Strategic Management of Clothing Stores in the Army - Research Paper Example

Strategic Management of Clothing Stores in the Army Introduction Change has always been an inevitable occurrence in the activities of many organisations and businesses. The world of business is constantly facing new innovations and applications, thus people have to cope with constant change. Managing change should be one of the priorities of a good organisation which eventually finds change an opportunity for improvement. The turbulent business environment in which most organizations operate means that not only is change becoming more frequent, but that the nature of change may be increasingly complex, and it is often more extensive (Hussey, 2000, p. 1). The aim of this paper is to write an operations management paper to analyze and make recommendations on a rather huge organisation that is about to encounter a major change in its operation, i.e., the consolidation of the five clothing stores of the Army into a one single store. The paper will delve on the theories of change, relevant aspects of the operations, quality management, to include the planning, scheduling, and other important activities for the success of the clothing store. Moreover, these theories will be applied or connected with the change that the Army regiment encounters as a result of the consolidation of the five stores into a single entity to cater to the demands of the members of the regiment. Planning involves consolidating the different offices, coordination, and cooperative operation of the personnel involved in the five stores. Changes in structure for the clothing stores of the Army will trigger many changes in activities, structures and procedures. In such situations pressure comes from the employees of the five stores and its departments which are about to be dissolved. Drivers of change will also be discussed in connecting with the merging or downsizing of this particular department of the organisation that is the Army. Change Management theories A. Lewin and ‘forcefield analysis’ Lewin’s 3-stage model (Lewin, 1958, cited in Collins, 1998, p. 58) is the unfreezing, moving and refreezing model. Lewin, as explained by Burnes, is aligned with what is known as the ‘group dynamics’ school of behaviour. This theory states that individual behaviour is in fact, a function of the group environment, or field. Burnes explains further that ‘for the group dynamics school, the behaviour of any particular individual is a product of the pressure which the group norms and values bring to bear. According to this theory, “Successful change is only achievable where groups discard or unlearn their usual patterns of thought and behaviour.” (Collins, 1998, p. 59) There is the unfreezing stage of the model which argues that the forces which maintain organizational behaviour have to be overcome. The change that is occurring has to be given utmost priority and concentration. In our case study, the consolidation of the five stores into one single clothing store have to be properly planned, analysed, and the negative outcomes and pressures met with good and positive outlook by the members of a ‘recovery’ team. This team will be manned by skilled and experienced people. Burnes (1996, cited in Collins, 1998, p. 59) states that ‘The essence of these activities is to enable those concerned to become convinced of the need for change.’ It is clear therefore that the people behind the change of ‘eliminating’ and forming a one homogenous clothing store should be made aware before any further actions are made. B. Temporal Interconnectedness Temporal interconnectedness is a theory for the analysis of change. This states that change should be studied as a process through time. (Collins, 1998, p. 134) Change programmes should have clearly well defined aims or ends. Collins (1998) states that ‘managers and consultants cannot craft, change or recreate organization just as they would please; instead change management is to be regarded as an active process where future plans and current processes will variously, be facilitated and/or constrained by the context and the past history of the organization’ (p. 134). Purcell and Sisson (1984, cited in Collins, 1998, p. 134) stressed that ‘managers cannot recreate the world anew, to suit new ideas or fashions [but] that the sum of previous managerial decisions and policies works to constrain the present and the future trajectories of the organization.’ Practically, this means the present is dictated by past experiences and activities of the organisation. Stress is on the phrase “previous managerial decisions and policies”, which means they have to be given importance before new decisions and policies have to be implemented. There are institutionalised programmes in the organisation that have to be respected. On the other hand, Plant (1987, cited in Collins, 1998, p. 56) observes that ‘change initiatives often fail to deliver the desired results because the planned change fails to take root, or fails to become incorporated into the daily practices and ritual of business.’ What is important therefore is to allow change to take root in the activities within the organisation. Managers must first be able to diagnose key aspects of life in their organizations (Collins, 1998, p. 57). Change may create a crisis, but this crisis may just be temporary. If it is well studied and planned, the perceived crisis is not a crisis per se but is just symptomatic of change in any of man’s endeavor. This suggest a more focus and patient attendance of the small details of the change. “The greatest opportunities are created out of crisis. Crisis forces people to change and change often brings new opportunity.” (Ancient Chinese proverb cited in Steiss, 2003, p. 247) C. Context and Action This axiom (as it is called in Collin’s book) states or ventures that ‘actors shape the processes of organizational change. The decisions which they make and the policies they choose to pursue, shape the processes of organizational change. (Collins, 1998, p. 135) The people in the organisation, the members of the team, and everyone doing and perceiving the results of the change have to act in unison because they are the ones who will lead the change to where they want it to go, and not the change to lead them. If that happens, they may be led ‘astray’; meaning it can result into a possible catastrophe, and the entire organisation will suffer. Changes can create crisis, if not handled rightly and with care. Badly handled change situations can lead to serious consequences. These negative results of change can become frustrations and can create big costs for the company or organisation. Research suggests that many planned strategies are never implemented, often because the change process is badly managed. This can lead to extra costs, missed opportunities, and sometimes damage to the existing activities of the organizations (Hussey, 2000, p. 2). There are many forces that cause change, some of which are technology, competition, customers demanding more quality of the product or service, changes in the demographic profile of customers, privatisations, acquisitions, etc. (Hussey, 2000, pp. 6-8) . All these need to be given priority and special attention by the company. They require extra time and skill, coupled with tact and perseverance on the part of the managers handling change. Organizations cannot ignore developments that could give advantages to their competitors, and it is only very rarely that a new development can be substituted for an old one without causing changes to skills, jobs, structure and often, culture. On the other hand, competition is intensifying, and becoming more global. More organizations are compelled to attain the standards of quality and cost achieved by the pacemakers in the industry. More industries are served on a world basis, and in these conditions it is no longer sensible to think in single-country isolation. This trend is set to become more significant with the growth of the Internet and E-Commerce. Technology continues to renew and innovate almost all the time, and the speed for which it becomes obsolete, requiring new applications, also continues day by day. With globalization, change in the organization has to cope with new technologies. The PC, the Internet, and searchable databases can be combined to provide new application and instant information that can let companies analyze data on the post in order to respond to constantly changing conditions. (Mariotti, 2002, p. 102) These tools are combined and known as Dynamic Resource Management or DRM. They are also known as “control towers” or “executive dashboards” and they “provide tremendous potential to cut costs, serve customers better, boost profits, and create competitive advantages’ (Mariotti, 2002, p. 102). To be competitive organizations have to respond more rapidly to customer needs, and these can and do change over time. In any change situation, the first step is to think about the nature of the change and the situation inside the organisation. Coping with change means getting the right people to work on that change. The people should have the right skills and experience to operate on the change. And the next step is to work on the urgency of the need for change. Literature Review Operations management is “a field of study that focuses on the effective planning, scheduling, use, and control of a manufacturing or service organization through the study of concepts from design engineering, industrial engineering, management information systems, quality management, production management, accounting, and other functions as they affect the operation’ (APICS Dictionary, 1995, cited in Bicheno and Elliott, 1997, p. 9). The definition of operations management above covers a broad area of management functions that includes almost all aspects of the running of business such as planning, scheduling and control of activities that transform inputs into finished products. The consolidation of the stores can involve a complex of planning of scheduling to handle the activities. It concerns making the most efficient use of whatever resources an organization has, so as to provide the finished goods or services that its customers need in a timely and cost-effective manner (Barnett, 1996, cited in Bicheno and Elliott, 1997, p. 9). Operations management therefore involves almost all of the organisation’s resources: people, equipment, materials, money and time. It covers all functional areas within the organization, as well as areas within each organization concerned with producing some product or service from their resources. With globalization, major changes in operations management have to be implemented. Products are traded internationally and components are sourced internationally. These products have to pass certain standards. Many organizations have found it almost impossible to become partners in a supply chain without quality certification (BS 5750/ISO 9000). The increasing emphasis being placed by the wider community and pressure groups upon careful use of the earth’s resources and the detrimental effects created by businesses, has led to new approaches being developed. We