Editing
anon27m
edit.pptxRetailer of related outdoor merchandise:
Firearms
Hunting
Fishing
Camping
Boating
Cabela Inc
Cabela Inc is an outdoor retailer with specialties I related outdoor merchandise including firearms, hunting, fishing, camping, boating, and others.
1
Founder, Richard N Cabela
Established in 1961but publicized in 2004
Headquarters in Sidney, Nebraska
Operates 82 stores in the U.S and Canada
Cabela Inc contd.
Richard N Cabela founded the Cabela Inc in 1961 but did not publicize it until 2004. The company originated in Sidney Nebraska where its headquarters is situated. It operated 82 stores throughout the United States of America and Canada with more than 19, 100 employees.
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Type of organizational design
Vertical differentiation
Horizontal differentiation
Centralized
Decentralized
Cabela’s Organizational design
Vertical differentiation involves establishing a chain of command among the managers and the employees. It simply has an established hierarchy which all people in a company observe (Jones, 2013).
Horizontal differentiation involves separation of the employees by their assigned duties (Jones, 2013). Various employees perform different tasks
Centralized organizational structure design involves the concentration of authority and decision-making within few people in an organization, usually the CEO and executives (Jones, 2013).
Decentralized organizational structure involves the delegation of the decision-making responsibility to various levels in an organization (Jones, 2013).
3
Cabela is differentiated into hardlines, softlines, and operations
Its organizational design involves vertical and horizontal differentiation
Cabela’s organizational design hinders a healthy relationship in the company
Cabela’s Organizational design contd.
The hardlines include firearms, hunting, fishing, and archery; the softlines includes clothing, footwear, bargain cave, and camping; and operations handles warehouse and customer service.
The company employs vertical and horizontal differentiation organizational structure design in which it has a chain of command, and the employees are separated by the tasks they perform respectively.
Vertical structure discourages a healthy relationship between the managers and the employees.
The challenge with horizontal differentiation is that the outfitters lack competencies in particular areas for example fishing and hunting as the company separates the outfitters to particular tasks.
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Organizational change occurs in all areas of an organization
Change occurs due to changes in business environment
Change can be evolutionary or revolutionary
Change can be resisted or accepted
Organizational change
Organizational change is investable and occurs in all areas of an organization including human resource, functional resources, organizational, and technological capabilities. Change becomes necessary following changes in the business environment including ethics, demographic, political, social, and economic changes, and global and competitive pressure. Nevertheless, change is subject to resistance or acceptance by the employees in an organization. Change can be evolutionary meaning gradual and incremental change or revolutionary meaning sudden, drastic, and wider change (Jones, 2013).
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Change at Cabela has been evolutionary
In roles assigned to outfitters
Introduced training program
Organizational structure design
Organizational change contd.
Organizational change at Cabela has been evolutionary in an effort to facilitate customer loyalty and attract and retain customers. Change in this company has occurred in roles assigned to the outfitters, and they can now handle several roles in the company as compared to the past where outfitters would only handle specific role only. Cabela has also introduced a training program to ensure that the outfitters obtain knowledge and skills in the different areas of the organization. Additionally, change has occurred in Cabela’s organizational structure design where the company is moving towards decentralized structure from vertical differentiation thereby boosting the morale of the outfitters as the decentralized structure create a sense of belonging.
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Challenges to change implementation at Cabela include:
Complexity of the company
Lack of inclusivity in decision-making
Resistance
Organizational change contd.
The complexity of the company makes implementation of change difficult. Cabela has 82 stores and implementing change will require coordination of all the stores and this is sophisticated.
The outfitters are not involved in the decision-making process in the change process, and this becomes a source of resistance to change implementation.
Also, resistance due to lack of awareness of the change among the employees and horizontal differentiation at Cabela poses a hindrance to change implementation.
However, the company has tried to overcome the challenges by enhancing communication and involving the outfitters in the decision-making process.
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Organizational conflict is inevitable
Occur due to misunderstandings among employees in an organization
Beneficial as they enhance conflict resolution mechanisms
Cabela’s Organizational conflict
Conflict in investable in an organization since in any place with people conflict is unavoidable. Conflict in an organization results from the misunderstanding that occurs between groups in an organization or between particular individuals. However, conflict is beneficial to the organizations in enhancing effective conflict resolution in the future.
