Planned Changes in Organisation - David Jones Company - Case Study Example

Planned Organisational Changes Name: Institution: Date: Table of Contents Table of Contents 2 1.0 Introduction 3 2.0 Situational Analysis 3 2.1 Industry Analysis 3 2.2 Organizational Analysis 4 2.3 Recommended Further Changes 5 3.0 Lewin’s Change Model 6 3.1 Unfreezing Stage 6 3.2 Moving Stage 7 3.3 Refreezing Stage 7 4.0 Change Scale 8 5.0 CEO Management Style 10 5.1 Styles Analysis 11 5.2 Style Application 12 6.0 Conclusion 12 References 13 1.0 Introduction The Australian retail market has greatly changed over the years. In this regard, operating organisations in the industry such as David Jones and Nordstrom have over the decades been required to change and develop alternative market strategies in the market (Roberts & Raphael, 2003). This report evaluates the David Jones Company case study change process. In this regard, it has an objective of analyzing the organizational current situation with relation to changing market situations. As such, it seeks to recommend appropriate change process and model alternatives for successful organizational change process both in the short and long run periods. Consequently, the report develops strategic recommendations based on the existing theoretical and empirical literature on organizational change models and processes. 2.0 Situational Analysis The case study offers a review of the David Jones Company both current and expected future business environment. In this regard, the study evaluates the retail industry environment, organizational capacity as well as the executed changes since 2010. This report section critically evaluates these evaluations and subsequently offers a recommendation and conclusion if the initiated changes are sufficient or if the organization requires additional change process measures to guarantee objectives attainment. 2.1 Industry Analysis An industry analysis by Cox and Bridwell (2007) establishes that the Australian as well as the global retail industry has changed in the last two decades. In this case, the industry has increasingly adapted to the changing market technologies as well as the subsequent consumer buying behaviour changes. The issues form part of the organizational external environment factors. On one hand, changing technology trend and the revolution of destructive technology in Australia has drastically changed the shopping and purchasing market trends. In this regard, the case study illustrates that increased internet access and the emergence of laptops and smart phones revolution has enabled consumers to shop from the privacy of their homes. Therefore, this has subsequently reduced the overall number of consumers trickling down on retail outlet physical stores. Instead, a majority of the consumers have resulted to online shopping stores that are not only serving as supplements for retailers, but also as their replacement. Increased adoption of the online platforms can be illustrated by the case study of Nordstrom, a retail leader on online shopping. Currently, the case study illustrates that online sales amount to 10% of its total sales as well as 20% its annual revenues. As the new David Jones CEO, Zahra argues, the closure of the organizational online store in 2003, after only three years of operations was its major undoing in the retail industry competitiveness. 2.2 Organizational Analysis An organizational analysis illustrates that the organization has a great deal of market competitive edges in the Australian retail industry. For instance, the study illustrates that the organization has almost exclusive rights with marketing and selling Australian local designer products. As such, this offers the organization a cultural competitive edge in the domestic market over foreign investors who lack such loyalty and designers alliances. Moreover, the presence of a large and qualified pool of human resource that allows for increased customer care services that form an imperative part and component in the overall consumer satisfaction in the market. Further, the organization has an overall investment capital capability that allows its increased potential for increased investments (Jones, 2008). A review on the recent effected changes to overcome the negative reputation and market downfall caused by the former CEO Mc Innes sexual abuse case, by Zahra establishes that the organization adopted three strategic changes. They include opening new stores, establishing strong supply chain links, and the establishment of online stores. Although premature to argue on the success or failure of these strategies, established milestones reveal that the projects have so far attained their objectives in improving the overall organizational market relevance and competitiveness. 2.3 Recommended Further Changes Although the above listed change processes are ideal and befitting the organization, a review of the existing industry situation establishes that there are unsatisfactory. Consequently, this report argues that the organization should consider developing and establishing an appropriate organizational culture both for its employees and its management. The development of an appropriate employee culture, as Vakola, Soderquist and Prastacos (2007) revealed, enhances reduced resistance to organizational changes as well as the facilitation of team work, an imperative change process driver. In addition, the report recommends the development and initiation of the servicescape approach. In this regard, besides improving on the actual brands marketed, the organization should improve its external environment (Harris & Ezeh, 2008). Although the analysis establishes refurbishment, this should be improved to complete store renovations to include current stores ambience and décor, as a consumer attraction and improved shopping experiences. 