Organizational Development and Effectiveness

This report discusses the value of organizational development in business and how Morrison PLC implemented change management and employee training to increase effectiveness. It includes an overview of organizational development, McKinsey's 7s model for development, and Kotter's change management model.

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1ORGANIZATIONAL DEVELOMENT AND EFFECTIVENESS
Executive Summary
Organizational development (OD) is identified as a field of study which seeks change and the
way it leverages organizations and individuals with those organizations. Effective organizational
development can facilitate organizations and employees to deal with change. Strategies can be
developed in order to initiate strategized change such as team-building effort to enhance
organizational operation. Organizational development is considerably a newly developed area of
interest for business as well as employees. The paper has offered an overview of change and
organizational development implemented by Morrison PLC, a UK based food retailer which
acquired rival grocer Safeway for 3 billion pounds in 2004. The paper offered comprehensive
insights of the way Morrison has employed change management model and proficient employee
training and talent development to increase employee performance with organizational efficacy.

2ORGANIZATIONAL DEVELOMENT AND EFFECTIVENESS
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................4
Value of Organizational Development in Business.....................................................................4
Kotter’s Change Management in Morrison PLC.........................................................................7
Impact of Training and Development in Morrisons’ Effectiveness..........................................11
Conclusion.....................................................................................................................................14
References......................................................................................................................................16

3ORGANIZATIONAL DEVELOMENT AND EFFECTIVENESS
Introduction
Organizational development is identified as a complex strategy purposed to shape the
beliefs, attitudes, ideologies, culture and structure of organizations in order proficiently adapt to
advanced technologies, markets and competitive challenges. Bolman and Deal (2017)
emphasizes that organizational development not only focuses on improvement of the
organization but is identified as a particular change process designed to successfully generate a
particular kind of end result. Process of organizational development thus involves organizational
reflection, system advancement, planning as well as self-evaluation. The notion of development
in organizations has magnetized substantial investigation over the years (Cummings and Worley
2014). Bolman and Deal (2017) have viewed organizational development as a collection of
planned-change interventions established on humanistic-democratic values which aims to
enhance organizational efficacy as well as employees’ welfare. Organizational growth signifies
change and change further reflects on development. Schaltegger, Hansen and Lüdeke-Freund
(2016) view development as concerned with strategizing as well as implementation of
programmes outlined in order to improve the effectiveness with which an organization operates
and responds to change. An effective organization can be perceived significantly as one which
attains its purposes by accomplishing the needs and demands of its stakeholders, aligning its
resources to opportunities, further adapting approaches to management and leadership
techniques, training and organizational culture and change management. The following report
will evaluate ways in which Morrison Supermarket in the United Kingdom can use the complex
strategy of organizational development and enhance its effectiveness through organisational
culture and change management, management and leadership styles and integration of coaching
and mentoring.

4ORGANIZATIONAL DEVELOMENT AND EFFECTIVENESS
Discussion
Value of Organizational Development in Business
Katzenbach and Smith (2015) view development as a long-range endeavour to enhance
organizations’ problem-solving as well as renewal procedures through a highly efficient and
collaborative analysis and management of organizational culture. The extensive effort of
organizations further entails significant use of technology of applied behavioural science based
on action research. Action research however implies to the approach towards change whereby an
external individual offer rational performance with a team from within the organization in order
to analyse certain issues, proposed potential solutions and evaluate them (Bolman and Deal
2017). It has been proposed by Cummings and Worley (2014) that modern business
organizations like Morrison Supermarket could be developed or shaped by modifying one or
more of three vital variables namely people, structure and technology. The company has
adopted McKinney 7-s framework for development by focusing on following elements of
organizations.
I. System- Cummings and Worley (2014) denote that all successful organizations must
encompass measures of functioning accurately. Morrison Supermarket has sophisticated
Information Technology (IT), Electronic Point of Sale (EPOS) systems, Accounting,
Financial, Distribution and payroll, Human Resource (HR) in operation.
II. Strategy- Organizational strategy is typically defined as the appropriate direction and
dimension over the long term in regards to its goals, aims, vision and mission. However
strategies could be greatly integrative, demanding as well as diversified such as
diversification strategy (Clarysse et al., 2014). Sung and Choi (2014) have noted that
Morrison PLC core organizational strategy lied on their principle “Our strategy is

