People Management and Development Case Study

People Management and Development Case Studies

Introduction: People Management and Development

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Change administration is defined as an aggregate term for all ways to deal with getting ready, backing, and helping people, groups, and associations in rolling out a hierarchical improvement (Thammatucharee, 2020). The concept of change management is considered to be as one of the most important challenges that most of companies face in the context of leading, administering as well as developing individuals. It might be a troublesome technique to attain properly yet its frequently met with resistance as individuals confront uncertainty (Brauns, 2015). So, it can be identified from the discussion that one of the main aims of conducting this study is to shed light on the topic of change management and other concepts related to it. For doing so the company that has been selected is UK one of the leading retail companies named as Tesco.

The main discussion of this report will be divided into four major segments in which a detail would be provided on what change management is needed to implement in Tesco, the various organizational culture and the apt change management hypothesis that will be most producent for the change being introduced in Tesco. The last two segment of the study will be related to the HR in which an evaluation will be done of various HR theories and links the one that will be the most apt for the change that has been executed in Tesco.

Tesco usually follows tall organizational structure in which they have numerous managers and layers of management but not fixed for any particular department where they got very narrow span of control (Dr Nwagbara, 2010). But for getting better coordinated result Tesco needs to implement matrix organization structure where there will be more the one line of reporting manager for a definite department or team who can check the work keeping a close eye in it.

Company Overview

As discussed in the above section the selected company is Tesco and being one of the leaders in the international retail sector with an excess of 345000 employees their main objective is to dish up the clients each day with reasonable, healthy as well as sustainable eating items (Palmer, 2005). The company is also known for maintaining its strong organizational culture and in order to understand the internal and external business environment of the company to implement the change further a detailed SWOT and PESTLE analysis is done below.

SWOT Analysis 

Strengths:

• Considering the first strength it can be said that Tesco is the leading grocery retailer within the entire UK. It has maximum deals as well as profit as contrasted to retailers within Great Britain.
• Tesco rules the basic food item retail market of Great Britain with 27.9% of the portion of the overall industry
• Tesco has seen more than 60% development in its web-based deals contrasted with pre-Coronavirus

Weakness:

• The most identified weakness of Tesco is its organizational culture which is tall in nature due to which many employees get confused to whom they have to report.
• Because of the tall organizational culture Tesco experienced a failure in many international markets (Radosevic, 2013).

Threats:

• Creating tactical alliances with presumed organizations can offer a fantastic chance for Tesco
• Grocery stores being one of only a handful of exceptional spots where individuals might in any case secure positions, the high-joblessness rates could assist Tesco with gaining the numbers to fuel its development

Threats:

Global competition from other retailers like Sainsbury, Aldi who usually follows a matrix organizational culture already

Various line of managers for several departments might be a big threat where they can lose focus from the business objective.

PESTLE Analysis:

So, it can be identified from the above given SWOT and PETSLE that being a market leader still their internal business environment is affected due to tall organizational structure and as a result the change is needed so that with a new organizational culture, they can create more strong company functioning system. It can also say that in this situation implementing change management will play a very role in maintaining the overall image inside the company too.

Change management

From the given scenario it can be seen that the company is getting ready for a designed time of huge-scale structural modification in the coming year.  The change that has been planned by the company is restructuring the entire organization structure and changing it from a tall organizational structure to a matrix organizational structure. In order to prepare for this, change the first and foremost one advice that will be important to give the organization leadership Team of Tesco is to adopt a proper change management approach that will help them in changing from a tall organizational structure to a matrix organizational culture (Awadari, 2019). For the selected change to be implemented the best change management model will be Lewin’s change management model. Lewin's change model is a straightforward and simple to comprehend structure to refine the change administration interaction. These three particular phases of progress (unfreeze, change, and refreeze) permit a company to design and execute the necessary modification (Hussain, 2016).

Tesco need to implement Lewin’s change management model in the following discussed manner.

So, it can be identified from the above done discussion that this decision of using change management model will help the company in dealing with the change and it will also help the employees to cope up with the changes.

Organisational culture

The organisational culture of a company is generally comprehended as the company’s beliefs, attitudes and values, and how this organizational culture influences the employee’s behaviour. The culture of an organization affects the experience that people receive while dealing with the organization, this influences a consumer to purchase from a supplier or an organization that provides a good experience to its consumers. The culture of a company is visible through its dress code, office hours and policies (Paais and Pattiruhu, 2020). It also helps a company in planning employee perks and workspace. The culture of the organization is generally opted by the leaders of the company.

