Change Management at Wilder Department Store - Case Study Example

Wilder Department Store: Change Management Report xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Name xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Course xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Lecturer xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Date Abstract Change is inevitable within any given business environment. When focusing on success, organizations are required to implement various strategies which will ensure successful adaptation of change. Therefore, change management acts as a systematic approach towards adapting, controlling and effecting change. This paper discusses importance of change management using Wilder Departmental Store as the case study. The introduction focuses in discussing various aspects within change management. This will be followed by problem identification within the case study, causes of the problems, proposed changes which will incorporate strategies, challenges of implementing change, monitoring and evaluation and then a conclusion will be issued to summarize what have been discussed. Table of Contents Abstract 2 Table of Contents 2 1.0 Introduction 4 1.1 Background information of Wilder Store Department 4 1.2 Scope 5 1.3 Objectives 5 2.0 Models to be considered 6 2.1 Change Management Model 6 2.2 Diagnostic Model 6 3.0 Problem identification 7 3.1 Symptoms of the problem 7 3.2 Causes of problems 8 4.0 Nature and need for change 8 5.0 Proposed change 9 5.1 Goals and strategies 9 5.2 Technology 10 5.3 Job design 10 6.0 Action Plan 11 7.0 Challenges of implementing Change 12 8.0 Recommendations 14 9.0 Conclusion 14 References 16 Wilder Departmental Store Change Management Report 1.0 Introduction Change is considered to be fundamental to any organization that highly focuses on success especially within today’s global competitive business environment. It is for such reason that organizations are adapting change management processes within their working systems. According to Markus (2004), change management is defined as the systematic approach adapted by business so as to deal with change both from an individual and organizational perspective. Change management focuses mainly on three aspects namely; adaptation, controlling and effecting change. 1.1 Background information of Wilder Store Department Wilder Departmental Store is a business involved in the sale of hundreds of bicycles (bikes). Over the years, the departmental manager George Nolan expects that the sale staffs are able to catch up on recordkeeping details especially during the month of December when there are higher sales as compared to other months. The departmental store is devoted to selling bicycles both by cash and on lay-by methods. The store has two identifiable purchases namely; purchasing boxed bicycles which are not assembled or purchasing bicycles that are assembled at an extra charge of $12 which involves a delay time of about two weeks (Hendry 1999). In addition, a customer seeking to purchase an assembled bike should periodically check on its progress through a phone call. The bicycle department was moved next to the sporting and toy sections with the aim of increasing sales within the department. 1.2 Scope The purpose of the report is to show how change can be effectively managed in an organization using Wilders Department Store as a reference case study. The report will begin by identifying problems revolving around the management of the store, their causes and symptoms. It will further analyze and assess need for change and identify strategies of implementing such change. 1.3 Objectives The following objectives have been applied in analyzing Wilders Store Department need for change management. To determine the symptoms of possible problems experienced in the store. To identify the problems experienced in the management and operations of the store as indicated by the symptoms To analyze causes of the problems identified using relevant theories and diagnostic models To determine possible solutions to identified problems To identify the challenges which management might face while initiating changes To determine strategies of managing the change process 2.0 Models to be considered 2.1 Change Management Model Burnes (2004) explains that various models can be applied in defining change management. In this case, the diagnostic and change management models will be applied as the focus will be on intentional and strategic solution mainly on large scale which is being experienced in Wilder Departmental store. Change management model encompasses Kotters eight step which entails; establishing the need for urgency, ensuring there is a powerful change group to guide the change, developing a vision, communicating the vision, empowering the staff, ensuring there are short-term wins, consolidating gains and embedding the change in the culture. 2.2 Diagnostic Model Diagnostic model focuses on six variables namely; leadership, purpose, structure, rewards, relationships and helpful mechanism. Within wider departmental store, this model is important since it emphasizes on employee involvement through maintaining a high awareness level. Steinwachs (1999) asserts that it encompasses the 7-S framework which includes style, structure, skills, strategies, super-ordinate goals and staff. Interconnectedness of the named variables into Wilder stores is very essential in successful adoption of the change. Diagnostic model also goes hand in hand with star model where strategy, process, structure, capability and rewards are aligned within Wilders Department (Steinwachs 1999). 