are living in a global village which means our world is becoming smaller and smaller because of digital technology. To organizations and business, it is an opportunity for expansion and growth. Nevertheless, it is a challenge because of the various activities and innovations that have to be implemented in the organizational set up, changes that have to be shouldered and borne out by managers and employees. Organizations continue to experiment changes to improve functions. Managers also find ways to improving the activities and functions. Marketing Management Kotler (2005, cited in Armstrong 2006, p. 9) defines marketing management as “The analysis, planning, implementation, and control or programs designed to create, build, and maintain beneficial exchanges and relationships with target markets for the purpose of achieving organizational objectives.” We can say that a product has high quality if it does the job it was designed for. This gives one view of quality, which is that quality is the ability of a product to meet – and preferably exceed – customer expectations. The only way an organization can remain competitive is by making products with the high quality that customers demand and expect. (Armstrong, 2006, p. 143) However, different customers have different expectations. Quality depends on many factors, such as: innate excellence, fitness for intended use, performance, reliability, durability, attractive appearance and style, etc. Benefits of high quality products include higher customer satisfaction, less waste and increased productivity, and many more. (Armstrong, 2006, p. 145) Many organizations are involved in three fundamental activities which can be divided into marketing, operations, and finance. These activities involve: identifying potential customers, seeking to understand their needs, and persuading them to use the product or service; providing the product or service efficiently and effectively; and managing the organisation’s finances to ensure continuing success. (Bicheno, and Elliott, 1997, p. 17) On the other hand, Michael Porter (1985, cited in Bicheno and Elliott, 1997) states that ‘every business should construct a value chain, which depicts the total value generated and added to its product or service’ (p. 18). Porter identifies the five primary activities as those that are directly concerned with the product or service: inbound logistics, operations, outbound logistics, marketing and sales, and customer services. (Bicheno and Elliott, 1997, p. 18) Support activities include procurement, technology development, human resource management, and company infrastructure. The company’s profitability will depend on the difference between the total value put on the product or service and the actual costs of doing this through the nine activities. Operations management has a key role in ensuring that these activities are carried out effectively and efficiently. (Bicheno and Elliott, 1997, p. 18) Support Activities Primary activities Source: Adapted from Bicheno and Elliott, 1997, p. 19. The illustration above shows how operation functions with support and primary activities. This is an integral function of any business and supply chain. The operation function is heavily dependent on support functions, such as research and development; marketing, demand management and forecasting; financial management; work study, method study, engineering and design; quality assurance, maintenance and facilities management; purchasing and material management; human resources management (humanity and fairness issues); storage, handling and transportation; and quality of work life, health, safety, ergonomics and TQM. (Nieuwenhuizen et al., 2008, p. 333) Operations Improvement TQM is primarily concerned with the improvement of all aspects of operations performance. TQM is a holistic approach to quality at the source which aims to improving the smartness, competitiveness, flexibility and effectiveness of the entire organization. (Nieuwenhuizen et al., 2008, p. 326) In the process of TQM, there is no waste for efforts exerted in the functions of the operation. There is a need for both the internal and external customer. Armstrong (2006) states that ‘Quality management is concerned with the plans, decisions, tests, design, performance and all other aspects of a product’s quality’ (p. 143). The process of consolidating the five stores into one can also be simultaneously done with the proper benchmarking within the organization. Benchmarking is a good practice on its own, but is usually part of the continuous improvement drive. Benchmarking can include comparing the good and generic processes and operations in the organisation. Benchmarking can also define the quality characteristic clearly and decide how to measure each one; determine a standard for each quality characteristic; measure the quality of output against these standards; and identify quality gaps and initiate corrective action and ongoing improvement. (Nieuwenhuizen et al., 2008, p. 328-329) Motivating employees Employees have to be encouraged and given resources to do their job and manage themselves. We should let them oversee their processes and set their strategy. But Templar (2005) says, “We should not manage them” (3). The sentence “We should not manage them” is a very catchy one, and meaningful too. Managers must allow employees to be free, because in letting them free, they think and become creative. If they are dictated of what they have to do, chances are, they become like robots, and they don’t care if business is successful or not. Present work in production needs