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Conflict occurs in five stages:
Latent phase
Perceived conflict
Felt conflict
Manifest conflict
Conflict aftermath
Cabela’s Organizational conflict contd.
The first stage of a conflict is the latent stage which includes mere disagreement but can develop into a confrontation. The second stage is perceived conflict where units in an organization become aware of the conflict and begin to analyze it. The third stage is felt conflict in which cooperation among the units reduces. The fourth stage is the manifest conflict in which the conflict spreads affecting the operations and effectiveness of the organization. The fifth and last stage is conflict aftermath which includes identification of solutions to solve the conflict (Jones, 2013)
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Conflict at Cabela arises due to:
Decision making concentrating on top management
However, chances of conflict occurring are minimal
Cabela ensures compliance with rules and regulations
Works with suppliers with proper qualifications and requirements
Cabela’s Organizational conflict contd.
The probable cause of conflict at Cabela is centralization of decision-making in top management and therefore increasing dissatisfaction among the outfitters. However, conflicts rarely occur in this company, and therefore chances for conflict occurrence are minimal in the future. This is because the company ensures compliance with the applicable rules and regulations with the government and stakeholders. Additionally, Cabela works with suppliers who meet proper qualifications and requires ad regularly review contracts with suppliers thereby avoiding conflicts (Cabela, 2014).
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The structures include
Functional
Divisional
Product team
Matrix
Network
Cabela’s organizational structure
Different organizations have different types of organizational structures. The functional structure includes grouping of the workers in accordance with expertise, and this enhances employee motivation, but performance measurements become challenging. A divisional structure includes product structures which encompass grouping of products based on characteristics to enhance control, geographical and market structures. Product team structure involves companies coming together to produce a new product. Matrix structure includes grouping of employees into function and product. Network structure involves different organizations working together (Jones, 2013).
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Cabela uses product division structure
Division of business into small units
Each unit deals with specific product
Outfitters allocated according to areas of specialty
Cabela’s organizational structure contd.
Cabela used product division structure. The company divides its business into small units including firearms, hunting, fishing, boating, and clothing. Each department deals with a specific product line and the outfitters are allocated to the different product line in accordance with area of specialty. This is advantageous to the company departments are independent, and the performance of one department does not affect other departments. However, it is disadvantageous since it increases inefficiencies in the company.
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Set beliefs, norms, and values of an organization
Incorporated through orientation and socialization
Emerges from
Organizational structure
Organizational ethics
Social responsibility of the company
Cabela’s organizational culture
Organizational culture entails the set beliefs, norms, and values in an organization. Culture in an organization is incorporated by orientation and socialization. Organizational culture evolves from the organization’s structure, ethics, and social responsibility of the company to its stakeholders (Jones, 2013).
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When you join the Cabela’s team you aren’t hired on, you are adopted into the family
Change notes according to feedback
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Great Property Rights:
Health benefits for both fulltime and part time outfitters
Tuition Reimbursement
401K
Holiday Pay
Paid Time off
Cabela’s Employee Foundation
Cabela’s Organizational Culture
Cabela has implemented various organizational changes to ensure:
Exceptional customer service
Inclusion of outfitters in decision-making
Minimize possibility of conflict occurrence
Enhance customer satisfaction and in turn customer loyalty.
Conclusion
The organizational change at Cabela including assigning the outfitters different roles, introduction of the training program to enhance the outfitters with the knowledge and skills needed for Cabela business operation, and moving towards decentralized organizational design are beneficial to the organization. The training program equips the outfitters with competencies to provide exceptional customer service, and the decentralized design will ensure involvement of the outfitters in decision-making hence motivating them roles and in turn improving their performance. Also, this change will ensure minimization of the possibility of conflicts occurring. Besides, motivated outfitters will offer exceptional customer service thereby facilitating customer satisfaction and in turn enhancing customer loyalty. Change is important for the success of Cabela.
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Cabela. (2014). Company History. Retrieved November 13, 2017, from Cabela's: http://www.cabelas.com/content.jsp?pageName=CompanyHistory
Cabela. (2015). Diversity and Inclusion. Retrieved November 13, 2017, from Cabela's: http://www.cabelas.com/custserv/custserv.jsp?pageName=diversityinclusion#diversity-tab1
Jones, G. R. (2013). Organizational Theory, Design and Change (7th Edition ed.). Boston: Pearson Education Limited.
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