1COUNTDOWN SUPERMARKETS Executive Summary The aim of this paper is to apply the learnings of the course work in a single assessment. The purpose is to contribute in the operational context to innovate and organizational change within a business entity. The selected business unit for this work is the Countdown supermarkets. The assessment applies problem solving strategies along with the decision making for efficient and effectiveperformanceoftheorganization.Thepaperalsoembodiesthedesignthinking methodologies along with the stakeholder’s collaboration for innovation and change.
2COUNTDOWN SUPERMARKETS Introduction In an organization, innovation is required, so is the management of change. In the highly competitive industry, it becomes necessary for the organizations to stay sustainable in the market. The innovation process is extremely helpful in this regards but requires a suitable design to execute it successfully(Tukker et al., 2017). The present report will show the aspects of innovation, organizational culture, human resource management through the chosen organization that is Countdown Supermarkets. TASK 1- Innovation Management & Human Resource Management 1.1 a)The name of the organization is Countdown Supermarkets. It is a retail store and a subsidiary of Woolworths. The company was founded in the year 1981 and the headquarter of the company is located in Auckland, New Zealand. There are 184 locations where the company has its branches and it is mainly the grocery stores. There are almost 18,000 or more people who are connected with the Countdown Supermarkets. As far as the key people of the company is concerned, Natalie David is the Managing director of the company(Countdown.co.nz. 2019). It has been considered to be one of the largest supermarket chains in New Zealand. The stores are primarily divided into almost 10 areas and each area has a group manager or the area manager. The operation of the ar4sa are supported by the National Operations Managers.The company also provides the online grocery products to the people of New
3COUNTDOWN SUPERMARKETS Zealand. The supplies are conducted on daily basis to four of its most active distribution centers such as the Wiri, Palmerston North, Christchurch and Auckland.The biggest competitor of Countdown Supermarkets is Foodstuffs Limited(Countdown.co.nz. 2019). The current slogan of the company is “Shop Smarter” that was introduce in the year 2009. The firm is seen to have high CSR values as it is involved in many charity programs along with having an effective branding. b)The Countdown Supermarkets has concentrated on the innovation in the process. It has recently aimed at producing the zero waste. It has started adopting the no packaging. It is also seen that the supermarket is highly active towards reducing the 40 % of daily garbage that is equivalent to 7000,000 tons of trash piled up of the left over package(Countdown.co.nz. 2019). The environmental sustainability has become one of the most serious concerns for the ordinary mass as well as the business organizations.The company can take up innovative measures to reduce the carbon footprint and save the expenses too. c)In the current scenario, the business organizations have become highly aware of the environment management techniques through the strategy of going green. Since, the corporate world is also going green, the business organizations are also experiencing huge shift from the traditional way towards the contemporary economy that explores the green economic facets of the business. The green human resource management is a unique business strategy for a healthy workforce and also a healthy environment. The waste reduction strategy adopted by the Countdown Supermarkets will open innovative opportunities for the business in terms of increasing the sustainability and establishing a workforce which understands and appreciates the green culture in the organization(Countdown.co.nz. 2019).
