Analysis of Leading Change Strategies at Whirlpool Corporation

This report examines Whirlpool Corporation's strategic shift in response to market challenges and internal issues, focusing on its change management initiatives. The analysis covers the implementation of a High Performance Work System (HPWS) to improve employee engagement and productivity, addressing issues such as ineffective communication and lack of team collaboration. The report details the impact of these changes on various stakeholders, including creditors, employees, and shareholders, while emphasizing the importance of transparent communication, constructive conflict resolution, and mutual respect. Recommendations include a continued focus on shared commitment, accountability, and fostering a supportive work environment. The report highlights the use of force field diagrams to illustrate factors driving and restraining change, ultimately aiming to enhance Whirlpool's competitiveness and profitability through a more engaged and efficient workforce. The report concludes by referencing several academic sources to support the analysis and findings.

LEADING CHANGE

Table of Contents
INTRODUCTION...........................................................................................................................1
OVERVIEW....................................................................................................................................1
Impact of change on various key stakeholders...........................................................................3
RECOMMENDATION ..................................................................................................................4
REFERENCES..............................................................................................................................12

INTRODUCTION
Change is considered as an important part of any business enterprise because without it,
there are high chances of getting failed and losing competitive edge in the market place. The
term “Change Management” can be defined as a structured approach which enables company to
modify its business practices, culture or structure that results in meeting requirement of target
customers in an effective and efficient way (Alkahtani and et. al., 2011). Their main purpose is to
formulate and implement strategies for controlling, effecting and assisting individuals to adapt
change efficiently. This report talks about how Whirlpool has changed its organisational
practices in order to gain the higher competitiveness level as compared to its competitors. This
assignment also covers the impact of change on various stakeholders and provide
recommendations that support these stakeholders via transition.
OVERVIEW
Whirlpool Corporation is a multinational producer and marketer of home appliances
products, headquartered in Michigan, US. Company was found in the year 1911 by Marc Bitzer
and Jeff M. Fettig. Currently, organisation is having 70 technology and manufacturing research
centres all across the globe. The firm was running smoothly in marketplace and yielding higher
profits till 2011. During the company crisis scenario which was culminated in the year 2011, the
referred entity restructure its organisational practices in terms of providing better opportunities to
their workforce and effectively motivates them which is beneficial for their personal and
professional growth. Basically, the housing market was hit by recession that locked Whirlpool in
challenging competitive situation with other international appliance producers that was
compressing lower profit margin and reduced value of its stock price. The problem was mainly
faced by North America Regional Staff as they are not satisfied with the working environment
and as a result, Whirlpool faced decreased retention rate.
By the end of 2011, it was clearly figured out that the current earnings which company is
producing is not sufficient in order to effectively manage their day to day operations. Therefore,
the need for redesigning entire organisational practices arise in order to retain the workforce for
longer period (Aslan and Reigeluth, 2013). Bitzer called for assessing the effectiveness of NAR
Staff's. They were highly dependent upon their team members for productivity and innovation
which was not effective enough. Thus, the want for restructuring arises in the referred business
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concern that often results in timely decision making, cross-functional collaboration, well-
informed staff members etc. It was fortunate that one of their colleagues Mr. Binkley (Global,
HR) had asked leading consultation group to prepare or design an assessment tool that mainly
evaluates performance of team rather than examining the performance of an individual (Doppelt,
2017). As a result, Whirlpool implemented High Performance Work System in their business
operations and practices. They conducted their first survey in May, 2011 which has become the
reason for discussion related with worker’s performance. It was done by its chairman and all
team members. It came up with various “a-ha” moments in context with NAR Staff. With this
survey, they have figured out the main reasons or causes for hampered productivity of their staff
members which are as follows:
 The NAR Worker lost much of their time in discussing about their personal lives instead
of talking about organisation’s future growth and success. They almost waste their four
crucial hours which can be utilized in discussing about strategies and goals.
 End of Quarter and fire- fighting necessity thrust long term strategic reasoning or
thinking concerned with team's agenda.
 The decision made by team member made in private meeting conduct with president or
chairman of the company. This often results in creating confusion and waste more time.
This indirectly lower the motivates of personnel as company is not involving them in any
of their decision making process. In-fact they are not even discuss the final conclusion
with the NAR staff members. Their personnel got to know when finally the changes takes
place in the company.
 Individuals are creating and running their own group instead of effectively running as
team (Fullan, 2014).
 Issues that can be manage at lower level or quickly by individual are brought to the
chairman or president like costing time and typing up with company's calender.
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Impact of change on various key stakeholders
Stakeholders can be defined as a person or group of person that has an interest in the
business enterprise. They are directly or indirectly affected by the company's objective, actions
and policies. Some of the example of key stakeholders are as follows:
Creditors: Whirlpool is having 70 manufacturing centres all across the globe. This means that
they are ample number of creditors who lend or invest their money in its business practices.
Usually employees or employer deals with such creditors (Gupta, 2011). The acceptance and
failure of contract with such creditors depend upon how effectively NAR Staff members deals
with them. Sometime due to miscommunication between employee's creates confusion which
results in disappointing creditors expectation.
