Effective organizational changes and reconstruction of management strategies are highly required in the dynamic business environment of the contemporary industry. The drastic changes in consumer behaviors and market uncertainty lead to change management properly for sustainable business growth in the business of 21st century. Supermarkets have also faced huge challenges in the shifting of consumers from physical stores to shopping through E-commerce sites in the new normal era. The overview of the leadership changes in the dynamic process to make the business profitable is going to be discussed in the study. The concept of organizational renewals in the changing management is also going to be explained in the report. The impact of the evolution of the global economy on the rules of management is going to be shown in the study. The suitable organizational design, challenges, and required activities are also going to be elaborated on in the context. The organizational renewal process in change management is also going to be mentioned in the study.
Leadership in the changing process
Effective leadership plays a fundamental role in the change management process in the contemporary business world. As opined by Mansaray (2019), the mismanagement in the dynamic business environment can be a threat to the organization and the business rivalries can take the advantage of the fault. Effective leadership can be helpful to design a strong team and the strong workforce of the supermarkets can be beneficial for the promotion of the business. The promotion of the supermarket business is highly required to make the business profitable and target more customers maximizing the productivity of the company (Dzwigol et al. 2019). The experience and the skill of the leaders and the management of the supermarket can be effective for adopting the new market strategy in the dynamic uncertain business world, especially after the pandemic outbreak.
Types of innovation
The major four types of innovation present in the business are sustaining disruptive, incremental and radical innovation. As opined by Putri et al. (2020), sustaining innovation is an effective development of a product to make the product sustainable in the existing marketplace. In addition, disruptive innovation involves a technology-based new business model that can disrupt the existing market and create a new trend in the business. On the contrary, Starr (2021) stated that incremental innovation is another important type of innovation. Incremental innovation focuses on the gradual improvement of the existing services and products in the industry. In addition, radical innovation emphasizes the technological advancement in the business to transform the industry or create a new marketplace. The radical and disruptive technology is highly effective for the change management of supermarkets. The innovation wheel includes the experience, configuration, and offering that is highly required for risk management and creative work in a dynamic business situation.
Theory
Change kaleidoscope theory
The Change kaleidoscope theory is an effective approach for the change management of the organization. The several dimensions of the theory are present and they are time, scope, preservation, diversity, capability, capacity, readiness and power. The time factor shows the required timeline of the changing process to minimize the uncertainty in the supermarket business. The scope shows the qualitative and the quantitative measurement of the changes to adopt the changing business situation in the post-pandemic period for the supermarket business. The factor of preservation focuses on the organizational resources and characteristics whereas the diversity factor shows the measure of homogeneity among the staff and team members of the supermarket. The capability focuses on the personal and managerial capacity of the organization. The capacity factor emphasises the availability of the resources in the supermarket business and the readiness shows the capability of the workforce to adopt the new skills in change management. The factor of the power in the theory shows that the factors of the leadership change for adopting the dynamic business environment that is important for the sustainable business of the supermarkets.
John Kotter’s eight Accelerators
Create a sense of urgency
The creation of a sense of the urgency from the hierarchy to the workers of an organization is a crucial factor to achieve the organizational goal and overcome the adverse situation. As opined by Imran and Iqbal (2021), the market analysis and the competitive realities give the idea about the risk factors of the supermarket business in the post-pandemic period. A clear concept about the organizational goal and the opportunities as a consequence of the change management is important among the employees of the supermarkets. On the contrary, Lerra (2021) stated that the dual operative system in the organization is also helpful to minimize the risk factors regarding the dynamic changes in the business. The sense of urgency to execute regular short goals among the management and the workers can be helpful to achieve the ultimate goal and take the opportunities of change management.
Build a guiding coalition
The guiding coalition is the core strategy of the model to build a strong and creative team that is important to make the changing process successful. The motivation and the encouragement of the management and the leaders of the supermarket firms can be helpful to enhance the effort and engagement of the employees in the transformation business process. A strong team in the guiding coalition process and the support of the hierarchy are also required for the team performance in the dynamic environment to accelerate the changes. The trained potential team can take the critical decision that is important for the supermarkets to overcome the awkward situation due to the pandemic and make the business profitable.
