Managing Organisational Change - Wilders Department Store - Case Study Example

Managing Organizational Change Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Case analysis of Wilders Department Store Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Name Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Course Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Instructor Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Date Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Executive summary With today global context, it is evident that within any given organization change is inevitable. When focusing on success, organization is required to develop various strategies for a complete success in adaptation of change. This paper focuses on discussing change management using Wilders Department Store Case Study. The paper will initialize by discussing the case background its objective and various models of change. This will be followed by problem identification whereby causes and symptoms of the problems will be discussed. Proposed changes to these problems will be discussed incorporating strategies. Finally, a conclusion which summarizes the discussed issues will be issued. Table of Contents Executive summary 1 Table of Contents 2 1.0.Introduction 3 2.0.Scope 4 3.0.Background Information of Wilders Store 5 4.0.Objectives 5 5.0.Models of change 6 5.1.Diagnostic model 6 5.2.Change management model 7 6.0.Problem identification 7 6.2. Causes of Problem 8 7.0.Nature and need for change 9 8.0.Needed Changes 9 8.1.Wilders Goals 9 8.2.Technology 10 8.3.Creation of work teams 11 8.4.Change in skill requirements 12 8.5.Change in the firms’ structure and the reporting/communication channels 12 8.6.Creation of an information system 13 9.0.Action plan 13 1.0. Introduction Evidently, today organizations are facing rapid change compared to past years. Improvement of technology and globalization are gradually increasing markets and opportunities for revenue and growth (French, W & Bell 1999.). Increase in diverse markets is considered to have a wide variety of expectation and needs which requires if individual are expected to be collaborators and strong customers. It is for such reason that every organization must change not for the purpose in surviving in competition but also to retain its relevance across the globe. In order for change to advance and bring benefits within the organizations to a higher level of operation and service, change should largely be driven by desirable knowledge. French & Bell (1999) asserts that, organizational change is defined as any action or set of actions that mostly results in a shift of process or direction that largely affects the way an organization works. Change can either be planned or deliberate performed by leaders within any given organization. Change can either originate from both external and internal sources of an organization (Harrison & Shirom, 1998). Different changes have different ways in which they affect strategies designed by an organization. These effects can be in the form processes required to implement various changes, tasks and function performed by employees and relationship between employees and employers. This study focuses on understanding organizational change through using Wilders departmental Store as the case study. 2.0. Scope This paper focuses on showing how change can be managed effectively within Wilders Departmental Stores. It initialize by giving a general introduction based on organizational change which will be followed by identifying the various changes required within Wilders Departmental Stores. Analyzing the causes and symptoms within the store will also be important in understanding the root causes of the problems. Finally, the paper will identify need for change and various strategies that will ensure successful implementation of various changes. 3.0. Background Information of Wilders Store Wilders is a departmental store which is involved in the sales of bicycles and toys. The sales of bicycles within the store are done in two ways namely cash and lay-by with two kinds of identified purchases. These two kinds of purchases are purchasing boxed bicycles that are not assembled and purchasing of assembled bicycles at an extra charge of $12 which incorporates a delay of two weeks’ time to allow the bicycle to be assembled (Harrison & Shirom 1998). A customer who wants his or her bicycle to be assembled should constantly check on the progress by way of telephone. In recent times, the store management decided to move the bicycle department next to the toy and sporting sections as a way of increasing their sales targets. Finally, Wilders Departmental Store obtains their bicycles from the same warehouse as several departments thus forcing the store to make calls with the house so as to constantly maintain their records. 4.0. Objectives According Clegg & Pitsis (2008), after through study of Wilders case study the following objectives were found to be fundamental in analyzing the need and desire for change within the store. Identify the various problems that need change with main focus on operation and management within the store Determining the root cause of these problems Using both the change management and diagnostic models to analyze root cause of problem Evaluating various challenges which Wilders management might face in implementing change Identification of strategies that will manage change processes 5.0. Models of change The two main models that will be effective in analyzing Wilders Department case are diagnostic and change management models (Clegg & Pitsis 2008). 5.1. Diagnostic model Cummings & Worley (2009) asserts that, within Wilders departmental Store, an effective diagnostic model is one which allows reliable information that will help employees understand the store strengths, weaknesses, opportunities and threats. Here, the two models of diagnostic models will be used in comparing and contrasting various application of change and their implementation. These two models are the 7S diagnostic model and sharp image diagnosis model. Within the store, 7S diagnostic model will be important in analyzing Wilders strategy, skills, staff, system, structure and shared values (Cummings & Worley 2009). The sharp image model will be helpful within the store since it assists in the development of other model so as to fit in the characteristic of changes and intervention. These two model are helpful in analyzing this case study as they are derived from an action research approach thus posses adequate support and commitment in change implementation. 