Managing Organisational Change - Wilders Departmental Store - Case Study Example

Managing Organisational Change Student’s Name: Course: Tutor’s Name: Date: Managing Organisational Change The case study of Wilder’s departmental store is a classic tale of how essential organisational change is if at all a business enterprise is to remain relevant in the competitive operating environment that the world has become. Reviewing the work environment at Wilder’s as portrayed in the case study, one realises a well-established routine of doing things that has led to soaring bicycle sales to the extent of capturing the store manager Mildred Green’s attention. It is during a stopover to commend the person in charge of the bicycle department that Mildred notices several anomalies that signify the need for change. But what exactly is managing organisational change all about? Well, managing change is a process that helps organisations get to their desired future states, or visions. As such, managing organisational change effectively can only occur where there is a vision (Parlalis, 2011, p. 356). The management then has a role of empowering individuals working in the organisation in order to ensure that they act as change agents. Additionally, organisations have to be willing to discard practices that do not add value. In Wilder’s case, such practices include recording bicycle sales and lay-by stubs at the back of a notebook and maintaining a single person to work at the bicycle assemblage despite the high demand for assembled bicycles. Symptoms Analysing the operational environment at Wilder’s, one realises that the practice of recording sales at the back of a note book is one symptom that indicates that change is needed if at all the store is to become better in record keeping, competitive, and even better at satisfying consumer needs. Without proper record keeping, some orders made by the customers may be lost, thus leading to consumer dissatisfaction. In the haste to attend to customer needs, some sales people may forget to record their sales, leading to discrepancies in the stocks and sales. The fact that the bicycles on display are not always neat and clean is also another symptom indicative of the fact that not enough attention is paid to how the department store presents itself to existing and potential customers. This shortcoming is also indicative of the fact that complacency has gained root among marketers, who probably believe that the department store does not need to market itself since sales continue unabated despite its unkempt display. As Denning (2005, p. 47) observes, complacency in business enterprises occurs when the management or staff relies too much on past success; when there is arrogance among the management or employees; when the management over-accentuates the positive aspects of the company; when the organisation discounts the probability of risks; or when there is overreliance on technology. In Wilder’s case, the latter is not true. If anything, the store relies too much on manual record keeping. The fact that customers still insist on having their bicycles assembled despite the two-week delay in taking home their purchases and the additional $25 charge is evidence that the store’s strategy of selling unassembled bikes is not very successful. In fact, the store sells more bikes than the assembler is able to put up in a day. The problem is complicated further by the fact that Wilder’s has a storage problem and is hence running out of space for storing unsold bicycles, those on lay-by, and those awaiting collection by customers. This is indicative of the fact that the bike-assembling department is under-staffed and therefore needs some attention from the management. The congestion at the cashier’s desk is another symptom that organisational change is necessary at Wilder’s department store. Such necessity is made even more obvious by the fact that the congestion is getting on the nerves of the sales personnel and customers, and is thus likely to cause dissatisfaction to the two parties. As Smith (2005, p. 153) observes, employees who are dissatisfied with their current workplace situations are more welcoming to any attempts of change since they are more likely to believe that change will usher in better practices. Causes of symptoms at Wilder’s department store Reliance on past success Wilder’s department store seems to have gotten into a routine that it has not changed over the years. For example, the case study reads, “Mildred remembers the bad public relations experiences of last Christmas when a few children did not get the bicycles...’ This statement suggests that the same scenario being witnessed currently had occurred around the same time last year. However, one gets the impression that despite the bad public relations, the department store still registered impressive sales, something that is likely to continue this year. As Denning (2006, p. 47) notes, “the more often a particular routine achieves successful outcome, the more likely people are to develop an unwarranted belief that success is assured.” Unfortunately, such an assumption is not always true since the operational environment always has risks that could turn the situation around for the department store. For example, a new competitor with better sales, assemblage and customer-care department could pose a major challenge to the store, which would not only stand the risk of losing customers to the competitors, but also employees who are dissatisfied with its current management systems. Lack of urgency It is rather obvious that despite meeting the same challenges in the previous year, the Wilder’s department store did not consider transforming the store as an urgent matter (at least until when signs of trouble