Organizational Change Management at Woolworths: Self-Service Analysis

This report provides an overview of organizational change management at Woolworths, focusing on the introduction of self-checkouts. It evaluates the change process, referencing a timeline and analyzing the strategies employed by the organization. The report uses Lewin's change management model to examine Woolworths' implementation of self-service checkouts, highlighting both the benefits and challenges. It discusses the convenience, efficiency, and potential for increased theft associated with the self-service system. The report concludes that while self-service kiosks offer numerous advantages, they have not entirely eliminated the need for staff and require continuous development to enhance customer experience. The analysis also touches upon customer preferences and the varying adoption rates across different age groups.

Running head: ORGANIZATIONAL CHANGE MANAGEMENT
Organizational Change Management
Name of the Student:
Name of the University:
Author Note:

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Introduction:
The report gives an overview of Organizational Change Management in Woolworths
with the introduction of the self- check out. Woolworth’s represents the Australian Supermarket
chain owned by Woolworths Limited (woolworths.com.au 2018). The self-check out also known
as the self-service checkout refers to the machines that introduce a mechanism for the customers
in processing their individual purchases from the retailer (Orel and Kara 2014). They acted as
alternative to the traditional method of checkout that involved third parties. Here, the customer
themselves performs the job of the cashier through the process of scanning and applying for the
payment of the items bought. The report discusses about the evaluation of the change process
through the mention of a timeline as a part of section one. There is also an analysis of the change
process undertaken by the organization.
Section 1
Evaluation of the Change Process of Woolworths
Although supermarkets worldwide embraced the self-checkout system with enthusiasm,
Australia reacted relatively slowly to the systems especially when the United States grocery
chains already tested the system by the year 2003(Hevesi 2017). Woolworths was however, the
first supermarket in the Australian continent in committing to the technology. The immense
popularity of the self-checkouts system brought about a change in the organizational process as
Woolworths opted for more number of self-service stores.
Timeline for the Evaluation

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Task 2008 2009 2010 2011 2012 2013 2014 2015 2016
Change
Announcement
Change
Implementation
Conduction of
Survey
Conduction of
Interview
Conclusion
Figure: Evaluation Timeline
Source: By Author
Suggested Timeline
The suggested appropriate timeline if the organization did not have a process of
evaluation is as follows
Year
Year

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Task 2008 2009 201
0
2011 2012 2013 2014 2015 2016
Strategy
Making
Framework
Primary
Data
collection
Conductin
g Survey
Conductin
g Interview
Data
analysis
Presenting
findings
and
discussion
Providing
conclusion
Figure: Suggested Timeline

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Source: By Author
Section 2:
According to (Hayes 2018), change management refers to the systematic approach in
dealing with transformation or transition of the organizational goals, technologies and processes.
The purpose of the change management lies in the implementation of the strategies for
influencing, controlling and helping people in adapting to the changes. Lewin’s model for
change management represents the most popular approaches. According to the model, the change
process is split into three stages which includes the stage of unfreeze, the stage of making
changing and the stage of refreezing (Cameron and Green 2015). The unfreezing stage refers to
the creation of a perception towards change process; the stage of making change refers to the
movement towards change while the refreezing stage refers to the solidification of the newer
behavior as the ultimate norm.
Woolworths, the supermarket chain of Australia conducted a change process in the form
of self-service checkouts. There were closer to 16 self- service system installed in the
supermarkets with another 70 of stores in the pipeline. Although the supermarket failed in
revealing the project cost but as per the Australian Financial Review, the estimated rollout cost
was closer to an approximate figure of $ 7 million (Chung 2017). Supported by the global
technology firm, NSR, the Self –service checkouts under the brand name of Fast Lane allowed
the customers in scanning, weighing and paying for their groceries easily and quickly either by
the use of the credit, cash or the debit cards. The system is also capable of dispensing reward
dockets for petrol, top vouchers for the mobile phone and aids customers in taking out cash.

