Analysis of Organization Development and Change at Woolworths

This report provides an in-depth analysis of organization development and change management within Woolworths Supermarket, Australia. It begins with an executive summary outlining the core issues, including employee performance, dropping customer numbers, and increased competition. The report delves into the effects of poor employee performance, such as customer turnover and challenges from competitors, and emphasizes the significance of employee performance management. It then outlines the key steps in performance management: planning performance levels, training and development, performance appraisal, and review and rewarding performance. A detailed SWOT analysis is presented, highlighting Woolworths' strengths, weaknesses, opportunities, and threats. The report also examines the phases of change management and organizational development, including contracting, feedback, planning, and evaluation. The conclusion underscores the importance of employee satisfaction in the retail sector and its impact on customer relationships and market competitiveness. Finally, the report provides references to support its claims.

RUNNING HEAD: Organization Development And Change Management
Woolworths Supermarket, Australia
Organization development and change management

Organization Development And Change Management
Executive Summary
This report is a discussion about the change intervention and development in a running
organisation to lead the organisation toward the goals attainment with the management of its
employee’s performance. Woolworth’s supermarket is world’s famous industry dealing in the
selling of the groceries, households and petrol at huge level established in 1924. This report
will discuss about the challenges they face and the solution to improve their employee’s
performance. Organisation development with the help of communication, motivation and
intervention can lead the people towards the high target and success of the organisation. This
report will discuss about the SWOT analysis focusing the internal management issues at
Woolworth and will discuss about the process to evaluate a change in the management.

Organization Development And Change Management
Contents
Introduction...........................................................................................................................................3
Issue and its effect.................................................................................................................................3
Employee’s poor performance...........................................................................................................3
Dropping regular buyer..................................................................................................................4
Increase in the core competitors....................................................................................................4
Employee performance management.....................................................................................................4
Planning performance level...............................................................................................................5
Training and development.................................................................................................................5
Performance appraisal.......................................................................................................................6
Review and rewarding performance..................................................................................................6
SWOT analysis of Woolworth’s challenges..........................................................................................7
Strength.............................................................................................................................................8
Weakness...........................................................................................................................................8
Opportunities.....................................................................................................................................8
Threats...............................................................................................................................................8
Phases of change management and organizational development.........................................................10
Contracting or entry level phase......................................................................................................10
Feedback and diagnostic phase........................................................................................................11
Planning actions and intervention phase..........................................................................................11
Closure and Evaluation phase..........................................................................................................11
Conclusion...........................................................................................................................................11
References...........................................................................................................................................13

Organization Development And Change Management
Introduction
Development and change are related to each other very closely. Change in the management
lead the development in the organisation and when an organisation needs to develop it needs
to introduce a change in the previous structure and functions (Organisation 2019).
Woolworths is facing many internal and external challenges in the present time. People,
employees and workers of in Woolworth usually avoid adapting the introduced change
because they are comfortable in their old environment (Woolworthslimited.com.au 2016).
These changes are very wide and challenging so the managers need to follow an appropriate
process of introducing change for organisation development (Elliot 2017).
Issue and its effect
An organisation needs to develop its management to face the issues and problems occurring
in the day to day business in short term as well as in long term. Woolworths is facing
challenges externally from its competitors and internally with the poor performance of the
employees resulting in the increased number of unsatisfied customers (Woolworths.com.au
2018).
Employee’s poor performance
Department of employees is a very important and risky area for the managements because in
a retailing business they are the direct connectors to the customers (Swann & Stanford 2016).
There are many reasons for the poor performance of an employee. In Woolworths some of
the main reasons for employee’s poor performance are
 Constant fear of losing job
 Long duty hours and less pay
 Unable to manage in cross culture environment

