Discuss about the Organizational Change for Corporate Sustainability.
Management of Change or change management refers to a methodical approach that deals with changes both from the viewpoint of the organization as well as an individual. Three diverse aspects are associated with management of change. They include adapting to change, effecting change as well as the controlling of change. In an organization, the description and the implementation of technologies and procedures are termed as change management. It is crucial for an organization to become successful while adapting to changes. The report gives an outlook about Woolworths Supermarket that is located in Australia. The organization mainly specializes in the selling of vegetables, fruits as well as packaged food that includes meat. The company also sells DVDs as well as magazines and other stationery items. Woolworths was founded in the year 1924 under the name of Wallworths Bazaar Ltd (Hayes, 2014).
The two theoretical concepts of organizational change that are discussed include the objective mode as well as the social construction mode. The objective mode is mainly a rationalist approach in which change is implicated to reflect a fundamental situation that needs to be administered and controlled as an objective observable fact. This observable fact perspectives deals with entities such as strategy, structure as well as systems that are mainly treated as exterior objects which are distinguishable from organization members. In realistic terms, an objective mode view indicates the managing of change by relying on a set of values as well as guidelines based on “I think, therefore I am”, rather than as a relational procedure that deals with individuals who views change as co-constructed in the background of their talk as well as conversation (Benn, Dunphy & Griffiths, 2014).
If change is viewed as an objective reality in the dominant mode, then there is less possibility that so-called ‘organizational identification’ will take place. It can be defined as the level to which the associates of an organization describe themselves by the same attributes as those that describe the organization. The Cartesian mode makes the gap wider between self and other. In other words, the Cartesian mode is driven by sovereignty of thought and action. There is always a risk associated with separating the object be it strategy, structure or systems from the subject. The social construction mode or the relational mode of thought embraces that change is not pre-given however; individuals socially construct it. The perceptive of change is largely social that is accomplished through everyday lives. Change is mainly viewed as a collaborative effort from the point of view of social construction. This is mainly because contestants themselves agree on the organizing rules of their dealings as well as behaviors.
The procedure by which an organization is able to change its structure, strategies as well as operational methods and technologies is termed as organizational change. Organizational change can be incessant or it can take place for separate periods. The learning of organizational change is interdisciplinary in nature as well as it illustrates from the fields of sociology, economics and management. Organizational change are of various types that includes developmental, intermediary change as well as transformational (Cameron & Green, 2015).
Woolworths is a most important Australia company with widespread retail interest throughout Australia. In terms of revenue, Woolworths is the second largest company in Australia after Perth-based retail-focused corporation Wesfarmers. Woolworths is also the major takeaway liquor vendor in Australia. The company is the first brand to go international by building to more than 3,000 near indistinguishable stores. Woolworths prides itself on functioning with Australian growers and farmers in order to ensure that they are able to provide the best food to the customers. The company sources 96 percent of all clean fruit and vegetables and 100 percent of fresh meat from Australian farmers and growers. As a result, Woolworths has become successful in becoming a part of the Fresh Food People in Australia (Arli et al., 2013).
Figure: Woolworths
(Source: Erinafair.com.au, 2016)
A retailing business like Woolworths never stands still and as a result, a retail business is always exciting and dynamic. At present, Woolworths is undergoing a substantial change so that they are able to provide greater value to the customers. The company is responding to the new era by putting the basis for a new phase of growth and opportunity. The change that the company has undergone deals with the future of shopping. In other words, the customers will now be able to shop online whenever and wherever they want. With the advancement of mobile technology, customers now have access to products and prices that are offered by Woolworths. The company has mainly focused on seamless and effortless movement of the customers between physical and virtual stores. As a result, the business changed for the better by involving multi-option for the customers that included websites, mobile apps as well as virtual stores. The company has also introduced customer talkback with the help of which they are able to hold customer focus groups around the country. Woolworths is also making the introduction of a sushi restaurant where the individuals will be able to get healthy and delicious lunch as well as dinner. The company had also made the introduction of reward partnership with Qantas Frequent Flyer (King & Thobela, 2014).
The Employees Credit Union of Woolworths is liable for putting into practice the effective CSR program that integrates both the environmental as well as social responsibilities in day-to-day procedures. As per the CSR responsibility, Woolworths is responsible for providing agricultural scholarships to more than 24 youth in Australia. Other changes that Woolworths is undertaking is community support through charities under the CSR movements. The company is also undertaking sustainable strategy to become more global and to decrease carbon footprint. In order to gain the importance in the international business, Woolworths requires going through global business culture through which it can sell locally grown fresh products as well as sustainable resourced fish. One of the strategic proposals that have been added by the company is the addition of new product lines rather than just food. This will help the company to increment its growth that will make it more profitable. As the company lacks cultural adaptability, it is undergoing great research related to market in order to introduce culturally acceptable products (Freedland et al., 2016).