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4COUNTDOWN SUPERMARKETS 1) The Countdown Supermarket will leave least ecological footprints apart from dealing with the economic issues. It will help the organization to facilitate the attainment of the investors and shareholders. The HRM of the organization is the most responsible in this regard. Notably, it is evident that the employees are satisfied and committed to the organizations which is proactive towards endorsing the green around. It will lead the company towards environmental sustainability for a long period of time. 2) Also, it will establish a healthy organizational culture driven towards the betterment of the society and the world at large. The Green Human Resource Management will help to boots up the morale of the employees and increase their satisfaction too. The employees will understand the vision and mission of the company and feel a kind of belongingness towards them (Carayannis,Sindakis & Walter, 2015).. They will feel motivated by the corporate structure of the organization and given their best for the overall benefit of the company. The human resource policies aligned to the aim of waste reduction will support the employee management and their engagement. d)The first strategy will involve the two processes such as defining the message and involving the customers. The second strategy will involve the training of the employees of the organization and using the benefits-cost analysis tool for screen thee evaluation of the innovative change in the organization(Basile & Faraci,2015). 1) The company should not strike blindly to the different goals. It must come up with reasons and align to the culture of the business, find out the type of support they will require and then select it and stick to it. The involvement of the customers will help the organization to come up with a list of options and ask the customers to vote on which innovation they wat the most
5COUNTDOWN SUPERMARKETS (Teece, Peteraf & Leih, 2016). The assistance of the customers will create a long term bond with them and at the same time tailor their products and services as per their needs. 2) The training system will provide the employees the correct information and skills required foe being aligned to the innovation process the company is contemplating to incorporate into the operations. The screening of the benefit –cost analysis will help to measure the rates of benefit the company will experience after adopting the waste reduction strategy. The employees will know how they must behave and perform in order to make the innovation a successful one. The training will make them understand the importance of environmental sustainability. This tool is useful for evaluating the net benefits of the decisions made by the organization. e)The innovation brought about by the company will help the company to grow financially and socially. 1)The more efficient use of the products will reduce the expense of purchasing new materials. The unpacked aspect of the products helps to reduce the plastic pollution. 2) It will help to improve the work efficiencies through the accurate and detailed design that is focused on the reduction of rework, compensation for the loss and other issues. The company can actualize this aim by using the gravity dispensers line up on the walls of the supermarket. This technique will enable the customers purchase the exact amount they need. 3) It will attain more satisfaction of the customers in order to enhance the image and reputation of the company. The Countdown supermarkets can request the customers to bring their own containers from home that can easily reduce the wastage of products. The unpacked aspect of the products helps to reduce the plastic pollution(Edvardsson et al., 2018). The companyshouldalsoaimatsellingthepureingredientsfood.Theconsumersandthe
6COUNTDOWN SUPERMARKETS shareholderswill want to be connectedwith the company more and share a long term relationship in this way. Task 2- Design Thinking Framework 2.1 The concept of design thinking The design thinking is the methodology that helps to deliver a business strategy and lead towards success. The design thinking process is the most suitable for the software development projects. It is considered to be the core of a particular organization’s organizational change, the innovation strategy, the HRM functions and many others. The design thinking frameworks help to arrive at a particular objective through a collaborative thinking processes. The design thinking isaspecifichuman–centeredapproachtowardsintegratinginnovationthatsatisfiesthe requirements of people, for success, the possibilities of technology and many others(Barbosa, Romero & Cunha, 2018). It can even change the way an organization serves, offers products, processes and the strategies. The DT framework covers five levels of journey such as empathize, define, ideate, prototype and test.
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7COUNTDOWN SUPERMARKETS Image 1- Design thinking process Source -(Barbosa, Romero & Cunha, 2018) The design thinking framework of Idea Couture combine the future thinking with the design thinking and applies that particular methodology to achieve a business strategy for the customer experience of innovation. It also combines the system thinking along with the business strategy.
8COUNTDOWN SUPERMARKETS Image 2- Design thinking framework Source -(Pugh, 2016) As a whole, it can be said that design thinking facilitates the organizational innovation and change. The human centered innovation starts with the development of a clear understanding of the desires of the customers and their unarticulated needs. The most unique source of innovative ideas which can gain the competitive advantage, higher margins can be known by the design thinking frameworks(Pugh, 2016). The best advantage of the design thinking is that it helps to reduce the risk of innovation process through the help of prototypes and customer engagement The desi thinkers are relied on the customer insights and not only on the market research and historical data. 2.2 five stages of design thinking for organizational innovation
9COUNTDOWN SUPERMARKETS In an organization, the regular innovation process consists of the four stages such as ideate, define, design and develop. The stages are synced with each other for a successful innovation in the organization. The design thinking process on the other had comprises of five stages.TheCountdownSupermarketmustfollowthistechniqueforbringinginnovation successfully. This particular process helps to bring out better choices and ideas and it is up to the organization which one will it select and implement. In the first stage the Countdown Supermarket will listen to the requirements of the customersregardingtheparticularissue of environmentalsustainabilityandwaste reduction process. This specific approach will help to save the learnings and discoveries ins a disciplined way similar to the empathy maps. In the defining stage, the company is supposed to combine all the collected insights and opinions after listening to the customers and observing their requirements. The definition of the problems is extremely essential. This stage of the design thinking frames out the problem clearly for which the solution is required. It will help the company to explore the opportunities. The problem definition in the case of Countdown Supermarket will supposedly be the environmental impacts of the operations. In the ideating stage the company will search for the methods to resolve the problems identified. It will give space to spurring ideas. The company will then ideate or brainstorm. The design thinking emphasizes on the transformation of an idea into a concept. This strategy will help the company to encourage the team work and promote the multi-disciplinary team that helps to bring better outcomes. The company will then shortlist the best idea from among the list and leave the rest.