Organization Development And Change Management
 Lack of proper communication
 Fear of not getting reward or promotion
These are some major issues those lead the reduction in the level of employees performance
(Woolworthsgroup.com.au. 2018). The continuous poor performance of employees at
Woolworths lead losing of the regular customers and give opportunity to the competitors
becomes more challenging (Woolworths.com.au 2018). The effects of the poor performance
can be discussed as follows
Dropping regular buyer
The continuous turn-over of employees is a very dangerous situation because customers
become familiar with the sellers behaviour and job quieting make the customer feel anxious
and apprehensive (Bailey 2015). This results in losing their regular customer at broad level.
On other hand HRM of Woolworths spend money and time to train the hired employees but
regular turn-over result them in monetary loss in two ways and this is a very critical situation
for a retailing organisation (Woolworths.com.au 2018).
Increase in the core competitors
Employees remain in continuous fear of losing their job hence HRM of Woolworths needs to
motivate the employees continuously about the job security and safety (Boella 2017). If
employees are not secure about their jobs this leads the loss of employees joining the
competitor’s organisation. On other side this result in the increased fear of the competitors
challenges and competitions (Reddington, Holbeche & Francis 2012).
Employee performance management
Managing employees performance is a process manager applies to create a positive working
environment and leading the people to attain the desired target of the organisation

Organization Development And Change Management
(Woolworths.com.au 2018). Employee performance management depends on aim to develop
the skill, abilities and motivation in the employees to improve and boost their performance
(Bonaccio 2016). The process of employee’s performance management follows the given
steps;
Soufrce: Employee performance management (cycle 2019)
Planning performance level
This is the very first stage require the collected data to evaluate the previous performance and
the desired outcome. Managers analyse the gap between the employee’s performance and the
results, then they try to find the reason behind the poor performance after that they plan the
skills, knowledge and abilities to develop the performance level of the employees in the
organisation. Woolworth’s managers evaluate the data and design the new techniques and
level to increase the performance of employees (Zaleski 2015).
Training and development
This is the most important stage or phase includes the development of training and building
standards to develop the performance standards of workers. Roles and responsibilities of a

Organization Development And Change Management
manager in the development phase is to facilitate the employees with required training, tools,
lessons and coaching. Mangers evaluate their performance step by step and guide them to
perform well (Aljaj 2011).
Performance appraisal
This is a technique or process involving the measuring the performance with the desired
target. This is a means to communicate with the employees regarding skills, attitudes and
knowledge required to perform given tasks. Appraisal is used as a tool to motivate the entire
employees to accomplish the desired target by performing well (Schunk 1990).
Review and rewarding performance
Review of the performance is the stage where subordinates transfer the feedback of the
employee’s performance to their superior. They revise and review the performed action and
compare the given targets (Bush, Bell & Middlewood (eds.) 2019). The review needs to be
communicated with the performer to reward the jobs of the employees. After the evaluation
of the performance superior give their valuable feedback in form of reward to the best
performer and the opportunity to those who don’t match the performance standards
(Applebaum 2016).
Woolworths is organisations focusing to serve ‘Fresh food’ to its customer hence the
management clearly understand the need to employees comfort and satisfaction. A happy and
peaceful mind help the employees to build strong relationship with the customer and this will
lead the joining of new customer with setting the high challenges for the competitors (Cai &
Chen 2017).

Organization Development And Change Management
SWOT analysis of Woolworth’s challenges
This is an internal analysis tool used to analyse or identify the internal factors affecting the
performance of an organisation. Woolworths is a stable and successful retailing industry
hence the entrance of any new competitor is very challenging and this is the strength but a
large group of employees is quite challenging for the management (Helmes & Nixon 2010).

Organization Development And Change Management
Strength
1. Woolworth is Australia’s largest food
and grocery supplier industry holds a
reputed financial position in
Australia.
2. It serves approximately 19 million
customers per week.
3. It facilitates its customer with many
service facilities like; mobile app,
online website, and virtual store
giving home delivery service to them.
4. It has efficient and talented staff
members and technologically expert
employees.
5. Employees at Woolworth enjoy
working due to their boredom free
organisational environment.
Weakness
1. Woolworth provide the organic and
natural groceries to its customers
hence the products are expensive.
2. It operates a large supply chain
management hence it needs to waste
large amount in the day to day
operations.
3. It serves a large number of customers
hence they are the key source of the
income and they are very powerful to
do bargaining about the rate of the
products.
4. Woolworth’s structure of strategic
development is based on the pricing
strategy.
5. It competes with the competitors on
the base of the price cutting strategy.
Opportunities
1. Woolworth is serving the retail
industry since 1924 hence it have a
large number of loyal and regular
customers.
Threats
1. Increasing rate of employees turn-
over every year and growth in
unemployment in the retailing
industry.