Organizations don’t focus on defining the cultures they follow explicitly; organizations focus on emerging from the beliefs of how people think, what people say and what people do. The culture of an organization sets all the rules and defines what is acceptable and what is not. The culture of the organization helps to define the core principles and values that guide the behaviour of the organization (Meng and Berger, 2019). 

During a change in an organization, the culture of the company can either act as a benefit or an obstacle. For instance, a company that follows a culture that involves adaptability and collaboration may adapt to the transition, but a company that follows a less flexible culture would find it hard to undergo the transition. Leaders of the organization are required to be acquainted with this issue while leading their companies through the duration of change. 

Models of change management

When the necessity for a transition becomes evident, the organization must differentiate the best efforts to follow in order to make that transition effective. If organizations don’t act smart and just hope that the problem would be solved then they’re inviting a huge risk and numerous change projects have failed because of this reason. However, if an organization follows the models of successful change management in order to create its strategy, then the odds of being successful would improve. This is the reason behind the importance of the models of change management. Change management can be referred to as a process that allows a company to undergo a change while not upsetting the employees and not negatively impacting the productivity of the company. During this modern era, the importance of the method of change management has increased (Hussain et al. 2018).

The models of change management provide precise approaches to help an organization go through the cycle of planning and successfully executing transitions.

Importance of change models

Understanding the various models of change management trains an organization about the best methods to utilize in the process of change. Whether an organization opts for a particular model or opts to utilize a mixture of some models, the company could develop a more adequate method for change management (Cameron and Green, 2019). 

Change management projects are often big, problematic, and expensive. Various studies show that it is important for organizations as well as individuals to invest in whatever change it wants. Using a dependable model of change management allows organizations to evaluate all the characteristics that the company requires to get the best results and maximise the productivity of the employees. This step would also act as a shortcut for the organization in developing a method of change management which the company might use for implementing all the new changes in the future and allow the company to not start from scratch every time. The following method would represent the process of change management that is followed by Tesco as a company.

Kotter’s Theory of Change Management 

John Kotter a professor at Harvard who is also an expert in change management created this theory known as Kotter’s change management theory. This theory focuses mainly on the individuals that are involved in the process of change management and how the psychology of these individuals is affected by the change (Kotter et al. 2019). Tesco as a company follows this process to take care of its employees and reduce any negative impact of the change management on the company’s productivity.  Kotter’s change management theory is divided into 8 parts (Haas et al. 2020). They are as follows

1. Develop an intention of quickness to motivate the employees to improve their productivity.
2. Build a team of change management with leaders and agents that are highly skilled in various departments of change management.
3. Define the organization’s strategic vision in order to help the company to understand its target.
4. Communication between everyone is very important because it allows the organization to convince the employees to believe in the method of change management and get the employees on board
5. Recognize obstacles and point out anything that has the potential to cause disagreements between the employees of the organization 
6. Build goals for the short term in order to break the method of change management of the organization into small achievable steps.
7. Allows the company to maintain momentum while implementing the method of change management.
8. Allows the company to focus on retaining the changes that the method of change management has made after the initial process of implementation is completed.

HR theories

Theory of organizational cycle of life

This theory of managing human resources was the first theory prepared. Various studies have claimed that organizations, are like living organisms, and have a cycle of life. The process of establishment is considered as birth, the expansion of the company is considered growth, and stability is considered maturity, after which companies begin to slump which is considered getting old, and in numerous cases, the companies are dismantled which is considered death (Stone et al. 2020). The study of an organization’s cycle of life has concluded with different predictive standards. These standards, which are an issue of significant academic argument, are related to the analysis of administrative development and growth. Companies at any phase in the cycle of life are affected by outer circumstances of the environment along with internal factors. An organization’s growth and fall depend on the situation of the entire industry. Products have a cycle of life, a truth that was recognised long back by experts in sales and marketing. This is the process that Tesco follows as a company to manage its human resources (Alam and Raut, 2019).

Theory of ‍Strategic Contingency

The second process of managing human resources is a strategic practice of contingency theory, as the name of the method suggests, which is established on two visions i.e., ‘Strategic’ and ‘Contingency’ aspects of the process. A Contingency could be referred to as the need for various assignments of a subtopic in a company on which assignments of other subtopics initiate an impact. These contingencies become strategic after other subtopics start regulating more contingencies and become potent in a company (Boon et al. 2019). Through the theory of Strategic contingency, a leader evolves into a major component of a company because of their unique skills to figure out the major HR issues which everyone else is not capable to figure out. Too much reliance is on the leader to solve these issues because of which the leaders are not replaceable.

