Strayer University HRM560, Assignment 2
Running head: DIAGNOSING CHANGE 1
ASSIGNMENT 2: DIAGNOSING CHANGE 7
Assignment 2: Diagnosing Change
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Strayer University
HRM560-Managing Organizational Change
Dr. xxxxxxxxxx
Describe the company in terms of industry, size, number of employees, and history.
Sears is an American chain of department stores in the retail industry. In 1886, Richard Sears started Sears Watch Company in Minneapolis. A years later, he moved to Chicago and ran an ad for a watch repairer in the Daily Newspaper. Alvah Roebuck answered the ad. In 1888, Sears and Roebuck combined forces and launched their first catalog; the catalog only featured watches and jewelry. Sears sold his watch business in 1889 making him a $72,000 profit (Meyer, 2017). In 1894, he and Roebuck published a catalog that sold everything from watches to appliances. Sears grew rapidly, and in1924, Sears and Roebuck opened their first retail store in Chicago.
Today, Sears employs over 140,000 employees, and is “the 10th-largest retailer in the U.S. based on revenue, and the fourth-largest "broadline" merchant behind Wal-Mart, Costco Wholesale Corp. and Target Corp” (Sweeney, 2012, para. 68). According to Statistic.Com (2011), as of 2017, Sears has decreased from 3500 stores to 670 stores. The once successful retail giant is on a breathing machine seeking a miracle to regain a competitive edge in today’s global marketplace.
Analyze in detail the current HR practice, policy, process, or procedure that you believe should be changed.
The current assessment of Sears Human Resource programs is as follows:
Sears has implemented policies and procedures that are based upon best practices in management procedures. Additionally, their vision and mission statements have clearly explained the company’s goals and objectives. Further, Sears developed and combined a competitive strategy with associated operational goals that has been communicated effectively to help employees to achieve set goals (Sears History, 2012).
In 2013, Sears made a decision to approach their employee’s performance program in a
different way. They changed from an annual employee’s performance review to a program called “Performance Enablement.” Leadership described the new program as a better way to approach performance management. The main objective of their new approach was to help employees reach set company goals by using a set of processes and tools that would allow them to deliver more value every day in terms of daily performances (Sears Corporate, 2017). Furthermore, the new set of processes and tools enable employees to receive feedback from individuals they report to, who report to them, who they partner with, and from customers (Guest Contributor, 2015). After assessing the performance enablement program, I would recommend changing the program to a “360 Employee Performance Program.” My recommendation would provide continuous feedback and development in which employees are engaged in learning to deliver the best customer service possible. Additionally, the program will increase employee performances by rewarding short-term goals, and developing employees into high performers by building self-awareness and self-confidence.
Formulate three (3) valid reasons for the proposed change based on current change management theories.
The change that I proposed was based upon three (3) of Kotter’s Eight Step Process for Success Organizational Transformation. The current management theories are as follows:
1. Form a guiding coalition: Convince employees that change is necessary and how it will benefit them. Also, getting those in leadership roles to lead the change will be important because employees need to see management supporting the change first. Leading by example is always a win for change. This is step 2 in Kotter’s change theory.
2. Generate short term wins-This is one of the main reasons that I recommended changing Sears current Employees Performance Program because it did not include short-term rewards. Kotter’s step 6 focuses on easy to achieve goals. Employees need to be rewarded on short-term accomplishments because it motivate them to achieve long-term goals.
3. Anchor new approaches in the culture-This approach incorporates change within the culture of the organization. Reinforcing the value of the change in the organization is necessary. This is Kotter’s step 8 for leading change.
Appraise the diagnostic tools that you can use to determine an organization’s readiness for change. Propose two (2) diagnostic tools which you can utilize to determine if the organization is ready for change. Defend why you believe the diagnostic tools selected are the best choice for diagnosing change in the organization.