5ORGANIZATIONAL DEVELOMENT AND EFFECTIVENESS
working for us”. Furthermore, the company has been intending to develop into a national
grocery retailer. Thus has been following this approach by robustly recuperating the
functioning scope while shaping for organizational development (Morrisons 2018).
III. Staff- According to McKinsey Framework, people, their background, expertise along
with the way leaders are developed, which employee fits the job and types of jobs which
should be outsourced. Morrison comprises of a expertise and proficient trained staff in its
diverse departments (Mckinsey.com 2018). Pothiyadath and Wesley (2014) has observed
a responsive and sociable working environment. The company has further introduced a
programme known as “Fresh Food Academy” for training and knowledge developing
skills of its employee base.
IV. Structure- Process, through which tasks are divided, segmented and integrated with roles
and responsibilities and reporting employee association and communication. Morrison
PLC being a single-format supermarket comprises a hierarchical structure involving
Executive Directors (ED) and Board of Management along with Joint Managing directors
(Morrisons 2018). According to reports by Corporate - Morrisons (2018), the
Management Board of Morrison is accountable for establishing and embracing strategies
and core policies of the Group and further for supervising growth towards attaining these
objectives. Morrison Supermarket’s organizational structure has sustained as the same as
it proficiently converted the Safeway stores into the company’s format and has been able
to alleviate other format stores such as Safeway’s Compact Stores.

6ORGANIZATIONAL DEVELOMENT AND EFFECTIVENESS
McKinsey’s 7s Model for Development
Source- Mckinsey.com (2018)
V. Style-As per McKinsey Framework, organizational style implies to both managerial as
well as leadership approaches in organizations and what is broadly regarded as leadership
behaviour. Morrison comprises an entrepreneur style leadership due to its continued use
of opportunities to efficiently develop new supermarkets stores in highly convenient
locations (Mckinsey.com 2018). However, Mitchell, Fredendall and Cantrell (2015) have
noted that the organization in recent times have shifted its leadership style from
opportunist to goal-oriented. This leadership approach however has been consequential
for Morrison to initiate its integration to sources more than its rivals to successfully
emerge as UK’s leading food specialist.
VI. Shared Organizational Value- Carayannis, Sindakis and Walter (2015) have noted that
value, beliefs and conduct to which employees develop and offer meaning to the
organization signifies to the corporate culture. Morrison shows immense dedication in
offering its food products in regards to freshness, provenance, product quality and
expense. According to Pothiyadath and Wesley (2014), the company’s primary belief lied

7ORGANIZATIONAL DEVELOMENT AND EFFECTIVENESS
on its principle of offering best value for money across all food product ranges and
supply the customers not only product endorsements but also great prices on all
products.
VII. Skills- Skills within McKinsey framework relate to the unique technical, theoretical,
human relations along with leadership skills and employee talent and skills. Morrison’s
talents, potentials and primary competencies include contributing market street
experiences fresh food to its wide range of customers (Mckinsey.com 2018).
McKinsey 7s model of Organizational elements are referred to the elements of
organizational design as well as strategic alignment. Morrison Supermarket has implemented this
framework in order to evaluate its change requirements to improve its effectiveness and
productivity (Morrisons 2018). Thus any development or strategized change initiative must be
focused at the above organizational variable to attain utmost productivity, innovation, reduced
employee turnover, guaranteeing greater job satisfaction as well as adaptation of advanced
techniques. Thus, Hornstein (2015) has claimed organizational development as a continuous
process with no specific end to it. The process of organizational productivity consequently
involves inclusive investigation, skills, creativity, innovation, expertise and development.
Kotter’s Change Management in Morrison PLC
Tushman, O'Reilly III and Harreld (2015) have revealed that modern enterprises strive
towards successfully optimizing all of their available resources to sustain its competitiveness and
further capitalize on new market opportunities. In order to retain agility and adjust and further
execute changes. Kuipers et al. (2014) have pointed out that transitions are declared by the
management with the purpose to increase the efficiency of the organization. However, Board of
Management of Morrison Supermarket typically realizes that the induced transitions of the past

