This document discusses how Walmart could apply John Kotter's 8-step change management model to address human resource issues around compensation, benefits, training, and development. It outlines each of Kotter's 8 steps and provides examples of how Walmart's management could implement them to create a sense of urgency around needed changes, develop a clear vision, empower broad action, generate short-term wins, and anchor new approaches in the company culture. The goal would be to increase employee satisfaction and retention by improving wages, benefits, and training opportunities.
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1. Running head: KOTTER CHANGE MANAGEMENT MODEL 2
KOTTER CHANGE MANAGEMENT MODEL 6
Assignment 3: Kotter Change Management Model
Kirsten Farnham
Dr. Allan Beck
HRM 560 – Managing Organizational Change
February 11, 2019
Applying Kotter’s Change Management Model to Walmart
There are many factors in our environment today that are
driving ongoing changes including technology advancements,
competition, new initiatives and project-based working. One
Greek philosopher stated that change is the only constant we
have (Hornstein, 2015). It is normal for one to feel intimidated
by the scale of the challenges that come along with change in
any kind of organization. John Kotter proposed the eight-step
model of change which he formulated on the basis of one
hundred organizations that were undergoing the process of
change. This paper will outline how Walmart could apply
Kotter’s model of change towards HR issues such as having
better compensation and benefits as well as improving employee
training and development procedures.
On several occasions, Walmart which is one of the largest
global retailers, has been accused of poor wages and employee
benefits. The pay scale are too low that they place their
employees below the poverty line. There are no benefits such as
2. rewards and this in turn demotivates and demoralizes the
employees from performing well and being productive. Further,
Walmart lacks appropriate training and development programs
for the development of its employees. To this end, employees
are highly dissatisfied with their jobs and the organization
experiences very high turnover rates (Collings, Wood &
Szamosi, 2018). This has posed a major threat to the entity as it
affects productivity and makes the company incur more
expenses in the recruiting process. As a result, there is need to
implement Kotter’s model of change and implement the
appropriate change so as to keep the organization on top of the
competition.
Step 1: Establish a Sense of Urgency
For there to be effective change, the whole organization needs
to want it and a sense of urgency should be created around the
need for change. The HR manager could do so by sparking the
initial motivation to get things moving. An honest and
convincing conversation should be opened about what is ailing
the organization and when more people are talking about the
proposed change, the urgency builds up and feed itself
(Fernando, 2018). For instance, the HR manager could table a
proposition with Walmart’s shareholders and the CEO on the
need to increase employee salaries as well as introduce
attractive employee benefits.
The manager could stir the conversation by indicating how poor
wages and lack of benefits has been causing employee
dissatisfaction and has resulted in high turnover rates.
Additionally, he could start the conversation on how the lack of
training and development procedures is adversely affecting
employee performance and productivity, which has also led to a
decline in sales. These are dynamic and convincing reasons that
can get people talking about the need to implement change.
Step 2: Creating Coalition
To lead change, the Human Resource management will need to
gather a coalition of influential people to garner strong support
after convincing them that the change is necessary (Hornstein,
3. 2015). For instance, the HR management could consult with
union representatives who could help represent the employees to
the organization. They could enter into discussions regarding
the appropriate way to have employees’ compensation and
benefits improved and having training and development
procedures put in place. The union will be key in helping
rallying the employees behind any form of change as everyone
will be need to work as a team. The HR management could also
work with the supervisors especially on the area of developing
training and development procedures as they are the ones who
work directly with the employees. While doing so, the
management needs to check the team for any weak areas and
ensure there is an appropriate combination of people from
different levels and departments within the organization.
Step 3: Developing Vision and Strategy
A clear vision and strategy will help every person understand
the need for change. When people share in this vision, the
directives given to them will make more sense. Management
needs to first establish the values that are central to change. For
instance, the management at Walmart could state that they are
pushing for a stronger organizational culture where the
employees come first. This will show that they aim for a goal of
giving employees the skills and tools as well as the motivation
of attractive compensation and benefits schemes so that they
can do more to be productive (Collings, Wood & Szamosi,
2018). They could also communicate the vision of the change
strategy stating that they intend to invest in the employees by
making them better at their jobs as well as their everyday life.
To achieve this, they will be need to create a strategy to execute
this vision.
Step 4: Communicate the Vision
After creating the vision, it is time for Walmart’s management
to communicate it powerfully and frequently while embedding it
in every activity. Communication is integral to implementing
and sustaining change (Hodges & Gill, 2014, p. 275). The vision
can be talked about during meetings and during any other
4. chance that the management gets. It should be used daily when
solving problems and making decisions (Fernando, 2018). For
instance, if an employee had a problem dealing with a client,
management should take this as a learning moment and
communicate why there is need to have training and
development implemented for all employees. This vision needs
to be applied to all aspects of the organization’s operations
especially in training and performance reviews. Everything
should be tied back to the vision of making the jobs and lives of
the employees better.
Step 5: Empowering Broad-based Action
At this point, the staff and stakeholders at Walmart should be
intending to get busy to achieve the benefits that management
has been communicating regarding the changes to the human
resource issues facing the organization. It is important to
establish whether there is any resistance to change possibly
from the shareholders. If there are any obstacles getting in the
way of empowering action, they should be removed (Galli,
2018). To empower action, change agents and leaders should be
identified to deliver these changes. These include the policy
makers who will come up with a better compensation and
benefits package as well as leaders to develop and implement
training and development procedures.
Step 6: Generating Short-term Wins
Success tends to motivate people and a taste of victory should
be given to the Walmart stakeholders early during the change
process. For instance, if there are more positive customer
feedback, this should be attributed to growing motivation of the
employees by the attractive compensation and benefits packages
as well as the training procedures. Short-term targets should be
established so that each smaller target can be attainable as to
motivate the whole organization. Short-term wins help ensure
that negative thinkers and critics do not hurt the progress of the
change (Galli, 2018).
Step 7: Consolidating Gains and Producing more Change
According to Kotter, most change projects fail when victory is
5. declared too early in the process because real change should run
deep. Quick wins should only mark the beginning of what needs
to be achieved in the long-term (Collings, Wood & Szamosi,
2018). Each success for the training and development program
needs to provide an opportunity to build on what has gone right
and what can be improved. Upon every win, management at
Walmart need to keep ideas fresh by welcoming new change
agents and leaders for the change coalition. For instance,
professional trainers and developers can be brought in to push
the procedure further.
Step 8: Anchoring New Approaches into the Culture
To make this change stick, it needs to become part of the
corporate culture at Walmart. This is what determines what gets
done and the values behind the vision must show the daily
operations (Galli, 2018). Continuous efforts need to be made to
make sure that the aspect of change is seen through all aspects
of Walmart. For instance, every incident that happens should be
a learning moment and there could be programs whereby
employees are recognized and rewarded from every sales they
close or minor milestone in their day-to-day operations.
References
Collings, D. G., Wood, G. T., & Szamosi, L. T. (2018). Human
resource management: A critical approach. In Human Resource
Management (pp. 1-23). Routledge.
Fernando, M. (2018). LEADING CHANGE. Leadership:
Regional and Global Perspectives, 280.
Galli, B. J. (2018). Change Management Models: A
Comparative Analysis and Concerns. IEEE Engineering
Management Review, 46(3), 124-132.
Hodges, J., & Gill, R. (2014). Sustaining Change in
Organizations. Thousand Oaks, CA:
SAGE Publications.
Hornstein, H. A. (2015). The integration of project management
and organizational change management is now a