Change Management in Wesfarmers: Internal and External Factors

This study focuses on the change management process in Wesfarmers, a large retail organization in Australia. The study discusses the internal and external factors associated with change management and how Wesfarmers has implemented a horizontal communication system to improve communication and productivity. The study also highlights the importance of technological innovation in achieving competency and improving performance.

Running head: CHANGE MANGEMENT
Change Management
Name of the Student:
Name of the University:
Author’s Note:

2CHANGE MANGEMENT
Change management is an approach to improve the existing system of the organization
by using technological innovation or incorporating new rules or policy in an organization
(Tukker 2017). However, it is important for an organization to understand the effect of the
change on the organization. Change may leave positive or negative effect on the organization. It
is important for the organization to consider various factors while implementing change in
organization. This study deals with the internal and external change in the context of
Wesfarmers. The factors of internal and external changes will be considered in this assignment to
understand the change management process in this organization.
Changes include both internal and external changes in an organization. Internal changes
focus on the employee development, implementation of communication strategy, improvement
of the internal system, changes on the organizational culture and leadership style (Doppelt 2017).
However, external changes include sustainability strategy, contractual change with the external
stakeholders and operation growth. In the recent years every business organizations are focusing
on implementing both internal and external changes in an organization. As for example,
Wesfarmers has transformed their vertical communication strategy to horizontal communication
strategy. This is an internal change of this organization. Wesfarmers is large retail organization
in Australia. They have various stores across Australia and they operate in the global retail
industry. Previously this organization followed vertical communication through which the
information is shared between the subordinates and the supervisors (Wesfarmers.com 2018).
This creates often misunderstanding between the individuals. However, this communication
process is the delay process and often affects the policy. Therefore, downward direction of the
vertical communication hampers the flow of the workers. In order to deal with these challenges
Wesfarmers has decided to implement horizontal communication system.

3CHANGE MANGEMENT
As commented by Doppelt (2017), horizontal communication system focuses on the
transmission of the information between the individuals, departments and divisions. This
communication process is effective to reduce the misunderstanding between the departments
while working together and make the employees effective along with increasing the productivity.
As asserted by Dwyer (2012), communication is a vital part of the change management process
and the communication is affected by the globalization. In the recent years, every business needs
to communicate with the people inside to improve the organizational performance. Hence, the
new communication strategy is a big internal change of Wesfarmers.
Several factors are associated with the internal change of an organization. One of the vital
internal factors is the technological capacity of an organization. In order to achieve the
competency level and to improve the performance technological innovation is crucial (Tukker
2017). As for example, Wesfarmers is going to implement horizontal communication system to
improve the communication level between the employees and the hierarchy. Use of ICT or
information communication technology will be helpful for this organization to improve their
communication level between the individuals. ICT helps this organization to increase the
information sharing process between the individuals and the hierarchy. It has been addressed that
technology is vital internal agent of the change management in an organization. For a fast change
management it is crucial to consider the emerging technology as it allows an organization to
carry out an error free change management process.

4CHANGE MANGEMENT
References
Dwyer, J., 2012. Communication for Business and the Professions: Strategie s and Skills.
Pearson Higher Education AU.
Wesfarmers.com. 2018. Wesfarmers. [online] Available at: http://wesfarmers.com [Accessed 21
May 2018].
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Tukker, A., 2017. Conclusions: change management for sustainable consumption and
production. System Innovation for Sustainability 1: Perspectives on Radical Changes to
Sustainable Consumption and Production, p.406.