BOICNMT220 Change Management Essay: Puma and Adidas Strategies

This essay provides a comparative analysis of the change management strategies employed by Puma and Adidas, two prominent companies in the manufacturing sector. The essay explores how Puma utilizes talent recruitment and development strategies, focusing on employee skills and trai...Read More

Organizational change management

Organizational change management
“Change management strategies”
It has been observed that companies use different strategies to manage the change.
Organizational change is important for the organizations as it helps to remain competitive in the
market for long term. The most effective change management strategies are those through which
the emphasis can be given on the human behavior as the employees are majorly impacted by the
organizational change. In this essay, the discussion will be made on the different changes
strategies of Puma and Adidas Company which is known as the manufacturing company. These
two are the successful companies in the field of manufacturing sector. The companies are
engaged manufacturing of the sports shoes and clothes and has a large market size in the highly
competitive market. So, the discussion will be based on these two companies in relation to
change management strategies.
It is investigated that Puma Company considers talent recruitment and development strategies
and Adidas focuses on offering rewards and benefits to manage the change in the workplace. It
can be argued that “Is Recruitment and development strategy considered by the company is more
effective than Adidas change strategy”. Talent recruitment and development strategies are one of
the important strategies that assist the companies in managing the organizational change. It can
be said that radical change often takes place when there is high degree of resistance but it can
also be improved if the change belongs with the management not only with the higher authorities
(Baumann-Pauly, Scherer and Palazzo, 2016). At the time of recruiting the frontline employees
to share the needs of the change can boost the work efficiency and also it reduced the resistance
by the employees. This same strategy is considered by the company to manage the organizational
change.
It is examined that Puma focuses on the skills and qualifications of the employees in order to
ensure that the overall growth and expertise is maintained. The recruitment process of the
company is conducted in different channels that allow reaching the broad range of the customers
with diverse experiences and backgrounds. The company ensures that professional and personal
development of the staff can be done by recruiting the external talent and training the internal
workers of the company (Mishra and Kumar, 2019).
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Organizational change management
There are various changes that are made in the workplace in respect to the manufacturing process
so the company also takes different measures such as expansion of the global performance
management system in which talent management and succession planning is one of the factors
that are considered to access the performance and to set the target. This is also one of the
strategies that help the companies to retain the employees for long time in the workplace. Puma
stated that they view their employees as one of the important and valuable assets and also they
focuses on aiding the development on the individual platform. The long term retention is also
considered by the company as it is an effective manner of managing the change in the workplace.
If the employees are retained for long term then it has been seen that competitiveness can be
attained easily and also it helps to boost the performance of the employees in the dynamic
environment. At the time of change, the company has to ensure that the change implemented by
the higher authorities does not affect the performance. So, puma focuses on offering basic skills
at the initial stage and then overall training and development program is conducted. The
company also offers adequate entry and development opportunities to the individuals at different
levels as the fresh talent helps in managing the change of the company with innovative and
different ideas. Puma tries to gather the new and innovative ideas which help the company in
attaining the set goals and objectives in the highly competitive market (Cameron and Green,
2015).
After recruiting the talent employees across different countries, the company emphasizes on the
overall process of training in which training is given to them. It is observed that range of
different training and dual track programs are provided to the employees as it helps in promoting
the systematic training of the overall employees and also of the managers. The training offers are
developed on the continuous basis as they ensure that the employees can have the opportunities
to add diverse options in their qualifications. The training programs that are offered to the
employees help in boosting the existing knowledge and also help in attaining the new skills. This
approach assists the workers to attain their personal goals and also the goals of the organization.
This type of training is given by the management so that the employees will not resist at the time
of implementing the change in the workplace. It is analyzed that training programs with the wide
range of the individuals workshops and courses and also the large seminars are provided to the
employees and managers of the company so that it could be easy to develop their mindset
towards the change implemented in the workplace. This is considered as the best approach or the
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Organizational change management
strategy that is considered by the management to manage the change in the workplace. It can be
stated that the different sessions and training programs are provided so that it could be easy to
take immediate action at the time of implementation of change in the workplace (Puma, 2019).
To manage the change, the company has the best strategy related with training as it is considered
as the basic function that assists the employees in giving their best towards the organizational
activities. For example: in the present year, Puma focused on international leadership program
which is one of the internal program that involve different modules which helps the employees to
manage the activities of the company in the highly competitive market. Therefore, it can be
stated that Puma considers the recruitment and development strategy to manage the change in the
workplace (Hornstein, 2015).
But “Is Adidas change strategy is more effective than Puma’. The change strategy considered by
the Adidas company is related with rewards and benefits offered to the employees. Rewards are
considered as the best way that can help the higher authorities in implementing the change in the
workplace. Rewards focuses on offering something additional in relation to the fixed salary of
the employees. It is necessary for the companies to focus on this strategy as it helps in reducing
the resistance of the employees and also boost the efficiency towards the work. In relation to
Adidas company rewards and benefits is the strategy which is considered by the management to
manage the change in the workplace. When rewards are offered to the employees then they try to
accept the instructions given by the management and also improve the performance. For Adidas