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10COUNTDOWN SUPERMARKETS The stage of prototyping is highly important as in this stage the solutions are brought into the vision of the organization. In this stage, there are various methods which are involved such as the rapid prototyping, sketching and many others. However, the scholars suggest to follow a speedy, simple and economical method while dealing with this stage. In this context, a prototype can be converted into a kind of beta product or a minimal viable product. The testing stage is the stage where the responses of the customers are known towards the innovation adopted by the company. In the case of Countdown Supermarkets, the new process of package less container systems will be evaluated by taking the reviews of the customers directly or indirectly. This is an important sage and must not be skipped. 2.3 The change management models After much research, it can be said that two model are the most suitable in the context of Countdown Supermarket.The change management models help to instruct how to manage the change to be implemented in the organization. Since the Countdown Supermarkets is focused at reducing their operational impacts on the environment, it is proposed that they use the gravity dispensers lined up on the walls of the supermarket. This technique will enable the customers purchase the exact amount they need. It will attain more satisfaction of the customers in order to enhance the image and reputation of the company. The Countdown supermarkets can request the customers to bring their own containers from home that can easily reduce the wastage of products. The unpacked aspect of the products helps to reduce the plastic pollution. The companyshouldalsoaimatsellingthepureingredientsfood.Theconsumersandthe shareholderswill want to be connectedwith the company more and share a long term relationship in this way.
11COUNTDOWN SUPERMARKETS The change management of Kurt Lewin The change management model developed by Kurt Lewin states that there are three stages of managing the change. The stages are unfreezing, change and freezing. The unfreezing stag is mainly the preparation of change. This models will help the company to understand how to communicate to the employees about the change. It also teaches to challenge the existing traditional practices of the company along with the pre-conceived culture and values. Previously the organization was aimed at gaining the topmost position in the entire New Zealand in terms of revenues, size and popularity. Hence m the operations of the company was tailored to that. Later, when the values of the company have become modified incorporating the environmental concerns, the operations also must be according to that.The unfreezing stage is the most difficult as it covers the challenging sections.In the changing stage, the company should make the employees adopt the change implemented. It can bring problems which needs to be handled smoothly. In the last sage that is the Freezing stage, the employees are acclimated to unknown business processes and they are provided with new duties and expectations. The proper support must be provided along with the training programs for better outcomes.
12COUNTDOWN SUPERMARKETS Image 3- Change management model Source -(Kagermann, 2015). Kotter’s 8-step change model The eight steps change model of Kotter is useful for the implementation and management of change. The eight bas steps are as follows- 1.The company should firstly create a sense of urgency in order to recognize a big opportunity and spark excitement among the employees. 2.In the second step, the company will build a guiding coalition. It will establish an internal team to manage the transformation. The team is supposed to guide, communicate and coordinate in the organization as a whole(Carayannis, Sindakis & Walter, 2015). 3.It will then form the strategic vision and take initiative to stand up on the expectations. 4.Next, the company will enlist the volunteers for supporting the change. It will provide tasks to the volunteers in a way that will contribute to the success of the company. 5.The Countdown Supermarkets will then enable the actions by removing the barriers. It should remove the barriers through the coalition(Kagermann, 2015). 6.Then it must generate the short term wins. The focus on the long term wins must not disrupt the short term activities or the daily operations. 7.Themaintenanceofthebalancebetweenthechangeleadershipandthechange management is highly important. The leadership of change should consist of motivating, directing and aligning the staffs to their capabilities and strengths. 8.The communication transparency is another impotent aspect of the implementation of change. It will help to keep the employees on track.
