Change Management & Organisation Development

Bucks New University

Date of Submission: 2nd June 2024

Executive Summary

Sweet Treats Limited (STL) is a famous cake shop company that has its headquarters in a Warwick region. STL is founded by Julie Birds, along with James Bird at the head as the company's managing director today. STL has issues related to excessive hierarchy and communication, and there is a need for a more precise understanding of how the proposed restructuring will affect them. Employees who have been retained at STL and those who were hired earlier after the company acquired shops show a solid resistance to assuming new roles or responsibilities. Currently, through a restructuring process, the hope and trust of the employees have been battered, hence affecting their motivation to deliver in STL. In analysing the nature of the business environment that STL currently functions within, it is essential to note that it is a VUCA environment, and the challenges and prospects that it holds are evident. Concerning the approach to addressing resistance to change, OD practices enable organisations to promote a culture that is characterised by flexibility and a capacity to embrace change while learning.

1. Introduction

Change management is necessarily important for any organisation that undergo online service-based ordering and expansion of product offering ensuring a smooth transition in the restructuring process (Bushuyev and Verenych, 2018). This will not only improve the morale of the employees but will also enhance the communication among the employees and the managers maintaining the levels of productivity and reduced disruptions in the operations ensuring successful incorporation of new facilities and initiative in the shop expansion or service of online ordering. The purpose of this report is to analyse the change management model of Sweet Treats Limited and to provide them the effective ways through which the company can able to improve the existing hurdles faced due to the upcoming changes in organisational setup. 

2. Company Background 

Sweet Treats Limited (STL) is a famous cake shop company that has its headquarters in a Warwick region. However, its roots can be traced back to Julie Bird's entrepreneurial venture. Starting in Warwick, STL is founded by Julie Birds, along with James Bird at the head as the company's managing director today (Company-Information service, 2024). Featuring a wide and attractive selection of candies and maintaining a policy of the finest quality, STL has become a favourite among customers and has responded by opening more shops. Since after its establishment, the company has expanded to a series of six delightful shops in Warwick, which shows that it is popular and liked.

3. Strategic Change of STL 

3.1 Change Issues in STL

As with the previous organisations, STL has issues related to excessive hierarchy and communication, and there is a need for a more precise understanding of how the proposed restructuring will affect them. When explaining the rationale, the plan, and even the outcome, employees have complained of poor communication, which causes people to be unnecessarily sceptical and resistant (Sittrop and Crosthwaite, 2021). Employees who have been retained at STL and those who were hired earlier after the company acquired shops show a solid resistance to assuming new roles or responsibilities. This is because humans do not want to change and get uncomfortable with change. After all, it goes against the everyday culture that has been set in the societies.

Currently, through a restructuring process, the hope and trust of the employees have been battered, hence affecting their motivation to deliver in STL. The position of the employees is somewhat unpredictable, and they are concerned about their future assignments and the overall changes that will occur while they continue working (Rath et al., 2021). STL expects incremental costs in the form of expenses related to recruiting a new e-commerce team and training costs for existing employees who may need to switch to new responsibilities as the company expands its internet business.

3.2 VUCA Environment

In analysing the nature of the business environment that STL currently functions within, it is essential to note that it is a VUCA environment, and the challenges and prospects that it holds are evident. Let us delve deeper into each component of VUCA and how it relates to STL's operations: 

Figure 1: VUCA environment

Source: Wilson, 2023

3.2.1 Volatility

Fluctuations mean the behaviour of markets, which are characterised by variations in stability, mainly in aspects such as price (Khan and Ahmed, 2021). In the case of STL, it could mean changes in the market trends, having a negative or positive impact, or may lead to embracing new technologies that disrupt the market. In such circumstances, what has been considered tried and established forms of doing business may cease to be relevant tomorrow, and this is where fast thinking and immediate action come into play. Namely, the above challenges mean that STL may face pressure to respond to changes in consumer preferences, such as increased demand for gluten-free or vegan cakes.

3.2.2 Uncertainty

The issues which are still open are the efficacy of strategic operations and the pressures of new entrants. Even when a business goes to great lengths to study its environment and develop a strategic plan to launch, it still needs to be entirely sure how such entities will affect the business (Pearse, 2017). While using an online application to order, there may be some uncertainties on the side of STL, such as the viability of the online ordering service or the attitude of customers to changes in the management of the shop. This implies that flexibility and the ability to adapt to change should form part of the bargaining powers when making decisions on future changes so that an organisation can be in a position to address any unfavourable change and also take advantage of any change that may present itself in the near future.

