Wilders Department Store Organizational Change Report

Executive Summary

The contemporary business environment is very competitive, thus calling for all business organizations to implement organizational changes in order to attain competitive advantage over rival firms. However, it is a common phenomenon across all industries that employees will always be resistant to change, thus the need for proper planning in order to ensure benefits accumulate to both the employees and the organization.

In the case of Wilder’s Store, several problems have been identified as negatively affecting the performance of the company. Such problems include inadequate personnel in assembly section and inadequate storage space. In this view, the store plans to implement changes in the above mentioned areas, however, it faces resistance from employees, who perceive the proposed change as being an interruption to the normal working condition.

In implementing the change, the firm should ensure that it communicates the proposed change clearly to all employees, as well as making the understand the need and the benefits they will derive from the implemented change. Indeed, involvement of employees in change process will reduce resistance.

In implementing change, several steps have to be followed including, establishing the sense of urgency, forming guiding coalition, creating a clear vision and communicating such vision to all stakeholders, commitment to sustainable change and finally, making a follow-up plan to establish the effectiveness of implementation. When all the above are observed and employees involved in change process, there would be smooth implementation of change and subsequently, positive results from the implementation.

Introduction

For change to be desired in an organization there must be a reason behind it. Change could be associated with an aim of increasing profits, achieving a competitive advantage and changing the organization image. Whatever the case, change implementation should be handled with care as it may be faced with various hindrances such as employee resistance.

Change in any organization is very important; however, it needs to be planned for in advance and should be firm for it to be effective in an organization. In addition, change should involve a number of steps, which include preparation for change, managing the change, and reinforcing the change.

Change management not only involves the organizational operations, but also its employees by reducing change resistance among them and encouraging them to embrace change. The management of an organization should ensure that their change management tools are effective both to the employees and the organization.

First, management must create awareness in the organization for employees to be well informed. Communication at this stage is very important, as it enables employees to understand why proposed change is vital to the organization, and the risks involved if the change is not implemented.

Below is a table indicating the change management process.

Employee’s involvement in change management is very important as they feel part of an important issue that also affects their organizational life. According to Hussey (2000, p2), change is crucial in any organization, therefore the way change is handled yields to either positive or negative consequences.

When change is handled in an inappropriate manner, there is possibility of frustrations. In addition, the cost of implementation may increase due to delays involved. Nevertheless, change may be caused by a number of factors, which include technological change due to the advancing technology.

The stiff competition in the operating market may also contribute to the desire of obtaining fast and effective technology, for instance, online marketing. Customer demand may also be a factor that drives an organization to adopt change; this is evident when customers’ needs change with the changing technology.

In this case, when an organization adopts change, it is able to gain customer’s loyalty, thus increasing sales. The author further adds that change may be accompanied by a number of forces such as downsizing, organization improvement, fast and effective methods of production, and an increase in joint ventures among others (Hussey, 2000, p.7).

Wilders Department Store Case Study

It is evident that Wilders Store is associated with many problems, thus causing attention from the management. Despite its outstanding sales of bicycles, record keeping has been neglected, whilst bicycle assembling causes delays, as there is only one employee that handles bicycle assembling.

In addition, the store has a storage problem, as space is running out due to stored boxed, assembled and lay-by bicycles. Despite the higher sales of bicycles, there are delays, which cost clients dearly, especially when they do not receive their bicycles on time, more so during Christmas holiday.

It is however clear that the main root of Wilder Store’s problem is the fact that there is only one employee that assembles the bicycles. Another factor is the limited storage space for the bicycles, placing of sales dockets on the back of a note book, hence causing congestion which in return interferes with the employee’s morale and customer’s loyalty.

The fact that Wilder’s shares the warehouse with several others causes them to hold back on their stock if the warehouse has less of that particular stock. This causes congestion in the warehouse in the long run.

These reasons cause a reason for change within the Wilder’s department store. For change to be implemented there must be a plan. According to Hussey (2000, p12), urgency determines the rate at which change will be implemented. Nevertheless, change should be realistic such that it is achievable and measurable.

Change should not be for sale, however, it should be explained to the employees such that they are able to understand and cope with it. Those affected by change should be in a position to agree with the change, mainly the employees. It is important to note that employees cannot be held liable for managing change; this is the management’s duty.

Whenever change occurs, there are difficulties associated with it, for instance, employee resistance. Therefore, it is important that an organization is governed by participation, involvement and communication. Moreover, change should not be imposed; however, it should be communicated to employees effectively for them to trust the proposed change.

Nevertheless, the proposed change is likely to be faced by resistance, which according to Hussey (2000 p13), the degree of resistance is important since the higher the resistance is, the harder it is to overcome. Sharma (2006, p.127) emphasizes that a change initiative cannot be declared complete without effective implementation. Nevertheless, maintaining change is the most important factor.