5.2. Change management model El-Khawas (2000) asserts that, change management model focuses on strategic and intentional solution mainly on large scale which is being experienced in Wilder Departmental store. The main model of change management is the Kotters eight step which will be helpful in the implementation of change within Wilders. It widely entails; establish the need for urgency, ensure there is a powerful change group to guide the change, develop a vision, communicate the vision, empower the staff, ensure there are short-term wins, consolidate gains, embed the change in the culture and N-step model. This model entails several steps that are known to impact on organizational change (El-Khawas 2000). 6.0. Problem identification There are various notable problems that Wilder Departmental Store is experiencing thus several changes need to take place so as the store can be increase it bicycle sales margin and also develop a stronger competitive advantage (El-Khawas 2000). George Nolan assets that, during Christmas season the department is constantly behind in record keeping and display. There are quite a few areas that this store needs to acclimatize change for it to be booming bearing in mind the market opportunity created by the current rising cost of petrol where people are actively involved in saving little fuel as possible. To begin with, the store has major problem in its record keeping. Record keeping is very important in any given business. Poor record keeping resulting to losses in outcome (Cummings & Worley 2009). The store suffers from poor exhibit of its bicycle. The manager complains that that the bicycles are not clean and are not neatly arranged accordingly. According to El-Khawas (2000) understaffing is another major area that affects operation within the store. For instance, the store has only one man responsible for assembling the bicycles whereby he has a lag of one hundred bikes. The idea of moving the bicycle department near that of sporting goods and toys was a good towards increasing sales but overcrowding the cashier sectors is a major area that requires change. Evidently, customers may fail to return when they are made to wait in long queues so as to make payment (Clegg & Pitsis 2008). Proper customers services entails short or no queues during payment. Finally, another area that needs change within the departmental store is their warehouse. The company needs to erect their own warehouse so as storage of bicycle can be effective and to minimize records needed. Cost used in calling the warehouse can be minimized and the problem of running out of space too (French & Bell 1999). 6.2. Causes of Problem The root cause of the above causes is mainly due to poor management within the store. It is the management responsibility to ensure that proper measures are put in place so that recording is carried out in an efficient manner. Bulkiness in record keeping can be minimized if the store management can be able to erect their own warehouse thus minimizing double recording of items. Sharing of warehouses poses a future major problem of companies to Wilder since there are fears the store is running out of space (Cummings & Worley 2009). Understaffing will continue to be wilder cause of problems if the management fails to take appropriate action. Stress and turnover among employees result to poor customer services as it is seen when there are long queues in the three departments namely; sporting, toys and bicycles departments. 7.0. Nature and need for change Evidently, for Wilder Store to meet their long term objectives it is very important for the store to undergo through a transformation. These transformations will ensure that the store is able to reap maximum benefits and advantages especially during festive season (Greenwood & Hinings 2000). Implementation of various changes should be carried out in a more systematic approach which should involve efforts of every member within Wilders. For proper implementation, Wilders management requires to effectively communicate its proposed changes to all employees since the change to be implemented will not only affect the store but also personal level of employees. 8.0. Needed Changes Based on the problems identified in Wilder’s Department Store change needs to be implemented in six main areas which are its goals and strategies, technology, changes in firm structure and communication channels, creation of work teams, change in skills requirements and change in information systems. 8.1. Wilders Goals To begin with, Wilders need to redefine its goals and objectives especially in this global economy. Both their short and long term should focus on ensuring that the current problems been experienced in the store do not happen. The store should focus on ensuring that their objectives and goals are set through the use of SMART (Greenwood & Hinings 2000). S- specific; wilders need to realize that there should set their goals by way of systematic and concrete action M-measurable; the store goals should be in a way that all their results can be quantitatively determined in future. A-Attainable; creation of right resources by the store should govern the set goals of Wilders R-Realistic; the store need to realize that there is great probability in achieving their goals. T-Time-bound; wilders need to ensure all its goals are met thus the store success. By strategically placing itself by way of their goals and objectives, Wilders Stores need to gain a desirable market advantage ahead its competitors. Its management should realize that while goals and objectives greatly deal with the organizations does, strategies focus on how an organization is supposed to be operated. It is important that Wilder store analyze SWOT so as to ensure that it adapts various changes (Greenwood & Hinings 2000). Wilders should focus at increasing their bicycles sales especially in setting theory goals and objectives. The desired goals and strategies should be set in such a manner that it focuses on reaching out to bicycles market target. 