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In order to have a socially responsible organisation, business leaders often uses power over their subordinates. It can be said that organisational change is one of the vital factor in organisational success and failure. As revealed in the paper of Conner (1994), there are major changes occurring in various organisations today. Possibly the gap between the new organisational plan and employing it into veracity is the whole exposure of organisational transformation and growth. People are known to be adaptive to change. Though, optimistic skills must be there from the controllers of transformation or managers so as to fruitfully apply their planned progress. Thus, CEO or managers need to have the essential abilities not only in identifying the sections of the organisation that needs transformation but also on how to efficiently introduce those changes throughout the members of the organisation. According to Saka, (2003),
"Change consists of a series of closer and closer approximation of increasingly ambiguous goals which are embraced by more and more members of the organisation. For this reason, change often seems endless and confusing. Often those involved in the change process feel overwhelmed and powerless.(p. 1)"
How can change be managed in order to avoid people feeling overwhelmed and powerless? Diefenbach, (2007) argued that in any organisation resistance to change was always strong. In the same manner and in any given organisation, the CEO must efficiently impose the changes in a way that will not cause trouble or negatively distress the performance of people. In accordance to the statement of Essers, Bohm, & Contu, (2009) in which other cultures and organisations seek to preserve traditional behaviour and actively resist change, this paper will be discussing relevant issues about managing change in a famous toy company -Toys R Us. As the new CEO of the company and in accordance to the critical moment that Toys R Us facing, this paper discusses the issues pertaining change management and change strategy, organisational structure, major operational processes and culture.
Change management is a procedure in which all organisations went. This is a crucial method considering that it lets the organisation to decide if it is advantageous or not. As the new CEO, I do believe that organisations like Toys R Us that are considering change are generally more victorious compare to organisation that refuse to accept it.
Because of the problems and the target returns was not met by this company, I as the new CEO, may decide to develop a plan in concerning change of management. As part of my actions as CEO, I may employ change management for facilities, maintenance unit, human resource management and manufacturing process considering that one of my major objective was to enhance their target market. And with this, I may consider venturing to offshore manufacturing and to satisfy clients.
But before I made such action, I should consider first that reactions of stakeholders of Toys R Us. I as new CEO should be aware of the culture of the company. I should respect the Toys R Us history.
Actually, I know that I don't need to use too autocratic, threatening, coercive leadership even though I wanted my people to follow my way without getting people involved. As the new CEO, my leadership skills are important for the company. The title of being chief executive officer can be utilised by any individual however possessing the title does not automatically makes a person a leader in a true sense. According to Haddock & Manning (1995) being a true leader must be obtained through inspiring and motivating people to give their best and a successful leader commits herself to her organisation or group and nurtures the same kind of commitment to its members. In addition, according to Haddock & Manning (1995), a successful leader has the following traits:
Knows job and field thoroughly.
Stays on top of current development, trends, and theories.
Knows her people, including their strengths, weaknesses, hopes, and goals.
Shares a vision of service, excellence, ethics, and achievement with others.
Demonstrates by words and actions strengths of character and integrity.
From these traits presented by Haddock & Manning (1995), I should carefully evaluate myself and made the possible changes to become a successful CEO in Toys R Us. Basically, the concept of management of change or change management can be described as a structured approach to individual, team, organisation and society transitions that move the target from a current state to a desired state (Change Management, 2010).
Change management in Toys R Us or in any firm is a process for managing the people-side of change. Basically, it is the integration and adaptation of a new business model into an organisation to transform the organisational relationships with all its constituents (Change Management, 2010). It is important that the management asses the current condition of the employees in order to identify the changes that the organisation needs. It is also important to estimate the effect of management change on the employee behaviour patterns, work processes, technological requirements and motivation. Management of change must be continuously monitored for effectiveness and must be implemented throughout the organisation and must be adjusted in order achieve the desired goals (Nickols, 2006).
According to Randall, J (2004), "the Management of Change is a subject that is destined to be with us for many years to come, while people adjust to a world of work that is likely to be more fragmented than previous generations had come to expect". The claim that change at work can be managed is not a new position. The history of industrialisation offers myriad examples of organisations evolving in all sectors. New technologies have always driven the search for new applications, which in turn provide the competitive advantage to those who first implement them. Into that world of change came initiators, inventors and managers of change who offered business owners new ways of implementing such competitive advantage. Different organisations all over the world and not only Toys R Us are seeking to improve production and to enhance their competitiveness in the global market. Management of change plays an important role in achieving the company's goals. There are strategies and techniques that various organisations employ in order to increase the employee's productivity and achieve growth. Objectives can be achieved through the people inside the organisation. Management change aims to improve and develop organisational performance. Management change is a process of working on the employee's interpersonal skills as well as the management and consultancy skills. According to Cox & Makin (2004), "before the start of any organisational change programme it is usually necessary to undertake some 'awareness raising' activities". The employees' input in the decision-making is important. The management should inform the employees about the change management plan that the company will implement. The management should gather feedbacks in order to assess the effectiveness of the procedure. The management should always be ready to improve the method when necessary.
