Manage Organizational Change

1. Identify at least 3 challenges the organisation faces.

The three challenges that the organization faces, first is the financial challenges because the recruiting costs are increasing because their staff turn-over are increased. Every year they added new products, this means another costs for the face to face training and because other retailers are offering higher rates to their sales people, BB Hi-Fi needs to pay a higher rate too to avoid left behind from the market. The second challenge is the increasing of their competitors. It is possible that competitors are cheaper from their products or brand and they lose their customers. The employees might be moving to their competitors if the competitors are offering a high rate to their staff or employees. The third challenge that BB Hi-Fi facing is the falling of staff satisfaction. Their staff needs more working hours and looking for some career pathways.

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2. Develop a SWOT analysis for the organisation.


Business experienced
Strong customers based
Recognized or established business
Domestic market Weaknesses

Un-satisfaction of the staff or staff satisfaction is falling
Turn-over of the staff is high
Competitive market


New technology
Open new shop/store in some other places
New line of products
New market
Growing demand Treats

Staff are moving to competitors
Rising cost of new brand
Technology are changing
Prices changes

3. Describe the opportunities for change you propose for each challenge or problem you have identified in Question 1.

– A tough decision to make for BB Hi-fi to overcome financial challenge. Maybe they can think of debt financing like loans, or update all their budget based on the costs as this will help to identify how much they actually need.
– BB Hi-Fi knows that they are not alone, they have a lot of competitors in the market and it always keep on increasing. Though this is very challenging in their organizations, managers must know the appropriate strategy to remain competitive and won?t left behind. Nonetheless, they must also understand the competitive strategies, their weaknesses and strength to develop a competitive product.
– To improve and stop their staff satisfaction falling, give them an incentive, reward their effort by increase their salary and address what they want by giving them a career progression opportunity if necessary.

4. List the stakeholders you will consult with to develop your changes. Include how each stakeholder will be affected.

Sample Answer just expand

Changed Proposed Stakeholders How will they be affected
Implement Online training Training Dept.
New Employees
Existing employees
IT Department Create new training programs
Learn to use new system
Complete training when employed
Create online system

5. Prioritise the changes you have identified, using costs benefit analysis.

Key Answer: (answer at least 70 words)
Based on Questions 1 what prioritized first and why. How much the costs and what the benefits

6. Develop a Change Management Project Plan for 2 of your identified changes. Create your plan using the following headings;

a) Resource requirements
b) Risk management (including barriers to change and mitigation strategies)
c) Timelines to implement
d) Communication plan (including reporting protocols and feedback)
e) Training plan (to promote the benefits of the change and minimise loss)
f) Review methods
g) Action Plan

7. Create a memo to communicate your proposed changes to staff.

8. Assuming one of your changes is not successful, because of staff resistance, how will you modify your plan to achieve the objectives of your change?

(Answers at least 70 words)

BB Hi-Fi

BB Hi-Fi is a major retailer in the electronics and home appliance industry; the business consists of several different retail departments as well as support functions such as customer service, WHS and Human Resources. Each department operates separately from the others and is responsible for hiring their own staff. Staff are employed on a contract basis and work a variety of shifts.
The company has 25 retail stores located throughout Australia as well as a growing online store.
BB Hi-Fi faces strong competition from similar organisations both online and in traditional stores.
The strategic goals of the company have been agreed as;
? Increase sales by 3% over the next 24 months
? Reduce costs by 5% over the next 24 months
? Reduce staff-turnover from 18% to 10% over the next 24 months
? Develop BB Hi-Fi as an employer of choice over the next 36 months

A recent staff survey showed that staff satisfaction is falling and the company is eager to reverse this trend and the board are confident that the Management Team will be able to achieve this with the support the HR Manager, Michael Chan.

Michael has been thinking long and hard about the organisation goals and how he can support the department managers to work more closely to achieve these. He begins by analysing the recent organisation reports and highlights the following points.

? Many employees would like to increase the number of hours they work.
? Employees are looking for career pathways or more varied tasks in their roles.
? Recruitment costs are increasing because of increased staff turn-over
? Face to face training costs are increasing as new products are added in this ever-changing industry
? New retailers are entering the market and offering higher rates of pay to sales people to attract trained staff away from existing organisations

On a positive note, BB Hi-Fi is well regarded in the community and has a loyal and growing customer base. The growth in online sales also offers new opportunities.

Michael has some ideas about reducing costs, especially if he can reduce staff turnover, but he recognises that there are many other ways to address the organisational challenges. He has contracted you to assist him to identify and implement changes to assist the organisation to achieve their strategic goals.

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