Macy's Inc. Organizational Learning and Development

ORGANIZATIONAL LEARNING AND DEVELOPMENT 1
Organizational Learning and Development: Macy’s Inc.
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ORGANIZATIONAL LEARNING AND DEVELOPMENT 2
Organizational Learning and Development: Macy’s Inc.
Table of Contents
Executive Summary.....................................................................................................................................2
Introduction.................................................................................................................................................2
Organizational Context................................................................................................................................4
PESTLE Analysis........................................................................................................................................5
Horizontal Integration.............................................................................................................................6
Structure and Culture..............................................................................................................................7
Value Addition.........................................................................................................................................7
Consideration of the L&D Budget............................................................................................................7
Analysis........................................................................................................................................................8
Design........................................................................................................................................................10
Delivery.....................................................................................................................................................12
Technology-Based Learning...................................................................................................................12
Coaching/Mentoring..............................................................................................................................13
Evaluation..................................................................................................................................................13
Kirkpatrick’s Four-Level Assessment......................................................................................................14
Return on Investment (ROI)...................................................................................................................15
Return on Expectations (ROE)...............................................................................................................15
Conclusion.................................................................................................................................................16
Bibliography...............................................................................................................................................17

ORGANIZATIONAL LEARNING AND DEVELOPMENT 3
Executive Summary
In the wake of the emergent transformative market dynamics, the global high-end retail
giant Macy’s Inc. is faced with a major challenge. Since its inception, the organization has
enjoyed certain market advantages including high brand value, market dominance, and service
superiority. Such a commendable performance has been highly attributed to the firm’s
investment in the human resource: this strategy aims at improving the shoppers’ experience. The
approach appears instrumental in the modern retail market now that disruptive models are
promoting online shopping. While such a trend is not expected to precipitate the demise of in-
store shopping, it poses a both a threat and opportunity to firms such as Macy’s. The
organization can capitalize on the young generations’ enthusiasm for technology to transform its
role in the retail business. Investment in emergent technologies including virtual reality,
augmented reality, big data, and artificial intelligence appears crucial in the modern and future
retail markets.
Introduction
The value of the human resource in organizational success must never be underestimated
by business leaders. The preceding sentiment is quite true especially now that the modern
consumer prioritizes experience in his or her interaction with providers (services and/or goods).
Macy’s Inc. is among the successful global firms that have managed to capitalize on their
workforce to facilitate enhanced value production (Anitsal, Anitsal, & Girard 2013). The brand
has remained iconic due to its management’s understanding of the need for high quality service
delivery in the consumer-centric luxury retail business. Unlike most retailers, high-end
departmental stores such as Macy’s are visited by clients who seek peculiar shopping
experiences. In order to deliver such a value, the brand applies the ‘Everyday Magic’ strategy to

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engage its human resource in a sustainable learning and development process: it focuses on
improving employee experience. Such an approach has been marked by the implementation of
various programs including Military Executive Development, Daily Boot Camp, and Employee
Transition (Taylor 2013).
Daily Boot Camp is a progressive initiative by the company’s leadership, and it aims at
promoting the employees’ knowledge and skills through training. Note that the scope of the
training is reliant on the employees’ potential skills as well as the value of their roles in the
organization. In this case, Macy's management explores the organizational functions to ensure
that the employees working in positions/departments that might become outdated with time are
equipped with sustainable skills (Thind 2017). This program is somehow similar to the
Employee Transition Program. The only difference is the organization’s end-game with respect
to the latter: it focuses on preparing employees for new employment opportunities in case of
layoffs or resignation. Such a progressive L&D approach was useful in 2009 when the
company’s economic performance necessitated the dismissal of around 850 workers (Best 2017).
Macy’s ensured that they were engaged in a learning process that expanded their knowledge and
skills with regards to job-seeking and entrepreneurship. Lastly, the Military Executive Program
aims at offering leadership positions to veterans in order to diversify the company’s management
approaches: emphasis on the army’s unique organizational culture and administration.
The described programs have proven useful in augmenting Macy’s market position as a
high-end shopping option. For one to gain a clear perspective of the inseparable nature of L&D
in the company’s human resource management, one should reflect on the recent disruptive forces
evidenced in the retail sectors. Digital brands such as eBay, Amazon, and Alibaba have
transformed how consumers perceived shopping (Tokosh 2018). These industry players allow

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customers to shop through smartphone applications. Such a trend indicates that in-store shopping
remains relevant for experience-seeking shoppers. For a company that offers luxury brands such
as Louis Vuitton, Gucci, Michael Kors, Burberry, and Bold, the industrial transformations
present an opportunity to focus on the customer experience. Macy’s leadership believes that
immense investment in its employees enhances their ability to meet the ever-changing market
needs seamlessly.
Organizational Context
An organization’s mission, vision, strategy, and values play a pivotal role in determining
its success. Such is often the case as they provide a clear sense of direction to every member of
the human resource. In Macy’s case, the retail giant envisions a dynamic retail brand that focuses
on the customer (Diehl, Van Herpen, & Lamberton 2015). On the other hand, its mission is to
capitalize on opportunities before they become obvious so as to align its resources with the core
customer needs. Note the emphasis on the brand value obtained by the consumer. When placed
into perspective, the human resource is an essential tool in the organization’s value proposition
especially since customer experience remains a top priority (McLymont 2015). Considering the
unique role Macy’s employees play in its positioning as a global leader, one can confidently
agree that learning and development is necessary. The current section explores the brand’s
micro- and macro-environments from theoretical perspectives.
PESTLE Analysis
Political Factors. It suffices to claim that Macy’s political environment is quite stable.
This sentiment is grounded on the fact that the brand’s unique HR management strategies have
mitigated common challenges such as lawsuits: consider the company’s approach to the 2009
layoffs. Unfortunately, the organization’s business ties with the controversial United States

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President Donald Trump jeopardize its market position (Khaled 2012). Recent investigations
report that some of Macy’s customers have promised to boycott the brand as long as it continues
promoting the Ivanka Trump fashion line despite her father’s racist remarks during the US
campaign period. When viewed from this point, it is clear that Macy’s L&D efforts might
enhance its market appeal amidst the controversy.
Economic Factors. The emergence of powerful disruptive competitors such as Amazon
Inc. and Alibaba have dented the revenues of most if not all departmental store chains. Macy’s
recognizes the fact that its only leverage is customer experience since it is what most in-store
shoppers seek in the modern retail industry (Moberg & Leasher 2011). Investment in L&D
enhances the employees’ ability to deliver high-quality service to meet the emergent market
needs.
Social Factors. Recently, the retail sector has recorded a transition in the consumer
preferences. Clark & Wojcik (2018) found that modern consumers prefer products that tell
stories to materialistic ones. Also, a significant percentage of the modern shoppers have grown a
health conscious. Investment in L&D – especially the daily boot camp - allows the employees to
understand how market demands transform, as well as how they can be sustained. At this point,
the reader is urged to reflect on Macy’s market strategy “follow the trend”. Clearly, the
employees must be up-to-date with respect to the social environment.
Technological Factors. As mentioned earlier, the digital revolution has initiated a
transformative period in the retail sector. Macy acknowledges this fact; hence, it has invested
heavily in the development of a technology-enabled workforce (Naugle, Naugle, & Naugle
2000). It promotes familiarity through various schemes including employee interaction websites
and social media interaction with customers among others. Note that all of the aforementioned