Minding the Store
On January 1, Ruth Cummings was formally named branch manager for the Saks Fifth Avenue store in
a suburb of Denver. Her boss, Ken Hoffman, gave her this assignment on her first day: “Ruth, I’m
putting you in charge of this store. Your job will be to run it so that it becomes one of the best stores in
the system. I have a lot of confidence in you, so don’t let me down.”
One of the first things Ruth did was to hire an administrative assistant to handle inventories. Because this was such
an important part of the job, she agreed to pay her assistant slightly more than the top retail clerks were making.
She felt that having an administrative assistant would free her to handle marketing, sales, and personnel matters—
areas she felt were crucial if the store was to be a success.
Within the week, however, she received a call from Hoffman: “Say, Ruth, I heard that you hired an administrative
assistant to handle inventories. Don’t you think that is a bit risky? Besides, I think paying an assistant more than
your top salesclerk is damaging to morale in the store. I wish you had cleared this with me before you made the
move. It sets a bad precedent for the other stores, and it makes me look like I don’t know what is going on in the
branches.”
Three weeks later, Ruth appeared on a local noontime talk show to discuss new trends in fashion. She had worked
hard to make contact with the hosts of the show, and she felt that public exposure like this would increase the
visibility of her store. Although the TV spot lasted only 10 minutes, she was pleased with her performance and with
the chance to get public exposure.
Later that night at home, she received another phone call from Hoffman: “Don’t you know the policy of Saks? Any
TV appearances made on behalf of the store are to be cleared through the main office. Normally, we like to have
representatives from the main store appear on these kinds of shows because they can do a better job of plugging
our merchandise. It’s too bad that you didn’t notify someone of your intentions. This could be very embarrassing
for me.”
Just before Easter, Ruth was approached in the store by one of the salesclerks. A customer had asked to charge
approximately $3,000 worth of china as a gift for his wife. He had been a customer of the store for several years
and Ruth had seen him on several occasions, but store rules indicated that no charge could be made for more than
$1,000 for any reason. She told the customer that she was not authorized to okay a charge of that amount, but
that if he would visit the main store in Denver, maybe arrangements could be made.