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13COUNTDOWN SUPERMARKETS Image 4- Change management model Source -(Edvardsson et al., 2018) 2.4 Advantages and disadvantages Advantages-The organizational change leaves its effect on the entire organization and the stakeholders. The management of change involves all the people of the organization and at the same time takes care of their individual interests. While implementing a change or managing the change, it is mandatory to know the interests of the import stakeholders(Teece, Peteraf & Leih, 2016). When the interests of the stakeholders are not known, it is likely that the company keeps hovering around inconsequential factors and spending time and money on the wrong aspects. The design thinking frameworks, the prototype and the ideas help to learn about new opportunities and probable barriers to achieve the success. Notably, the stakeholders and the stakeholders’ groups are necessary to come into contact with each other(Edvardsson et al., 2018). The prototyping part in the design thinking process helps to welcome the new ideas of the stakeholdersandsubsequentlytheirintereststoo.Seenfromtheperspectivesofchange
14COUNTDOWN SUPERMARKETS management,the knowledge of the interestsof the stakeholdershelps to minimize their resistance while implementing change. Disadvantage - The problem with design thinking arises when there is a huge innovation program and large changes are to be made. The contrasting systems and practices of the business continues to be the blocks to the progress.The design thinking process is a master process of visualizing the ideas but that is just a part of the innovation. The entire process is successful only when it creates actual value, and they work in the marketplace too. 2.5 Benefit of organizational change in Countdown The Countdown Supermarkets will be benefitted in so many ways if the proposed change is implemented in the organization. The proposed change will help the business to run as environmentally friendly and reduce the impact on the environment. The reduction in the usage of plastic packages will support a greener society. It will also reduce the unwanted expenses the company used to bear previously. Hence it will save their money too which they can invest on something more important. Task 3 Innovation and Organizational Change 3.1 Two Contextual factors 1) Thee first contextual factor that influences the response of the employees towards change in the workplace is their understanding of the purpose and importance of the change process. It depends on how well the employees understand the reasons behind the change. It is true that human beings are born with some innate abilities to understand the situation going around(Doppelt, 2017). When people do not understand what is happening, why is it happening
15COUNTDOWN SUPERMARKETS and what good will it do, an anxious air prevails. The Countdown Supermarkets will have to understand that before implementing any change. 2) The second contextual factor that leaves impact on the response of the employees towards change in the workplace is the organizational climate and organizational relationships. A good bonding between the employees and the executives helps to bring openness and acceptance. Good relationships do reduce the stress and the aftermaths. It creates resilience in the workforce. The transition and the adversity is handled smoothly when good relationships are shared among all. The organization must acknowledge that and support it in their work culture. 3.2 Two reasons for resistance 1)The first reason for which the employees resist the change implemented in the workplace is the faulty implementation approach. It is sometime not the change that initiates resistancebuttheimplementationapproachitself(Ohetal.,2016).Thechangethatis implemented in an insensitive manner leaves the employees infuriated. Hence, the Countdown Supermarkets needs thoughtful implementation approach for making the change a successful one. 2) The second reason is the pressure from the peers. Man is a social creature, no matter whether he is introvert or extrovert. The organizational stakeholders create resistance in order to protect the desires and interests of a particular group. The influence of the co –workers and the other people around is contributory in resisting a particular change. Hence, the Countdown supermarkets needs to ensure that the change does not hurt the personal interests and the threatens the social bonds at the workplace. 3.3 Two processes to manage the resistance to change
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16COUNTDOWN SUPERMARKETS 1)The Countdown supermarket can easily manage the resistance to change by effectively engaging the employees. They must take the reviews and feedbacks from the employees in order to ensure that they are happy with the change(Roth, Schneckenberg & Tsai, 2015).They employees must be asked questions regarding whether the change is at all working or not. They must also be asked for the advice on how to improve the existing condition. 2) The organization can also manage the resistance to change by communicating the change effectively.They can in a way explicitly tell the employees about what is going on and why is it necessary for the organization. They must also communicate to them what benefits the change is going to bring in their lives and the organization as a whole. 