started showing once again). As Kotter (1996, p. 36) notes, transforming how things are done in a business entity requires the management to establish a sense of urgency, which then acts to motivate people towards achieving the desired outcome. Ideally, the management should devise a transformation programme, and then invite the cooperation of all employees working in the store. According to Kotter (1996, p. 37), most organizations mistake the lack of a highly visible crisis to mean that no organizational change is necessary. When the company does not lose money directly, employees are not threatened with layoffs, bankruptcy is not an issue, debtors are not knocking on the store’s doors, and no negative press coverage is evident, the management and employees would not have a high sense of urgency. The evident lack of vision Like every other business, the Wilder’s department store may have had profitability as its core vision. However, for the store to realize its full profit making potential, other supporting objectives such as employee and customer satisfaction need some consideration. As noted by Kotter (1996), a vision gives the transformation effort some direction; a lack of vision on the other hand can easily make the transformation effort confusing and incompatible with the overall organizational objective. In Wilder’s, the latter is evident from the relocation of the bicycle department closer to the toys and sporting goods section. Considering that the two departments are likely to register increased sales especially during the Christmas period, this was an unwise move, whose consequences are already evident from the congested cashier’s desk. The presence of a vision would probably have led to the management to evaluating previous sales trends in the two departments, and as a result, they would have deemed locating the two departments close to one another as an imprudent move. The evident lack of systematic planning According to Kotter (1996), some managers sit back and hope for short-term wins, while others realize the importance of planning and creating the environment necessary for such wins. In Wilder’s, it looks like no preparation for the high-sales season was made, and this could mean that no planning took place for purposes of improving performance for such a time. Rather, the management seems to have taken a passive approach hoping that the success of the store would happen just like the previous year. As Kotter (1996) notes however, managers who are intent on leading change in their organizations must establish goals and objectives, identify the performance improvements needed, and establish plans that will lead to their attainment Recommended course of action Using the 7S model as proposed by Waterman, Peters and Phillips (1980, pp.17-25), this section will make recommendations that will affect all the Seven-S’s; i.e. “strategy, structure, systems, shared values, skills, staff and style”. According to Waterman et al. (1980, p. 25), the seven organizational aspects support each other, meaning that any proposed change would no doubt leave an impact on all seven. Specifically, Waterman et al. (1980, p. 26) argue that “...the pace of real change is geared to all seven S’s” in any organisation. Hence, for real change to occur, all seven factors need to be aligned. i. Create a vision As indicated elsewhere in this paper, one can easily assume that Wilder’s department store has a vision of becoming a profitable entity. However, there seem to be discrepancies in its internal operation environment to suggest that its long-term vision is not well thought out. For example, while short-term profits may look guaranteed from the increasing bicycle demands, the impact that the store’s inability to meet all customer demands may have in the future did not appear like a major consideration until Mildred noticed the possible risk. As Lorenzi and Riley (2000, p. 119) note, creating a vision enables an organization to focus its energy towards bridging existing performance gaps. If Wilder’s disappointed several customers last year by failing to deliver bicycles within a specified time frame, then the vision should revolve around enhancing performance in order to meet customers’ expectations at all times. According to Kotter (1996, p. 78) the term ‘vision’ refers to “a picture of the future with some implicit or explicit commentary on why people should strive to create that future.” Hence, the vision is not the creation of management that is issued as a directive to employees. Rather, it should be a statement that clarifies the direction that Wilder’s department store should take. Secondly, the vision should serve to motivate the store employees to take the right actions in order to attain the desired outcomes. Thirdly, the vision helps coordinate actions taken by the management and employees, thus enabling fast and efficient change. Through a proper crafted vision, the management can clearly articulate how the 7s’s will interact in the organizational setting in order to support the achievement of set organizational goals. Specifically, management can detail the actions that it deems necessary for the attainment of the identified vision. Additionally, the management can define the organizational structure detailing the size and diversity in different departments. This would ideally contain solutions to the bicycle assemblage challenge facing the company. Through articulating the components needed in the organizational systems, the management could also identify procedures that are essential in supporting the identified strategy and structure. For example, on realizing that a manual system of record keeping is too slow and inconvenient, the management may opt to computerize the entire sales department. Such