HR Management report on: Wilder’s Departmental Store Change management & its strategies

Q?? Write a report on Wilder’s Departmental Store Change management & its strategies???Solution

Executive Summary

This report has been designed in order to get brief overview about the Wilder’s Departmental Store. In this report, the Star model has been used in order to identify causes for change in the Wilder’s Departmental Store. This report also discusses the resistance and the challenges the managers might face when initiating the change. Various Strategies have also recommended to the Wilder’s Departmental Store to effectively manage the process of the change. Two Communication Strategies have also recommended to the Wilder’s Departmental Store in order to effectively manage the change within the organization.

 Change Management

Change management refers to a well defined structure which would shift the individuals, organizations, teams, etc which would help in order to attain the a desired state. Change management refers to a process which would help the organizations as well as the individuals in order to enhance as well as increase its productivity level. It refers to a well defined structure which would help the enterprises in order to accept the changes in the current competitive environment. It refers to a process which would help in order to improve the working condition (Bolman & Deal, 2007).

In order to practice change management, following five points should be taken into consideration by the Wilder’s Departmental Store. These five points could be discussed as under. They are:

• Different people react differently to change
  • Everyone has fundamental needs that have to be met
  • Change often involves a loss, and people go through the “loss curve”
  • Expectations need to be managed realistically
  • Fears have to be dealt with

The above mentioned five principles would help the departmental store in order increase its speed to manufacture the bicycles & meet the needs of the customer.

The two change management tools should be kept in mind by the Wilder’s Departmental Store. These change management tools would also help in order to change the overall manufacturing process which would help in order to enhance the productivity so as to match up with the market demand for bicycles (Woodruff, 2011).

The change management process refers to a structure or a variety of steps which should be adopted by the Departmental Store in order to have an easy accessibility of bicycles as per the market demand. The change management majorly consists of three steps such as

Step1 – Preparing for change (Preparation, assessment and strategy development)

Step2 – Managing change (Detailed planning and change management implementation)

Step3 – Reinforcing change (Data gathering, corrective action and recognition)

The Star Model

In this report, the Star model has been used in order to identify causes for the change in the Wilder’s Departmental Store.The framework of the Star model for the design of the organization is the basis on which the organization forms its choices of the design. The framework comprises of the sequence of design procedures which are monitored by the management and can persuade the behavior of the employee. The procedures are the techniques with which the management should become talented to make the behaviors and decisions of the organizations effectively.

It is very clear that Star Model make the policies that fall into 5 categories. The first one is strategy that determines the action. The second is related to the structure that finds out the situation of the action –making power. The third one is related to the process that has to do something with information flow, they are considered as reacting to the information technology. The fourth one is rewards that persuade the people motivation to resolve and execute the goals of the organization.  The fifth component of the star model is related to people that persuade and frequently explain the skills and mind-sets of the employees (Coaching, 2010).

Strategy

In simple words, strategy regarded as the formula of the company for winning.  The strategy of the Company mentions the objectives and goals to be accomplished and missions and values to be followed and makes out the fundamental direction of the organization. The strategy exclusively delineates the services or products to be offered, the market place to be assisted and value to be provided to the user. It also mentions the sources of the competitive advantage. It is necessary for the organization to design some strategy as to why the organization is demanding change. When an organization thinks about the change, there are several reasons or an idea which is there in the minds of the governing authority of the departmental store. A clear vision must be offered which would assist the people in the organization to recognize the change as soon as possible.

The Wilder’s departmental store would be able to

Determine the values that are central to the change.

Develop a short summary (one or two sentences) that captures what you “see” as the future of your organization.

Create a strategy to execute that vision.

Ensure that your change coalition can describe the vision in five minutes or less.

Practice your “vision speech” often.

Structure

The organization structure finds out the situation of the authority and the power in organization. The policies of the structure divide into four regions.

• Specialization

• Shape

• Power Distribution

• Departmentalization

This framework highlights the various structural aspects of the wilder’s Departmental Store. The structural framework would help in order to achieve all the possible goals & objectives of the organization. With the help of the structural framework, division of labor, coordination amongst the employees, enhanced efficiency & effectiveness would help the departmental store to achieve all its targets. The major criteria to be considered into the structural framework would be to achieve the goals & the overall objectives of the organization (Coaching, 2010).

 Processes

The third component of the Star Model is related to the Process of the Organization. Decision and Information process cuts throughout the structure of the organization, if structure considered as organization anatomy then process is considered as functioning or physiology. The process of the management can be horizontal and vertical.

Rewards

The objective of the system of the reward is to coordinate the objectives of the worker with the objectives of organization. It offers incentive and motivation for the achievement of strategic direction. The reward system of the organization explains procedures regulating promotions, profit sharing, options of the stock etc. The huge change holds the lateral process of the organization (Pryor, Taneja, Anderson & Singleton, 2008). This Component would help the Wilder’s Departmental Store to have motivation as well as add to the success factor. Through the implementation of the change process, the company would be able to feel the success every day, every month, every hour, etc .Short term targets should be created by the departmental store which would help in order to get implemented as well as achieve the levels of success in the years to come. This would also help to motivate the overall staff as well as have overall success of the departmental store.

The Wilder’s departmental store would be able to:

• Look for sure-fire projects that you can implement without help from any strong critics of the change.
  • Don’t choose early targets that are expensive. You want to be able to justify the investment in each project (Coaching, 2010).
  • Thoroughly analyze the potential pros and cons of your targets. If you don’t succeed with an early goal, it can hurt your entire change initiative.
  • Reward the people who help you meet the targets.