The Change Process
Managing change is seen as moving from a problem state to a solved state. It is a process of solving problems in the organisation. It is essential to diagnose or analyse the problem in order to create changes that will solve it effectively. The management should carefully plan the steps in management change and should endeavour to obtain support and commitment all throughout the organisation. Problems in the organisation are situations that require actions.
The Change Problem and Actions
The change problem is a matter of moving from one state to another. Moving from one state to another is a result of setting up and achieving three goal types: transform, reduce and apply. The transform goals are concerned with determining the two states' differences. Reduce goals on the other hand are concerned with solving and eliminating these problems. Apply goals are concerned with the implementation of the solution to eliminate the differences between the two states. The change problem focuses on defining the outcomes of the change effort, identification of necessary changes that will produce the desired outcome and finding and implementing ways and means of making the required changes. The approach in management change mirrors the company's mindset. The position of an employee in the organisation defines the scope of change that he will be involved in and the nature of change that he will be concerned. When management change is needed, all people inside the organisation must be concerned with the transform, reduce and apply goals to make the changes effective and successful.
Actually, it is important that the company, Toys R Us or for me as the CEO of Toys R Us to listen to the employees' opinions about change. The employees, managers, CEO and company owners should understand how each one feels about change. The management should evaluate which change is important and needed. It will be of great benefit if the management implements big simple changes that will address the issues inside the organisation. It is of great importance that the company considers the employees and listen their feedbacks regarding change. The company should make changes that will benefit the entire organisation. The employees as part of stakeholders must be introduced to different technologies and methods that will improve their productivity and ease of work. Management of change requires a clear sense of mission and purpose. These purpose and goals will determine the changes that the company requires. It is important that the people in the organisation know their roles and understand the management change completely. Keep communication barriers low. Allow people to talk and express their feelings about change.
Aside from considering change management effect, corporate leadership in accordance to CEO's power must be assessed considering that it focuses on the techniques and expertise of efficient organisation, planning, direction, and control of the operations of a business. With the current and continuously altering global business environment, Toys R Us must be aggressive and do everything it can to oppose any risk from its opponents. Having an excellent leader offers the organisation some advantage in battling in the global business setting. Toys R Us may consider strategic alliances to achieve plus over their competitors and for both organisation to obtain gains from each other. These strategic alliances will not become victorious if there is no leadership. Leadership offers significant stuff to an organisation. It is a vital aspect that contributes to the progress of an organisation. Even though leadership may be rooted from the heart of intellectual assets, realistic relevance is also very important for the victory of the organisation and for them to be ready for action in the global business environment.
In the same manner and in Toys R Us, I as the CEO must effectively consider the intended changes in a way that will not disturb or pessimistically influence the performance of people. Among the practical and applicable mechanisms that can be utilised are the following:
Planned implementation - Nothing in this world is ever predictable. Everything seems to follow a law of its own. Planning plays a very important role in implementing change (Smith, 2003). It is basic to think that every change that needs to be implemented is planned. Planning is generally recognised as the procedure of formulating in advance as organised actions or deed. While it is correct that individuals do not always map their actions, it is intrinsic for every organisation to plan. Though, whether dealing with the circumstance by which planning is happening, may it be on the individual or organisational level, the course takes shape based on the current beliefs, attitudes, and goals that are engaged. Planned change is more often than not triggered by the disappointment of people to produce incessantly adaptive organisations (Dunphy 1996).
In planning and managing change, Nickols (2006) provides a very useful framework for thinking about the change process, one which is anchored on problem solving. Solving problems through the use of changes must be deliberate. Cautious planning came with efforts to obtain buy-in, support, and promise. The mesh result is a change from one state to another, in a designed, orderly manner. Planning is the primary and perhaps the most fundamental means in implementing change within organisation.
