Report on Organizational Development of IGA stores

Running head: ORGANIZATION DEVELOPMENT
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Executive Summary
This report reveals the developmental needs in the context of IGA stores. However, the major
problem of such organization is huge competition in the global market. However, Aldi and
Woolworths are the strong competitors of IGA. It is important for this organization to bring
significant changes in their existing system. One of the major steps is the establishment of the
training program for the employees, as it will enhance the knowledge of the employees. On the
other hand, incorporation of the new features in the product will be effective for this organization
to improve their product quality. However, resource management is crucial for this organization
to implement new changes in the organization.

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Table of Contents
Introduction......................................................................................................................................4
Section A.........................................................................................................................................4
Organization’s development needs in the context of IGA store..................................................4
Section B..........................................................................................................................................7
Five change management techniques..............................................................................................7
Four main forms of the consultative process...............................................................................7
Importance of manage conflict....................................................................................................8
5 of Fayol’s management principles............................................................................................8
Role of new legislations in affecting the process........................................................................9
Six types of organizational cultures.............................................................................................9
Section C........................................................................................................................................10
Organizational developmental plan for IGA.............................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................13

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Introduction
Organization development refers to the successful change in an organizational
performance. However, in an organization change is required to influence the worker behavior
and motivation process. In order to bring development in an existing system, change is crucial in
an organization. Chang is associated with the improvement of knowledge management, learning
process and organizational values and norms (Woodcock, 2017). Organizational development is
associated with the ongoing systematic process to implement effective change in the
organizational system. This study deals with the organizational development in the context of
IGA store, which is a U.S based grocery store.
Section A
Organization’s development needs in the context of IGA store
Organizational developmental needs focus on the requirements to meet the future needs
of an organization. However, IGA is a U.S based grocery stores and it is operating in many small
towns of various countries. In Australia IGA has stores and it is operating as a franchise. In the
recent years, huge competition is the major issue for IGA in the global market as well as in
Australian supermarket segment. Aldi and Woolworths are the major competitors of IGA in
Australian grocery market (News.com.au, 2017). In order to compete in the global market, IGA
needs organizational development.
Objectives
 To understand the business developmental needs in the organization
 To make a plan to give shape the developmental needs

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 To take necessary actions to implement the organization developmental needs in IGA
store
Skill development needs
Skill development need is one of the major needs of organizational development. In order
to gain competitive advantages, it is crucial for an organization to identify the training need of
the staffs (Bolman & Deal, 2017). In the context of IGA store, they are facing huge competition
in the global market. For this reason, they need to improve the knowledge of the employees and
enhance their learning ability. However, training includes workshops, general management
training, and conduction of the learning program to understand the skill gaps of the employees.
IGA needs to invest to establish the learning needs to achieve a better outcome from their
business. Organization of the training in a planned process will be helpful for IGA to meet the
learning needs of the employees. One of the most important skills that need to develop is the
communication skill. However, the training process within the IGA should focus on the
development of the communication skill of their staffs. This will help the staffs to focus on the
effective communication with the customers to enhance their marketing process. In order to
identify the organizational development it is important for IGA to conduct an external audit by
the help of audit agencies. Such external agencies will be helpful to reveal the exact needs of the
organizational development.
Product innovation
Product innovation is crucial to gain competitive advantages in the international market
(Baumgartner & Rauter, 2017). However, IGA is a grocery store and offers a variety of grocery
products to the customers. Hence, bringing innovation in the product feature will make them

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unique in the global market and lead them to achieve significant success in the business. Product
innovation is associated with the analysis of different kinds of information to understand each
element of the product development (Serrat, 2017). In the context of IGA, product innovation
enables them to carry out market research, target market analysis, identification of the customer
preference, use of technology and assessing the manufacturing capabilities. Those ensure the
organizational development. Innovation in the food products like in the drink, which is an
essential part of the daily life, will be helpful for IGA to improve their business. Production of
organic dink will be a new innovation for this organization, which can enhance its business in the
global market and the customer domain that are health conscious. Involvement of the third party
will be helpful to identify the skill based activity. However, audit process via external agencies
will be helpful to reveal the efficiency of the skill of the employees within IGA.
Development of the work process
Work process analysis is another need for organizational development as it allows the
organization to bring change in the operation process (Serrat, 2017). Measuring the quality
control process will increase the efficiency and accuracy of the work. In order to analyze the
work process KPI will be helpful for IGA (Key performance indicator). This will be effective to
measure the performance of the employees during their work.
Review of the existing practices
Review of the existing practice and implement of the new policy regarding the workplace
are vital for the organizational development (Woodcock, 2017). However, IGA focuses on the
good quality food and they try to offer quality food at a reasonable rate. Hence, adoption of the
environmental sustainability policy will be effective for such organization to provide service

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with environment information. This may help them to achieve sustainable development in their
business. In order review the existing business process proper monitoring by creating proper
documentation will be required. On the other hand, IGA should analyze the business process by
reviewing the product outputs, profit margins and performance analysis.
Section B
Five change management techniques
Communication plan is an important change management technique. However, it will
help IGA to motivate the employees and to implement changes in an organization. Establishing a
change management framework and collection of the authentic data is important for the
implementation of change (Van der Voet & Vermeeren, 2017). Collection of the data enables
IGA to find the risk, competition, and opportunity in the current market. Force field analysis
highlights the change problem in order to tackle them. On the other hand, culture mapping and
devise a project plan are crucial, as culture mapping will help IGA to establish it organizational
value, norms and practice while project plan gives an idea of new change management.
Four main forms of the consultative process
For IGA it is important to give information to in consultative process as it will help the
stakeholders to understand the change management process. This will allow the employees to
identify the areas which need to be improved. On the other hand, information needs to gather
from market research and collaborative work is required to implement changes in the
organizational development of IGA. Apart from this, the involvement of the stakeholders in the
decision-making proves will be effective to enhance the consultative process. Providing