Formation of the strategic vision
A clear concept of the organizational vision can be helpful to design the business strategy to intake the changes successfully in the supermarket business. The strategic vision can be useful to set the regular short goals and male the planning of execution to achieve the ultimate goal of adopting a new reality. The process is crucial to achieving the business opportunity to take business competitive advantages and target more customers for the supermarket stores. The strategic vision should be flexible, communicable, feasible, simple, desirable and imaginable. The diverse work culture in the team of transformation and strategic vision can motivate the employees.
Enlistment
The stage of enlistment of the volunteer army in the changing process can be helpful to accelerate the changing process in a correct direction systematically. In this regard, the process of leadership can be beneficial to encourage the employees and make the feelings of excitement for them to fulfil their daily targets. The small regular activities of the employees in the same direction for achieving the same opportunities are necessary for the large scale changes. The leaders should give energy and true permission to step up that can be helpful for the supermarket business to adapt to the changing environment with sustainability.
Enable actions mitigating the challenges
The identification of the barriers is an essential tool to mitigate the issues in business and enable action in the dynamic business environment. As opined by Cameron and Green (2019), the analysis of the past failures in the business strategy and identification of the cause of the failure can be beneficial to remove the barriers. The perfect CRM system and the innovation of technological advancement in the business are important for the up-gradation of the supermarkets in the changing customer buying process and dynamic environment. On the contrary Coban et al. (2019) stated that the common barriers to the changing management are parochialism, legacy procedures and complacency. The innovative work and the effective relationship with the stakeholders can be helpful to enable actions removing the barriers in the change management process of supermarkets.
Generation of short term goal
The process of generation of short term wins can be an effective tool in the leadership for the performance management in the transformation process of the business. As opined by By (2021), the short time wins can be beneficial to track the progress of the team and the individuals. The process can be helpful for the employee’s motivation to drive the changing process more accurately to achieve the opportunities. On the contrary, Evans (2020) stated that the short time wins in the process of the individual can create a competitive culture in the team to achieve the goal. The process is required in the supermarket management strategy to take a competitive advantage in the dynamic global marketplace.
Sustainability with acceleration
The sustain acceleration process can be helpful to meet the goal and increase the credibility and the efficiency of the workers in the changing project of the supermarket business. As opined by Men et al. (2020), the effort should be continued until the desired success and the vision become the reality. The process of leadership is highly effective in the dynamic business world, especially in the post-pandemic era. In this regard, urgency generation is required after each success in the stages and the factor can be significant to executing the ultimate goal of the organization by collecting each success in small steps. On the contrary, Masenya (2020), stated that the involvement of more people in the organization and their effective contribution to the change management process can be helpful to sustain acceleration in the method. The process is important for the supermarket to set the business strategy and the marketing planning for the promotion and targeting more customers in the stores.
Institution of the changes
The management should be clear about the organizational goal and the process of execution in the changing environments. As opined by Al-Tahitah et al. (2018), the process of leadership can be helpful to institute the changes and accelerate the process of the change to take the business advantage in the competitive marketplace. Effective communication between the hierarchy and the team regarding the changing management of the supermarkets can be beneficial to identify the challenges faced by the team members. In this regard, the process is important to reduce the risk factors of the business in a dynamic environment and failure in the process.
Organizational Renewal
The term Organizational Renewal refers to the building up of the organization in a format in which all the employees can grow and be empowered to work together. In addition to this, the empowered team is enabled to build a common vision that is aligned with the vision of the company to gain better productivity within the target market to gain the competition (Halldórsson et al. 2018). The necessity of having a renewal for the organization is important to be done from time to time to ensure that the company can establish a good relationship between the employees in conducting the business with alignment to the contemporary needs of the customers and gain better profit and reputation within the high competition.