3.0 Lewin’s Change Model The David Jones Company change process is imperative and important in facilitating and enhancing the overall organizational development model. In this regard, the organization requires applying a step wise approach in order to effect the necessary market and industry changes in the Australian retail industry. In the application of the proposed organizational changes as listed and proposed by the company CEO, Mr. Zahra, this report recommends the application and adoption of the Lewin’s change model. The model has been over the years proposed by a range of theoretical and empirical studies use to its past application success. Rezvani, Dehkordi and Shamsollahi (2012) argued that the adoption of the Lewin’s change model enhanced reduced change process resistance. Further, Waddell, Creed and Worley (2014) argued that the adoption and the targeting of reducing the stable factors in an organization facilitated reduced resistance, unlike other models that sought to increase the change process factors. In concurrence, Kritsonis (2005) conducted a study on the merits of the Lewin’s planed change model in organizational change processes. In this regard, the study argued that organisations applying this change model recorded reduced their overall change costs. 3.1 Unfreezing Stage Waddell, Creed, Cummings and Worley (2014) stated that the change model comprises of three key stages namely unfreezing, moving and refreezing respectively. This report recommends that David Jones Company should apply these stages respectively in its proposed three phased change process. On one hand, under the unfreezing stage, the organization should focus on breaking the existing organizational cultures both in management and operations. For instance, the strategic management focus on physical stores outlets and the subsequent marketing to the existing consumer bases is a major status quo retention factor in the organizational operations. Moreover, the presence of a rigid and operational system through which the organizational points of sale systems are supported, seeks to retain a status quo on the overall organizational operations and functioning. Therefore, a major starting point to effect change in the organization would to create policies and administrative functions through which such systems would be gradually adjusted to allow for subsequent changes. 3.2 Moving Stage Sengupta (2006) stated that the second change implementation stage in the moving stage. The stage incorporates a transition period through which the unfreezed organizational systems are channelled and directed towards the desired change destination. Under this model change, the organizational management is charged with the responsibility and mandate to develop appropriate transition strategies. For instance, David Jones board of directors should develop a strategic execution plan through which the proposed stress and partners alliances should be established. Such plans include the timelines, involved capital as well as human resource. 3.3 Refreezing Stage Finally, Waddell, Creed, Cummings and Worley (2014) argued that under the Lewin’s change model is the development and adoption of the new culture and systems in the industry. This stage occurs once an organization satisfactorily achieves the required long run change goals. As such, policies and strategies are developed to ensure maximum retention and utilization of gains accrued from the change process. For the David Jones case study, this would entail a satisfactory online presence, opening up of new stores as well as technology use enhancement. Upon these establishments, the organizational executive management should develop a strategic management plan through which the organizational change remains a continuous activity rather than being a reactive response to industry changes. Such policies would include the setting up o a research function, to evaluate market changes on a regular basis and offer appropriate recommendations. 4.0 Change Scale Waddell, Creed, Cummings and Worley (2014) emphasized that oorganisational planned changes are characterized by a series of changes and models. In this regard, respective organization has to accurately determine the scale of change required in order to subsequently develop appropriate change strategies and approaches. The scale o change model is characterized by four key ideal scales namely fine tuning, incremental adjustments, and modular transformation as well as corporate transformation. In this regard, each of the change scales has its own applications and jurisdictions. On one hand, the fine adjustment includes gradual changes in an organization with long term implications but no short term evident changes. On the other hand, the incremental changes coincide with the environmental and respective industry changes. As such, the approach is reliant on the development and sustenance of respective sustainable competitive edges (Shirk & Russell, 1996). In addition, the modular changes scale is characterized by major and radical changes in one or more organizational departments. In this regard, the organizational departments experienced radical changes in order to realign them with the overall organizational strategies and objectives. In this case, the departments operations and functionality are changed in order to enhance their support on the organizational long-term strategic objectives. Finally, under the organizational changes scale is the corporate change scale. Under this scale, the organisations change their overall corporate approaches and strategies. This incorporates drastic and radical changes in the respective organisations operations. An evaluation of the David Jones Company case study establishes that the organization requires a complete corporate reorientation. Currently, the organization relies on the physical stores and its low costs and prices approach to increase its overall market competitiveness and earn increased revenues both in the short and long run periods. In this regard, the organization requires a reorientation on its business and revenue stream models. On one hand, the customer care departments needs drastic changes to increase its overall functionality and services quality. Such changes, as already proposed by the CEO, include the establishment and installation of new technology point of sale support tools as well as the establishment of