3.2.3 Complexity

The challenges lie in the strategies associated with the shift into online sales and corporate changes (Hussain et al., 2018). As such, transitioning to online sales necessitates more than just setting up the necessary computer hardware and software – it calls for a realignment of logistical processes, customer relations, and promotional tactics (Zhang et al., 2021). Similarly, reorganisation of the STL includes the complicated and multifaceted process that involves the change in the roles of many people within the organisation and can be met with opposition from the employees of the firm. Managing such complexities also requires the formulation of suitable plans, implementation of adequate communication, and teamwork to guarantee that operations run smoothly and constantly during the change process.

3.2.4 Ambiguity

Uncertainty as to whether these developments are positive, negative or even more significant means that there is uncertainty as to the developmental trend of the business. There is likely to be uncertainty within STL concerning profit goals and the managerial decisions that have a bearing on them, employee enthusiasm, and customer contentment (Chawla and Lenka, 2018). Suppose the members of a group decide on no direction and goal. In that case, the management have a variance, which in turn results in confusion, and lack of decision-making and therefore magnified by missed opportunities (Moura et al., 2023). Hence, it becomes pivotal for STL to outline its vision about where it wants to go and how it will get there, to ensure that this vision is communicated effectively to all the stakeholders and to ensure that the organisation's structures have the capacity and direction to cope with the unforeseeable challenges of the future.

4. Change Management Model 

To implement a planned change approach at STL, the Kurt Lewin’s Change Management Model offers a structured framework consisting of 3 key steps including unfreezing, changing and refreezing. 

4.1 Unfreezing

In the first step of the change process referred to as Unfreezing, STL will find it strategic to undertake preparations for future transitions of its workforce. It is important for creating a culture acceptance to lay initial foundation as it prepares the organization in developing acceptance for the change processes in anticipation in change management (Cameron and Green, 2019). In cases where rules must be altered or new rules be introduced, STL will make it a point to explain why the changes need to be made and establish how those changes will benefit the entity as a whole so as to decrease negativity and increase positive reception and participation from employees.

Also, the unfreezing stage stresses the role of involving employees in the change process by encouraging them to become alert and receptive to change. Through getting suggestions from the frontline workers, middle managers, and other players at the organisations, STL aims at ensuring that most of the targeted participants feel part of the change process, they share the same responsibilities of change. In the same manner, STL also understands the concern of requiring more resources and assistance to be given to every employee in terms of dealing with many of the issues and risks that change entails.

4.2 Changing

The Change stage of change management that STL is undergoing is the process of transitioning from planning to action and establishing change in the company. The key concept of this stage is to create desire among the employees so that they can be committed towards change management process (Crosby, 2020). The following ways makes this possible: They engage the employees in management decision making and share with them the reasons why the changes are being made as well as listening to their concerns, and relating to their experiences. At the same time, attention is paid to training and disseminating information and materials for proper action and problem-solving in the context of institutional change. Indeed, taking time to monitor the developmental changes, the company provides training to the employees, ensures open communication, and facilitates easy access to information that may help the workforce in coping up with the change. When it comes to the implementation of change, STL prepares the entailed micro environment, thus creating the conditions that will allow the organisation to pursue its rebirth toward the desired state.

4.3 Refreezing 

In the last step of the change management process, called the Refreezing stage, STL ensures that the changes occurred at the Change stage and become organizational norms and standard practice. This involves stabilizing changes through modification of physical policies, other working procedures, and structural organization in line with the new method of working (Rosdiana and Aslami, 2022). Compliance promotion and consolidation of desired behaviours is another important aspect in STL, which includes encouraging individuals and groups to engage in behaviours that are consistent with the objectives of change. Organisations should ensure that such behaviours are modelled by the leadership and the organisational culture demonstrates recovery of learning which is enhanced through feedback as element of improvement. Furthermore, STL endeavours to sustain and make the adjustments structural more permanent by reaching out to the organizational culture within the system, which makes the changes permanent. This means that regular, effective and assertive explanations and interactions have to be made with the employees to give them a fair understanding and make them embrace change. Last but not least, STL incorporates proactive strategies for maintaining feedback and control in order to guarantee that the innovations are still applicable and efficient in a changing business context. If STL follows Refreezing stage strategies which include consolidation, reinforcement, institutionalization and adaptation, then it would be possible for achieving Organizational Change Management in the organization.

