Continuous Improvement (CI) is the key to achieve organizational success by using several methods such as melioration initiatives. Managing continuous organizational improvement is supported by the change based systems which discover the problems and work to eliminate them. Generally business organizations lay stress on making small transformations rather large scale changes (Hajec, 2015). The role of the project department is to focus on action plans which are inclusive of minimum defects, less value oriented activities and more customer satisfaction improvement. In this project report, Tesco Plc has been taken as a foundation of study. It is a retailing industry founded in 1919 in England, UK and is the third largest retailer in the world (TESCO. 2015). It is inclusive of millions of data at regular basis followed by thousands of sales and cost. It is on the basis of same, this organization excellently perform its strategic decision-making (TESCO PLC. 2015). The central idea behind the same is analyzing the culture of continuous organizational improvement is created at this retail company. The report will analyze the opportunities which come through the way of Tesco in improving its activities. Lastly, the procedure to lead change within its management system has been strengthened.
Managing continuous improvement in the organization is considered to be very significant part of the management function. These are inclusive of efforts and steps taken to being progressive in providing its products and services. Tesco is a very big organization which carries an objective to provide quality and quantity in a proper proportion. Both time and cost factors are taken into account while achieving the goal of overall organizational development (Yamamoto and Bellgran, 2010).
“Kaizen” is the Japanese technique which is composed of KAI, meaning continuous and Zen which refers to improvement. The significance of this term highlights the improvement in overall organization for betterment in methodology and working operations (Lee‐Mortimer, 2006). The features of using Kaizen technique is inclusive of change, participation of employees, efforts, quality factor, communication and clearly defined workings.
Kaizen is exercised by Tesco as an effective tool with provides feature allowing continuous improvement as follows:
These are small ideas which can be used to improve performance and store profile.
Leadership is defined as an approach to develop an individual with a vision to direct and lead others to do work. It refers in defining objectives, managing actions, corrective plans by leaders to motivate and lead team. Various leadership styles have been facilitated for continuous improvement as follows:
Autocratic style: It is a style which refers to guidance of a leader to direct a team and controlled by his action plans. Generally, this is applicable when immediate decisions are required for certain projects. However, this bossing style is unacceptable by employees and is not applicable every time (Williams, 2011). Managers at Tesco make use of this style at the time of quick decision-making on particular projects.
Democratic style: This is a style where the entire workforce is involved in reflecting their creative and innovative ideas in improvement processes. At Tesco, highly decentralized working system exists and every personnel are free to speak. Weekly audits are done by managers to identify the areas of improvements and manpower participates positively in implementing such changes.
Management style refers to process of facilitating an environment where the objective is defined to achieve overall organization's improvement.
Autocratic managers: These are managers who rely on hard core practices to control the manpower. Tesco seldom uses this approach as they consider manpower is the biggest asset.
Democratic managers: In this management style, managers are more supportive and involve team based working. Tesco manager uses participative style where employees are provided with rewards and introduce several initiatives to motivate them such as health checkup, holiday benefit, staff discount card for all retail stores issued after one year of service, pension schemes etc.
A learning organization is defined as a company which provides a learning environment to its workforce and brings transformation in them for betterment. The main objective behind the same is to create a surrounding of developed organization in an order to stay competitive in the industry. An organization is characterized as learning on the basis of five of the traits namely, thinking systematically, personally mastery, mental models, shared visions and team building (White, 2000). Following are the features which analyze Tesco and its activities as a part of learning organization. They are as follows:
There are various approaches which Tesco implement as a regular or periodical change in managing improvisation in its organization. However, it varies from one organization to another in accepting the different model that brings change. Tesco consider following steps of change as follows:
Tesco make use of Machine model for implementing change in its organization. As per this method, whenever any issue is identified, the change process is fixed. When the change is made, employees are trained in accepting the change in regular working. There is difference between the modern and traditional view for change. Traditional method is linear, predictable, based on cause and effect relationship, incremental. In its contrary, modern views for change are non-linear, based on opportunities, creative and based on learning.
The objective of Tesco is to provide high quality services and products to its customers. The senior managers of this retail organization take it as its topmost priorities. Tesco works on the concept of 100% satisfaction of customer and provides goods and services with no defects. Each and every product is processed under quality check of its products and money value. In its supply chain, throughout monitoring of quality factor is taken care. Total Quality Management (TQM) is the method which is used by Tesco. Moreover, it makes use of developed tools and techniques for quality control. It comprises of tools such as ISO 9000, Lean Manufacturing and Six Sigma (Besterfield, 2003).
There is need to identify the steps for exploring opportunities in an order to bring improvement in an organization. Tesco developed organizational goals with the efforts of its senior manager’s team who follows following steps to identify the opportunities for improvement as follows:
The analyses of information have been made to identify the areas for improvement in the organization. In accordance to Tesco, various methods for bringing changes in improvement methods are designed (Larkin, 2005). The use of Business Process Assessment is done where the strengths and weaknesses of the improvement of activities are evaluated. This retail organization has business research analyst who worked at its every major location who are responsible for the analyzing the need for change at various other sites (Armendariz, 2009). The idea behind the proposed change is reviewed, examined, evaluated and monitored to implement the transformation. The final approval is based on selection of model which fosters change. There can introduce alteration in model selected planned initially with the necessary adjustment. Feedback is taken from the employees who are working at the retail stores and customers with the satisfaction for the proposed change.
In UK, the growth at which retail industry is growing is unpredictable and tremendous. There is need to use different methods at regular basis in an order to meet with the dynamic changing business organization. The change can be both internal and external. Also, there are some unpredictable change which is undertaken by Tesco in an order to meet with the competitors and consumers (Turner and Wilson, 2006). Top management of this retail organization is responsible in meeting with the change. The employees must be well trained to meet with the proposed change in the organization.
