Bureaucratic organization

2.1.0 Developing change process using a change models

Unfreezing

) Movement

) Refreezing

2.2.0 Stakeholder Involvement in Change Process:-

Customers

Employees

Owner/operators

Suppliers

Share holders

Local communities

Managing Change is a structured approach to Individuals, Team and Organizations from a current state to a desired future state.

Introduction

is a British-based international grocery and general merchandising retail chain. It is the largest British retailer by both global sales and domestic market share with profits exceeding £6 billion. It is currently the third largest global retailer based on revenue, behind Wal-Mart and France’s Carrefour but second largest based on profit, ahead of Carrefour. Originally specializing in food and drink, it has diversified into areas such as clothing, consumer electronics, financial services, telecoms, home, health and car insurance, dental plans, retailing and renting DVDs, CDs, music downloads, Internet services, and software.

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Organizational Structure

Jack Cohen founded Tesco in 1919 when he began to sell surplus groceries from a stall in the East End of London. The Tesco brand first appeared in 1924. The name came about after Jack Cohen bought a shipment of tea from T.E. Stock well. He made new labels using the first three letters of the supplier’s name (TES), and the first two letters of his surname (CO), forming the word “TESCO”. The first Tesco store was opened in 1929 in Burnt Oak, Edgware, Middlesex. Tesco floated on the London Stock Exchange in 1947 as Tesco Stores (Holdings) Limited. The first self service store opened in St Albans in 1951 (still operational in 2008 as a Metro), and the first supermarket in Maldon in 1956.

During the 1950s and the 1960s Tesco grew organically, but also through acquisitions until it owned more than 800 stores. The company purchased 70 Williamsons stores (1957), 200 Harrow Stores outlets (1959), 212 Irwins stores (1960)..

1.1.2 Product

Originally specializing in food and drink, it has diversified into areas such as clothing, consumer electronics, financial services, telecoms, home, health and car insurance, dental plans, retailing and renting DVDs, CDs, music downloads, Internet services, and software.

1.1.3 Market characteristics

As mentioned above, any super market can be analyzed for its attractiveness to a particular company or organization on a number of different characteristics. Some of the more significant market characteristics that should be considered are actual market size, market growth rate, number of competitors, Intensity of competition, Production level. Tesco’s UK stores are divided into six formats, differentiated by size and the range of products sold. Which is One stop, Tesco Express, Tesco Metro, Tesco super stores, Tesco Extra and now they are planning to open a Mega Tesco. Where customers will have more availability and they can get everything they

1.1.4 Operating Strategies.

There are few competitors in the market so that Tesco has become much more competitive in the recent years. Tesco always changes its strategies to remain No.1 in UK.

I Past Strategy.

Almost a decade ago Tesco strategy was to beat other competitor’s prices and become the UK’s cheapest brand. Tesco’s was fully focused on selling large quantities of poor quality products on low prices.

II Current Strategy.

Currently Tesco’s marketing strategy has been based around a database strategy driving a huge direct marketing campaign. There customer base (as recorded by the details provided by the hugely successful Club Card Scheme) almost exactly mirrors the demographic make-up of the UK. Simply this means they have somehow managed to be all things to all men. They have between 7m and 8m different variations on the mailings going out to their clients based upon demographic and transactional data. The objective has always been to up-sell to their existing customers through acquiring better customer data and meeting their needs. Now, through providing customers with what they want, the most significant strategy has been aimed at increasing the non-food section by capitalising on the growing need for one-stop-shopping created by an increasingly time-starved population.

Drives of changes in today’s economy

As organizations evolve and come to be seen as dynamic, coping systems, the concept of how they change and methods by which they manage change has continued to be refined. Managing a process of change in an organization can be a highly complex task and is often essential for effective organizational development (OD). This article will provide an overview of the change process faced by many organizations. Different models of change will be highlighted and the resistance to change displayed by many employees will be examined.

1.2.1 Factors of Change

Organizations face huge pressures to change, from both internal and external sources, internal forces to change are often as a result of long-term external forces. For example, a banks internal pressure to adopt an Internet banking system, as a result of more and more other banks going online.

Internal factors of change

The factors internal to an organization that force changes can be identified through a formal analysis method. Most common among these methods is S.W.O.T. analysis.

Strengths

An organization’s strengths, which help identify a competitive advantage or unique selling point, are of vital importance when deciding on changing the focus of the company. Deciding to push certain products or features in favor of dropping others, (like Apple did in recent) years can reinvent the organization.

Weaknesses

An organization’s weaknesses are a real motivation to change. Weaknesses identified internally in a company’s product or service, will require immediate attention and changing. Quite often (especially with service based companies), the weakness would be resolved by a cultural change.

Opportunities

Opportunities that present themselves, like new contracts on other continents will force changes in the company, sometimes as simple as new working hours. With the differences in different customer expectations, modern companies need to remain flexible. Flexibility is a major cultural change that needs to be introduced.

Threats

Threats to an organization, usually in the form of competitors and substitution products force a company to react. To react effectively companies have to react quickly, which is a cultural change in a company.

External Factors of change

The factors external to an organization that force changes can be identified through the PESTELI acronym.

