Organizational Learning and Development at Macy's Inc. Report Analysis

This report provides a comprehensive analysis of Macy's Inc.'s organizational learning and development (L&D) strategies. It begins with an executive summary highlighting the challenges and opportunities facing the retail giant in a transformative market. The introduction emphasizes the imp...Read More

ORGANIZATIONAL LEARNING AND DEVELOPMENT 1
Organizational Learning and Development: Macy’s Inc.
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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

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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

ORGANIZATIONAL LEARNING AND DEVELOPMENT 4
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

ORGANIZATIONAL LEARNING AND DEVELOPMENT 5
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

ORGANIZATIONAL LEARNING AND DEVELOPMENT 6
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

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programs place emphasis on the employees’ technological know-how since the modern and
future consumers – millennials and Gen Z respectively – are familiar with the infrastructure.
Legal Factors. As a supplier of high-end products, Macy is expected to comply with a
wide range of quality standards as stipulated by various producers. Note that the same is
expected from the said producers. L&D is quite instrumental at this point given that Macy’s
workforce delivers the products to clients (Schunk 2012). Failure to have in-depth knowledge of
the products prevents them from ascertaining of the quality of goods delivered to the company
for sale.
Environmental Factors. Macy’s is committed to sustainable development. Such a factor
is evidenced in its investment in a broad range of CSR activities including green energy,
employee safety, and community charities among others – consider its Green Living, Employee
Resources Groups, and Go Red for Women projects. The mentioned examples facilitate
sustainable development in terms of energy, HR development, and community development
respectively.
Horizontal Integration
Horizontal integration is a process through which a company expands its production
capacity through investment in inventories. This implies that focus is placed on the expansion of
its product line. As far as Macy’s Inc. is concerned, the acquisition of strong brands such as
Bloomingdale places it a notch higher than its competitors (Thomas 2014). Note that this kind of
growth is considered horizontal since the purchased company offers similar services.
Structure and Culture
Macy’s organizational structure utilizes the hierarchy model. Like most global firms, it is
run by a board of directors, which is supported by executive officials in various departments

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including operations, legal, marketing, communications, stores, strategy, real estate, and the
acquired brands executives. Such a dynamic workforce offers multiple perspectives with respect
to the company’s market position. It is in line with the brand’s customer-centric culture:
emphasis on the ability to grasp market trends from multiple perspectives. Also note that the
broad structure is supported by a team of empowered subordinates who indirectly partake in
organizational leadership through suggestions/market reports.
Value Addition
According to Kolb, Boyatzis, and Mainemelis (2001), brand value refers to the factors
that make a firm’s products or services unique. Macy’s achieves this by ensuring that the
customers experience magic when shopping. While Macy’s value is considerably high in the
current retail sector, there is need for augmentation. Such a progressive goal can be achieved
through investment in technological strategies such as drone delivery. This move decouples the
workforce from boring tasks, thus allowing them to focus on impressing the customers both
online and offline.
Consideration of the L&D Budget
By now, it is apparent that Macy’s ‘Everyday Magic’ learning and development
stratagem is multifaceted by default. This implies that it seeks to fulfil multiple stakeholder
needs. Note that emphasis is placed on the human resource and the consumers. On that note, the
progression of L&D programs including the Military Executive Development, Daily Boot Camp,
and Employee Transition necessitates colossal investments. Perhaps, almost a half of the
company’s resources should be geared towards this end especially as the two types of
stakeholders (customers and employees) are responsible for its current market position.

