In today’s work environment, change is inevitable. To maintain a competitive edge, most organizations are currently undergoing dramatic transformation in terms of their strategies, structures, systems, boundaries, and of course their expectations of their workforce and managers. Thus, every modern organization must be prepared to pace up with the relentless business environment.
The environment is termed as relentless because of its ability to change at an exponential rate. Gabler defines change management as “the strategy of planned and systematic change, which is achieved by the influence of the organizational structure, corporate culture, and individual behavior, under the greatest possible participation of the employees” (as cited in Kneer, 2006, p.5).
In order to be effective, change management must be structured in such a way that the various expectations of the employees are shifted from a current condition to an anticipated future condition through empowering them to accept change in their current working environment. This paper discusses how Wal-Mart Stores, Inc., an American multinational corporation, is managing change in its operations.
In order for any organization to grow, it has to be ready to undergo important changes in various aspects of its development. However, in efforts of realizing change in organizations, there is usually a conflict between stability and movement. Stability usually makes the process of enacting beneficial changes to the organization to be difficult.
It is often caused when the reason for the change is not very well explained to the employees and when the proposed changes are seen as a threat that can alter the established patterns within the working environment (Hiatt & Creasey, 2003). On the other hand, movement often creates a desire to realize the proposed changes in an organization.
It is often the case when the benefits and rewards of implementing the change is perceived to be realistic and in accordance to the objectives of the organization. Internal forces for change include a fear among the employees when they feel that they lack the necessary competence, a feeling that the changes to be implemented is a threat to the aspirations of the employees, need to increase profitability, and the existence of cultural misfits to organization goals and objectives.
On the other hand, the external forces for change in an organization include advances in technology, political factors, general macro-economic environment, adjustments in end-users’ tastes and preferences, and reduction in market shares due to rivalry in the market. As a multinational corporation, Wal Mart has employees from various backgrounds.
Thus, sometimes this results in stability in enacting changes in the organization due to dissatisfaction among the employees and existence of cultural misfits, which contravenes the company’s overall goals. In addition, Wal-Mart is constantly threatened to effect changes in its structure due to improvements in technology, changes in the political environment and declining market share due to competition.
Skills in change management are an essential ingredient for the success of a manager in an organization. Currently, in every working environment, change is essential and managers need to be competent enough to handle it. At Wal-Mart, managers impact change by taking the following actions.
These include, creating awareness and a sense of urgency by communicating information on the need for change on a consistent and timely basis, and engaging the culture through implementing programs such as merger or integration, and level change leadership councils.
The company’s management implements specific actions such as training, job counseling, and redesign of performance system that creates avenues for employee input and involvement. In addition, change is also impacted through obtaining and scrutinizing on workers’ adaptation to change, making on-going appropriate adjustments to the change strategies and tactics, and sustaining the change and the commitment.
In order to spearhead the realization of the above changes, the managers at Wal-Mart have a defining role and influence. The three guiding principles that the founder Sam Walton instituted upon establishing the company in 1962, which are “Respect the Individual,” “Service Our Customers” and “Strive for Excellence,” are still tenets that the company’s management upholds while managing change in the company (Wal-Mart, n.d.).
At Wal-Mart, employees are increasingly becoming important in the company’s attempts to effect various changes in how it is run. However, they are not endowed with the responsibility of managing change. The workers are only required to do their best so that the proposed changes can be successful. And, this relies on a number of factors, such as skills, experience, level of commitment, and maturity.
Thus, the task of ensuring that change is managed is left to the management of Wal-Mart. The management ensures that they manage the change in a manner that ensures that the workers are able to cope with it. Wal-Mart’s management are liable for facilitating and enabling change in its 8,500 stores in 15 different countries around the world.
The employees are responsible for responding positively to the proposed changes. Since it has been observed that imposing the changes on the employees only make them stay less focused, the management of the retail giant only ensures that they interpret and communicate realistic goals to the employees, which are within the context of its overall objectives (Cowan, 1999).
According to Forbes Global 2000 for the year 2010, Wal-Mart, which runs discount department stores and chain of warehouse stores in various places around the world, was ranked the world’s biggest corporation by revenue. The American public multinational corporation has been able to achieve this because of the commendable interconnectedness of the environment regarding change management issues with its different stakeholders.
There are various levels of the change process that are interconnected at Wal-Mart: the macro and the micro level. The responsibilities of the high-level personnel are found on the macro level and they are endowed with the task of leading, exemplifying, and supporting any change initiatives actively. Therefore, after developing a clear vision, the company’s management then communicates it to the target groups accordingly.