8ORGANIZATIONAL DEVELOMENT AND EFFECTIVENESS
took longer than it was anticipated but failed to produce any noteworthy benefits expected in a
sustainable long-term approach. Reports of Sung and Choi (2014) have revealed that due to
Morrison’s overconfidence, the organization lost several of Safeway’s staff assuming to be
better. Consequentially the organization managed to preserve only an insignificant number of
150 members out of 1800 employees. Such immense self-importance led Morrison in failing to
retain people comprising immense skills, competence, and familiarity with system, culture and
customers.
Thus Ravanfar (2015) emphasize the way change is strongly interlinked with the fabric of
modern enterprises and is considered as a highly multifaceted responsibility. Organizational
change tend to leverage directly from employees and thus in order to manage effective change
management Morrison needs to understand the way change will influence its employee base at
emotional as well as cognitive level. Furthermore, Wirtz et al. (2016) have also emphasized on
certain forms of organizational transitions which tend to be treated with severe resistance by
employees. As such situations any change management must be strategically planned and
consider the multi-angled communications among diverse range of stakeholders within the
change process. According to Santos, Pache and Birkholz (2015), several change management
strategies purposing in implementing such transitions a significant success, has developed
models like McKinsey 7S model as well as Kotter’s 8 Step Model. Kotter’s Change Model is
regarded to be an effective change management strategy for Morrison to undertake new changes
and sustain its continuing growth in sales and profits and proficiently focus on continuing growth
in sales and revenues.
I. Create urgency- For successive change to take place; this step will facilitate Morrison to
understand its core needs and demands. Kotter at this stage has proposed that for

9ORGANIZATIONAL DEVELOMENT AND EFFECTIVENESS
organizational change to be successful, around 75% of Morrison’s management requires
to ‘buy into’ the change (Ravanfar 2015). Thus in order to generate utmost achievements
leaders of UK supermarket organization must emphasize on Step 1 and further expend
significant time as well as energy building urgency prior to progressing onto the
following steps.
II. Formation of Powerful Coalition-Morrison in order to implement change management
program must induce people regarding the importance of change within the organization
(Jones, Woods and Guillaume 2016). Thus in order to lead change Morrison must emerge
proper coalition or association of decisive people whose power emerges from diverse of
sources such as expertise, skills and political importance. Hornstein (2015) has noted that
in a rapidly changing world, complex organizations like Morrison PLC have been forced
to set up rapid decision making processes with greater degree of sacrifice than they would
prefer. It is highly essential for companies to form coalition on the basis of trust and
dedication to generate utmost effectiveness.
Morrisons’ former management according to reports by author failed to be
responsive towards its staff which led the company undergo immense pressure as their
counterparts Sainsbury's Aldi, Tesco, and ASDA surpassed Morrison in the rate of
revenue generation (Morrisons 2018). Sung and Choi (2014) have revealed that Morrison
was under immense pressure due to the rise of discounters Aldi and Lidl. Thus according
to author, establishing right team by combining high level of trust with collective purpose
will be consequential in guiding coalition which constitute a capacity to implement the
desired change regardless of the forces of inertia.
III. Developing a Change Vision- Distinct organizational vision tends to simplify detailed