ORGANIZATIONAL LEARNING AND DEVELOPMENT 9
Analysis
The successful implementation of learning and development (L&D) strategies demands
in-depth grasp of the learning needs based on the extant or anticipated knowledge and/or skill
gaps. Such a goal calls for a comprehensive evaluation of the employee capabilities in the wake
of the transformative business environment. As noted, the retail sector is undergoing major shifts
following the emergent consumerism trends. Modern consumers (mostly millennials) are
interested in technologically advanced, sustainable, healthy, and experiential shopping
(Pietrobelli & Rabellotti 2011). Fortunately, a significant number of the company’s workforce
comprises of the millennials. Such a factor places Macy’s at an advantage since its employees
are highly familiar with the emergent shopping trends.
However, there is need to create new channels for the incoming generation (Gen Z).
Inasmuch as a significant number of this populace lacks financial capabilities – note that most of
them are currently studying –, they are bound to start joining the workforce in a decade from
now. Most importantly, they are expected to comprise a large number of the future consumers.
Such a bold declaration is grounded on the fact that they are more familiar with the digital
revolution; hence, they are highly likely to utilize the platforms for income generation compared
to their millennial counterparts (Jarvis 2013). At this juncture, the reader is urged to reflect on
the recent boom in online freelance employment opportunities. Such a trend shows that the
incoming generation will have high disposable incomes, making them vital customers in future.
Furthermore, they will expect the digital infrastructure to be integrated in most if not all retail
functions.
When viewed from this lens, it becomes apparent that Macy’s has to prepare its human
resource for the described future transformations. The current workforce must acquire necessary
knowledge and skills regarding the alignment of fundamental business functions with digital

ORGANIZATIONAL LEARNING AND DEVELOPMENT 10
solutions such as Virtual Reality (VR), Augmented Reality (AR), Artificial Intelligence (AI), Big
Data, and the internet at large (Barrientos, Gereffi, & Rossi 2011). It appears wise to restate that
in-store shopping will still remain relevant in future. Such is the case as the digital framework
only improves the shopping experience by removing the ‘chore’ aspect of shopping. People still
enjoy visiting departmental stores for the experience. It is also important to understand the role
of millennials as mentors to the Gen Z. The fact that both generations understand the modern
business models places immense responsibilities on the current workforce (Cruz & Boehe 2010).
Macy’s has to invest heavily in Research and Development (R&D) to understand how the Gen Z
population perceives both work and consumption. Such information will prove effectual when
mastered by the current workforce as a means of preparation for future transformations.
On that note, basic Learning and Development concepts must be applied in the
advancement of the current workforce’s abilities and skills. The ‘RAM’ framework appears
instrumental with that regard: the acronym refers to Relevance, Alignment, and Measurement.
Such a model ensures that the L&D process is geared towards overall business improvement
(McDonnell, Lamare, Gunnigle, & Lavelle 2010). In other words, the L&D goals must be
relevant, aligned (emphasis on fundamental business processes), and measurable. The
Knowledge, Skills, and Attitudes (KSA) theory is also vital in the process. The concept follows
the conventional assumption that the learning outcomes can only be improved if the process is
cognitive, skill-based, and affective. As far as the first is concerned, R&D will play a pivotal role
in increasing Macy’s Inc.’s employees’ grasp of the market dynamics (Kaplinsky & Farooki
2011). In this case, one would recommend the provision of necessary learning materials to the
relevant employees as soon as market surveys are complete. On the other hand, skills can be
enhanced by ensuring that the workplace routine is transformed to meet the L&D goals. For

ORGANIZATIONAL LEARNING AND DEVELOPMENT 11
instance, Macy’s can offer its employees some free on-job browsing sessions so they can learn
more about the internet consumers (young generations). Such an approach will make learning an
intrinsic employee role in the company. Lastly, the company should uphold its collaborative
leadership – consider Macy’s current HR empowerment programs which aim at promoting
employee participation in decision-making. One can confidently agree that the workers’ attitudes
will be in favor of the L&D process if their opinions are taken into consideration.
***Note that the company’s integration of emergent Information Communications Technology
(ICT) frameworks such as AR, AI, VR, the internet, and Big Data into its basic business functions
will demonstrate market preparedness in the highly transformative retail industry.
Design
Apparently, the suggested solution – Macy’s investment in employee learning and
development with regards to the integration of digital infrastructure in fundamental
organizational functions – demands an effectual learning framework. For now, it suffices to
suggest that experiential learning can boost the L&D process (Harrison 2011). Kolb’s four-stage
learning cycle is quite illustrious. The model holds that learning begins and ends at a stage when
the learner has concrete experience: this implies that the experience might be sufficient or not
(Alexander & Doherty 2010). The experience is then advanced through reflective observation.
Here, the learner compares and contrasts his or her knowledge and skills against those of other
individuals. Through reflection, a learner generates a unique idea on how to improve his or her
practice. This stage is then succeeded by an experimentation phase where new skills and
knowledge are applied. Below is a graphical representation of Kolb’s experiential learning cycle:

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A similar perspective was applied by Honey and Mumford, in their four-stage learning cycle
(Alexander & Doherty 2010). Unlike in Kolb’s framework, the stages represented unique
learning preferences including activist, reflector, theorist, and pragmatist. Below is a graphical
illustration of Honey and Mumford’s model: note how the stages correspond to Kolb’s
experiential learning cycle model.
This model holds that a learner can perceive knowledge and skill acquisition from any phase:
then the cycle begins. As far as the proposed L&D solution is concerned, Macy’s Inc.’s
workforce should be exposed to the digital world. The company should avail R&D reports on
Concr eteExper ien ce
Refle ctiv eObse rvati on
Abstr act
Conce ptu alizati on
ActiveExper ime ntatio n
Activi st
Refle ctor
Theor ist
Pragm ati st

ORGANIZATIONAL LEARNING AND DEVELOPMENT 13
other firms – regardless of the industry – that have utilized AR, AI, VR, Big Data, and Internet
platforms to transform their product and/or service delivery. Note that this progressive effort will
demand collaboration across all organizational departments. The employees will then engage in
group and individual experiential learning based on the knowledge garnered from the R&D
efforts. Note that a broad range of learning techniques can be promoted by the HR department
including workshops, mentoring, action plans, coaching, and classroom/formal education. At this
point, it appears wise to acknowledge the fact that people often display distinct perspectives and
capabilities with respect to learning. Such a realization is vital for Macy’s Inc.’s management
considering the diverse nature of its workforce.
Delivery
There is a broad range of learning and development methods available to Macy’s Inc.
with respect to the proposed solution.
Technology-Based Learning
One of these methods includes technology-based learning. Such an approach is highly
convenient considering the fact that the proposed solution revolves around the integration of the
digital infrastructure in the business functions. It involves the use of basic computer programs,
interactive video sessions, interactive multimedia, and web-based instruction (Wilson 2014).
This technique boils down to the recommended social networking sessions. The sessions will be
vital in strengthening the employees’ grasp of the basic ICT capabilities. Market simulations can
also be utilized by Macy’s to attain the L&D goals. As far as this method is concerned, the
company can engage students (millennials and Gen Z) in simulated shopping experiences to
offer the employees a sneak peek of the trends to expect from the future consumers. Note that the
simulation approach is an on-the-job training that can be applied in many ways. For instance, the

ORGANIZATIONAL LEARNING AND DEVELOPMENT 14
organization can build a virtual store through which its employees interact with customers: both
the employees and the participating customers might build avatars based on their attributes and
interests (Bolden 2016). It is a fun approach that might have a positive impact on the company’s
customer relations. In an attempt to understand the virtual reality simulator approach, one should
reflect on the highly publicized fantasy football.
Coaching/Mentoring
By default, this approach involves one-on-one instruction from an individual with
immense experience. As far as the proposed solution is concerned, Macy’s employees should be
provided with mentors from different professional backgrounds, mainly ICT, management, and
HR. These individuals will enhance the worker’s understanding of the key business functions
while advancing their knowledge on matters pertaining to technology and leadership. Mentorship
programs are vital in developing future mentors from the current workforce especially since the
team has to be prepared when the Gen Z population joins the workforce. Like the preceding
method, this one is an on-the-job training option that improves HR capabilities. It is also cost-
effective in the sense that most if not all of the mentors will be sourced from Macy’s
organizational departments.
Evaluation
One of the most important aspects of L&D projects is evaluation. Failure to objectively
analyze a training strategy prevents an organization from understanding its effectiveness. After
all, no firm wants to spend resources on a training process that yields negative returns. For this
reason Donald Kirkpatrick’s Four-Level Evaluation, Return on Investment (ROI), and Return on
Expectations (ROE) models are quite instrumental.