In the context of effectively establishing good leadership within an organization, it is essential to establish an effective change manager with the conduction of several strategies which include better training, and employee retention plans. The changes brought about within the job role of the employees in a systematic manner help the employees in understanding and be more committed to the organizational goals to give better productivity (Nava, 2022). Therefore, the best way to renew an organization is to align the operations and the tasks of the organization with the contemporary best practices of influencing the employees to perform better. The process of changes within the organization needs to be aimed toward the adjustment of outcomes in the strategic direction which can have the determination to long term competitiveness.
To make the per markets more competitive in the long run the companies need to adapt to certain changes within their organization. The changes include the inclusion of online stores which need to be working with more efficiency now compared to the pre covid period. The employees need to be trained to work virtually in addition to working manually and face to face. Moreover, the new employees who are to be employed need to be trained with better technical knowledge who can continue working in the future if a similar situation like Covid arises.
The companies can also opt for making attempts at associating with organizations that work for no profit causes to determine the well-being of the society such as associating with Foodbanks to help the needy in the society and give educational support to the people who have been orphaned during the pandemic. These initiatives could also determine that the Supermarket chains will be able to propagate the good wishes of the people in the society which will in the long run increase their reputation within the competitive market (Petetin, 2020). In addition to this, the business people need to promote good things to ensure that the work they do reaches the people to increase the sales. Further, Social media platforms need to be utilized with the use of email marketing to increase customer follow-up shortly to explicit the lost opportunities in the past.
Impact of the economical evolution on the management
The effects of the pandemic outbreak on the global economic forces change the managerial role of the organization for sustainable business in the modern world. As opined by Harb and Sidani (2019), the reflective mindset of management is a highly effective strategy to identify mistakes and the areas for development in management. The experience of taking work pressure in a dynamic business situation and the concept of teamwork as per the organizational goal can be useful for the managers for their self-reflection. The process can be beneficial for the management of the supermarkets to make additions of new insights in the business strategy based on their reflection to overcome the adverse situation arising in the pandemic era. On the contrary Adda et al. (2019) stated that collaboration with the managing relationship is the next stage of the managerial changes in the global economic condition. An effective conversation with the workers, stakeholders, and partners at the physical meeting as well as the remote mood can be effective in gathering knowledge and implementing change management.
The collaborative work and the innovation of the new strategy with exclusive collections of new products are important for the supermarkets to mitigate the issues. As opined by Gigliotti et al.(2019), the analytical view of managing an organization and performance management also becomes an essential factor in modern business. Market analysis and designing a new strategy in each step of change are necessary to minimize business risk and failure. The factor can be helpful for the supermarket business to know the target consumer, customer behavior, web development as per the demand, and effective marketing strategy in the dynamic retail industry. On the contrary Jaroensutiyotin et al.(2019) stated that managing context is an essential factor in the inclusive leadership practice and concepts of diversity in the 21st century. The managers and leaders of the supermarkets should facilitate and value the intermediates in the business as locals as well as in the global business context. In this regard, the action regarding the managerial changes and proper planning to execute the activities as per the goal of the supermarket firm is a crucial stage. The innovation of the developed information technology as per the managerial reflection is important to develop the web development of the supermarket. For illustration, Ocado has concentrated more on the online business, home delivery for grocery items, and the protection of the IP that has attracted investors and customers. As a consequence, the online grocery revenue of the Ocado group has grown by 35% in 2020 even during the time of the pandemic (). The major portion of the consumers in the retail industry has shifted towards online shopping and the managers of the supermarkets should adopt the policy of digitalization in the new normal era.
Figure 1: Consumer shopping behavior
(Source: Statista. com, 2022)
Organizational design for evolutionary changes
The organizational designs and the reconstruction of the organizational structure for the dynamic business environment are necessary to take competitive advantages in the business world. As opined by Tkaczyk (2018), organizational design is an important term to adapt quickly to the evolutionary changing factors and take variations in the business strategy. The supermarkets should quickly adapt to the changing business situation and customer behavior by making proper structure, starry, staffing, and variation for the other competitors to grab the huge market. On the contrary, Mikkelsen and Olsen (2018) stated that adaptation of the technological changes in the organizational design can be beneficial to tackling the evolutionary business changes in the digital era. The evolutionary approaches like selection, retention, and competition in the supermarket business with the help of technology can be effective for web development and business growth.