Employees: They are considered as the main assets of company who contributes effectively and
efficiently towards attaining business objective. An organisation can earn higher profitability and
take the advantage of high competitiveness level when their staff members works collectively
towards accomplishing business goals. Thus, referred firm is require to promote working with
co-ordination and co-operation among staff members.
Government: Government directly or indirectly influence the overall functioning and
performance of business enterprise. Being a Public Ltd company, the main goal of whirlpool is
to satisfy their shareholders and earns higher profitability ratio via effective team working.
Shareholder: Better or improved performance of employees becomes the reason for company's
success and growth. Earlier small or minor issues were discussed with director which results in
wasting time and energy. With enhanced performance and productivity of NAR Staff members,
they become responsible enough to deal with such small issues on their own.
Apart from that Whirlpool, is planning to conduct development session which focuses on
improving the efficiency and productivity of NAR staff members. Before team development
session takes place in the company, Mr. Bitzer received full report related with high performance
survey conducted in the organisation. The reports includes feedback of staff members and their
opinion towards the company. Further, they critically analyse all issues and came up with major
issues that adversely effect the performance of NAR Staff members. They also ensures to
provide valuable feedback to its staff members ahead of time which enables them to prepare
themselves earlier so that they respond in significant manner (Lawrence, 2015). After receiving
final report, the chairman of the company conduct team development session for one day. The
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agenda of this session is to implement the organisational practices change in order to enhance
team functioning which are discussed as follows:
 The lengthy meeting was streamlined by emphasize on solving issues related with
operational activities of business.
 Avoid personal conversation that takes place in meeting which often waste the crucial
time of team members and management.
 Special off-site meetings are formulated which enable NAR workers to address strategic
issues creatively and thoughtfully (Mayfield, 2014).
 Eliminate the end-run communication with president that waste lots of time.
 Commitment of team worker to work collectively and listening the view point of other
team member as well. Ultimately they substitute “hub and spoke” model with president
as hub.
RECOMMENDATION
The company has implemented change in context of organisational practices which enables them
to take the advantage of higher competitiveness level. After implementing HPW framework in
their business practices, Whirlpool focuses on executing the change via systems diagramming.
High Performance Working System (HPWS) refers to the collection of management
practices that develops an environment which emphasize on greater responsibility and
involvement of employee within the business organisation. Framing HPWS model means putting
together all HR policies and practices (Nkomo and Kriek, 2011). It is all mainly concerned with
how to improve the efficiency and productivity of its workforce in order to gain higher
competitive advantage. In context of referred company, HPWS measures the effectiveness of
NAR personnel along with five key dimensions that is responsible for higher team performance
which are as follows:
 Shared Commitment to company's vision and goals: The main root is half of the
employees are not aware about the goals and vision statement of business entity. Even if
they are aware, they contribute in a proportionate manner that leads to its personal
growth. They basically create strategies which give them the opportunities to enhance
their performance level. However, they forgot to concentrate on the growth and success
of company. The reason can be they are not satisfied with their wages and benefit, or
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there is no appraisal for their contribution which as result enable them to switch jobs
often. Thus, referred enterprise is required to involve each and every employee in their
vision and mission statement. They set priorities along with that which makes it easier
for personnel to work more effectively and efferently. Their team members demonstrate
the perspective of company towards attaining future goals and communicates message
aligned with organisation.
 Shared Accountability for results: Company has changed the concept of making effective
strategies as now they are involving their workforce in decision making process. They
ask feedback and suggestions from their employees and if they found it realistic they will
implement it (Shirey, 2011). This further improves the motivation of their personnel and
enables them to retain with the company for longer period of time.
 Transparent Communication: It is important to have transparent communication in
between team members and colleagues. They have the right to know sources from where
their team members are getting useful information that aid in future growth and success
of company. The company is expected to share all relevant information with their human
resources which make them feel as a part of the company.
 Constructive Conflict: Conflict arises when two person does not end upon same thing or
mutual conclusion. Both parties possess different kinds of interests which become the
reason or cause for conflict. Thus, Whirlpool is expected to listen both parties and end up
with conclusion that mutually satisfy both the parties.
 Mutual Respect and Solidarity: Before company crisis happened, the workforce of
referred firm was finding the ways in which they can personally grow themselves. They
were lack of communication and co-ordination among the employees which becomes the
reason for conflict and misunderstanding between them. Post-recession period,
Whirlpool engages personnel in their vision and mission statement that makes them feel
contributed towards the company and enable them to have strong co-operation and co-
ordination with their co-workers (Stanleigh, 2013).
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The company has represents the change via different diagrams which states the factors for
causing and restraining change. With force field diagram we can found out the factor that
becomes the reason for change such as higher competitive advantage and increased profitability
ratio (Stichler, 2011). It also depicts how with productive and efficient workforce Whirlpool is
mainly focusing on improving the productivity and efficiency of employee in an effective and
effectual manner. The impact of change in organisational practice enables stakeholders to take
the advantage of higher competitiveness level over their rivals. This change proves out to be
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successful for them in terms of gaining higher profitability, capturing large market share all
across the globe.
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