years and it has been
hard to find people that are driven to work towards the company's goal.
2. Are there areas that you think are contributing to the high turnover rate?
everyone thinks there way is the best way, they are in it for themselves
a. The employees cannot make their own monthly goals and struggle to track
their progression.
b. They are not motivated to make their own goals so management ends up
making them and then the employees find it hard to meet goals that they
b. The only time the staff is happy is when the work they do comes with an
incentive.
c. No willingness to work as a team and are very emotional when stress
becomes a factor. The employees seem to shut down and not perform (ex:
5. What is the staff’s level of motivation to complete and excel at their job?
season, because we are not bringing in the sales that we normally do.
b. The only thing that motivates the employees is an incentive, and a lot of
the time they should be doing certain tasks on a regular basis and should
c. They believe that certain jobs (ex: washing a dirty unit, answering the
phones, plow and shoveling snow, and making food on the weekends) that
a. A majority of the staff is comfortable with where they are in the business
b. They are satisfied with doing minimal work as long as they get paid and
c. Because they are comfortable with where they are they do not want to
brings out a negative attitude in the staff. This negative attitude is causing
staff members to slack on their work while bringing their performance
b. The employees’ attitude is conservative and they like to stick to what they
know and do not like change or a challenge. But the managers are trying
challenging their staff and changing processes that no longer work for the
company's benefit.
a. If there something positive like selling a bike the employees are happy and
excited, but they do not consider the process of setting up the bike and
when it is not done right away they get mad. The often blame their
b. The employees are excited and focused when there is a sale but if they
lose the sale they get completely negative and do not care anymore. The
c. They are engaged when things are going their way but the second
something goes wrong it is like their ego is crushed and they cannot get
anything out of a failed sale. They do not even consider what they can get
out of the experience and what they can improve on for next time.
Appendix B: Original Interview Notes
Employee engagement:
Urgency- if there is in something for them (selling bike) they are happy and excited, but
they don’t consider process of setting the bike up and then they get mad
Enthusiasm- have that sale they are excited and focused, if they lose a sale they are
completely negative and don’t care anymore need to rebuild up motivation
Focused and intensity high when things are good and going their way and second
something goes wrong, they can’t perform. Give up their ego gets crushed, didn’t get
anything out of a failed sale (but you followed process and creates experience)
Stress:
Do not deal with stress well at all. Their performance crumbles because then they don’t
focus on the process and skip corners (short-cuts on paperwork)
Interpersonal skills:
some personalities can work together and then in other situations full out war ex:
o Cindy- older mindset, betterment of everyone (conservative very closed to
change) can work with Devin and long as Rick isn’t around, Cindy wants to be a
leader but in a more conservative way
o Rick- he wants everyone to succeed, knows a different way to do things (openness
to change), wants to make a change more than anyone, puts foot down, sense of
need for leadership he wants to control the situation to help make it better
o Devin- openness to change as well, can see where we are weak and try to make a
change, but does not necessarily need to be in a leadership position
Intrapersonal:
Don’t like to be accountable for their own work (ex; setting goals) blame the environment
(its raining/snowing or manager is having an off day so then they have an off day)
Self-efficacy:
Some are high, and some are low
They know they can do it if they have done it before but if their mindset is negative, they
cant do it (have the potential, don’t want to be outside their bubble)
Self-Esteem:
Negative attitudes so they are lacking in creativity, want others to do thinking for them
The less effort they must put in the better off they are
Emotional stability:
Any pressure they can’t perform: slack big time
Large majority of the team is not emotionally stable when it comes to their work