McKinsey’s 7s Model
Structure
The structure of the organization is an important factor in achieving success in the changing process and avoiding the risk factors related to uncertain outcomes. The supermarkets should have an effective ethical supply chain and a strong distribution system for the availability of all goods with quality products. The proper strategic approach and the invention of new items are highly important to grab the huge retail market in the UK and attract customers to the store’s supermarkets.
Strategy
A strong business strategy in the global dynamic business world needs to be built especially after the pandemic outbreak in the world. The development of the e-commerce site of the supermarket and the attractive offers maintaining product quality can be helpful to take the competitive advantages in the changing business environment. The digitalization and the facility of home delivery with online purchasing can be beneficial for the profit of the supermarket business in the post-pandemic era.
Systems
The decision-making policy of the organization focuses on market analysis and growth opportunities for future development. Market analysis is a necessary factor to evaluate the strategies of contemporary business rivalries to tackle the situation and the area of development in their strategies. Market analysis is also important for the evaluation of changing consumer behavior, market demands and the factors that can influence customer satisfaction. Technical infusion and innovation as per the market analysis is a highly effective system for the supermarkets for their sustainable business development.
Skills
Organizational skill depends on the competencies of the workers for handling several operative features to meet the organizational goal of marketing and the future development of the business. The efficient worker and developed skills of the employees like critical thinking, decision making, technical advancement, and communication skill and conveyance power can help expand the supermarket business. The creativity and the innovative work of the staff can be beneficial for launching the new items and product development in the supermarket business.
Styles
The managerial style and effective smart approach are necessary for the supermarket to overcome the adverse situation and upgrade its web platform more systematically. The process is important for a healthy relationship with the workers, customers, supply chain and stakeholders. Effective HR management can be useful to engage efficient skilled workers in the supermarket business and increase the productivity of the organization.
Staff
Staffing and performance management is an essential term in business development, especially in a time of transformation. Talent management can reduce the chances of risks in the business regarding uncertain results. The size of the recruitment and process of hiring as per the need of the job role is a crucial stage of staffing. The performance measurement, training, and reward policy can be highly effective for the supermarket business to make the changing process successful and make the business more profitable.
Shared value
The supermarket firm operators can infuse potential knowledge of shared value and power into their interdepartmental sections of the organization. The strategy can be a highly effective tool for business growth and development gathering proper concept of the business plan, organizational goal, mission, vision, and core values of the performance of the supermarkets.
Figure 2: Mckinsey’s 7s Model
(Source: Created by author)
Challenges in organizational changes
The organization faces different types of hinders in the changing process that can affect the business growth and profits in the changing process. As opined by Freihat (2020), lack of knowledge of the complexity of the changing process and lack of expertise is the big barrier to organizational change. The pandemic situation has changed the customer behaviour and buying process, especially in the retail industry. The digitization and shifting of the shopping trends of the customers from the physical stores to the online marketing through E-commerce sites is a big challenge for the supermarket’s business. The statistics show that a major portion of the UK buyers, nearly 40% shifted to online shopping than in the pre-pandemic period. The knowledge and skill in change management and the innovation strategy are required to tackle the uncertain situation. On the contrary, Oreg and Berson (2019) stated that the lack of accountability and employee engagement is also a barrier in the change management process. The management of the organization plays a vital role to motivate the employees and increase their involvement in the changing process. The effective participation of the managers, front line staff and the employee can encourage them to creative and innovative work in the collaboration.