quality, speed, reliability, and flexibility (Vidler, 2001, pp. 25-26). Managing a business or organization must be motivated in high spirits. As the French philosopher Denis Diderot said, “Only passions, great passions, can elevate the soul to great things.” This is true with managing and leading people. Motivating people and making them in high spirits can be done at the same time. By following examples of some great managers and leaders, we can have more creative and innovative employees. Daryl R. Conner (cited in Firth 2002), the “undisputed guru of the change management movement”, consultant of such giants as Mobil Oil, JC Penney, Pepsi-Cola, and Levi-Strauss, to name a few, argues that what sets winners apart from others is “human resilience”. People should display a “sense of security and self-assurance that is based on their view of life as complex but filled with opportunity; have a clear vision of what they want to achieve; demonstrate a special pliability when responding to uncertainty, develop structured approaches to managing ambiguity; and engage change rather than defend against it (proactive).” (Firth 2002, p. 74) In the website “Management of Change”, the emphasis in the workplace is to allow people to work collaboratively, and that they should feel valued and committed to organisational success. Another is to develop teams that are energetic, fun to be with, and where everyone consistently achieves standards of excellence. Managers should also be transformational leaders, skilled at developing, motivating and empowering their people. (Managementofchange.com, n.d.) Application of Theories and Operational Strategy for the Five Clothing Stores The organization, especially the Army, is a network of interlocking operations. For example, the five stores consolidating into a one but effective clothing store can be visualized as a transformation process providing inputs to the different departments within the Army, i.e., in the form of finished products. There will be a streamlining of responsibilities and reduction of finances for the entire organisation. The once crowded departments in the stores will be simplified into a single store. There will be finance, purchase, operational, and managerial sections. Letters, memorandums and other forms of communication are simplified. The CEO or Head of this single store will be answerable to the Commander of the regiment. This single and simple store will have few but effective staff, all skilled and experienced in handling the intricacies of clothing, the sale of clothing, and the needs of the members of the regiment. These products can be outsourced, as discussed in the Literature Review. The point is to instill in the group operational efficiency, friendliness, consistency – but all of these are the result of one other factor. The Army can invest in the relationship with its employees and it is these employees that make all of the other things happen. By making its employees true, trusting partners, the Army can encourage employees to make everyone partners too – a good change of reforming for camaraderie, a requirement in an organization like the Army. In the section on the theories of change, it was well stated that change programmes should be able to define aims or ends. This is very relevant in our study because it is not to say that change can be instituted for the mere purpose of changing the structure, without any clear planning and objective. Managers and consultants cannot just institute change in a department without regard for other relevant aspects of the operation. There must be careful planning and recommendation by a team composed of experienced men. Introducing change in the clothing store can mean the management is concerned of providing proper and prompt service to the members of the regiment. Quality management is concerned with plans, decision, tests, design, performance; hence, management is concerned with giving quality goods and services to the Army men. Moreover, the theories of change have been explained and applied in the possible consolidation of the five clothing stores into a single department. This store will be more effective, with skilled and experienced men manning the different sections, and insure that quality products or clothing are issued to customers who are the regiment members. References Armstrong, M., 2006. A Handbook of Management Techniques: A Comprehensive Guide to Achieving Managerial Excellence and Improved Decision Making. Great Britain: Kogan Page Limited. pp. 9; 143-146. Bicheno, J. and Elliott, B., 1997. Operations Management: An Active Learning Approach. UK: Blackwell Publishers Ltd. ISBN 0631201807, 9780631201809. pp. 8-19. Collins, D., 1998. Organizational Change: Sociological Perspectives. London: Routledge. p. Firth, D., 2002. Life and Work Express. United Kingdom: Capstone Publishing. pp. 63-94 Hussey, D., 1998. Strategic Management: From Theory to Implementation. Oxford: Butterworth-Heinemann. Hussey, D. E., 2nd Ed., 2000. How to Manage Organizational Change. London: Kogan Page Publishers Limited. ISBN 0749432519, 9780749432515. pp. 6-8. 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Steiss, A. W., 2003. Strategic Management for Public and Nonprofit Organizations. New York: CRC Press. ISBN 0824708741, 9780824708740. Templar, R., 2005. The Rules of Management. Great Britain: Pearson Educated Limited. p. 3 Venkataraman, R. and Pinto, J., 2008. Cost and Value Management in Projects. New Jersey: John Wiley & Sons, Inc. Vidler, C., 2001. Operations Management. Oxford: Heinemann Educational Publishers. pp. 25-26. Read More