8.2. Technology According to French & Bell (1999), with today improvement in technology, the information technology of Wilders need to carry out research on what kind of technology need to be introduced so as to facilitate the daily running of the store. During Christmas period, the store should introduce technology such as latest computers with proper software are installed to ease and improve on customer services. Further, modern equipments should be bought to ensure that records are saved accordingly and systematically. The store should create a website so as to advertise on the various bicycles, toys and sporting equipments. 8.3. Creation of work teams With the increase technology among the workers in the firm, there is need for the firm to increase its quality in customer services and the provision of better quality services and products. The employees are to make deliberate efforts in making sure that their customers are greatly satisfied. To ensure this, the management is to ensure that the employees’ responsibility is enhanced. One best way through which the management could ensure this is through the creation or establishment of work teams. The work teams involve employers with various relevant skills who interact in order to assemble particular products while at the same time providing effective services to the customers. The work teams are to assume the various duties that are reserved for the manager which might include the selection of new members to the work teams, planning and scheduling work and the coordination of other firm’s relevant day to day activities. This will require the Wilder’s management to train the employees so as to increase their capacity on the new roles they will have to assume. The training will assume a cross training approach as they will assume roles that will require a wide range of skills. The phases below give the suggested activities and roles that the employees will have to assume (Schoeff, May 19, 2008). Selection of new employees Giving formal performance feedback to the employees Giving emphasis and rewards to the ongoing training Linking rewards and compensations to the performance of the firm Maximum flexibility and interaction among the work force Employee participation in decision making Relation of the employees’ contribution to the overall output of the firm (Hansen, October 2005) 8.4. Change in skill requirements High performance of the Wilder firm will require a selective training as the employees will require specific skills and knowledge in order for the firm to achieve the desired goals. The firm will require new marketing and servicing skills that will be relevant to maintain their competitive advantage. It is imperative to note that the new skills that will be required will not only be entitled to providing a framework for attracting new customers but in developing a sense of loyalty among the already acquired customers. This will require the management to change the roles and job descriptions of the employees to be able to suit the firm’s requirements (Hansen, October 2005). 8.5. Change in the firms’ structure and the reporting/communication channels The firm is to develop new and elaborate structures through which the employees can freely participate in the firm’s decision making. The structures are to avoid the existing channels of communications that are rigid and be able to embrace the structures that support innovativeness and team work. This will be able to increase effective decision making and the ease in disseminating of information from all the levels of the firm (Gordon, June 2005). 8.6. Creation of an information system The firm is to develop an information system that will enable the employees to learn and improve on their skill while working. The information system is also a source through which the firm will be able to embrace innovativeness and collaboration among the employees and the top management. The information system is an effective tool in ensuring that all the employees are involved in decision making in the firm (Schramm, 2004). 9.0. Action plan Action Expected results Beginning Ending Wilders Goals To redefine the firm’s goals to attain the desired objectives 1st December 2011 Embrace new technology To be able to maintain the firm’s competitive advantage 1st January 2012 Creation of work teams Ensure the enhancement of the employee effectiveness To ensure the firm provides the effective services and quality products 1st January 2012 Change in the skill requirements Ensure the relevancy of the employees and the service provision 1st January 2012 Establishment of an information system To increase the capacity level of the employees To increase the level of innovativeness among the employees 1st January 2012 References French, W & Bell, C. 1999. Organization development: Behavioral science interventions for organization improvement. Upper Saddle River, NJ: Prentice-Hall. Harrison, M & Shirom, A. 1998. Organizational Diagnosis and Assessment: Bridging Theory and Practice. Thousand Oaks, CA: Sage Publications Clegg, S. & Pitsis, T. 2008. Managing and organizations: An introduction to theory and practice . London: SAGE Cummings, T. & Worley, C. 2009. Organization development and change . Mason, OH: South-Western/Cengage Learning. El-Khawas, E. 2000. The impetus for organisational change: An exploration. Tertiary Education and Management, 6, 37–46. Greenwood, R & Hinings, C. 2000. Understanding radical organizational change. In M. C. Brown II (Ed.), ASHE Reader on Organization and Governance. New York: Pearson F. Hansen, (October 2005).“U.S. Firms Going Wherever the Knowledge Workers Are,” Workforce Management, pp. 43–44. M. Schoeff Jr., (May 19, 2008). “The Immigration Squeeze,” Workforce Management, pp. 23–27. J. Gordon , (June 2005)“Do Your Virtual Teams Deliver Only Virtual Performance?” Training , June 2005 , pp. 20–25. J. Schramm, (2004). “Offshoring,” Workplace Visions 2 (Alexandria, VA:Society for Human Resource Management , 2004 ); P. Babcock , “America’s Newest Export: White Collar Jobs,” HR Magazine 49 (4) 2004 , pp. 50–57 . Read More