10ORGANIZATIONAL DEVELOMENT AND EFFECTIVENESS
decisions regarding change of Morrisons’ change in the management. Morrisons’ vision
in applying change will offer sincere guidance and should inspire action as well as the
desired action (Clarysse et al. 2014).
IV. Communicate the vision- Author has noted that Morrison for the change management
employs effective communication channel possible to broadcast the vision.
V. Empowering Broad-based action- Schaltegger, Hansen and Lüdeke-Freund (2016)
have noted that management information systems have the potential to pose critical
challenges on the attainable implementation of change vision. Current competitive
information along with market analysis with competence to communicate efficiently can
boost the feedback gaps and offer information essential for employees to accomplish their
roles.
VI. Create short-term wins- Katzenbach and Smith (2015) have emphasized on the
importance of short-term wins being both visible as well as distinct. Such
accomplishments however must further be clearly associated to the change effort. This
however will amplify the sense of urgency along with the optimism of employees who
have been making initiatives towards change management (Cummings and Worley
2014). These accomplishments will further serve in order to reward change agents by
offering positive feedback that amplifies organizational morale and motivation towards
change management.
VII. Build on the change- Clarysse et al. (2014) have argued that Morrisons’ change
management can be encountered with certain challenges.
VIII. Incorporating Changes into the Culture- Newly developed practices must be
embedded in order to remain situated in the cultural pattern of the organization.

11ORGANIZATIONAL DEVELOMENT AND EFFECTIVENESS
Impact of Training and Development in Morrisons’ Effectiveness
For successful business functioning, organisations required staffing with expertise and
efficient personnel. Specific job skills talent knowledge and competence required in the
workplace are not purposefully taught in the formal education. However Drucker (2016) is of the
opinion that most employees require extensive training in order to ensure the necessary skill
knowledge competence in order to extract substantive contribution towards the company’s
growth. According to Dhar (2015) for employees to be resilient and effective in their job and
develop certain expertise and talent and from them to believe that they are immensely important
for the organisation they work for which would serve as valuable indicators of management,
dedication towards training needs. As a result, training and development for employees is
recognised as a highly vital aspect for Morrison supermarkets with its major purpose lying on
improvement of employees’ skills and abilities such that the organisation can maximize its
efficiency and resourcefulness of their human resources (Sung and Choi 2014).
For Morrison PLC proficient training and knowledge development of employees can
serve as an advantage for the organisation if they accomplish the ‘hearts and minds’ of its
workforce by enabling them to efficiently distinguish with the organisation (Corporate -
Morrisons 2018). However for employees to be well equipped in order to perform efficiently
Morrison supermarket has made significant investments in the training processes. These training
processes are regarded as significant part of the entire human resource management approach
that is consequential to employees being highly motivated to perform the role they are engaged
in. However training tends to differ from organisation to organisation in regards to the excellence
and quality of training factors. For example the knowledge development training for Morrison’s
employee base involves the degree of change in the internal environment as well as external

12ORGANIZATIONAL DEVELOMENT AND EFFECTIVENESS
environment change current appropriate skills in the current labour force as well as the level to
which the management perceive the training as a motivating factor in the a workplace (Morrisons
2018).
Dhar (2015) has mentioned improved employee training and induction are vital learning
activities required in order to acquire improve skills and competences needed to perform a
specific task. However the idea of training is the need for increase efficiency safety and
productivity in the execution of particular equipments is the necessity for an effective sales force.
Thus in order to emerge with anticipated skills capabilities and talent from employees to perform
proficiently at their job site Morrison PLC requires proper training in programs which will
exhibit the propensity to increase employee motivation and dedication towards the organisation
(Sung and Choi 2014). In such a dedicated work environment employees can either build or
break the company’s reputation and profitability.
Furthermore according to Jones, Woods and Guillaume (2016) training programs
conducted by Morrison PLC directed towards sustaining and improving existing job performance
where as development primarily seeks to enhance skills for future jobs. However taking into
consideration technological development, it is important to note that certain jobs become
redundant with the reinstitution of machines in present days. As a result determinants such as
education and skills have become essential for those in current positions and the ones willing to
be promoted in the future (Kuipers et al., 2014). Reports by Tushman, O'Reilly III and Harreld
(2015) have revealed that Morrison has recently announced a training development program for
20,000 employees for a nationally recognised qualification in retail skills in one of the biggest
programs in the United Kingdom. Furthermore offering training in order to achieve a QCF
program, which is the part of the Morrisons’ Fresh Food academy purposes to train over 100,000

