Issues in Change Management

HRM

Change Management for WalMart

The commercial environment in which firms compete is forever changing. Internal and external forces stimulate a need for change; firms that fail to change and adapt are likely to stagnate and suffer as a result of their resistance to change. The aim of this paper is to look at an organization which needs to change, considering what change is needed, the lifecycle of change, including consideration of continuous and discontinuous change, and different types of change agents.

The Need for Change at WalMart

WalMart is the largest retailer in the U.S.; it is also the largest private employer with an estimated 1.3 million employees (Workplacefairness.org, 2014). The firm places a high level of reliance in the employees, but despite this the firm appears to have ongoing problems with its employee relations; the firm is regularly accused of discrimination, excessively low wages, and unfair practices (Halkias, 2014; RT.com, 2014). The problems are not new; the problems have been ongoing for many years, indicating a need for change within the organization and the way they engage with employees. To consider now the change should be designed and implemented it is necessary to look at the cycle of change.

The Cycle of Change

There is a pattern to the way successful changes take place within organizations. Several models have been developed to describe the process or cycle of change. Looking at all the models below, it becomes apparent there is a general pattern of preparation, implementation and then monitoring and support.

Lewin's (1951) change model is old, but is still widely cited. This model has three stages, the preparation of the change during which the plans are made and employees support should be gained, the implementation of the change, and finally entrenching the change (Lewin, 1951).

Kotter (1996) developed an 8 stage model, the stages are self explanatory. The stages are, firstly, the creation of a sense of urgency, forming a powerful coalition, the creation of a vision and strategy, and the communication to share the vision (Kotter, 1996). This will be followed by the removal of obstacles, creating some sort term wins, building on the change and then anchoring the change in the organizational culture (Kotter, 1996). The first stages of preparation and communication relate to Lewin's preparation stage, the middle stages to the actual change and the last two are the equivalent of entrenching the change.

The next consideration is the way in which the change occurs, there are two main typos of change; continuous and discontinuous.

Continuous Change

Continuous change may also be called evolutionary change or incremental change (Buchanan & Huczynski, 2010). These types of changes take place gradually, and may evolve naturally. Continuous change may take place in small steps, and face less resistance due to its gradual nature, it is also the type of change that may facilitate ongoing change, such as programs where there is the aim of constant improvements being sought (Buchanan & Huczynski, 2010). This would involve making small changes so they became part of the culture, but the results may take a long time to be realized.

Discontinuous Change

Discontinuous change may also be called revolutionary change or transformational change (Buchanan & Huczynski, 2010). Discontinuous changes are major changes that have a significant impact on the employees (Buchanan & Huczynski, 2010). Nadler, Shaw, & Walton (2004), state that this type of change can be traumatic and painful for a firm. The change may be sudden and there may be a higher level of fear regarding the change that may result in higher levels of resistance compared to continuous change, and more employee support will be needed if the change is to be efficient and effective (Nadler et al., 2004). An advantage is that discontinuous change may facilitate more rapid change, which is needed at WalMart.

Change Agents

Caldwell (2003) developed four classifications of change agents, these included leaders, management, change teams and consultants. Two of the main change agents are the leadership and the employees, one of which may influence through the formal channels of communication, and the other through the informal channels.