Theory of General Systems 

The last theory of human resource management is widely used for HRM and is the theory of a system. A system could be referred to as a cohesive conglomeration of corresponding and interdependent components which are human-made or natural. Every system is swooped by area and duration, affected by its atmosphere, illustrated by its strategy and intention, and conveyed through its functionality. A system is not just the aggregate of its components if it conveys emergent behaviour and synergy. Transforming one component of the system may impact other components or the complete procedure. It is possible to anticipate these transformations in imprints of behaviour. For techniques that understand and adjust, the development and the extent of flexibility depend on how sufficiently the system has performed along with the environment. Some systems help different systems, in retaining the other systems from failure.

Challenges in Matrix of Human Resource

While the matrix of human resources can provide clarity in an active company, it is not fit for every company or condition (Rosnizam et al. 2020). Successful implementation and running of a matrix system takes comprehensive coordination and needs a faithful team to assure its constant success. The matrix of human resources has the potential to create conflicts when employees are responsible to respond to more than a manager or supervisor. By its character, the matrix of human resources presents numerous options for conflicting opinions. If an organization applies the matrix of human resources to its operations, then the organization would require to install a clear method for managing conflict.

Associative resource for change management 

Hybrid structures

The personnel parties emigrated when working from home evolved into a process of working, leaving all companies and teams to disassemble from one specific geographical area to any part of the world. 

While some companies are urging their workers to start following the old routine of working from the office again, numerous companies are satisfied with the process of hybrid structure and are planning to continue following this process (Gallo et al. 2019). The process of the Hybrid structure involves working from home and working from the office simultaneously, with numerous companies opting to choose this option by asking their employees to come to the office for 2 or 3 days a week and on other days the companies ask their employees to work from home.

Global Growth

Diverting the operations into the international market –the remote process of working is the first step. With transforming technology and times, the trends for managing human resources have taken a different step as well, and the start of a company in unfamiliar lands is evolving into a simple thing. Similarly, governments are removing the rigid policies during the post-Covid 19 periods, in order to support businesses to recover from the losses that the pandemic caused. 

Employee experiences and their importance

In today’s world employees don’t only want an adequate paycheck but employees want to work in a good culture where the work environment is healthy as well. As a factor of the latest trends in HRM, a good salary doesn't only retain an employee, but a healthy environment and good cultural experience along with a good salary retain the employees. Leaders in the Human Resources Department should prompt more techniques to motivate happy crew health, keeping the workers more flexible to the transitions and disturbances.

The Growing Importance of Analytics 

With no physical contact between employees, tracking and calculating the result became severe, especially when the crew is scattered all over the world (Abdeldayem et al. 2020). Analytics is thought to play a huge role in impacting the information required for completing the process of making decisions.

An increase in monitoring and observing the employees

With the increasing number of workers working in the hybrid structure, supervisors are often incompetent to analyze every employee and the work they do. The absence of individual communication oversaw a growth in employee observing and monitoring methods that created another type of trend in managing human resources. Maintaining track of the work that employees do and their interpretation, attendance, and holidays, are only a small part of employee observing and monitoring practices.

Automation of everyday tasks

To give importance to highly valued and productive processes of workings, leaders in human resource departments can utilize Artificial Intelligence to find solutions in order to automate their everyday assignments that are done manually. Procedures such as talent screening, onboarding, keeping a record of attendance of the employees, etc., can be done by the systems using artificial intelligence.

Augmenting the hiring processes

Nonetheless, another component that could be assessed as a factor of trends in managing human resources is chatbots. With the assistance of chatbots, employers are now able to manage and select quality candidates for suitable roles out of the sufficiently skilled candidates available. Processes such as CV screening in order to choose the explicit candidate profiles, subsequently occurring in increased work performance and improved productivity. 

Conclusion 

So, it can be concluded from the above done study that change is needed in every organization after a certain point of time in order to strengthen the company culture again. As in case of Tesco it has been seen that though it’s a well-established company and already established a name in worldwide business sector still, they need change at a certain point of time so that they can cope up with upcoming challenges and competition. It can also be identified from the study that the other department also needs to be gear up with the changes so that the entire process can be done smoothly and at the end day company get the desired result.

References

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