ORGANIZATIONAL LEARNING AND DEVELOPMENT 15
Kirkpatrick’s Four-Level Assessment
As far as the first is concerned, it measures efficacy based on employee reaction,
learning, behavior, and results (Garavan, Carbery, & Rock 2012). Below is a graphical
representation of the model: note that the fifth dimension (ROI) is essential inasmuch as it is
explored separately.
Reaction. This level revolves around the exploration of the employees’ reaction to the
training (Garavan, Carbery, & Rock 2012). Macy’s management can utilize various tools such as
questionnaires, interviews, and employee reports to gauge their reaction to the procedures.
Learning. This phase focuses on ensuring that the L&D solution is in line with the
organizational goals. For this reason, the management assesses the value anticipated from the
knowledge and skills learned by the trainees (Garavan, Carbery, & Rock 2012). The most
effective assessment approach in this respect is the Training Needs Analysis (TNA): it requires
reflective management.
Behavior. As the name suggests, this level explores the training’s impact on the
employees’ behaviors. From an analytical point-of-view, it focuses on individual and group
application of the learnt concepts from the L&D programs (Garavan, Carbery, & Rock 2012).
This stage is highly ambiguous; thus, it is difficult to measure. Nonetheless, periodic employee

ORGANIZATIONAL LEARNING AND DEVELOPMENT 16
performance polling allows the management to gain some insight on the value added by the
training from a behavioral standpoint.
Impact/Results. At this juncture, success is measured based on organizational
performance. Various elements can be assessed including employee turnover rates, sales rates,
productivity, and employee participation (Garavan, Carbery, & Rock 2012). The theorist
suggested that enhanced organizational performance indicates successful L&D.
Return on Investment (ROI)
This evaluation model was introduced by one Jack Phillips in the early 1990s. According
to him, successful training processes were accompanied by increased profitability. Such a line-
of-thought is reasonable since investment in any organizational resource must have profitability
as the end-game – unless the organization does not pursue profits (Malik & Blumenfeld 2012).
The ROI will be measured by monetizing the profits gained from Macy’s digital integration
L&D project then dividing it by the costs. This measurement framework can also be used to
estimate the anticipated value of a training program using the following formula (Malik &
Blumenfeld 2012):
ROI = {(anticipated profits – anticipated costs) / anticipated costs x 100%}
Return on Expectations (ROE)
Unlike the ROI model, this one is quite straightforward. It involves an assessment of the
training with respect to the attainment of the predetermined goals. As one would expect, it
involves observing whether the learning process enabled the company to meet its L&D goals
(Romijn, Raven, & deVisser 2010). As far as the Macy’s case is concerned, emphasis will be
placed on the development of integrated AR, AI, Big Data, and Internet platforms/networks.

ORGANIZATIONAL LEARNING AND DEVELOPMENT 17
Other measures such as employee and customer enrollment in the networks can also be observed
to determine its success.
Conclusion
Macy’s Inc. is one of the largest retail brands in the international arena. This luxury
department store chain has a strong brand reputation following its immense investment in
customer-centric strategies, objectives, and procedures. Such an approach has been evidenced in
the company’s undivided attention on its workforce. The unanticipated layoffs recorded during
the 2009 global financial crisis enhanced the brand’s value in the eyes of the customers as well
as the employees. Thanks to its Employee Transition Program, Macy’s ensured that most of the
laid-off workers had employment opportunities regardless of the process. This kind of human
resource management is vital to the organization’s market positioning in the wake of experience-
seeking consumers. Nonetheless, the digital revolution poses either a threat or an opportunity
depending on how Macy’s will manage it. Investment in ICT will enable the brand to meet the
needs of the young generations since they comprise the larger section of the employees and
consumers. Furthermore, the Gen Z’s entry into the consumer and labor markets should be
anticipated by the company. For this reason, the employees should be familiarized with emerging
technologies such as AI, VR, Big Data, and the internet to enhance their ability to meet the future
needs. After all, such a learning and development strategy will position Macy’s in a favorable
competitive state in future.

ORGANIZATIONAL LEARNING AND DEVELOPMENT 18
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