I proposed the following two (2) diagnostic tools to be used to determine if the organization is ready for change:
1. COPS- According to Hodges and Gill (2015), “COPS framework can be used for scanning an organization internally to establish how healthy the organization is and whether the different elements are aligned with one another” (p. 151). COPS stands for the culture, organization, people, and systems within an organization.
2. Seven-S framework-This diagnostic tool focuses on the interaction of the different parts of an organization. This particular model was enhanced by Peters and Waterman in 1982 and is also known as Mckinsey’s Seven-S Model. The main premise of this model is that successful change is based on strategy, structure, systems, staff, style, shared values, and skills (Hodges & Gill, 2015).
I believe that the two diagnostic tools that I have selected would be best in determining the readiness for change within an organization because both are focused on all parts of the organization, and the best approaches to making change successful. Each selected diagnostic tool have their limitations; yet, each is adequate at identifying the need, and projecting the future of change by interacting with teams and individual groups at different levels within the organization (Hodges & Gill, 2015).
Using one (1) of the diagnostic tools you selected, assess the organization’s readiness for change. a. Provide results of the diagnostic analysis b. explain the results
There are several strategic approaches that can be used to assess an organization’s readiness for change. For example, an organization’s macro and micro levels of readiness are most relevant as means of diagnosing change. The Seven-S diagnostic tool can be utilized to evaluate the organization’s ability, the actual readiness, and employee’s individual perception of change. Additionally, the Seven-S tool focuses on shared beliefs and how these beliefs will influence employee’s attitudes and behaviors. The organization employee’s beliefs, attitudes, behaviors, and intentions must be in alignment with the organization’s vision. When employee’s perception of justice toward change has been perceived as fair, they are now ready to support the change because they are convinced that the change is necessary for the continued success of the organization.
Interpret whether or not the organization is ready for change. Substantiate your conclusion by referencing current change management theories.
Sears is ready for change based upon Kotter’s Eight Steps for leading change. By assessing the current state of Sear’s Employee Performance Program and the desired state is evidence that they are ready for change. In addition, the confidence of the organization to be ready to implement change, and their belief that they can accomplish the change is an indication that change is necessary. Once management has convinced employees that change is necessary and they lead the change, they have formed a coalition for leading change successfully.
In conclusion, when diagnosing readiness for change, an organization must analyze their own strengths, weaknesses, limitations, and examine every part of the organization that will be affected by the change. They must also analyze how these changes will affect the daily operation of the business before implementing change. There are four questions that an organization should ask to determine if change is need: 1.How can the organization understand complexity, interdependence and fragmentation? 2. Why do we need change? 3. Who and what can change? 4. How can we make change happen? Using these four basic questions as a guide can be extremely helpful in determining an organization’s readiness for change. As a final point, an organization’s assessment of readiness for change should be guided by and through an organization’s openness, trust, flexibility, and the degree in which employees are influenced positive, their perception of justice, and their adaptable to new ideas (Hodges & Gill, 2015).
References
Guest Contributor (2015). HCM Essentials. Sear Holdings Replaces Annual Performance Review with Fluid Dynamic Feedback. Retrieved from http://www.aberdeenessentials.com/hcm-essentials/sears-holdings-replaces-annual-performance-review-fluid-dynamic-feedback/
Hodges, J., & Gill, R. (2015). Sustaining Change in Organizations. Thousand Oaks, CA: Sage.
Meyer, Z. (2017). Timeline: Sears’ rise and fall of nation’s top retailer. Retrieved from https://www.usatoday.com/story/money/business/2017/03/22/sears-timeline/99488226/
Sears. (2012). Sears History 1886. Retrieved from http://searsarchives.com/history/history1886.htm.
Sears number of stores in the United States from 2011-2016, by type. (n.d). Retrieved from https://www.statista.com/statistics/293036/number-of-sears-stores-united-states/
Sweeney, B. (2012), Sears- where America shopped. Retrieved from http://www.chicagobusiness.com/article/20120421/ISSUE01/304219970/sears-where-america-shopped