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According to Leung and Matanda (2013), the self-serve checkout system act as
convenient option for the customers since there is a positive feedback from the shoppers who use
them. This encourages the supermarket chain in introducing them to larger number of stores
thereby entailing its introduction to a wider audience. The system has various in-built safeguards
for minimizing shoplifting. Each saleable item identified by its distinct weight and barcode
tallied and scanned before check out. This prevents individuals from getting hold of the unpaid
additional items. The system alerts the staff if the weight of the bag does not match the weight
calculations depending on the product barcodes. The checkouts are user friendly, animated and
features voice prompts. The supermarket always has a staff stationed close to the customers for
assistance. Customers of Woolworths have dearly embraced the technology and have made it so
popular that close to 20 percent of the transactions happens through Self-Serve checkouts.
Although they will never be able to completely abolish the express or standard checkout but they
act as an alternative for busy shopper.
Vuckovac et al. (2017) put forward that some people prefer the importance of human
touch and customer. They prefer going to the cashier instead of an impersonal machine. Some
expresses the fear of technological influence and their unfamiliarity makes them apprehensive
about using a newer technology. While using the machine, if there is detection of an unfamiliar
item then the consumers have no choice but to wait for the intervention of the staff member.
Authorization from the staff members is required for the sales of goods such as alcohol.
Moreover, the theft rate is also higher on the self-service automated systems than the regular
checkouts. A study conducted on one million transactions in United Kingdom recorded the losses
close to 3.97 percent of the stock incurred through payments via the self-service technology. The
figures were higher by about 1.47 percent (Writers 2008). Research identified one of the

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discrepancy lies in the fact that the everyday customers who does inculcate in the process of
stealing might disproportionately take to stealing at the self-service checkouts.
As per Collier and Kimes (2013), the convenience of the self-service system out ways the
flaws and there exists couple of the intertwining trends that helps in explaining the rise of the
self-checkouts. The implementation of the system ensures more frequent visit to the supermarket
compared to before. This ability of wandering up to a self-checkout with hardly any wait time
proves to be a useful means for shopping. Most of the shoppers consider the self-check out
system since it is easier and faster to use. Although the variation takes place with the age with
only 90 percent of the shoppers, aged between the 18 to 36 years prefers self-service checkouts
while only 50 percent of the people above 60 years prefer the system
Thus, Woolworths expresses an interest in adopting it for increasing number of the
stores. Therefore, based on the Lewin Change Model, Woolworths moved forward in further
embracing the self-service checkouts for scanning the items bought by the consumers. The
supermarket opts for increasing number of the self-service checkouts in most of the stores
located in the inner cities. Each of the stores refitted with only a single automated checkout. Such
a move of the supermarket is targeted towards the consumers who seek for quicker service.
Woolworths replaced all the traditional checkouts process with the self-service checkout
system even in some of its stores located in the inner city as part of the renewal program for
winning back customers. The retailer of Woolworth is making a point in embracing the self-
service by implementation of limitation on trailing item. The move initiated after its rival Coles
recorded an annual theft bill of about $1.1 billion
Conclusion:

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To conclude it can however be said that, Woolworths increasingly adopts the self-service
kiosks in its stores since the convenience of such a system outweighs any of its disadvantages.
The increase in the customer usage along with the constant development of such service kiosks
helped in enhancing the customer experience. The service although cost effective has not
completely abolished the requirement of the staffs.

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References:
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.
Chung, F. 2017. [online] Available at: https://www.news.com.au/finance/business/retail/the-vast-
majority-of-our-customers-do-the-right-thing-woolworths-embraces-selfservice/news-story/
565a656c01e07e3bf621f8d283979c39 [Accessed 29 May 2018].
Collier, J.E. and Kimes, S.E., 2013. Only if it is convenient: Understanding how convenience
influences self-service technology evaluation. Journal of Service Research, 16(1), pp.39-51.
Hayes, J., 2018. The theory and practice of change management.
HevesI, B. 2017. [online] Available at:
http://www.dailymail.co.uk/news/article-4211198/Woolworths-rolling-self-service-
checkouts.html [Accessed 29 May 2018].
Leung, L.S.K. and Matanda, M.J., 2013. The impact of basic human needs on the use of retailing
self-service technologies: A study of self-determination theory. Journal of Retailing and
Consumer Services, 20(6), pp.549-559.
Orel, F.D. and Kara, A., 2014. Supermarket self-checkout service quality, customer satisfaction,
and loyalty: Empirical evidence from an emerging market. Journal of Retailing and Consumer
Services, 21(2), pp.118-129.
Vuckovac, D., Fritzen, P., Fuchs, K.L. and Ilic, A., 2017. From Shopping Aids to Fully
Autonomous Mobile Self-checkouts-A Field Study in Retail.

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woolworths.com.au 2018. [online] Available at: https://www.woolworths.com.au/ [Accessed 29
May 2018].
Writers, S. 2008. Woolworths introduces self-serve checkouts. [online] Available at:
https://www.itnews.com.au/news/woolworths-introduces-self-serve-checkouts-108848
[Accessed 29 May 2018].