The deep engagement of the workers can be helpful for the supermarket business to set the business strategy and innovate new items in the market that are important to surviving. Inappropriate organizational structure is another big obstacle to tackling the changing environment in the business. The supportive and flexible nature of the hierarchy and the management is required here to make the process successful and motivate the workers to fulfil the mission of the organization. The structural support from the organization is highly effective for the supermarket business for adopting the digital transformation of the customers and mitigating the technological barriers. The lack of management support and effective communication can threaten the supermarket business for the interdepartmental coordination and dynamic culture in the time of transformation. Inadequate resources and financial constraints are a major challenge in bearing the cost of the change management process. Supply chain availability is an important factor for sustainable business growth and business profit. The supply chain of the supermarkets had been disrupted due to the massive lockdown at the time of the pandemic outbreak.
Financial resources are an important factor for the budget allocation in the change management system keeping the profit in the business. The statistics show that the pandemic greatly affected the non-essential retail and physical stores as the retail sale fell by 1.9% in 2020 in Britain (Ons.gov.uk, 2020). The appropriate financial planning can be a threat to the supermarket business and increase the risk factor in the uncertain outcomes of the transformation. The lack of skilled and experienced human resources is also a barrier to the transformation to complete the task in the specific timeline of the organizational goal. For illustration, the big supermarket in the UK, Morrison, was faced with a sales decline of 6.2% in 2021 due to the extra expenses for the pandemic situation (Weforum.org, 2020). Failure in the process can threaten to take advantage of the retail industry and target more customers for the stores of supermarkets.
Figure 3: Online shopping trend of the consumer
(Source: Statista.com, 2022)
Programs for the acquisition of new skills
The program for the acquisition for adopting new skills in change management is a crucial strategy for the process. As opined by Wu (2020), counselling is an important tool to interact with other people effectively with the other people. The method is essential to make the concept clear about the changing process and the execution planning among the team members of the supermarkets. On the contrary, Stauffer (2020) stated that sensitivity training plays an important role to make the team strong and enhance the capacity of the workers. The process is also important for the risk management and the decision making process in the critical situation in the change management of the supermarkets. In addition, process consultation is also an effective technique to improve the interaction skill by working with the managers with the consultation of the trainers. In this regard, team bullying is also an important stage in the development of the new skill in the change management process of the supermarkets in the new era. The facilitators should observe the team performance and make them prepared for the developed interaction skill.
The intergroup training is the next stage of the acquisition method of the new skill in the changing business environment. This method can be beneficial for the distribution of the duties among the team members and prepare them according to their job roles. The individual training process is highly effective for the change management to make a strong and skilled team that is important for the decision making process in the critical situation. On the other hand, an organizational mirror is another effective process for the acquisition of new skills. The process can be beneficial for the sharing of knowledge and different perceptions about the change management process among two group members. The knowledge-sharing process is an effective tool in the change management process to summarize the potential concepts and the ideas that can help the decision making in the future of the supermarket business. The organizational confrontation meeting is also a required method for acquiring new skills and knowledge regarding change management. The managers of the supermarket firm set the meeting with the other workers and the stakeholders to know the challenges and execution process of the organizational goal.
Conclusion
From the above study, it can be concluded that effective management and leadership skills are crucial factors in the change management procedure. Leadership and a specific management style are required to make the changing process successful and make the business of supermarkets profitable in the dynamic business environment. The supermarkets have faced challenges regarding the gradual decline in their sales growth for the consequences of the pandemic outbreak. Customer behaviours and their buying process has also changed in the new normal era and digitalization in the business policy becomes trending in the new age. The effective leadership strategies have been discussed briefly giving the idea about the required activities of the manager in the changing process.
The suitable organizational changes for adopting the changing business environment in the supermarket section and the significance of the process for a given case scenario have also been mentioned. The impact of the evolution of the global economy on the roles and responsibilities of the management of the organization has been shown in the study. Additionally, the organization renewal method to achieve the ultimate goal of the supermarkets in the retail industry has also been explained in the report. Moreover, the programmer for the acquisition of the new skills in change management has been elaborated on in the study. The strategic way of changing the management of the supermarkets is to upgrade their web platform, improve marketing strategies and make the business more profitable and sustainable in the global marketplace.
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