Gradual Integration - Change does not always take immediate effect not unless acted upon in a way that is directed by the manager and the immediacy of action. The manager must possess all the necessary skills that will eventually facilitate the integration of change. According to Carr, & Hancock, (2006), being a change leader or the manager as the case may be, requires willingness and ability to transform what is traditional just as much as the ability to do innovative and different things. Carr, & Hancock, (2006) sees leaders as the essential resource for an organisation in addition to the key aspect for a economic growth and supply, which is important to the continued existence and further development of any organisations. Thus, a strong link is acknowledged between a leader's efficiency and organisation performance. It has been distinguished that leaders are the essential and very important control behind the recognition of problem, in search of answer, or supervision of change in order for the organisation to grow and arrive at flourishing progress in its organisation's strategy. Such success is very much dependent upon their attitudes, behaviours, and commitment with their specific responsibilities.
Gradual integration is done in a progressive manner. The manger must be aware with the step-by-step method that will give the organisation and its people who are affected a chance to adjust their selves to the prevailing circumstances of the change being implemented. It is extremely suggested that stable consideration and incessant appraisal is done.
Motivation - The role of motivation is expected to every organisational purpose. With respect to managing change, motivating people that are affected by the transformation realised is ways that will supplement or strengthen the present situation. Motivation may modify with changes in social, personal, or other factors in the working situation (Almaraz, 1994). Thus, in implementing new policies or standards as a result of change within the limits of the organisation, there is also a need to redefine the motivation process among the employees. It is a known fact that motivation affects behaviour rather than performance (Essers, Bohm, & Contu, 2009 and Almaraz, 1994). But still, as a by-product of effective motivation, perception and acceptance of the change is easier and problem-free.
For the organisation to maximise its human assets, they should manage the employees' working state with intellect and competence (Euwema, Wendt, & Emmerik, 2007). They must be permitted to be involved in assembly work-related judgments to further improve the organisational formation (Bryson, 2008). McGuire, & Hutchings, (2006) stated that correctly functional and effective employee contribution boosts output as sustained by observed literature. Similarly, Campeanu-Sonea, Borza, Sonea, & Mitra, (2010) stressed the significance of high work life excellence through first-class supervision, working surroundings, pay and benefits as well as exigent and satisfying jobs. With the attendance of stable drive, the balance of performance and change basically exists.
For instance, the task to change the culture in order to ensure the promotion and needed integration involves changing people to find unity in apparent chaos (Almaraz, 1994). Leadership and commitment of the members with the organisation to ensure loyalty should be inculcated and maintained among its people.
Coordination - Most of the flourishing business practices depend to a great extent on excellent interpersonal communication and association among the people and the whole organisation. Enclosed with a common objective, the organisation of change must be coordinated with the instantaneous beneficiaries or individuals that are openly affected. Explaining the purpose of change is necessary. Communication is the most effective means that the management can utilise. Gaining the trust of the workforce and maintaining a harmonious professional relationship is very important to an ideal flow of organisational operations. However, these will become waste if problems and difficulties brought about by negligence and attached with the dissimilarities between owners and workforce arise in the course.
Supervision of the information and communication that the organisation utilises in its day after day procedures is essential in any organisation. Information is the main hub of every business organisation on which every personnel, worker and administrator work on. It is used in order to meet up the demands of the customers and patrons of the business. This is the motive why there must be suitable communication and information administration stream inside the business organisation.
From this we may say that transformation is usually expressed to the ultimate improvement of the organisation - both its processes and functions. The Model of Continuous Improvement suggests a guide on how to efficiently administer an organisation particularly those functioning in the international atmosphere. It emphasises the association between the gears or sources of a certain organisation with with the individuals operational and the schemes that are utilised. The above signifies on how to administer change is included in the mould. The culture concept, commitment and communication is given value in generally and incessant development of an organisation. These notions should be first encouraged and erudite by the organisation members so as to make sure the optimistic results and get rid of the unconstructive aspects that may be dangerous in the success of the organisation's distinct objective.
In conclusion, as Toys R Us change, its culture is affected. The need for altering the behavior and attitudes of employees' is essential so that they fit into the transformation procedure. Flourishing contemporary transformation programs show that this is likely to happen because it is significant to have a high-quality poise amid employees' and the organisation's goals and needs. Therefore, Toys R US and the CEO should realise that it exists in a society with rapid change, continuous, and that its internal culture, workforce, and structure may in a near future be different much from what it is today. It should continuously stay attentive. Specifically, if the water gets too agitated, it should come out - not let it to be lulled to slumber.
As discussed, the information of the essential sources of competitive pressure highlights the important regions where strategic changes will lead the furthermost return, and highlights the areas where marketing trends assure to grasp the furthermost significance as either opportunities or threats. Perceptive these sources will also establish to be helpful in considering areas for diversification, though the main hub is on approach in the industry. In accordance to the discussed issues in this paper, the context of change management alone is not only the necessary factor to achieve competitive advantage. There are other factors such as social responsibility, use of power and leadership that also needing considerations.