Political

Political factors would include the current and potential influences from political pressures such as unions and national pay agreements.

Economic

The local, national and world economy impact can force an organization into changing their work practices or even product prices.

Social

Changes in lifestyle absolutely force changes in organizations (e.g. iPod), but at a cultural level, socially changing attitudes towards work or ethical issues can also have effects on the culture inside an organization.

Technical

The ever-changing technical world in which we live has probably the most profound effect on organizational culture of all external factors. Technical advancements that allow employees to work from home, working teams to be separated by great distances and for customers to be located on the opposite side of the world from their suppliers. Anything that changes the day-to-day work of the employees has a profound effect on the organizations culture.

Ecological

The local, national and world ecological and environmental issues that have effects on culture at national levels filter down into the organizational culture within a company.

Legislative

The legal issues both locally and at an EU level, such as taxes and working time regulations also have effects on culture at a national level, filter down into the organizational culture within a company.

Industry

Industry changes have a huge effect on national culture. The move away from agriculture into industrial and now information economies has greatly changed the national working culture.

Organizational Structure (Bureaucratic organization)

Purpose: to track changes in management paradigms from the bureaucratic to the post-bureaucratic to the learning organization model, highlighting core differentiating features of each paradigm as well as necessary ingredients for successful evolution. Design/methodology/approach: the article takes the form of a literature review and critical analysis. Findings: the complexity of the learning organization necessitates gradual evolution. The successful integration of the characteristics of post-bureaucratic firms – empowerment, teamwork, trust, communication, commitment, and flexibility – coupled with an emergent systems perspective can provide improved understanding of how the learning organization disciplines may actually materialize. Originality/value: linking two traditionally encapsulated areas of research namely post-bureaucratic organizations and learning organizations, highlighting an interesting roadmap for successful convergence of post-bureaucratic organizations towards learning organizations

The strengths of a bureaucratic organization are:

More control over the employees with clear rules and regulations

No confusion as the reporting relationships is clear and well defined.

The system is centralized and all the decisions can be monitored

There is standardization and everyone has to follow the same procedure

The weaknesses are:

The decision making and all the other processes are very slow

The jobs may become boring for the employees

The communication has to go through so many levels that it gets distorted.

Too much control discourages innovation and creativity.

There are too many levels in the hierarchy.

The bureaucracy itself encourages political behavior and people try to use other means to go up the hierarchy

2.1.0 Developing change process using a change models

Lewin’s (1951) initiated a model of the change process as one consisting of the three phases which are.

i) Unfreezing, reducing the factors and behaviors which maintain the status quo.

ii) Movement, creating and developing new behaviors and implementing the change.

iii) Refreezing, stabilizing the new behaviors and structure.

The first change implemented by the management takeover, which of replacing the HR and Engineering Manager for individuals versed in Japanese philosophy and production methods, sent out a company-wide signal that change could, and would impact everyone at any level within the company. Whether this was intentional or not, this marked the true starting block for cultural change in Byrashi Mouldings.

The subsequent changes implemented by the management team, were widespread, with no facet of the company remaining untouched.

The changes can be broken down into the following areas

—-Adoption of Japanese manufacturing systems – modernization of plant, which implied by “two years of rebuilding the plant investment in company, it implies a future

—-Reshaping work practices – cell manufacturing process, industrial workforce into work teams, skills training for all staff

—Everybody applied for the Team Leader position

—Flattening and streamlining the organization – by eliminating unnecessary tiers of management, “redundancies, bit heavily into the middle management cadre.”

Due to the unprofitability of Byrashi Mouldings, which was commonly known, the voluntary and compulsory redundancies, this created a ‘do or die’ culture, and assisted in creating an environment where the only viable option for all the employees was to embrace change.

All these movements/changes from all over the company are implemented to assist the first stage of managing change, that of unfreezing the existing structure.

Computer Room implies continuous learning and change, which is normal for Japanese companies, which do Continuous Improvement equal-opportunity to all the employees of the company. The continuous-training programme gives a stable refreezing stage upon the organisation.

Cultural change is not incremental and each stage of the change is important to impact the organisational cultural change. On the respect of the cultural norms of workforce, on the short or medium term, the first two stage takes a more significant impact on; while on the long term, the last stage which establishes a continuous improving system will take a more important impact on.

Stakeholder Involvement in Change Process:-

Customers:

Explain the customers at the shop level, every time they come for shopping they should be told about the change by cashiers or at customer service desk. At the same time toll-free numbers, email or website should be able to explain all the queries.

Employees:

Line managers should arrange one to one meetings with the staff and explain the change process. Also Free company magazine (Tesco’s One Team), Staff benefits website, weekly news, daily updates and Team 5 messages should be used to answers all the questions and communicate to everyone in the business.

Owner/operators:

Company owner/operator explain the benefits for long or short run in directors meeting and also sending them special notes or emails.

Suppliers:

Company directors/Area Managers have one to one meetings with suppliers and their representatives. Arrange the workshops or training if necessary.

Shareholders:

Share holders should be able to find information on websites. And also they should be told by their monthly reports and through the Agents.

Local communities:

Making sure local communities are also on boat by contacting them through their club card statements and displaying banners or posters inside the shops.