3.0 Problem identification 3.1 Symptoms of the problem It is evident that Wilder Departmental Store needs to adapt various changes so as to increase on their profit margins and attain a competitive advantage over their competitors. As quoted from the departmental manager George Nolan, with such a rush during the Christmas season, the department is behind in its record keeping and its display. There are several areas that this store needs to adapt change for it to be successful especially taking advantage of the current rising cost of petrol where people are actively involved in saving little fuel as possible. Firstly, the store has major problem in its record keeping (Tsoukas and Chia 2002). Improper record keeping can result to not only losses in outcome but also those of important document. The company suffers from improper display of its bicycle. The manager indicates that the bicycles are not clean and are not neatly arranged. The company also faces the risk of under staffing which is an identified area for change. For instance, the store has only one man responsible for assembling the bicycles whereby he has a lag of one hundred bikes. These forces the company sells more bikes that what it can assemble per day. 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. Customers may fail to return when they are made to wait in long queues so as to make payment. According to Tsoukas and Chia (2002) good customers services entails short or no queues during payment or when a good is being delivered. Finally, another area that needs change within the departmental store is their warehouse. The company needs to install their own warehouse so as storage of bicycle can be effective and to minimize records needed (Tsoukas and Chia 2002). 3.2 Causes of problems The above mentioned problems are derived from various causes as observed. Poor management is widely viewed as the main cause of the underlined problem such as bulkiness in record keeping. The management should focus on establishing their warehouse so as to minimize the cost involved in record keeping in the other shared warehouse. Understaffing is another major cause of the above problems within Wilder. Employees may fail to perform efficiently due to increased level in turnover and stress which result to poor customer services. Overstaffing may result to replication of duties as different employed persons execute similar tasks (Feldman 2000). Wilder Departmental Store should understand that flexibility in staffing and using outside vendor are important solutions to increasing output without necessarily adding more employees. 4.0 Nature and need for change It is recommendable that the organization goes through a wholesome transformation so that it can meet its long term objectives and also to reap maximum benefits from the forthcoming festive seasons. Implementation of change should be a systematic and constant process which must involve the efforts of all members of the organization including outside stakeholders such as customers and suppliers. Lorenzi and Riley(2000) assert that prior to implementation of the change, it is crucial for the management to effectively communicate the proposed change to all concerned parties since change will directly affect all people at a personal level. In many cases, change provokes a wide range of emotions whereby people experience different kinds of reactions such as despair, anger, acceptance, frustration and enthusiasm. 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, job design, structure, technology, people and processes. 5.0 Proposed change 5.1 Goals and strategies A key aspect of change is the organizations goals and objectives both the long-term and the short-term. Management needs to review and redefine its objectives on a regular basis to take advantage of prevailing market circumstances and to grasp any opportunities that might be present. In addition to having flexible goals, determination is paramount and management should avail necessary resources to implement the change. Goals need to be SMART which stands for: Specific: Successful goals can only be attained through a systematic and concrete action. Measurable: The goals ought to have results that can be quantitatively determined over a period of time. Attainable: With the right resources and attention, the goals are possible to attain Realistic: Probability of successfully achieving the goals has a high possibility. Time-bound: The goals are possible to achieve at a specified period of time before the opportunity ceases away. Whereas goals deal with what the organization does, strategies focus on how the organization operates. An effective strategic plan begins with a SWOT analysis with the aim of determining the best practice for the organization. The store should aim at increasing its sales by attracting more customers. Majority of bicycle riders are the young and the middle aged hence any strategy that is set should target this groups (Lorenzi and Riley 2000). 5.2 Technology According to Schoeff (2008), increasing dynamism in the world of technology, the innovations team at the store needs to explore deeper to come up completely competitive products that will ensure a market advantage. Putting in mind that the store expects a peak season during winter, it would be appropriate to design bicycles to suit the season. The record keeping system of the store is wanting and it is recommendable that all the system related to record keeping be automated rather computerized to avoid the already existing confusion at the store. The creativity team could come up with a web design that will not only be utilized for advertisement but also for sales (Chaudron 2010). 5.3 Job design Job design refers to the overall structure of the organization that is with regard to relationships and methods and how these two aspects affect the organizational, technological, personals and social requirements of the stakeholders (El-Khawas 2000). The management of Wilder’s Department Store needs to hire multidisciplinary experts such as engineers and auditors to determine the best ways of redesigning their job structure. The management will rearrange the entire work organization by teaming, automating, division of labor or work groups. Secondly, the job structure will be changed completely in terms of the reporting system that is who reports to who and granting specific responsibilities to at different levels of the organizations for instance to have department managers. Finally, management will consider the schedule of its processes and facility location. Confusion of timing and scheduling of events has brought confusion and customer dissatisfaction in the past. It is therefore recommendable to have a systematic flow of the process of production. The storage facility will be expanded to deal with the growing demand of bicycles and branches will be launched at other parts of the city and out of the city as well. The store should conduct promotional services at regular intervals in the course of the year. For instance, they would give free skateboard to customers who purchase more than two bicycles (Erez 2010). 