In order to prove to the various stakeholders about the importance of the changes, the management also considers various environment influences, such as the need of the consumers. On the micro level, the employees are interconnected in the change process by ensuring that they are adequately involved, they have the ability to assume the new changes, and are capable of identifying with the new situation.
At times, even in big organizations, the management finds it hard to implement essential changes in the organization’s structure. The ‘resistance to change’ scenario normally results when people do not want to embrace change wholeheartedly or may take a long time before accepting the changes (Beerel, 2009).
However, at Wal-Mart, appropriate initiatives have been adopted to eliminate the so-called resistance to change by ensuring that the survival anxiety (driving force to change) is greater than the learning anxiety (restraining force to change). In addition, the learning anxiety is usually lowered instead of increasing the survival anxiety. At Wal-Mart, reducing the learning anxiety is achieved by increasing the individuals sense of psychological safety by means of various interventions.
These are having a realistic vision for the future, offering formal training, encouraging participative management, getting feedback on the progress of the changes, having positive role models, having support groups, and enacting consistent systems and structures within the organization (Cameron and Green, 2007, p.50).
Individual change at Wal-Mart can be explained in terms of behavioral, cognitive, psychodynamic, and humanistic approaches. In terms of behavioral approach, change is usually effected by the use of programs aimed at changing unpleasant behaviors through spotting intolerable behaviors that can impede change initiatives and replacing them with beneficial types of behavior that are not resistant to change.
In terms of cognitive approach, change is usually effected by trying to eliminate thoughts and emotions that can impede the process of enacting change at the organization. This is achieved by giving effective educational material that informs the employees of the importance of embracing change.
At times, the company effects change by instituting initiatives that focuses on both the thoughts and eliminating unwanted behaviors. This form of realizing change is called cognitive-behavioral approach. In terms of psychodynamic approach, the objective is to expose the unconscious content of an individual’s psyche so as to lighten psychic tension that may make him or her to refuse to embrace any changes that are to be implemented by the company’s management.
This type of approach depends on the interpersonal relationship between the employee and the manager and it tends to be more eclectic than others are since it uses a variety of techniques. Humanistic approach to individual change at Wal-Mart tends to encourage individuals to understand themselves and grow personally without outside interference. The humanistic approach concentrated on “conscious thoughts, the present, personal growth, and self-fulfillment” (Santrock, 2005, para.4).
One of the most essential ways of realizing results in change management is through working in teams. It is important to note that no single individual can be able to see all the aspects of the change process. However, team members are able to see more of those different aspects and suggest the most appropriate way forward.
Thus, Wal-Mart has strived to have such teams with certain key attributes. These are the ability to give feedback on the progress of change management in the organization since the teams usually know more about the organization’s culture, ability to help in developing and reviewing data concerning change management, and ability to sustain the momentum of any change initiative undertaken at the company.
These attributes often have an important impact on the teams’ capacity for effective change since they enable the members to have a range of energy, participation and decision-making ability that are important for achieving the goals and objectives of the company (Paton & McCalman, 2007). Since the start of Wal-Mart in 1962, it has realized the dramatic effect of teamwork in managing change in the company.
That is why almost every employee within the company is a member of team. In addition, to avoid failed delivery and strategic failure in implementing changes within the retail company, the members are advised to know their team working strengths and weaknesses so that they can conveniently cooperate with one another.
There are different models of organizational change that have been applied to various change initiatives at Wal-Mart. The company’s management mainly undertakes organizational change through both conceptual and process approach. Conceptual perspective centers on the precursors and the outcomes of change.
It focuses on the content and magnitude of strategic efforts that are to be realized. More so, it put more weight on the cognitive means implicated in effecting the intended consequences. Some of the models of change that fall in this category are the three levels of change conceptualized by Golembiewski, Billingsley, and Yeager, and first, second, and third order of change proposed by Bartunek and Moch.
Process models of change “designate the sequence of events necessary to effect organizational change, focusing more on the essential steps of implementation than on the conceptual tasks required” (Latta, 2009, para. 8). It is of essence to note that all process models find their roots to Lewin’s classic three-stage model of change, “denoting the essential progression through phases of unfreeze, change, and refreeze” (Latta, 2009, para. 8).
In conclusion, change management at Wal-Mart Stores, Inc. has been successful through the application of the various principles discussed above. The management of the company ensures that only realistic, achievable, and measurable changes are implemented and that all the people affected by the changes are involved in the whole process. Thoughtful planning and insightful implementation are aspects that are strictly adhered to in efforts to manage change at the retail company.
References
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