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In this assignment organization Tesco is selected for research and the various details regarding changes are discussed

Home, - Organizational Change in TESCO

Introduction

Organization change isthe procedure in which an organization or any association changes its operational techniques, advancements, hierarchical structure, entire structure, or systems, and also the impact made by these changes on the organization.Internal as well as external pressures are major causes of organizational changes.The process of organizational changes generally includes reviewing and modifying management structures or business processes. Little business endeavors need to adapt for their survival against bigger contenders. They likewise need to figure out how to flourish in competitive condition. The bigger organization needs to adapt themselves very quickly when the smaller business comes into picture. To abstain from falling behind, or to remain a stage in front of its opponents, a business must search out approaches to work all the more productively. The main aim of the operation is that it should be more cost effective. In this report, organization Tesco is selected for our research and the various details regarding the changes are discussed. 

Organizational Overview

Tesco owns grocery shops all over world. Its revenue is third largest in world among retailer segment. The major operation of the company is into retail sale of eatable and beverages, which is operated from England. Tesco has also entered into market for selling compact discs, telecommunications, books, clothing, electronics, furniture, petrol, software, internet service provider and insurance sector. It was established in 1919. Itis experiencing steady progress for many spans of years. There are around 530000 workers are working in the company. Companyis going through radical changes in-between process of progression towards success. These changes are bound to happen as companies are going parallel into world economy, accepting new technology, rearrangements of organization, and relationships of working employees with management. As per Alvesson&Sveningsson (2015), there can be no. of examples of change in organization. 

If change is in terms of technology, then it will have no impact on the behavior of the employees in the company. However, if the changes are in respect of person at management level then such decisiondoes affect with thebehavior of the employees. Change is mandatory if something is not working in organization. Forexample, if customers are complaining about product and service than certain innovations should be made in the product and services or if there is issue regarding operational practices of the organization then it is time to go for change in organization. Though it easy to say change whatever it takes but it is very difficult to implement at organizational level. 

Tesco has gone through major technical change at its stores and introduce self- counting machines where customers can check their shopping material and pay bills directly.This change has been opposed by some and welcomed by some.

Internal & External Diagnosis

Tesco was dependent on UK market. In later stage company has started to look out for markets beyond UK markets. China is main marketplace.Company has done various agreements with Chinese companies for retail stores.In 2004 when company established itself in 10 countries it gave rise to business between Europe and western countries. In 2008, at time of recession period at UK economy, government has managed to stop unemployment, but spending power was affected as consumer was more likely to purchase premium goods. This scenario wasn’t impacted on TESCO as consumer will never sacrifice food. Expense on food has increased in past years. Human being is social animal. According to Hornstein (2015)in UK due to medial innovation, death rate has been reduced. This has resulted in increase in old age population. Old people tend to spend less amount on eatables as they consume lesser amount of food as compared to the youth. 

Internet Shopping has become more convenient to the customers including the old population. To keep their focus on the satisfaction of the customers, Tesco delivers small packages to their locations. Tesco accepts strategy of customization of product as per demand of market. Over a decade, company has improved its overall performance. It delivers good product and services to its customer at affordable prices. Tesco has gone through some rough patch in year 2009-2010. Tesco was unable to match some of its sales figures from the previous years.The company incurred huge losses due to some strategical decision gone wrong. Competitorstook advantage of this situation and provided affordable goods and services to consumers. This scenario is occurring every day in competitive world today.  

To adapt to this changing scenario, Tesco used hybrid form of strategy. It offers good products and services at low prices. Innineties, the company had made major changes and established no. of store across globe. Tesco is now selling variety of goods through them. Product portfolio which has poor run in competition, Tesco has identified it and used for their expansion purpose. Expansionhas given upper hand to company and helped in giving lower priced products to customer. TESCO has managed to stand with change in organization because of its market share in segment. The various changes made included New technology adoption in supply chain management, price differentiation, managing stock at stores and to reduce costing given edge for better margin for company.

Overview of Change theories and models

There are many theories proposed for organizational behavior ofhumans. One such theory is classical theory where it states that to increase organization efficiency worker has to be trained. As per Deboecket al. (2015),Workershould have specialty to do jobs in hand. This theory is based on laborsegmentation, Operationalprocess, framework and time of control.

