Report on Organizational Change at H&M: Culture and Challenges

This report examines the organizational changes implemented at H&M, focusing on the shift from a power culture to a people culture. The analysis delves into the challenges faced, such as employee resistance and communication barriers, when implementing changes related to employee development and empowerment. The report highlights the importance of effective communication and demonstrating the benefits of change to employees. It discusses how the new culture aims to give employees more autonomy and decision-making power. Furthermore, the report analyzes potential issues like misuse of the new freedoms and the need for the company to adapt to the changing environment. The report also explores the need to align company objectives with the proposed changes to ensure successful implementation and address any resistance to change. Finally, the report includes references to relevant literature and studies on organizational change management.

Organizational
Change

TABLE OF CONTENTS
TOPIC 1...........................................................................................................................................1
TOPIC 2...........................................................................................................................................2
REFERENCES................................................................................................................................3

TOPIC 1
Organizational change is an imperious subject which affects the entire operations of the
company. These can be in form of cultural as well as structural changes of the enterprise. The
present selected organization for the study which operates its business operations in the clothing
industry. It supplies all sort of branded products for the men's, women's as well as kids. With the
increasing operations and growing trend, the CEO feels to incorporate certain changes in its
culture (Benn, Dunphy and Griffiths, 2014). Previously, it laid no emphasis on the growth and
development of its employees which is its core assets and assist in managing its operations on
time.
From the past years, H&M was following the Power culture wherein the managers laid
no efforts for the growth and development of its employees. the organization culture was quite
restrictive and the workers were not even allowed to present their opinions or ideas before the
management. They were quite restrictive to use their own skills and knowledge in their
operations and were allowed to function under the proposed guidelines. This system has got
quite outdated with time and therefore the directors feel to change the culture of the organization
wherein significant efforts were laid so as to develop and train the employees for their future
prospects (Carter and et.al., 2013). Since every activities of the companies revolve around the
employees in the modern era, therefore, the people culture was opted by the CEO of concern.
Herein, the employees are given the authority to manage and conduct their operations as per their
desire. They are even allowed to present necessary suggestions which will aid the management
in taking necessary actions if it feels fruitful.
However, it has been analysed that the change is not easy to be implemented in the
organization. A company faces many challenges and change is one amongst it. Every amount of
alterations in the existing policies is likely to bring certain amount of positive as well as negative
impact with it (Cameron and Green, 2015). These changes are either not accepted by the staff
members as well as by the directors. Nonetheless, the company needs to take every change as a
challenge and try to adapt the organization according to it. This will assist the firm in deriving
fruitful results in the future course of actions.
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TOPIC 2
The organization is constantly being operated in the environment that is involved with the
strategic changes to manage its operations according to the current trend. There are certain
changes that does not fulfil the requirement of the organization. Therefore, the aims and
objectives of the firm are sometimes not complementary to the proposed changes. There can be
several reasons behind it (Vakola, Armenakis and Oreg, 2013). These comprises of the
communication barriers, employees resistant to change and other issues in the operational
activity.
The above discussed examples are the major barriers that does not comply the changes
with its intended goals. When new changes are not properly communicated with the employees
along with the prescribed goals of the organization then it is likely to degrade the operations of
the company. For instance, in order to implement the above strategy of organizational change, it
is necessary for the said firm to effectively demonstrate the need for the proposed plans. The
CEO can explain the reason behind adopting the person culture tool which aids them to motivate
the employees rather than using the inlaid policy in the opposite direction (Zhao and et.al.,
2016). The person culture adopted by the H&M firm can even lead to the misusing the same by
the employees. This can be seen in the form being lazy at workplace, coming late to the
organization as well as other issues. The person culture means that complete democracy and
power is given to the employees along with the considering them superior over the organization.
Therefore, to implement the said change successfully in the organization it is essential to
demonstrate the cause and effect of the same so as to comply by the goals and objectives of the
company.
In addition to the above, when a company wants to change the leadership styles and
approaches in the organization from lenient to more strict one, then the employees may get
resistant to its. They can resent following any such policy and mainly tries to oppose it which in
turn affects the current operations of the organization (Petrou, Demerouti and Schaufeli, 2016).
Therefore, proper communication as well as demonstration of the change to the employees and
the reason behind it, it imperative to be discussed with its employees.
Therefore, from the above two examples it can be stated that there are certain programs
which does not intend to comply by the aims and objectives of the organization.
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REFERENCES
Books and Journals
Benn, S., Dunphy, D., & Griffiths, A. (2014). Organizational change for corporate
sustainability. Routledge.
Carter, M. Z. & et.al (2013). Transformational leadership, relationship quality, and employee
performance during continuous incremental organizational change. Journal of
Organizational Behavior. 34(7). 942-958.
Cameron, E., & Green, M. (2015). Making sense of change management: a complete guide to
the models, tools and techniques of organizational change. Kogan Page Publishers.
Vakola, M., Armenakis, A., & Oreg, S. (2013). Reactions to organizational change from an
individual differences perspective: A review of empirical research. The Psychology of
Organizational Change: Viewing Change from the Employee's Perspective, 95-122.
Zhao, H. H. & et.al. (2016). Not Even the Past: The Joint Influence of Former Leader and New
Leader During Leader Succession in the Midst of Organizational Change.
Petrou, P., Demerouti, E., & Schaufeli, W. B. (2016). Crafting the Change The Role of
Employee Job Crafting Behaviors for Successful Organizational Change. Journal of
Management, 0149206315624961.
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