The main Sports Direct warehouse located in Shirebook, Derbyshire has been under the media

spotlight for quite some time now due to the whistleblowers and undercover reporters. Some of
the main issues regarding zero hour contracts, unsatisfactory pay and poor facility conditions are
listed below:

- Effective wage of 6.50 instead of 6.70

- Deductions/Docking of wage if slightly late

- Harsh 6 strike system implemented

- Total of 76 ambulances called between 2013 and 2014

- Humiliation conducted by area managers

- Exploitation of zero-hour contracts

- Compulsory searches at the end of the shift

- Not being able to pay the standard minimum wage to employees can result in further
imposed penalties resulting in a decline in profit. Not to mention that this scandal will
influence all stakeholders who may not continue to support and be loyal to us. The
organization is already seeing a 57% drop in profits.

- The treatment of employees is also another crucial matter highlighted by the media, who
have described the warehouse as a Victorian Workhouse. Reports have glorified a case
where a women delivered a child in the bathroom due to the fact that she was too scared
to leave work.

- 80% of the employees who are on the zero-hour contract have been exploited as they can
be punished for no particular reason. Some even forced to work an extra 3 hours without
pay which, if refused, wouldnt have any assigned hours the next day effectively leaving
them jobless.

- Many employees are in fear of losing their jobs which is why they dont speak out about low
pay as the Transline recruitment agency reserves the right to end an assignment at any
time without reason, notice or liability () . Not to mention that they are forced to put in
more effort subjective to the area worker who give them estimated timings of when a
job/task should be completed by. Those who are slow have their names shouted via the
tannoy for everyone to hear.

- The 6 strike system which has been implemented in the warehouse constrains the
employees as they can be fired for long sick leaves, time wasting, making small errors and
even having a water break without authorisation.

- Crisis, arguable, results from a breakdown of responsibility and respect (OLeary, 2015).

- Strategic organizational change is needed in this scenario, as it requires radical departure

from the past and is a frame-breaking change in the way the company carries out its daily
operations (Nadler & Tushman, 1989). It is very high intensity of change due to the fact that
Sports Direct owns multiple warehouses all across the UK and employ 17,207 people
making it a very complex organization.
- Employees who are new to the organization become accustomed to the culture through
interactions with others (Sathe, 1983). This means that communication plays a vital role in
attempt for cultural change

- Although it is disputed amongst theorists, Martin (1985) argues that organizational culture
can be manipulated under certain circumstances, which include a period of crisis within an
organization.

- To create an organization for the priorities must be set straight in management in order for
the organization to prosper and grow without further scandals throwing them into the
spotlight. Some of the key components include:

- 1) Full embed the ideas of community and citizenship in management systems

- 2) Reinvent the means of control

- 3) Reduce fear and increase trust

- 4) Dramatically reduce the pull of the past

- Employees respond effectively towards a control system which not only punishes but
rewards their fellow employees through the use of feedback, in order to give them a sense
of direction (Edwards, 1979).

- Visual leaders are needed to help motivate employees, stimulate people instead of just
having managers in blue jackets give out orders. These leaders can create energy through
rewards and demonstrations. Also

- Someone they can look up to and not be afraid to talk to in the time of need

- Culture within in organization has a very positive function when implemented effectively, as
it gives employees shared understanding amongst each other, along with a sense of purpose
and direction.
- The interpretation of Rituals, myths, experiences and even certain events influence the
employees on a daily-basis. And in return how they conduct their tasks. (Alvesson, 2012)
- Commitment to ideas and values that the employees have is out of compliance with the
fear of being out of a job.
- Transline take more importance in productivity, consumerism and economic growth instead
of the well-being of their employees
- Without leadership, staff wont buy in
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