Organization Development And Change Management
2. It deals in the sector of delivering
fresh, healthy and organic food and
set challenges to its competitors.
3. Introduction and involvement of new
modern technologies lead the
opportunity to operate the business
online.
4. Change and increase in the population
and the living standards of new
generation can lead expand to the
Woolworth’s online market strategies.
5. In developed countries supermarket is
the major and important source to
supply the goods and services to the
customers.
6. Various strategies like credit card and
mobile app strategy gives cash back
and reward points on the purchase
hence leads the interest of the
corporate customers.
2. Increased number of competitors and
competitions.
3. Increase in the bargaining power of
the customer is a continuous threat to
the business.
4. Easy entry in the retail market is
creating threat of new competitors in
the market with new innovative
strategies.
5. Employee’s behaviour towards the
customers in any situation is difficult
to manage and it leads to large turn-
over threat.
6. The suppliers in the retail industries
are very dominating in nature for the
price bargaining and product quality.
This analysis is useful to gain knowledge about the inner strength, weakness, opportunities
and threats of an organisation and lead to manage the required change in the organisation
(Alvesson 2015).

Organization Development And Change Management
Phases of change management and organizational development
It is very important for the managers and the leaders willing to introduce change in the
organisation to prepare properly for the process require introducing a change and
development. Organisation development is a systematic process to introduce a planned
change involving the every people of the organisation leading them towards the success to
increase organisational effectiveness (Awan & Hafiz 2016). This organizational development
and change intervention follows a pre-planned phases like;
Source: organisation development cycle (devlopment 2018)
Contracting or entry level phase
Entry level or starting level of the organisational development with change intervention needs
the effective listening skills of the managers. Managers need to listen to their people non-
judgementally to win the trust of their people and offer them the required support at initial
stage. Listening enables the mangers to plan and implement effectively (Sarkany 2017).

Organization Development And Change Management
Feedback and diagnostic phase
This phase is related to the identification of the techniques that can be helpful to develop the
feeling to adapt the change in the employees. This phase is very significant, here leader can
identify about the needs, behaviours, wishes and requirement of the employees and can
submit the feedback to the superiors to get idea about the change management process
evaluation and results (Applebaum 2016).
Planning actions and intervention phase
After getting the enough data and information regarding employees choice and nature
management proceed to implement the change in the organisation. Feedback is very helpful
because if a management introduce change without communicating the result of the change
on the employees this can result in the breaching of the trust of employees on their leaders.
Implementation of change plan includes coaching, training, selecting suitable leadership
style, building team work feeling among the employees and conflict resolutions effectively
(Zaleski 2015).
Closure and Evaluation phase
This is the last but not the truly ending phase; a change is a continuous process. After the
successful implementation, managers become responsible towards the measuring the positive
or negative outlook of the employees towards the changes. Woolworth focusing on the
improvement of performance management of employees can evaluate the introduced change
by measuring the satisfaction level of the buyers with the employees (Awan & Hafiz 2016).
Conclusion
This report concludes that employees are very important factors in the organisation. Success
or failure of any organisation is fully depending on the customer satisfaction and in retailing
industry like Woolworth an employee is the link between the buyer and seller. Hence

Organization Development And Change Management
employees present the organisation among the buyer and the market. If they are not happy
then the organisation cannot survive for a long period. Hence this report concludes the
effective management of the employee performance and development is very helpful for
attaining the organisational goals and targets.

Organization Development And Change Management
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Organization Development And Change Management
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Organization Development And Change Management
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