a step would not only enhance customer service, but would also make the sales clerks a happier and more satisfied lot. A new vision would affect staff members at Wilder’s department store by re-organizing them to serve in positions that they are better suited. As is evident in the case study, a mix-up occurred when some of the sales personnel working in the bicycle department were asked to help in the toys department. While such a step would work to utilize employee resources in a different scenario, the situation at Wilder’s demanded more sales people to handle the increasing consumer demands. The assemblage docket also needs some additional hands in order to increase the number of bicycles assembled in a day. According to Schwartz and Rock (2006, pp. 71-80), while senior managers (like Mildred), and middle managers (like Nolan) are an important part of the change process, employees should not be ignored since they need to understand why an organisation is changing, and their roles and contribution in the change process. By engaging the employees fully, Schwartz and Rock (2006, p. 72) argue that organizations are likely to encounter lesser resistance to change from the employee population. ii. Make the manager(s) appreciate the need for change Since the manager at wilder’s department store will be the one responsible for spearheading and overseeing change, it is important that he first accepts change as a necessary intervention for the proper functioning of the store. Going by the case study, he sees nothing wrong with the disorganized and dirty display and thinks that his staff can work on it after the Christmas season. As Deming (2000, p. 59) aptly states, managers need to “get every employee involved…, see that every employee is involved in the continuous improvement process.” This means that a manager has a responsibility to train and empower workers to solve problems that come up in the workplace. By encouraging team work, mutual respect and trust between him and the workers, and amongst the entire work force as suggested by Barclay (2009, p. 6), the departmental manager at Wilder’s can create an environment where workers embrace the change process by supporting it whole heartedly. Hence, the style of management would have to endure some changes if a new vision were to be implemented. For example, Dolan’s attitude of postponing cleaning up the display would need to change especially if the vision emphasizes the need to seek long-term customer relations, as opposed to short-term profits based on sales registered during the Christmas season. Recommendations that are more specific include: Action Justification Install a computerized record keeping system. As identified by Larkin and Larkin (1996, p.99), technology ensures that there is enhanced efficiency since data is processed with greater speed, accuracy and dependability. As such, a plan to introduce computer technology is necessary if changes at Wilder’s are to achieve greater efficiency in the store. Introduce several desks where clerks can register their sales To ease congestion Relocate the bicycle department away from the toys section To ease human congestion during the peak sales season Revoke earlier instructions issued to the sales people to help in the toy’s store. To do away with possible confusion in the two departments Increase the number of people responsible for assembling the bicycles Increase the store’s assemblage capacity to meet daily customer demands. Such an action will reduce the amount of waiting time that customers have to contend with, and by extension, will reduce the storage problem by reducing the amount of assembled bicycles awaiting collection, and will reduce the number of enquiries coming through via the calls desk. Establish a system where lay-by orders are collected within two weeks Specifically, the Wilder’s department store should set up a system that gives clients an ultimatum to pay and collect bicycles within two weeks. Such a system will help reduce the backlog of bicycles in storage, and will make it easier for sales people to retrieve lay-by stubs. Establish a call-desk where all bicycle orders made on telephone are recorded and their progress traced To enhance the quality of service offered to consumers for purposes of ensuring that the department store leaves a lasting impression on them. Finally, appoint a dedicated team whose work is to keep the display clean and monitor the availability of different bicycle types from the warehouse. To ensure that the supply side is well catered for. References Barclay, A (2009) ‘Employee change agents: the foundation for effective organisational change’, International Business Research, vol. 2, no. 4, pp. 3-8. Deming, W.E (2000) Out of the Crisis, MIT Press, Boston, MA. Denning, S. (2006) ‘Challenging complacency’, Ask Magazine, pp. 46-51. Kotter, J. P. (1996) Leading change, Harvard Business Press, Boston, MA. Larkin, S. & Larkin, T. J. (1996) ‘Reaching and changing frontline employees’, Harvard Business Review, Vol.74, pp. 95-104. Lorenzi, N.M. & Riley, R.T (2000) ‘Managing Change: An overview’, J Am Med Inform Association, vol. 7, no. 2, pp. 116-124. Parlalis, S. K. (2011) ‘Management of organisational changes in a case of de-institutionalisation’, Journal of Health organisation and Management, vol. 25, no.4, pp. 355-384. Schwartz, J. & Rock, D. (2006) ‘The Neuroscience of leadership’, Strategy and Business, pp. 71-80. Smith, I. (2005) ‘Continuing professional development and workplace learning 11: Managing the “people” side of organisational change’, Library Management, vol. 26, no. 3, pp. 152-155. Waterman, R.H., Peters, T.J. & Phillips, J. R. (1980) ‘Structure is not organisation’, Business Horizons, vol. 23, no. 3 (June), pp. 14-26. Read More