6.0 Action Plan Action Goals/ Results Start date Date completed Goals and strategies To redefine the company short-term and long-term goals. 1st Jan 2012 1st June 2012 Technological innovation Automate the record keeping system. Redesign bicycles. Design a web site 15th Jan 2012 15th Jan 2012 2nd March 2012 1st March 2012 1st March 2012 1st April 2012 Restructuring of the job design Internal audit Creation of teams and appointing of department managers Building of a new warehouse 1st Dec 2011 3rd Jan 2012 15th April 2012 15th Dec 2011 18th Jan 2012 15th July 2012 7.0 Challenges of implementing Change The management may be faced by the challenge of maintaining energy in the employees throughout the process of transforming the company. Change makes most of the employees demoralized and uncertain about their future and hence they tend to respond negatively to the change (Hansen 2005). The management therefore has to prepare all the stakeholders of the effects that the change might have on each and every person in the organization. Change strategy should be communicated effectively such a way that creates excitement to all employees. This can be achieved by providing opportunities for them to contribute in the decision making of the process and to make them feel a part of the process. The other challenge that comes along with implementation of change is the uncertainty of survival of the change. Transforming the organization means changing the old processes, equipment, human resource among others things and replacing them with new ones. This requires input of a lot of resources in terms of finances and knowledge which might be difficult to sustain for a long time. However, a long term strategy can be achieved with full devotion and commitment by all the employees as well as the top management. This begins by accepting the fact that change is inevitable in the current competitive global environment (Luecke 2003). The organization may be faced by the challenge of prioritizing its resources and projects. While making plans to change the entire organizational change, there are other projects the company could me undertaking requiring engagement of finances and other resources. This becomes challenging due to the fact that employees are overwhelmed by overlapping of events since they are the main players. To overcome this challenge, the management needs to arrange all the projects in an order of importance and give the most important first priority and drop the low value ones. It is sometimes difficult to manage cultural shift that comes along with change. Clearly, organizations undergo change all the time but for change to be successfully implemented and seen a complete cultural change is important. This involves changing how the organization conducts its operations and processes and how goods and services are delivered to customers. Finally, the organization might be faced by the challenge of cognitive barriers in its efforts to manage change. This involves use of the wrong terminologies and language that do not communicate t progress of the change effectively. As a result of this motivation and creativity are not developed in those the change concerns which might ultimately lead to failure of the project. Lack of correct and sufficient information is a barrier to effective management of change. Constant research on how to carry out the change effectively is mandatory if the success of the change is to be attained (Stanleigh 2011). 8.0 Recommendations It is fundamental for the senior and executive managers of Wilder’s Department Store to develop mechanisms that ensure implementation of sustainable change policies. Monitoring of performance is a major element of management process therefore; Wilders management must adapt an effective monitoring system such as internal auditing programmes. Management should take regular tours round the operations sites and observing performance of duties by employees. Line managers should submit reports to top management for review and discussion at regular intervals. This will help identify are that needs improvement within the store. 9.0 Conclusion Evidently, Wilder Department Store needs to incorporate change management into their system for it to be successful and to yield successful outcome. Having identified areas that store is not performing as required; it is the duty of its officials to come up with a desirable vision that will ensure there is tremendous linkage between the vision and change. The organization should use ideas from customers to craft their vision especially based on the above underlying problems. In addition, coordinated and planned approach should be adapted by the organization by way of believing that desired change will be achieved. Achieving the desired change can be implemented when the stores management widely use Kotter’s eight stem model. The steps are establish the change urgency, identifying powerful change group to guide the changing process, developing a vision, communicate the vision, empower staff, ensure there are short term wins, consolidate gains and finally embed the change within the culture. By implementing such steps the store would have substantial step towards establishing both customers and employees relation. References Burnes, B 2004, Managing change. Harlow: Prentice Hall Chaudron, D 2010, Begin at the beginning in organizational change. Retrieved on 9th September 2011 from http://www.organizedchange.com/decide.htm Erez, M 2010, Culture and Job design. Journal of Organizational Behavior, vol. 31, no. 2-3, pp. 389-400 Feldman, M 2000, Organizational routines as a source of continuous change. Organization Science, vol. 11, no. 6, pp. 611-629. Hendry, J 1999, Cultural theory and contemporary management organization. Human Relations vol. 52, no. 5, pp. 557-577. 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