The theoretical concepts applied in the organization to address the organizational changes are relevant as the objective mode and the social constructive mode are two efficient concepts in dealing with the organizational changes. The changes in the organization can be easily gained as the changes are based on the guidelines and not in relational procedures. Moreover, the approaches are helpful in achieving a collaborative view of the outcome of the organizational changes of Woolworths (Rothaermel, 2015). Therefore, the theories of objective mode and the social constructive mode support Woolworths not only to identify the required changes in the organization but also to manage the changes taking place within the workplace.
The main reason for the need for organizational change is the reduction of carbon emission by 40 percent. The need for change is also mainly because Woolworths is dependent on the domestic market for most of its proceeds. The company has also been focusing on the future of shopping to increase the opportunity for the customers to execute online shopping at anytime and anywhere they want. One of the biggest threats that the organization has been facing is from ALDI as the organization has taken everyone by surprise by providing wealthy customer base.
Strength: One of the biggest strength of Woolworths is that it is the market leader in the Australian retail industry. The leadership position of Woolworths also enhances the ability of the company in exploiting the potential of the market through strong resources in the form of technological resources and human resources. The company also introduced various products that included sweet Solanato tomatoes and sweet crunch lettuce. Woolworths has also provided 11 new services of meat by providing specialty fresh meat cuts. The company has also made the introduction 38-specialty cheese counters along with 1,355 liquor openings. The company has been associated with marketing movements in order to enhance the base of the customers. In order to implement the change the company has implemented innovation in new stores as well as existing stores (Bull et al., 2016).
Figure: SWOT Analysis
(Source: Created by Author)
Weakness: One of the major weaknesses of Woolworths is that it is dependent on the domestic market for most of its proceeds. As a result, the company can get susceptible to country-specific trends due to high dependency on Australia. The change in the geographical concentration in Australia might substantially affect Woolworths. The company also entered the online market late that resulted in competition. As a result, the company had undergone changes such as the introduction of websites and mobile apps so that it can compete with its rivals. The global presence of the company is also negligible and as a result, they are undertaking sustainable strategy. Woolworths also lacked the cultural adaptability and as a result, the company is closing food and clothing retail stores by facing huge loss. Hence, the company is undergoing changes that include the adaptation of culturally acceptable commodities (Hollensen, 2015).
Opportunities: The main opportunity of the company is to promote the brand with the help of advertisement and sponsorship. The comely had also made the use of advancement of technology to promote its business. Woolworths has also implemented new strategic policies to increase opportunities of its business. They also require introducing healthy food items in order to improve their brands. Woolworths has also made the introduction of Sushi restaurant that provides healthy lunch and dinner to the individuals (McDonald, 2013).
Threats: Woolworths is mainly facing competition from the biggest rivals that include Walmart and TESCO. The rising threats from the competitors are mainly posing threats for the company. The growth of the company has also been affected by the intervention of the government. Woolworths has been trying to become consecrated of the ALDI threat and it has started to focus on providing wealthy customer base in order to give tough competition to ALDI (Blundell, 2013).
SWOT Analysis mainly an instrumental strategy for formulation and selection. SWOT Analysis is a strong tool that comprises of great prejudiced element. It is mainly used as a guide rather than a prescription. However, there are various drawbacks along with benefits of the SWOT analysis. The various benefits of SWOT Analysis in order to determine the need to change are as follows:
It helps to gather information for strategic planning (Patel, Shah & Patel, 2014).
It helps to deter threats by overcoming the threats of Woolworths
An organization is also able to address weakness by reversing its weakness. An organization will be able to undergo changes by following the weaknesses.
SWOT Analysis also helps to maximize the opportunities and as a result, in order to capitalize opportunities Woolworths will undertake innovation (Hirth et al., 2015).
It also helps an organization to develop business objectives as well as strategies in order to achieved them.
Figure: SWOT Analysis
(Source: Pkidd.com, 2016)
The various drawbacks of SWOT Analysis in order to determine the need to change are as follows:
It is not able to prioritize issues as SWOT Analysis covers only those issues that are considered as strength, weakness, opportunity or threat. In other words, it ignores the uncertain or the two-sided factors.
It is able to generate too many proposals however; it does not help to choose which one is the best.