1. Labor Segmentation: All jobshave to be divided between different type of worker so that it gets more specification and thus increase efficiency of work. Oneparticular work is to be done by one specialized worker.  The worker will go on doing same job again and again and become more efficient in doing this. It will benefit the worker as well as it will help the organization to grow.

2. Operational process:It is mixture of various instructions flow, authority, and unity of instructions. Operational process is main reason for the type of relationship between superior and subordinates.

3. Framework: Here a layout is designed by the organization, which specifies works assigned to different workers. The framework also mentions the responsible authority for the work which helps to complete the task in timely manner. 

4. Control:It includes the ability of superior to handle subordinates. For e.g. Manager will face difficulty in given task if no. of employee is increased under his control.

Though this theory has some drawbacks such as it does not support any other framework of organization and therefore, nobehavioris taken into consideration for this theory. 

Another theory which is in contrast of this is supporting flat structure. It is call new approach towards theory. As per Wood, Wrigley & Coe (2016),The conduct approach followed in this hypothesis is the other commitment of new-traditional masterminds. The mainstays of established hypothesis viz. division of work, depart mentation, co-appointment and human conduct were taken as given yet these proposes were viewed as altered by individuals acting autonomously or inside the setting of the casual association.

Another theory which modern concept of this is of late source, having created in mid-1960. This hypothesis has attempted to conquer the downsides of prior speculations. These characteristics are surrounded in a logic which acknowledges the introduction that the main significant approach to contemplate association is to examine it as a framework. 

Change at organization Tesco

In today’s world, individual expects more from the future as compared to the receiving in past. Approach to see things is changing by customer. Suppliers look in different way at business, partners have their own set of rules to run business. Such things are not in control of company and those are main factors inducing change in organization.As per Piercy (2016),external as well as internal factors are causing changes in the organization. Internal factors are organization structure, management, employees etc. The correlation of the assets and resources is called organizationalstructure andit tells about the segments and appropriation of work among individuals (directors and representatives) of the company, and the co-appointment of their exercises so that they are coordinated towards accomplishing the pronounced objectives and goals of the association. 

At Tesco shops, in early stages customer had to visit manned counters for check out, where goods were scanned by counter staff and billed customer accordingly. There were lot of queues before counters, it created chaos at shop. To improve the experience of the customers at Tesco, it introduced automated billing counter machine where customer canuse the barcode scanning of purchased goods and pay bill as per the convenience by card or cash.Main focused of the changes was onthe supermarket segment of Tesco.

Idea behind the Change

In its chain of network Tesco has introduced new technology called self-countingmachines. The idea behind this is to reduce pressure on manhandled counters at stores. This facilitates customer to scan and by themselves at these machines and make payment accordingly. As per Shaw, (2016) this change was required to stay in competition with others. This give satisfaction to customers and ultimately has resulted in increase of sale and services. Tesco has focused on below parameters before getting change into action:

• Customer loyalty: Some customer given negative feedback about company services and this led to bad image of company into the market. The changes were to improve their brand image in the market through the satisfaction of the customers.

• Effectiveness in costing of goods:The cost factor was taken into consideration while implementing the changes i.e. better goods were provided at lower prices. 

• Increase in sales: Increase in sales of the product and services was the main aim for the changes.

Implication of Change

This change has major effect on organization. This system is totally different from normal one which is existing. Here all process is done automatically without human interference. It was a better tool for enhancingthe experience of the customers in overall shopping. Customer could now, purchase their good without any queues and without any hectic processes in the store. According to Saratheet al. (2018),This is implemented to enhance customer satisfaction and to collect data of customer who visits store more frequently. Byacquisition of this technique customer simply shop and go to machines for payments without any loss of energy at countersthis givespeaceful working atTesco stores, thissmoothens the operation at stores level. The manual error due to human intervention was reduced substantially. The labor cost was decreased as the process of billing was automated. 

Resistance for implicatedchange

Understanding the parts that drive change and how people react to change is fundamental to the productive execution of growth. It is a bit of human sense to contradict change. People often don't react well to changes in their employment or social condition and lean toward the security of surely understood condition. Security from change regularly takes some basic structures. One common reaction is repudiation; which individuals use to confirm themselves.

Various chiefs expect that people will not stay away from the change, if there is a thinkingthat change is a clever idea. There is no reason for the employment constraint opposing changes if the movement settles whatever needs to be settled. People may require change, yet not by any means the progression that have been recognized in the course of action. Authorities may have their own thoughts of the changes to be made, and as frequently as conceivable the movements they think settle the issue incorporate someone else changing, not them. In like manner, workers may think the ways to deal with enhance things is simply to alter and control their work shapes, not to execute the extraordinary changes perceived in the proposed game plan. 