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empowerment to the employees is an effective process to involve the stakeholders in the decision
making process (Ezeuduji, 2017).
Importance of manage conflict
Employees waste their valuable time to fight each other in the workplace. Thus, for IGA
it is crucial to manage the conflict in the workplace to increase the productivity. On the other
hand, often the misunderstanding occurs between the management and the employees that
hamper the workflow in an organization. Hence, conflict management will establish a good
communication between the employees and the management of IGA. Conflict management also
helps the business managers to establish a good relationship between the employees and the
management. This will enhance the efficiency of the work and is effective for the organization to
meet the business goal (Ashkanasy & Dorris, 2017).
5 of Fayol’s management principles
Work division is one of the main principles of Fayol’s that highlights if the employees
are specialized for a particular work then their working efficiency will be increased (Ehrhart &
Kuenzi, 2017). For IGA it is crucial for the employees to maintain the discipline in the
workplace as it is required for the organizational development. Unity of direction is another
important principle of Fayol’s that will allow the employees to work on the same objectives
under the direction of one manager. Remuneration will be effective for IGA to satisfy their
employees as employee satisfaction is closely related to organizational development.
Maintenance of the equity in the workplace is required for IGA, as managers of this organization
should fair with their employees to increase their efficiency. Application of Fayol’s management
principles will be effective for IGA to develop a positive work culture in their organization.
Therefore, this will be act as an effective tool for the employee motivation.

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Role of new legislations in affecting the process
IGA is a multinational company hence, in order to get new entry, a new market of a
foreign country needs the green signal from the government. On the other hand, the introduction
of the new regulation by the Australian government may resist the organizational development as
well as the implementation of the new change in IGA stores. However, often government
introduces special tax in the foreign business. This will create difficulties for IGA to expand their
business outside of their own country (Rofcanin, Las Heras & Bakker, 2017).
Six types of organizational cultures
Adhocracy culture is an important type of organizational culture as it provides a
dynamic environment in the workplace. In this culture, a long-term goal has been established to
create new resources (Ashkanasy & Dorris, 2017). Market culture is another effective
organizational culture. In this culture, the employees become competitive and focus on their
targeted goal. Hierarchy culture focuses on the structured environment of an organization
Coordination is the main aim of such culture. Clan culture is a friendly organizational culture
focuses on the tradition and the loyalty. This culture aims to develop the long-term human
resources. However, in this organizational culture, the needs of the customer is defined and
effective service is provided. Normative culture highlights strict regulation in the workplace.
However, the employees have to comply with the organizational policies in a proper way.
Therefore, Academy culture includes high skilled employees. However, this culture leads the
employees to feel respected in their workplace (Van der Voet & Vermeeren, 2017). Increased
training is the major aim of such culture. In the context of IGA they should follow clan culture as
it will enable them to understand the customer need, which is crucial to bring development to the
organization. By following the clan culture IGA will be able to enhance their customer loyalty.

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This will enable them to meet the needs of the current market and also allows them to retain the
existing customer and get new customers.
Section C
Organizational developmental plan for IGA
The aim of the organisational developmental plan is to gain competitive advantage and in
the long run become the market leader and in order to achieve this plan some of the points that
have to be considered are:
 Emphasis on skill and performance development of the employees. One of the major
strategies is to develop a training program to develop the skill of the employees (Sides,
2017). Conduction of the workshop will be helpful for IGA to enhance the training
program.
 The focus of the company will be to encourage and develop a process of product and
service innovation. Innovation and adapting to the changes of the business environment is
one of the ways in which a company can gain competitive advantage in the industry.
With the help of market research the company can understand the needs and requirements
of the consumers and develop products and services accordingly. This will also guide the
company in creating new features which will be more users friendly and aligned with the
requirements and feedbacks received from the consumers (Mitchell, 2013).
 The company can incorporate models and theories of operational management in order to
increase the efficiency and the performance level of the company, resource allocation
should also be effective and should comply with the company’s objective. Six sigma or
lean production should be implemented by the organisation.

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 Another step that the company should take in order to develop and grow in the industry is
to incorporate sustainable measures in the decision and policy making process of the
company. This will help the company build a good reputation among the stakeholders.
Burke-litwin’s organisational development theory
In this theory he has explained that there are two types of changes that are prevalent in an
organisation:
 First order change- He explains that these are the changes in an organisation that
leads to other changes as well. The changes that take place in this process can be
divided in two categories transactional change and organisational climate
 Second order change- these are the changes in an organisation which takes place
due to changes that take place fundamentally. This leads to transformational
changes in the organisational as well as changes in the organisational culture
(Stone, 2015)
Conclusion
IGA is a grocery store, which requires developmental plan to achieve the competitive
advantages in the global market. It has been observed that the company requires skilled labors;
hence this is the first step that is required to be taken towards organisation development. This
will improve the existing skill of the employees and allow them to compete in the global market.
On the other hand, product innovation will enable this organization to make their business
unique in the international market. However, for this reason, a particular market research is

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required. Apart from this organizational operation percess needs to be improved to bring a good
working culture in this organization. Financial resources and workforce are required to be
managed in a proper way. The development plan that has been described above is a combination
of the two types of changes that are discussed in the theory produced by Burke-Litwin.

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from http://www.news.com.au/finance/business/retail/aldi-momentum-slowing-ubs-
says/news-story/0e0fe8865c6619b837f31034450e53a2

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