Brad Banducci is acting as the change agent in the business of Woolworths. Brad Banducci implemented the change by introducing the idea of voice of customers (VOC) in the organization (Rolfe, 2015). As it is not necessary that any senior management should bring the change, hence, Brad Banducci implemented the idea. However, it is up to the employees who will be given the responsibility of bringing the change. It has been found that the grocery divisions is causing the most trouble in the business of Woolworths and hence, the voice of the customers will be helpful in this process. Forty thousand customers will be interviewed based on seven topics:
Change agency is mainly a collaborative process (Jabri, 2012). Thus, Brad Banducci along with the chairperson of the organization, Gordon Cairns has brought about the change in the organization. The employees of the store will also be involved in the process of the change. The senior management is there only tell about the changes, the employees are the main driving force who will help the organization to bring about the change. Cairns was looking into the liquor section but started looking into the grocery division to look after the customer satisfaction. The changes that has been brought about by Woolworths can be explained by Hersey Blanchard situational leadership theory.
Figure: Hersey Blanchard situational leadership theory
(Source: Yukl, 2012)
Banducci and Cairns followed the delegating style to make the employees aware of the change. To know the perspectives of the customers, the employees will have to carry out the survey. Hence, the employees will be able to do the job assigned to them. As better customer satisfaction means better sales, the employees will be willing because they will be able to get better incentives form the sales. Then leaders are confident that the change will be helpful for the organization. If the organization knows the factors that will be able to satisfy the customers in better manner, they will be able to serve the customers well. As a result, the sales will increase, the grocery section will be garner more profits.
Woolworths implements changes in the company that helps to increase the efficiency level of the company. The company incorporates changes such as online shopping, offering fresh products that are locally grown and sustainable resourced fishes. In order to implement the changes effectively and ensure continuity of the changes, Woolworths uses problem-centric and dialogic approaches (Bushe & Marshak, 2016).
The company uses problem-centric approach that helps the company to bring about the changes in the organization. The approach is effective in improving the cognitive skills of the company. The managers of Woolworth are able to increase the communicating skills, reasoning abilities, critical thinking and decision-making skills (Hitt, Ireland & Hoskisson, 2012). The approach helps the managers to make appropriate decisions regarding the implementation of the new organizational changes. moreover, the problem-centric approach is useful in providing high collaboration value to the managers of Woolworths. With the help of the approach, the staffs are able to work as a team towards gaining the success of the changes.
However in the opinion of Lozano, (2013), the problem-centric approach is risky for the company as the there is a need for the changes in the policy of the organizations that is always not possible. There is a need of extra input of time, cost and labor in order to implement the strategy in Woolworths that will support the introduction of online shopping and selling of fresh locally grown products. Therefore, Woolworths needs to be very conscious regarding the use of the approach and a proper budget plan needs to be developed before the implementation of the strategy. A proper budget plan will help Woolworths to avoid the extra expenses that are not necessary for the company. Henceforth, the input cost of the company can be minimized.
The dialogic approach on the other hand is an approach that is used by Woolworths to bring about the change in the company through selling fresh grown products. The approach is carried out through dialogues. In the approach, arguments are made on the validity and the non-validity of the consequences of the dialogue. The dialogic approach is useful in evaluating and analyzing the impact and consequences of the decision made related to the organizational change. The approach is helpful for guiding the managers towards the correct direction in achieving the changes within the organization. However, Hill, Jones & Schilling, (2014) argued that the approach is inappropriate as it is time consuming and causes de-motivation among the employees when their suggestions are overlooked or criticized.
It is profitable for the managers of Woolworths to accept the problem-centric approach in order to address and manage the changes in the organization. The problem-centric approach is more efficient as there are more advantages of the approaches (Lee, 2016). Further, the demerits of the approach can be effectively managed through proper knowledge about the approach and proper planning (Davies & Brown, 2014). On the other hand, the incorporation of the dialogic approach is not much effective in managing the changes brought about in the product selling process. Therefore, the managers of Woolworth can implement the problem-centric approach as a tool of strategic management to analyze and maintain the changes taking place within the organization. The problem-centric approach helps to gain more customer satisfaction by providing them an additional shopping opportunity that is the online shopping. The approach helps in the transformational process of the organization by focusing on the effectiveness, improvement and on the development of the organization (Ross & Blumenstein, 2013).
Conclusion
It can be concluded that an objective mode views change as something that can be seemed at in ways that separate meaningful and being. It has also been concluded that the procedure by which an organization is able to change its arrangement, strategies as well as operational methods and technologies is termed as organizational change. The global presence of Woolworths is negligible and as a result, they are undertaking sustainable strategy. The company uses problem-centric approach that helps the company to bring about the changes in the organization. Woolworths requires to determine CSR focused at supporting diversity in its workers as the customers are increasingly becoming health conscious.
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