MNG10716: Stakeholder Management Report for Wesfarmers Analysis

This report provides a comprehensive analysis of stakeholder management responses for Wesfarmers, addressing challenges related to financial issues and a dynamic business environment. The report explores ways to motivate change both internally and externally, emphasizing the importance of effective communication strategies to improve stakeholder relationships and mitigate current communication breakdowns. It recommends policies and approaches to enhance current operations, evaluates the appropriateness of the existing organizational structure, and suggests an improved organizational design. The report aims to offer practical suggestions, supported by relevant theories and empirical research, to help Wesfarmers resolve its ongoing problems, enhance growth, and improve stakeholder relations. The report covers change management strategies, communication strategies, and organizational structure analysis, concluding with recommendations for effective implementation to enhance the company's performance and stakeholder engagement.

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Executive summary
The purpose of this report is to discuss the list of stakeholder management responses for
Wesfarmers that is to be undertaken by the business to resolve the problems and issues
previously faced. The report suggests the monitoring and control mechanisms and it focuses
on the aspects such as the company to motivate change in the organization both internally and
externally for the departments, employees and the external stakeholders. The communication
strategies to be undertaken by the business has been discussed to improve the stakeholder
relationships, it analyzes the current communication breakdowns occurring in the business.
Further, it recommends policies and approaches that can be updated by the business
organization to enhance the current operations of the business. Lastly, the report analyzes the
appropriateness of the business structure and suggests new organizational design to be
managed effectively.

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Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Ways to motivate change in the organization........................................................................3
Strategies for change initiative within the organization.........................................................4
2. Communication strategies to improve stakeholder relationship............................................5
The current communication breakdowns in the organization................................................7
Policies and approaches to enhance current operations.........................................................7
3. Appropriateness of the organizational structure....................................................................7
Conclusion..................................................................................................................................9
References................................................................................................................................11

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Introduction
The wesfarmers has been faced issues of financial breakdown and which resulted in
stakeholder grievance. The company has been facing issues due to the changing and the
global dynamic business environment. Therefore the company needs to overcome the
challenges which hinder the growth of the company and manage the stakeholder responses to
enhance its business activities and respond to the stakeholders. In order to resolve the issue
the assignment suggests ways to overcome the problems and suggest the monitoring and
control mechanisms. The organization needs to undertake certain changes in the business
organization both internally and externally for its departments as well the employees and the
stakeholders. Further, it needs to understand communication strategies to improve the
relationship. The policies and approaches of the business organization that is to be undertaken
by the business are discussed in the study. It analyzes the appropriateness of the
organizational structure and suggests an appropriate structure for the company. The aim of
the report is to suggest ways that can be implemented by the company in order to resolve the
ongoing problem faced by the business organizations and to enhance its growth along with
improving the stakeholder relations.
Discussion
Ways to motivate change in the organization
The organization can motivate change both internally for the departments and externally for
its stakeholders by managing change in an appropriate manner. Wesfarmers need to motivate
change by initiating proper communication in the organization. It needs to star by
implementing a change plan (Andriof and Waddock 2017). It needs to overcome the
significant human element that is change resistance which must be addressed by the

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organization in order to ensure success in the organization. the leaders and the managers of
the organization needs to define the strategy of change and must communicate it effectively
to the employees and the departments of the organization as well as the external stakeholders
of the organizations effectively tot the shareholder, as they are the ones to be impacted
greatly affected the financial crisis and challenges faced by the organization (Mok, Shen and
Yang 2015). They further must support the employees and empower them sufficiently which
will help the organization to mitigate its resistance to change initiative in the organization.
There are various leadership styles that can be implemented by the organization in order to
motivate change among the key stakeholders both internally and externally. Managing
change in the organization requires strong managers and leaders in the organization, they
must posses or enhance their skills of understanding the ways in which the organizational
change takes place within the organization. The change initiatives can be designed by
enacting and effectively communicating them to the key stakeholder like the employees
within the organization as well as the external organization.
Strategies for change initiative within the organization
Creating a definable strategy:
It implies that the organization needs to analyze the stakeholder aims. It can create a business
case for the measurable achievements and it needs to be continuously updated, monitored. It
needs to ascertain the possible risks that can be faced by the company, the dependencies of
the company, it costs, cultural issues and return on investments. These are some of the factors
which affect the progress of the associated work (Thompson 2014).
Communicate effectively and efficiently:

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The internal and external stakeholders of the organizations needs to be explained the reasons
for undertaking change in the organizations, the benefits of the change must be
communicated to them in an effective and efficient manner (Thompson 2014). They also
must possess the knowledge of the ways in which the change is being rolled out in the
organization.
Empowering the employees
The employees of the organization are the vital stakeholders of the company, thus they are
needs to be empowered sufficiently to gain authority and incorporate the needed change in
the business organization. They must be provided an opportunity to devise an effective
education, training and skills in order to upgrade the scheme for the Wesfarmers.
Counter resistance:
Additionally the company needs to encounter the possible hindrance to change and indentify
the issues faced by the employees of the organization and align the issues to the overall
strategic direction of Wesfarmers. The company needs to adapt to the change policy and
initiatives and overcome the change related fears in the company (Burke 2017).
Support employees:
The employees, who are the vital part of the organization must be provided with counselling
and it will help the company to alleviate the change related fears and resistance to change.
2. Communication strategies to improve stakeholder relationship
Having a strong communication capability in the organization will help the organization to
improve the stakeholder relationship. The organization needs to address and support the
change management and address all the stakeholder resistance occurring in the company. It

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needs to build trust and improve the decision making in the company. It needs to drive the
focus of change management in the company in order to manage the scope and mitigate all
the risks and hindrances of change initiatives (Kisia and Sewe 2016). The communication
strategies are discussed below:
Impact on stakeholders
In the first stage the company needs to analyze the impact of change initiatives not he
stakeholders, the models of new roles, developing the user stories and other cases and the
focus of the strategy must be on the people of the organization and the stakeholder both
internally and externally. Wesfarmers can help the stakeholders to den tidy the future state of
the company by initiating the change and implement it in the organizations. Sufficient
information needs to be provided to the stakeholders to overcome their concerns, this will
help the key stakeholders of the company to feel successful (Andersson 2016 ).
Identifying the key messages
The message and information of the change must be communicated focusing on the purpose
and the outcomes of the business organizations. It needs to support the decision making of the
company and have the team and all the departments of the organization focused on the goal.
Further, it needs to document the key messages in advance to the potential stakeholders. This
will enable the company to promote consistency in the organization and provide foundation
for the tactical status reporting(Jones 2013). The communication is necessary to be reach the
entire team and department of the company and the external stakeholders.
Develop narrative information about change
The organization needs to be honest and have a comprehensive approach towards addressing
the challenges while communicating to the key stakeholders. Providing a narrative

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explanation about the process of change initiative will enable the organization to build trust
among the organizations (Kaufman 2017). It needs to communicate project success to the
executives of the company
The current communication breakdowns in the organization
The company faces various communication breakdowns in each level including
vertical communication failures, ambiguity, and crisis chaos within the company. The
company has ignored upwards and download vertical communication. The lack of
communication flow has directly affected the company’s finances. Lack of proper
communication in the organization has caused ambiguity and different meanings to different
words. This has negativity affected the organization(O’Riordan and Fairbrass, 2014. ). The
company lacked proper chain of command and therefore it affected the flow of accurate
information.
Policies and approaches to enhance current operations
In order to enhance the current operations of the company it needs to implement
technological advances, address the expectations and needs of the customer to enhance
customer satisfaction and especially increase globalization. This will further increase
productivity in the organization and enable it to provide better quality products and services
in the business organization. To enhance the current operation it needs to choose the right
equipments and give up obsolete technologies in the workplace, this will boost the operation
of the company (Payne and Calton 2017).
3. Appropriateness of the organizational structure
Wesfarmers follows a hierarchical business structure. The structure followed by the
company includes the director being at the top of the organization. The director of the