People

This component governs the policies of the human resource like selection, recruiting, rotation, development and training. The policies of the human resource in the sufficient combinations create the talent needed by the structure and strategy of organization, creating mind-sets and skills required to apply the indicated direction. These policies operate best when they are relevant with other associating areas of design. Under the human resource frame, the following aspect would be kept in mind such as behavior, energy, attitude, skills, etc. This resource frame would help the departmental store in order to take away all the credit which would help in order to increase the attitudes, experiences, awards, etc. This would help in order to encourage the talent of the people as well as energize their behavior as well as attitudes. The human resource framework would help in order to assume the following things such as serve the organization serve the needs of the permanent or potential customers as well as gather the various opportunities

The implication of the Star Model considered as interweaving character of lines which make the shape of the star. For the Organization to be efficient, all policies should be interacted and coordinated with each other harmoniously. The coordination of all policies shall communicate the consistent and clear message to the employees of the Company.

Challenges faced in Change ManagementThe various challenges which might be faced while implementing change management process at the store would be as under:

Þ    Choice of team members

Þ    Formal meetings in order to communicate the vision

Þ    Problem solving system during the complex environment

Þ    Meetings in order to solve the change management queries

Strategies for the Effective Change

Strategies on how the Wilder’s Departmental Store might effectively manage to meet the change process.

The Wilder’s Departmental Store should analyze the readiness of the organization which analyzes the great level consequence of the change, search basic points of plans and risk to resolve them.

The management of the Departmental Store must form the upcoming vision which conveys the change in compelling and concise manner which might be shared widely.

The management at the Departmental store must engage the leaders which form the plan to benefit the purchase –in and hold of those people who are vital to the success. The management at the Departmental Store must form the strategy of the communication and roll –out the plan to make the drive and understanding acceptance (Mind Tools, 2010).

The Wilder departmental store must form the plans for the transition of the staff, separations, talent retention and redeployment. The management at the Wilder Departmental store must facilitate the individual change which builds adaptability skills and assist individuals to go through the process of the change. It is advisable for the Departmental Store before implementing any change strategies in the organization they must search incongruence points and form plans for the coordination and alignment. It is advisable for the management of the departmental store to form the strategy of the training to make proficiency for conducting under new model.

Communication Strategies

It has been analyzed that after the implementation of the change strategy, due to lack of proper communication misunderstanding can take place among the staff members and the senior employees about the changes and then this problem can be solved with the help of effective communication strategy.

Face-to-face communication considered as most effective mode of communication for implementation of the changeIt is very clear that face to face mode of communication has higher effect as compared to any other medium. The two way mode of communication take and give motivates the involvement in process (Jthumma, 2010). It refines ambiguities and enhances the chances of receiver and sender is linking sufficiently. This is the excellent path which can be implemented to rectify the deficiencies in the process of the communication. The main benefit of face to face mode of communication is the participant’s capability to select the non verbal cues as interaction unfolds. The specific significance of face to face mode of communication regarded as the powerful strength in the accomplishment of successful change.  It offers the communicator with the chance to capitalize on distinct interpretations and perspectives which are probably to produce from the difficult message in conditions of offering clarifications and explanations applicable to understanding variations.

Line authority considered as efficient communication channel

There are few organizations which do not dependant on the formal power as ultimate action-making locus and source of mandatory responsibility which infuses well managed control and command systems. Line Management, as it carries more organization muscle as compared to staff positions and has higher communication consequence. The message credibility is directly associated to status of source of the message and greater status is accorded to line hierarchy.

Strategies for sustaining the Change Differentiation Strategy

The first strategy for Wilder’s Departmental Store for sustaining the change is differentiating the service or product, which needs the departmental store to make something about the service and the product which is perceived as different within the industry. Whether the characteristics are genuine or in customers mind, customers should take the product and service as having attractive features not usually searched in competitive products. The users should be significantly price –insensitive (Hanson, 2006). Adding features to the product means that distribution or production cost of the differentiated product might be greater as compared to price of non differentiated or generic product. Customers should be prepared to pay more for adding the distinct feature to the product and service. Differentiation might be accomplished through various characteristics which create the service or product as unique.  There are possible strategies for accomplishing the differentiation which may comprise:

• Warranties
• Brand image
• Technology
• Features
• Service
• Quality/value
• Dealer network

Low Cost Leadership

The second strategy for the Wilder’s Departmental store is to sustain the change with the help of low cost leadership strategy. It is very clear that the high margins companies and departmental stores leave their SP, the actual selling price. This permits the low cost manager to achieve the high margin of profit as they achieved before the cost reduction. The leader of the cost gains competitive benefit over competition by having more gains for each and every unit sold. For e.g. Discount stores like Wal- Mart are probably to pass on the savings from low cost on to users in the kind of low prices. The discounters kept the actual margin of the profit that is the similar margin as their rivals. The Departmental Store would obtain the competitive benefit by under-price the opposition while building the similar profit margin (Coaching, 2010).

Recommendations

The following recommendation should be given to the managers at Wilder’s Departmental Store so as to face the various challenges mentioned above:

• Communicate the various for change
• Formulate various concrete plans
• Managing resistance
• Receptive and open
• To have an in depth knowledge regarding how the change in the policies would affect the employees
• Assess change readiness
• Present a united front

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