Change Strategies for the Wilder’s Department Store

Having noted the areas that need urgent measures, first, the management should make sure that they communicate their intentions to the employees. The management can go an extra step and educate the employees on why change is necessary at this particular time.

There are a number of reasons why the Wilder’s Store needs change; first, it should be in a position to defend its market share by achieving a competitive advantage. Secondly, it should be in a position to compete with its competitors, of whom the customers may prefer due to the issue of punctuality in service and effectiveness, which Wilder’s Store lacks at the moment.

Employees need to be informed on the importance of maintaining their jobs, which will be determined by the proposed change. In such a case, if the business is able to achieve a competitive advantage, perhaps through maintaining their customers, there will be high returns. Therefore, the organization will afford paying its employees.

Nevertheless, it is important for the management to note that employees will not just accept change just because the management said so; therefore, there is need for consultation, as it gives the two parties clarification of the proposed change, and the affected individuals are able to see the positive side of the change.

According to Rash (2010, p.14), a plan is required whereby, the management should decide on what to change and how to change it. He further adds that poor change management will definitely lead to negative consequences that could compromise the business.

The Wilder’s department store needs a number of changes in its operations. First, the management needs to discuss its intentions with the employees, and convince them on the urgent need for change. The management needs to employ several employees to assist in the assembling of bicycles, thus avoiding delays.

Secondly, employees should be allocated specific duties and they should not be expected to assist in another department, as this interferes with the store’s operations.

Once a client purchases a bike, the assembling of that particular item should begin immediately to avoid delays, hence the need for more employees. The management should shift from manual book keeping to computerized entry, which is automatic and saves on paperwork and time too. Hence, there is need for a qualified personnel or training the current employees on data entry.

Another concern is the processing of the entire sale from the bicycle, toys and sporting departments in one cashier to avoid confusion and biasness at the cashier’s desk. Therefore, there is need to separate each sale from the three departments. This means getting separate cashiers for each department.

These measures will reduce both the client’s and clerk’s confusion to meet the deadlines especially when Christmas nears. The storage space will not be an issue if bicycles are assembled on time, hence customers will be satisfied with the store’s services and not opt for the competitors.

According to Peterson & Yang (2004, p.802), customer loyalty involves attracting customers and retaining them, hence, they purchase frequently and even bring along other customers. However, this can only be achieved if the customers are treated with respect and their needs are met on time and as per the desired quality.

The action plan

It is important to note that employee involvement is vital during the change process. Therefore, there is need to receive feedback from employees. Hence, the management should act based on the feedback. Needless say, resistance towards change is always expected, however, resistant may vary as it could be high or low. Therefore, it is upon the management to decide on how to manage resistant from employees.

Challenges the Managers May Face When Implementing Change

According to McNamara (N.d), for any organization to develop, it must undergo some changes throughout its existence. Despite change being undertaken with an aim of improving organization performance, it is prone to resistance. Nevertheless, change may not always be embraced by the affected individuals.

According to Maycunich & Gilley (2000 p28), many organizations fail to adopt to change due to their unrealistic assumptions pertaining to change. One such assumption is the belief that change may occur without affecting the leadership system. Such beliefs create unrealistic expectations, which cannot be achieved; with such assumptions existing in an organization, its employees are likely to be disappointed, thus leading to low morale and low performance.

Resistance to change is common in any organization; however, employees have a variety of reasons as to why they resist change. One such reason is fear of the unknown. According to Wadell & Sohan (1998, p.543), resistant is an enemy of change. Surprisingly, disregarding of resistance may yield to lack of securing a successful change by organizations.

Therefore, it is important to note that resistance is simply an expression of reservation that reacts to change. He further argues that resistance is associated with some advantages, which when utilized effectively may assist greatly in the change process, thus enhancing organization stability.

In addition, research shows that individuals do not resist change; however, they are resistant to the uncertainties and outcomes associated with change. The authors further explain that, resistance causes energy to effectively address the wanting problem.

Therefore, when managers are faced with resistance to change from employees, they should review the proposed change before implementing it (Wadell & Sohan, 1998, p.545). The Wilder’s department store management is likely to be faced with resistance from employees who fear uncertainties of the proposed change by viewing it as a threat.

In addition, there is a possibility of financial challenge as management prepares for change, as it has to consider payments of the additional employees, training programs and advanced technology. Nevertheless, resistance from employees stands out, as they are part of the organization. Resistance to change may be as a result of “reluctance to lose control, cognitive rigidity, lack of psychological resilience, intolerance, preference for low levels of stimulation and reluctance to give up old habits” (Oreg, 2003, p.680).

Agarwal (1983, p.331) emphasizes that attitudes contribute greatly to change resistance, especially if the employees perceive change as a threat. Therefore, according to Deegan (2005, p.27), managing change successfully is important especially when it affects an individual’s personal and social value.