5. Potential organisational and individual resistance against any proposed Changes.

Change resistance is the generic human behaviour that is evident in most people and can be described as a form of reluctance, opposition or refusal to embrace change in the operations of an organisation or to adopt new undertakings within an organisation (Rajan and Ganesan, 2017). It is usually a result of fear, uncertainty, powerlessness, perceived job loss, lack of decision-making and organisational ole, and their preferences for structure. Besides, employees at STL might feel that the changes are out of their control, making them powerless to prevent the change from taking place, thus, they will resist the change. To manage these potential resistances, several measures must be taken, such as: 

• The management should ensure that the employees are informed and understand the reasons for the change, the management should involve the employees in the change process, By identifying these possible barriers to change, organisations can prepare in order to ensure the change process goes as smoothly as possible and causes as little disruption as possible to normal business activities.
• Familiar with change communication strategies, it entails clear, unambiguous, and harmonised messaging of why the change is being made, what is expected of change, and how it advances the organisation's vision and mission. Employers divide the message among employees and listen to their feedback so that any misunderstandings or questions can be clarified.
• Ensure that the employees are prepared to optimise their adjustments in the new environment by offering them appropriate information, skills, and tools. Management ought to conduct extension training sessions, seminars, and coaching sessions to enable the workers to have the required competencies to perform in new positions or the integration of fresh processes and systems.
• It is essential to encourage and show support to the employees during the change process and to assure them that they are on the right path. Alleviate their concerns, encourage them to have the option to express their concerns by speaking in person, and appreciate their work and their input. In particular, trust in decision-makers and appreciation of change initiatives can result from employee-organisation relationship evidence that shows that managers care about their experiences and opinions.

5.1 Organisation Development

Organisation development (OD) involves organised efforts to enhance the capability of organisations to adapt by introducing change for improvement throughout the organisation and for the well-being of all its subordinates and staff (Alam, 2017). Concerning the approach to addressing resistance to change, OD practices enable STL to promote a culture that is characterised by flexibility and a capacity to embrace change while learning. Through increased acceptance of OD initiatives in STL the management significantly able to reduce the resistance to change, and the process becomes more accessible through the creation of a social work culture that encourages collaboration and innovation and improves timely employee development that empowers employees on the job. Other, more general OD processes such as team building, management training, and organisational culture surveys can also help STL to minimise the resistance to change. It also ensure that change initiatives are consistent with organisational vision and mission, and facilitate greater openness and flexibility in organisations.

Conclusion and Recommendations 

With the temptation of having a mature market with a high growth rate, a changing competitive environment, employees' resistance to change, and the call for strategy, Sweet Treats Limited (STL) has the essential operational dilemma of how to cope with change. To thrive in this environment and drive sustainable growth and success, STL should consider the following recommendations: 

1. Human capital is a critical asset of STL, which means that employee training and development, on-the-job skill development, and employee empowerment should also be the key investment areas. Based on the reviewed research, it can be concluded that with proper growth, promotion, and training programs, STL can improve and promote employee satisfaction and performance, as well as create a flexible environment dedicated to change.
2. Because STL is exposed to constant change in the market environment, it is necessary to encourage values of innovations, risks, and continuous change. This paper discusses how, by being receptive to change, accepting innovative ideas, and advocating for innovation, STL can become one of the market leaders who would then target paradigm shifts in the market and cover the potential threats that may stem from them.
3. Dismantling the hierarchy and encouraging interdisciplinary interconnectivity is crucial to enhancing organizational agility and streamlined functioning in STL. As we link up teams, exchange novel approaches to work and issues, and tap into people's different skills and experiences within the organisation; we can promote improved decision-making and problem-solving in STL while also building common identity and strength within the firm.
4. By adopting these recommendations, STL can further develop the organisational capacities within the firm and improve the competitive stance of the organisation in the long run by creating an organisational capacity for future growth and success. Suppose STL emphasise communication as a management tool, employee training, innovation and collaboration. In that case, this company will be capable of handling all these issues and become one of the key players in the cake shop business.

References 

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