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organization is followed by the managers and other leaders along with the regional managers
which handles the various regional offices in which the company operates its business
activities. Then follows the team leaders ensure that the work is done in a proper manner. The
team leaders of the organization form the ground level supervisor of the company, the
employees of the organization reports directly to the team leaders or the supervisors of the
company(Kaufman 2017). Moreover, the general manager of the company manages the
different departments of the organization such as the production, marketing, finance and its
R&D department.
Problems experienced by Wesfarmers because of this structure
There are problems regarding the hierarchical structure of the company, the top level is
although clear but create problems with the surfaces which creates confusion among the
workers. The supervisors and team leaders o the company dominates the employees and they
tend to take up an authoritative role which in turn affects the smooth functioning of the
organization(Jones 2013). Another problem that is faced by the company is communication
problems within the company; it de-motivates the employees as they are missing
communicated. A lack of efficient communication in the organization creates end number of
confusions. These problems and issues faced by the lower levels of the organization affects
improvement within the origination and the work performance of the employees are
hampered(Payne and Calton 2017). Moreover, the company faces operational costs that come
up when the company employs multiple designators in the organizations. This creates
problems of financial crisis. There are problems regarding delegation of jobs and authority in
Wesfarmers. The problem is enhanced when delegation of responsibility are effic9iently
circulated in the business organization.
Effectiveness of the new organizational design

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The company had always faced problems concerning choosing an appropriate method for
system acquit ion to the requirements of the company. The acquisitions of the systems in the
organization mostly depend on his capability of the company(Kaufman 2017). Wesfarmers
being a conglomerate company has to deal with varied number of products in various
locations. Therefore it is recommended that the company adapts to software that enhances it
operation and the communications of the company. ERP software can be implemented, in the
company which will enhance communication which is the main problem faced by the
company in its existing business structure. The ERP is highly appropriate for Wesfarmers as
mentioned above, it is a conglomerate company that deals with various kinds of products and
services(Andersson 2016 ). The software mostly suits for the organizations and meets to
demands and requirements of the organization regarding the managerial operational and the
financial operation of the organization. The ERP software helps the company to provide a far
worthier than the initial costs of implementing the ERP software in the company.
Implementing this system in the organization will suit the hierarchical structure of the
company and help thru company to overcome the problems and issues faced. This system
will help the company to be time efficient and perform accounting software with better
analytics and the regulatory compliance (Kaufman 2017). This system is simple and therefore
is appropriate for the company.
Conclusion
Therefore from the above analysis, it has been identified various ways, policies and
strategies that can be adapted by the company to overcome the issues and problems regarding
financial acquisitions and maintaining relationship with the internal and external stakeholders
of the business organization. The report has identified ways and process that the organization
can motivate change both internally and externally for the potential stakeholder. The report

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has identified the communication strategies that can be implemented by the company in order
to improve the relationship and build stronger relationship with the internal and external
stakeholders of the organization. It has identified the current communication breakdowns that
are occurring in the business. It has identified the policies and approaches that the undertaken
by the business organization to enhance the current operations of the business. Further, the
report has analyzed the appropriateness of the organizational structure of the organization,
and identified the loopholes in the current organizational structures. It has identified new way
to improve communication and enhance the organizational operation of the company
including the financial operations. The implement changes in the organization the company
also needs to upgrade its technology and enhance the communication in the organization.

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References
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stakeholder thinking (pp. 19-42). Routledge.
Andriof, J., and Waddock, S. 2017. Unfolding stakeholder engagement. In Unfolding
stakeholder thinking (pp. 19-42). Routledge.
Burke, W.W., 2017. Organization change: Theory and practice. Sage Publications.
Cummings, T.G. and Worley, C.G., 2014. Organization development and change. Cengage
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Esmail, L., Moore, E. and Rein, A., 2015. Evaluating patient and stakeholder engagement in
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Hakelová, M., Csikósová, A. and Antošová, M., 2013. The model of manpower management
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Henisz, W.J., Dorobantu, S. and Nartey, L.J., 2014. Spinning gold: The financial returns to
stakeholder engagement. Strategic Management Journal, 35(12), pp.1727-1748.
Jones, G.R., 2013. Organizational theory, design, and change. Upper Saddle River, NJ:
Pearson,.
Kaufman, H., 2017. The limits of organizational change. Routledge.