3.4 Positive and Negative of organizational change processes on the employees Positive- The successful implementation of an actually useful change in the organization can facilitate the employees to enhance their confidence level. The organizational change when receives positive perceptions of the employees, a smooth way for future changes are paved (Teece, Peteraf & Leih, 2016). It instills the confidence of the employees on the ability of the management in terms of leading good decisions for the betterment of the organization.It also makes the day-to day decisions easy. Negative – While implementing he change; the Countdown supermarkets might face the negative impacts on the employees among which the loss of loyalty is most important. When the change is not completely accepted by the employees, they might break their loyalty towards the company that is often resentful(Pugh, 2016). The organizational change when not implemented properly can initiate the employee turnovers. 3.5 Two strategies to engage the employees in the organizational change process
17COUNTDOWN SUPERMARKETS 1) Since employee involvement is the key to change management, the Countdown Supermarket must engage their employees as much as possible. They must create a plan with the changedepartment/team.Itmustdevelopastrategyafterestablishingthevisionand communicate to the members regarding how to get there. It should understand the stakeholders and also the skills required in the change process. 2)Leadership is also a crucial factor in the employee engagement while managing the change. The leaders of the organizational change must be a role model to be followed by the subordinates(Bedford, 2015).He must be aware of how to stay committed to the success of change. It can be done by moving the barriers, ensuring the learning, providing the resources, supporting employees by change, partnering with the stakeholders and others. It helps to manage the resistance to change and facilitates the employee engagement. 3.6 The two organizational change requirements 1) The first organizational change requirement was to meet the needs of the employees. The aim of the organization is to develop products and serve them in such a way that pleases the employeesandtheygainthecompetitiveadvantageoverthemarketrivals(Basile& Faraci,2015). After the evaluation of the change in the suppliers of the products who served fresh products, it can be said that the Countdown Supermarket has properly followed the design thinking framework steps. It has listened to the customers, defined the problem, ideated how to resolve the problem, prototyped the action and tested the results which were surprisingly better. 2)Thesecondorganizationalchangerequirementwastocompetewiththe technologically advanced atmosphere. They identified the use of modern technologies in order to perform more efficiently in the market which were cost-friendly too. It has been found that they
18COUNTDOWN SUPERMARKETS used manual billing machines but later they started using the automated billing machines which resulted in effortless and errorless calculations(Bedford, 2015). As seen from the perspectives of the design thinking framework, the company was aligned to the steps of design thinking, 3.7 Two contribution of the employees 1)Theemployeescanpromoteaninnovativeenvironmentintheworkplaceby developing a learning culture among themselves(Basile & Faraci,2015). They can help promote and plan the innovation by sharing their ideas and views in front of their supervisors that can do better for the organization. 2) The employees can also contribute indirectly by staying calm at the transformation and change implemented in the organization. They should not create an aura of anxiety and resist the change that is going to happen for the betterment of the organization. 3.8 Two contribution of the management 1) On the other hand, the management of the organization can also contribute in creating a conducive culture to innovation and creativity(Barbosa, Romero & Cunha, 2018). They should develop a clear sense of direction.The clear sense and communication of the targets will help the organization to speed up the journey to innovation. 2) The management of the organization should also continue the recognition of the talents and the rewards systems. The rewards can be in any form both in the financial or the non- financial forms(Amis, 2018). When the rewards systems are tied to the innovation process, it automatically establishes a work culture full of motivations, innovation and creativity. Conclusion
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19COUNTDOWN SUPERMARKETS Therefore, from the above report it can be seen that the change management is a vast subject and there are so many aspects interlinked with the topic itself. It is also apparent that the managementofchangeisfarmoreimportanttheimplementationofchange.Hence,an organization like the Countdown Supermarket should develop the strategies to mitigate the issues which are connected with organizational change and innovation.
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22COUNTDOWN SUPERMARKETS Roth, S., Schneckenberg, D., & Tsai, C. W. (2015). The ludic drive as innovation driver: Introductiontothegamificationofinnovation.CreativityandInnovation Management,24(2), 300-306. Teece,D.,&Leih,S.(2016).Uncertainty,innovation,anddynamiccapabilities:An introduction.California Management Review,58(4), 5-12. Teece, D., Peteraf, M., & Leih, S. (2016). Dynamic capabilities and organizational agility: Risk, uncertainty,andstrategyintheinnovationeconomy.CaliforniaManagement Review,58(4), 13-35. Tukker, A., Charter, M., Vezzoli, C., Stø, E., & Andersen, M. M. (Eds.). (2017).System innovationforsustainability1:Perspectivesonradicalchangestosustainable consumption and production. Routledge.