Generally, as per assessment made from Tesco's study it was revealed that, impact of proposed change is identified by customers in two ways. There are some who are aware about the uncertainty. They involve themselves with strategic manager for transformation (White, 2000). In contrary to same, those who experience uncertainty for current work and make no efforts in participating for a change.
Evaluating the proposed change to organizational activities is significant. It is the responsibility of strategic manager of the Tesco to work for change management. The process is made with the support of change agent who determines the level of transformation (Marsh, 2006). The change agent with strategic managers underwent following steps for evaluating proposed change at Tesco as follows:
Pre-evaluation: In primary stage, the preparation is made before the change process. After assessing the proposed change and the factors responsible for change are analyzed. The pros and cons are measured for change procedure.
During evaluation: All the steps for the best suitable approach have been made. The applicability of the suitable method is implemented at Tesco by the change agent (Muschara, 2014).
Post-evaluation: Here, decision is required to be concluded with the cross check process. The analysis has been made by matching the desired outcome with the resultant outcome.
Tesco is successful and has acquired the position as a leading company in retail industry of UK. However, with the changing business environment, there are certain changes which are required to be properly handled. Change management is the crucial part of its practices. They lay stress on the management and leadership approaches on regular basis (Besterfield, 2003). For example, at the time of quick decision-making the autocratic style is applicable by manager whereas in implementing change appropriately, the participative style is adopted to foster change.
Culture of organization is vital to taken into account while exercising change. Tesco is well acknowledged for its good organizational culture. At the time of change all the policies and procedures need to redefined. It is presented in front of the management to will define the ways to give it an acceptance or rejection on the basis of its reliability (Hensher and Mulley, 2012). There is need to make change on the basis of organizational situation that calls an alteration in management style which is inclusive of fostering democratic approach. The participation of employee in making decision should be increased so that, they feel more motivated and influenced to do more work. Since, this organization is operating with tough competitors in UK such as Sainsbury, Marks and Spenser, Wall mart who are excellently working on strategic work out, Tesco can also carry out continuous educational program to provide training to its employee for change.
The respective changes that are demanded in the current framework of Tesco have been evaluated. However, the most crucial aspect lies in involving the stakeholders. It is essential to involve them with the proposed change. It is their right to identify the change and must be aware about the same. The change process is incomplete without their engagement (Turner and Wilson, 2006). The central idea behind involving the Tesco shareholder is to maintain transparency and add authenticity to the plans and policy framework to meet with the proposed change of management or leadership style in this retail organization.
Tesco is a retail industry where the customer need and wants are significant and so as the factors affecting their buying behavior. The retailers and marketers need to be aware about the change in lifestyle, their habits, fashion, buying preference etc. The stakeholders are the external agents and are aware about the outside factors affecting Tesco's working environment. Further, it examines and considers factors such as economic, environmental, and social to analyze the consequences of the planned change. Tesco organizes board meeting at the time of proposed change where they discuss and provide their valuable suggestions to the company. Any loophole at the time of policy plan change is solved.
The planning for proposed change is very important as the step from one to another goes on. In respect to the defined proposed change for the Tesco, the project manager is responsible to make the plan. He works on the area where the change is required and process accordingly. The support is given by strategic manager and his team in implementing changes (Hajec, c2015). The board of directors including stakeholders conduct meeting and address all the significant issues which are part of change process. The overall management plans to exercise change are discussed and shared among each other (Carmichael, Fleming and Llewellyn, 2004). The effectiveness of the plan depends on high extent on revealing the effective resultant outcome. Objective of communicating with the stakeholders is to evaluate all the merits and demerits of the change factor. There are several elements which are required to be communicated such as mode of communication, appropriate team, location and content of meeting, time factor, type of information sharing tool, requirement of resources etc.
The effective allocation of resources is the key to organizational success. Being a huge organization in respect to number of stores and employees, there is requirement of some systems and procedures which could meet support such changes. The appropriateness of the implementation of proper tools and systems supports systematization and give it a proper way to success. There is a need to make use of standardized methods and procedures for quick and effective handling of the management system to support change. There is a System Change Control Procedures & Policies services provided to the employees of Tesco (Hensher and Mulley, 2012). It ensures that, team members who are working after change process has the effective solutions in case of if process and systems becomes hard to manage for the anticipated time frame.
Apart from same, Tesco also try to develop proper environment by making improvement in assets, building, resources, infrastructure etc which supports in communication network (Boyd, Hobbs and Kerr, 2003). The sources such as internet, telephone, laptops are accessed for introducing change in the organization.
Reviewing change process
The change process is said to be effectively implemented when the change is reviewed and monitored. It is inclusive of analyzing both pros and cons of the change. It should be taken care because it has long term impact the overall culture of the organization (Hayes, 2007). Various business models are also used effectively in an order to manage that change. In case of any loophole identification at the time of change, Tesco prepares training, induction, coaching and mentoring ways for reviewing the change process (Kim and Hallsworth, 2015). Both internal and external teams are included who participates in the change management process according to extent of change.
Managing continuously organizational improvement in culture and operations are very important in success. With the help of this report, an insight into various issues responsible for organizational change management has been studied. From the above study, it has been analyzed that, success of Tesco in positioning itself as the leading retail organization of UK lies in its continuous efforts in meeting the change with the improvement methods as well. With the help of CI, change in approaches, styles has been gained. The attributes which show how Tesco is a learning company has been effectively examined. An understanding has been strengthened by evaluating change management improvisation steps on regular basis. An idea is proposed for assessing improvement dimension on the basis of which solution is defined by understanding effective participation of stakeholders in communication process.