appropriate feedback and consumer response acquisition facilities. In addition, the sales and marketing function needs a reorientation in the approach and marketing strategies adopted. Besides the traditional marketing tools, as already evidenced by increased sales, the function should consider the use of celebrities, both local and international, as a core marketing tool. Additionally, the executive management is required to change the existing revenue models policies to allow for online stores establishment and subsequent revenues acquisition. Finally, the organization requires refocusing its premises establishment as well as target consumers. In this regard, the organization as already proposed in the case study requires initiating and developing a strategy through which it can target the new order economy consumer segment representing a high market potential. Therefore, in order to achieve these change objectives, this report recommends that the organization should adopt the corporate change scale. Through the corporate change scale adoption, the organization should focus on the establishment and development of drastic short term and long term change initiatives through which it can attain an overall organizational success. In this regard, this report recommends that the organization should initiate the overall change process through the establishment and development of new overall organizational vision statement. Moreover, the corporate structure should incorporate the development of new overall objectives and organizational goals. 5.0 CEO Management Style In the execution of an organizational change process, management and leadership is an imperative component. In this regard, Shahin and Wright (2004) argued that an organizational management served critical role in the establishment of an organizational culture, a supporting tool in the change process. The adopted leadership and management style is dependent on a range of factors. Chen and Chen (2008) reasoned that among other influencing factors were the individual managers’ traits. As such, the individual managers own perception influence their adopted leadership approaches. In addition, Buble and Pavic (2007) stated that external factors such as the industry and market needs, the existing organizational culture as well as the organizational capabilities influence the leadership style adoption. Basically, Waddell, Creed, Cummings and Worley (2014) stated that there are four leadership systoles namely the collaborative, consultative, directive and coercive styles respectively. On one hand, the collaborative approach incorporates the inclusion of employees in important and key organizational change decisions. On the other hand, the consultative approach limits employee’s inclusion to their areas of specialty advices only. Further, the directive approach uses the managers and supervisors to pass on developed change decisions. Lastly is the coercive leadership approach is applied through the executive or external forces application of change pressure on an organizational employees. 5.1 Styles Analysis Each f the described leadership styles have their application merits and challenges depending on the application circumstances. An evaluation of the David Jones Company establishes that the desired organizational changes are expert oriented. As already discuses in the report, the organization requires a reorientation of its marketing strategies as well as improvements on technology use. In order to execute these expected changes effectively, it is imperative that the organization occurs the inputs of its employees in the change process practical measures and approaches. However, as Dawkins and Frass (2005) emphasized, the involvement of employees slows down the decision making process efficiency. In this regard, due to the involved bureaucracy, the process is not only slow but also expensive to the organization. However, failure to incorporate employees in a decision making as Griffin and Moorhead (2010) stated increases change process resistance and its eventual failure in most organisations. Therefore, based on these analyses, it is apparent that despite the high costs of involving the employees, their contribution and involvement roles cannot be ignored. Therefore, it is advocated for the establishment of a balance between employee involvement in leadership and decision making with the associated costs. Therefore, the ideal approach to ensure the application of this balance for David and Jones Company is the application of the consultative leadership approach. 5.2 Style Application In the application of this approach, the organization should consult and seek expert opinions from employees and supervisors in the respective target functions. However, the employees’ roles should be restricted to opinions with the designate decision making powers charged on the executive management. Consequently, this would enhance the adoption of best practices, through tapping into employees’ experiences and competent ices. In addition, the approach would enhance a reduction on change process resistance from among the employees. Subsequently, the change process execution costs as well as timelines would be significantly reduced allowing for a drastic and lean organizational realignment and the achievement of a competitive edge in the medium term period. 6.0 Conclusion In summary, the report reviews the change process at David and Jones Company, a long-term retailer in the Australian market. The report review, based on the organizational case study established the recommended additional change initiatives, ideal change model, scale as well as appropriate leadership style for change execution efficiency. In this case, besides acknowledging the efforts adopted by the current CEO, Mr. Zahra, the report recommends the development of a servicescape culture to increase customer care services and satisfaction. With regard to the ideal change model, the report establishes that the Lewin’s change model would be appropriate due to its reduced resistance possibility. 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