As per Benn, Edwards & Williams (2014),Then again, authorities may not envision that isn't right with the present technique for working. As often as possible the route toward changing looks too much hard, seems like it will take unnecessarily essentialness, and seems, by all accounts, to be overwhelming. An altogether composed change process routinely dismisses the permeated human security from change. Exactly when that happens, people who are impacted by the switch end up utilizing by far most of their time and imperativeness understanding how to stop the change or altering the change until the point that doubtlessly something they can live with. If the perfect change isn't genuinely alluring to the work oblige, chiefs need to find why. 

Inadequate information about the principle force behind the change and the preferences foreseen from it is most likely going to cause inconvenience among those impacted by the change. People will when all is said in done act in their own one of a kind evident individual situation. Boss routinely consider change exercises in progressively broad terms, while the work compel will by and large think about it in a surprising way, in progressively constrained terms of how the change will impact their capacity. A portion of the time boss disregard or disregard this reaction to change. Practical frameworks for definitive change incorporate an appreciation of the people in the work constrain.

Tesco also, faced certain resistance while implementation of the changes. They were as follows:

• The labor organization was not ready for such automation as they felt threat to their jobs.

• Customers had resisted the automation, as the system was complex for an ordinary individual to understand.

Managing confrontation

Tesco has managed opposing thoughts with an effective planning and implementing in actions of it.Management has workout plan for no. of machines and stores for this new system for implications. The specialized personals were appointed at machine that is well trained at handling. These staff are handling customer queries about new system installed at stores and alsoresponsiblefor demonstration for customers which was very friendly initiative for customer to understand this technique. According to Russell-Jones (2016), Management has educated staff that this system is for their benefit and so do not feel unsecure about your jobs at stores. This serves purpose for customer satisfaction and motivates staff to be confident. Management has observed the responses from customer to this new system and studied implications. Also, staff and customer has asked to give feedbacks and on basis of positive feedback TESCO has ready to introduce this system in more stores.

This change has given major boost in sales and other parameters of company which are discussed as below:

• Booming in sale figures: - Customer is king in this era so customer always prefer to shop where he gets smooth operations,convenience.TESCO by implementing self-Countingmachines, attracted more new customer as they came to know that there would not be hectic process for billing of purchased goods and they can go out within theirtime. As new customer came in it has got impact on sales by increasing it 50 % of TESCO. So, half of company sale is through this new system which is obviously good rate of progression.

• Costing: - This is very important factor taken into consideration when any change is implemented. Due to this change dependency on human has been eliminated as there is no requirement of cashier to handle customer. Sothose man powers can be used in other productive work. Also, there is some risk of malfunctioning of machine, but it can be handled by trained staff. Machine has given edge to use less staff if manpower is less.

• Customer Happiness: - thesechangesare welcomed by customers and shopkeepers.Customers were happy as they don’t wait at shop for billing. The help of technology is key to customer happiness. Itbuilds customer relationship and loyalty to brand. Millions of customershas used this system at stores and were given full marks to this change. Thisleads to increase in sale of company

Description Introduction new technology called self-counting machines which will help customers to scan their purchase and make payment accordingly.

Comments It was an innovative change introduced by Tesco to reduce the pressure on man handled counters at the stores. This change had faced resistance by the workers organization as well as the customers initially. 

Role and contribution Effective planning and implantation was done at different stages for customers to adapt to the technological changes. Proper training was provided to the staff to introduce the self-counting machines. Customer awareness programs were conducted to introduce the changes.

Recommendations

There is some need of up gradationof system which has smoother working at store. There should have one staff to be assigned all for shop lifting cases. This staff will guide the customer over technical difficulties. Machinecould not recognize difference between major and minor as it cannot prohibit minor customer from purchasing illegal goods at store. Itis more user friendly.

Conclusion

Change is an integral part of any organizational system. To that change there will be some resistance which is good for the change as it can be better by correctingit. Whether it is small or big all instituteshave to go under some change in itself. A good management and strong organizational structure are required to implement these changes. Both employee and management should provide support to each other for such good changes. Good organization always uses its tools and strengths for change in organization. If such friendly approach towards change has shown by each and every staff of company, then it will smooth working for both and ultimately benefit for organization.

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