Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Woolworths case study: Analysis of Organizational Change Management Introduction The current Woolworths case study illustrates that the organizations often undergo significant changes in order to

Woolworths case study: Analysis of Organizational Change Management

Introduction The current Woolworths case study illustrates that the organizations often undergo significant changes in order to accomplish its business objectives. It becomes essential to manage organizational changes using systematic approach in order to deal with transformation or transition of an organizational processes, goals or technologies.

However, it is a known fact that changes are never welcomed with being subject to resistances. In order to endure the changes, the members of the business enterprises are required to integrate innovation or new policies into their daily operations. This Woolworths case study throws prominent light on outlining the reforms and key changes implemented by Woolworth Supermarket. It focuses on identification of the changes and strategies proposed for future implementation. Potential discussion is held on the factors that fuels the need for change.

The study pinpoints on the strategies in relation to human resource development that is incorporated by Woolworths Supermarket in order to manage resistance to change successfully. The alignment of future strategies for effective management of innovation and change in context of global business environment is critically analyzed in this paper. It provides a reflective version concerning personal insights and learning on analysis of the Woolworths case study concerning company's Supermarket. This report attempts to support its contents with the assistance of relevant academic literature. The present Woolworths case study ends with suitable conclusions by drawing inferences from the report.

Identification of reforms and key changes implemented by Woolsworth Supermarket Woolworths Supermarket is observed to undergo significant restructuring for magnifying the experience of customers. The Woolworths case study reflects that the new structure of the organization is observed to focus on construction of new departments, which included 'fresh convenience and 'fresh service' in all its stores (Gillespie, 2019). The restructuring supported the concept of one manager associated with full ownership in relation to fresh service. This has led to the replacement of staffs as well as other managers of Woolworths Supermarket who separately managed deli, butchery and seafood.

Therefore, significant traces of layoff are evident from the restructuring case of the given organization. Some of the managers are found to provide with the opportunity of reapplying for non-managerial positions at reduced remuneration. This exemplifies enormous wage cut for the staffs of Woolworths Supermarket creating inconvenience for the workers in supporting their respective facilities and meeting the obligations of mortgages. It is evident that implantation of restructuring process resulted in redundancy of approximately 10000 managers nationwide. Prior restructuring of Woolworths Supermarket, the operations of each store is ascertained to be managed by 10 to 15 managers and team leaders, whose roles became highly vulnerable to redundancy. The change in the concerned organization is marked by the contest of such 10 to 15 managers per store for the fix or six jobs in the restructured organization. This also led to change in the number of employees as many of the employees lost their job in the restructuring process. This also led to change in the number of employees as many of the employees lost their job in the restructuring process. The restructuring process of Woolworths Supermarket demonstrates better consumer facing leadership roles that attempts in delivery of enhanced services to the customers through satisfaction of fluctuating shopping needs (Medhora, 2019). In short, after analyzing the above context of Woolworths case study it could the said that major changes are seen in form of layoffs, incurrence of redundancy obligations and introduction of departments, which included 'fresh convenience and 'fresh service'.

The change in the organizations often results in stress and uncertainty for its employees (Rogiest, Segers & van Witteloostuijn, 2015). In order to reduce the intensity of stress and handle resistance to change effectively, the report on Woolworths case study affirms that Woolworths Supermarket adopted the following strategy for its future implementation. In this parlance, it is gathered from the words of Fernandez & Rainey (2017), the vision or idea for establishing proposed change in the organization, it is essential to be transformed into strategy or course of action for achieving it. The Woolworths case study demonstrates that new strategy focuses on no net reduction in the number of employees. For this purpose, the management team of the said organization is found to work sincerely with impacted organizational members for identification of potential opportunities in relation to redeployment of employees in business. Even though the revised structure of Woolworths Supermarket might not be appealing to every organizational member, the proposed strategy intendeds to be incorporated in future would attempt to support such employees in their transition. The estimate of compensation by management is expected to be paid to third parties as well as landlord's realties to premature termination of contracts (Woolsworths group, 2019).

How Woolworths case study discuss and outline the factors driving the need for change? The major factor that accelerated the need for change in Woolworths Supermarket is the effort to cope up with the changing needs of the customers. In order to meet the demand of the customers in relation to fresh products that is observed to be growing at exponential rate, the drive of the given supermarket in delivering the best possible services to the customers is kindled. In this parlance, it is ascertained that organizational success bears direct proportion with satisfaction of needs of the customers (Gopaldas, 2015). Hence, it could be interpreted that maintenance of competitive advantage in the retail market has driven Woolworths Supermarket in the attainment of organizational change. The desire to enhance the convenience of the customers, forced Woolworths Supermarket to act as more customer focused than ever before. The focus on time poor customers accompanied with choices that could be termed as wellbeing and healthy is overseen to exert a potential drive to the concerned supermarket for undergoing significant restructuring in its organization ("Woolworths plans store restructure and addition of two new departments - Inside Retail", 2019). The intention of the given Woolworths case study analysis is to meet the expectation of the consumers regarding the well informed staffs required it to incorporate restructuring in the organization. In order to ensure that the staffs are associated with sound understanding of products proposed to be sold, assist shoppers in deciding on the suitable cut of meat and helping with the cooking procedures, it spent $10 million in training its staffs ("Huge change coming to Woolies", 2019).

Identification of the implemented human resource development strategies It is evident from the decisions of Woolworth's supermarket that in the course of restructuring the organization there is a risk associated with redundancy liability. In this regard, it is inevitable for the HR cell to be in a delicate position as they are supposed to manage the consequences of severe employment layoffs. Moreover, despite their Masters stores are trading for few months, it is in a critical condition as the HR managers are dependent upon other entities to buy the business in order redeploy the staffs seamlessly. During the period of valuating their hardware business, the supermarket giant has instructed their HR managers to function for acquiring Lowe's shares (Lowe is the joint venture partner of Woolworths) in order to prevent the funds from draining. However, from the following discussion of Woolworths case study, the two major challenges that the HR managers of Woolworths are facing is associated with redundancy liability and managing redeployment respectively (Bendell, 2016).

This dire condition is intensified by the resistance to change inherent in the employees and even in the exponents of executive positions. However, the priority in terms of HR strategies is to find out a buyer to sell the hardware business while redeploying the employees seamlessly. Furthermore, they are also thinking of revising the leadership positions in order to communicate the visions of this impending change while making the subordinates endorse that. In terms of endorsement, the major issue highlighted in the analysis of Woolworths case study is emerging from the cost of redundancies and the next objectives of the HR executives are to restrain the costs to a considerable limit (Bailey, 2017). Apart from that, the HR executives are investing a considerable endeavour to find out alternative offers in order to prevent the redundancy costs to rise unusually. Apart from these corporeal actions, the minor objectives of the strategies are to boost the employee morale in order to retain the staffs in favour of change. Apart from that, finding alternatives have become the key priorities in order to minimise the uncertainty and threat of job roles among the employees (Spillan & Ling, 2015).

Question: Swot Analysis of this case study?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Risk Management

Authors: Paul Hopkin

5th Edition

0749483075, 978-0749483074

More Books

Students also viewed these General Management questions

Question

1 Why might people resist change?

Answered: 1 week ago