Therefore, it is important for management to anticipate, prepare for resistance and find ways of dealing with the resistance. Griffin (2006, p.174) insists that managers can overcome resistance to change by involving employees in planning and implementing the proposed change. Employees also need to be educated on the importance and need for change; hence, an open communication is vital.

Theories Associated With Change

John kotter’s change model emphasizes on an eight steps model. Establishing the sense of urgency, which involves a high sense of urgency, thus leading to fast and effective decisions regarding the proposed change, is the first step. The second is forming a guiding coalition, which should compromise of effective leadership with credibility.

In addition, creating a clear vision should inspire the employees. The vision should be communicated to others with an aim of empowering them to support the vision. Short term wins should also be created, whilst improvements are encouraged, which yield to creation of more changes (Sabri, et al., 2006, p.179).

According to Rhydderch, et al. (2004, p214), “systems theory emphasizes the interrelatedness of parts of an organization. Improving one part requires that consideration be given to the relationships with other parts of the system.” This theory involves setting specific standards, measuring the achievements that yield from these standards and receiving feedback.

The social world’s theory entails negotiations between two social worlds; however, it is associated with tensions that argue which practices are fit for the organization. The organization development theory assumes that, for change in an organization to be successful, the individuals must be in agreement with the organizational goals (Rhydderch, et al., 2004, p.214).

According to Aragon (2010, p.42), the theories of change exist both on the inside and outside of an individual. He emphasizes on the theory of habitus, which is concerned with an individual’ practices such as what he eats, which sports he prefers and his political stand among others.

Hence, this theory differentiates between rights and wrong, hence habits are socially acquired. Nevertheless, for an organization to succeed in the change initiative, first, it must identify assumptions such as setting the initiatives as part of their beliefs. Secondly an organization should analyze its choices, as a way of examining how decisions are made.

Thirdly, an organization should make commitments that will bring about a lasting change. An appropriate action should be selected with an aim of developing the organization. This will include changes that are designed to yield satisfactory results. Finally, a follow up on their actions should be made to ensure that it is effective with time (Maycunich & Gilley, 2000, p.31).

Unfreezing of a status quo is important as it paralysis an individual’s attempt to resist change. Unfreezing may include motivating individuals by assisting them in preparing for change such as building of trust whilst training individuals to recognize the need for change. Enlightening individuals on the persisting problems that could cost an organization if not mitigated creates a sense of understanding; hence, they support the proposed change willingly.

Conclusion

As the Wilder’s department store deals with change, it is important for the management to understand that different employees react differently to change, as each individual has different needs that need to be met. In addition, losses may occur; hence, the change expectations should always be realistic, otherwise unrealistic expectations may yield to low morale and poor performance.

Therefore, it is important for the management to enhance open communication when informing employees on the change initiatives, such that, employees are able to participate in change implementation. Change should not be imposed; rather, it should involve the affected individuals. When participation is encouraged, resistance becomes easier to curb.

Reference List

Agarwal, R. 1983, Organization and management, Tata McGraw-Hill Education Publisher, New Delhi.

Aragon, O. 2010, ‘Change for Purposeful Organizational Capacity Development,’ IDS Bulletin, Vol. 43. No. 3.

Deegan, C. et al. 2005, ‘Managing change initiatives in clinical areas’, Nursing Management, Vol. 12, Issue 4, pp.24-29.

Gilley, J. & Maycunich, A. 2000, beyond the learning organization: creating a culture of continuous growth and development through state-of-the-art human resource practices, Basic Books, NY.

Griffin, R. 2006, Principles of Management, Cengage Learning Publisher, Ohio.

Hussey, D. 2000, How to manage organizational change Creating Success, Kogan Page Publishers, London.

McNamara, C. N.d., Copyright, Authenticity Consulting, LLC, Organizational Change and Development. Web.

Oreg, S. 2003, ‘Resistance to change: developing an individual differences measure’, Journal of applied psychology, vol. 88, Issue 4, pp. 680-693.

Rash, W. 2010, First, you need a plan. Web.

Rhydderch, M. et al. 2004, Organizational change theory and the use of indicators in general practice. Web.

Sabri, E. et al. 2006, Purchase order management best practices: process, technology, and change management, Ross Publishing, New Jersey.

Sharma, S. 2006, Change Management, Tata McGraw-Hill Education Publisher, New Delhi.

Waddell, D. & Sohal, A. 1998, Resistance: a constructive tool for change management, Department of Management, Monash University, Melbourne, Australia. Web.

Yang, Z. & Peterson, R. 2004, ‘Customer Perceived Value, Satisfaction, and Loyalty: The Role of Switching Costs’, Psychology & Marketing, Vol. 21, Issue 10, pp.799–822. Wiley Periodicals, Inc. Web.