Company, performance is one of the factors that can help to attain success in the highly
competitive business world. Performance should be recognized of the employees as it helps in
enhancing the involvement level of the employees which will also positively affect on the change
programs implemented by the company.
The Adidas AG remuneration approach focuses on the overall change management process. The
company is committed to reward the employees with compensation and benefit programs that
help in attaining the competitive benefits in the highly competitive market. The remuneration
which is provided to the employees consists of fixed and variable monetary compensation and
also intangible benefits are provided so that employees can feel motivated and happy towards the
assigned work allocated by the management (Ind, Iglesias and Schultz, 2015).
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Organizational change management
The major part of the company in context to the reward program is related with “Global salary
management system” which is considered to establish and analyze the overall value of the
employee’s position and also salaries in the performance and market driven business world.
There are many compensation plans that are provided to the employees so that they can accept
the change that is implemented by the higher authorities of the company (BURMANN and
PIEHLER, 2017). The first plan relates with bonus programs in which short term incentive
program are provided to the employees as it helps to participate actively in the overall success
and the rewards are also offered for coordination and target achievement. It has been seen that
this policy is implemented by the company on the global platform. It also provides the incentives
which are mainly influenced by the corporate performance and also with the overall results. It is
important for the employees to manage the change as it will help them to earn more towards the
overall activities of the company in the competitive market. The next program is related with
profit participating program in which the workers at headquarter of the company and on the
different locations who are not involved earlier can join the profit participation program that is
known as “Champion Bonus”. Third one of long term incentive program that helps to ensure the
sustainable financial success that helps in retaining the employees and also boosts the continuous
commitment (Adidas, 2019).
There are also many other programs that are provided by the company retirement plans for the
employees which helps them to give their best towards the allocated work and also boost the
efficient ratio of the employees towards the work. To retain for long time, the employees focuses
on earning incentives and for this they focuses on managing the change that is implemented by
the management in the workplace (Bücker and Ernste, 2018). It can be said that this is one of the
effective strategy that which is considered by the company to manage the change in the
workplace. With the help of this strategy it could be easy for the employees to focus on giving
support to the higher authorities at the time of implementing the change in the workplace. When
the employees are offered rewards in the workplace then they feel motivated towards the work
which is assigned to them by the authority. They also emphasizes on boosting the morale of the
other employees in relation to the change so that the change polices or the process implemented
in the company can be managed effectively (Adidas, 2019).
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Organizational change management
By considering the Puma and Adidas change strategies it can be compared that both the
strategies are effective but Puma strategy is more effective as the company can get idea of the
employees at the time of recruitment and development of the employees. The company can
easily access the behavior and also the working capacity of the employees towards the work. But
on the other hand rewards offered to the employees can also be the best way to motivate the
employees to accept the changes implemented by the company. It can be said that Puma strategy
can help the company in long term and also Adidas strategy is for long term but the employees
can get this same opportunity from the other competitors. It is stated that in relation to the nature
of work, both the strategies are effective as it helps the companies in managing the change and
also focusing on boosting the sales and demand of the products in the competitive market
(Ivanova and Suchkova, 2016).
It can be concluded that the change strategies considered by Puma and Adidas has helped in
attaining goals and also focused on managing the changes that are implemented by the
management. It is necessary for the companies to consider the changes so that growth can be
attained in the competitive market. These strategies taken into consideration helped the
organization in achieving the set goals and also motivated the employees to give their best
towards the organizational activities of the company. Therefore, it can be stated that both the
strategies considered by the manufacturing is effective in relation to manage the overall change
process and resistance to change of the employees. It can be stated that the companies should
consider the strategies to manage the overall change process that is implemented by the higher
authority in the workplace.
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Organizational change management
References
Adidas., 2019. Employees. [Online]. Available at: https:
https://www.adidas-group.com/en/sustainability/people/employees/#/mitarbeiterbeteiligung/.
[Accessed on 29 May, 2019].
Baumann-Pauly, D., Scherer, A.G. and Palazzo, G., 2016. Managing institutional complexity: A
longitudinal study of legitimacy strategies at a sportswear brand company. Journal of Business
Ethics, 137(1), pp.31-51.
Bücker, J. and Ernste, K., 2018. Use of Brand Heroes in Strategic Reputation Management: The
Case of Bacardi, Adidas, and Daimler. In Reputation Management Techniques in Public
Relations (pp. 126-150). IGI Global.
BURMANN, C. and PIEHLER, R., 2017. 11 Internal brand management: employees as a target
group for brand management. Branding Inside Out: Internal Branding in Theory and Practice,
p.173.
Cameron, E. and Green, M., 2015. Making sense of change management: A complete guide to
the models, tools and techniques of organizational change. Kogan Page Publishers.
Hayes, J., 2018. The theory and practice of change management. Palgrave.
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Organizational change management
Hornstein, H.A., 2015. The integration of project management and organizational change
management is now a necessity. International Journal of Project Management, 33(2), pp.291-
298.
Ind, N., Iglesias, O. and Schultz, M., 2015. How Adidas Found Its Second Wind. Strategy+
Business, 80, pp.1-5.
Ivanova, E.A. and Suchkova, M.V., 2016. Study of the Resistance to Changes Among
Employees of Trading Company on the Example of LLC" Adidas Group". In Scientific
Discoveries (pp. 128-132).
Mishra, S. and Kumar, S.P., 2019. E-recruitment and training comprehensiveness: untapped
antecedents of employer branding. Industrial and Commercial Training, 51(2), pp.125-136.
Puma., 2019. Employees. [Online]. Available at: https:
http://report.puma-annual-report.com/en/group-management-report/puma-group-essential-
information/employees/ . [Accessed on 29 May, 2019].
References
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