According to Daft’s (2014) symptoms of structural deficiencies, the pharmacy division is suffering from three symptoms; delayed decision-making, declines in employee performance, and great conflict. A series of recent issues that occurred are the cause of these symptoms and they are all in connection. Employees who work at store-level and the distribution centers are unionized and are protected. The agreement contract between the union and the organization has ended in October 2017, and the company has not reached an agreement to date. This delay in the decision has caused the union to conduct a vote to strike with 97% of employees in favor. A conflict that has diminished the morale of those who are in direct contact with customers. This type of environment may be incompatible with the pharmacy division and could pose a risk to its bottom-line. Another type of pressure posed on the pharmacy division is the minimum wage hike that was initiated this year, costing Metro around 45 to 50 million dollars this year (O’Kane, 2017), the organization plans to fight back by introducing automation and shortening business hours (Marowits, 2018)
There is a hierarchy of authority, a formal reporting system, rules and regulations, and the decisions are being made by top management alone which are then funneled down to the store level. As mentioned earlier, this structure has created a ‘backlog’ of decisions that needed to be made in a timely fashion.