13ORGANIZATIONAL DEVELOMENT AND EFFECTIVENESS
employees by 2019.
The company has further emphasised on its commitment towards extending tailored retail
talent training development for every member of its workforce engaged in every store across the
country initiated in early 2018 (Morrisons 2018). However it is important to note that Morrisons’
PLC one of the leading retail supermarkets in the United Kingdom is recognised as a company
that is processing in facility eating every employee with improved prospects for the future. What
Morrison is doing is shaping the whole cultural pattern of the retail sector enabling everybody
aiming to start their career in the company will have a chance of appropriate talent development
and promotion and purchase the prospects which will lie ahead for them (Corporate - Morrisons
2018).
Thus Morrison can be identified as an organisation which is leading the way in the whole
of the retail business across the country. Sung and Choi (2014) have also shed light on the way
Morrison as an organization believes in investing in skills in order to provide great services to its
customer base as well as significant opportunities of developing from the shop floor to the top
floor. Investing in people according to the company builds the leaders of the future as well as
sustainable performance. However Hornstein (2015) have identified various factors which
influence training and induction generating from environment leaders execution and content of
the training.
 Individual factors- Through the training development of Morrison it has been observed
that at whatever stage employees are engaged in some kind of organizational practice
they typically leverage the environment and procedure through which they are
undertaking the training program (Northouse 2018). Morrison’s training is referred to the
transferring of skills and Technology from a proficient to a new learner. Primary parties

14ORGANIZATIONAL DEVELOMENT AND EFFECTIVENESS
in the training program are the employees themselves who are seeking training and the
member of the staff delivering the induction program (Morrisons 2018). However
authorities arranging training can be considered as a third party and tend to oversee the
prearrangement as well as post quality analysis of training (Kuipers et al.2014).
 Human resource policy- Tushman, O'Reilly III and Harreld (2015) have initiated this
factor on the basis of the design policy by human resource for training purposes.
According to Santos, Pache and Birkholz (2015) and number of knowledge development
programmes conducted by organisations pose impact on the primary aim of training that
is skill development and conduct Change management.
 Other factors- According to Schaltegger, Hansen and Lüdeke-Freund 2016) open
mindedness are additionally regarded as factor in training development programmes.
Authors at this stage have claimed the training will generate as much efficiency and as
much the open-mindedness of inductors and trainees (Schaltegger, Hansen and Lüdeke-
Freund 2016). Further it has been stated that types of training conducted along with its
content and experience received by trainees influence the outcomes of the training
program. This has led success to be dependent on the way training has been conducted by
the trainer and its content (Carayannis, Sindakis and Walter 2015).
Conclusion
Therefore from them above discussion it can be stated that organizational development is
highly inevitable and mastering change management strategies is thus essential to organizational
effectiveness. Organizations which can successfully deal with change management can
effectively harness its energy will be crucial and productive. Morrison Supermarket through
implementation of McKinsey 7s Model and Kotter’s Change Management Model has

15ORGANIZATIONAL DEVELOMENT AND EFFECTIVENESS
successfully focused on organizational development to amplify its effectiveness and productivity
in the UK retail market. Morrison has purposed its organizational development in order to
balance the strengths and weaknesses of the business, by restructuring its employee training and
skill development. The report has evaluated Morrisons’ evaluation of organ organizational
development through evaluation, planning, employee engagement and training where essential as
well as incremental evaluations to effectively maintain organization value and employee
performance.

16ORGANIZATIONAL DEVELOMENT AND EFFECTIVENESS
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