Walmart in Transition: Managing Change in the Face of Automation and Digital Advancements

Change is an inevitable entity. The current assignment underlines the prospect of change and ways to manage the same. The assignment thus explores the possible changes and ways to tackle them. The case study is based on the popular retail sector, Walmart and the ways it has been subjected to the dynamic nature while being successful enough to maintain the level of competition (Hanna, 2020). The subject of the study underlines the possible changes and opposition to the change Walmart was subjected while implementing plans to change the future workforce for opportunities from automation and digital infrastructure

Topic 1

It is of prime importance to engage with stakeholders during the event of a change to make the change easy to accept and seamless. The pace of change within the retail sector is extraordinary and demands a lot of recycling of the people and hard choices, coupled with an uncertain environment in terms of how to deploy the capital. Any discussion about the future retail sector needs to include Walmart. As of 2018, 80 percent of the population lived within a 10-mile range of the Walmart stores with 11,766 locations over the globe and annual revenue of $514 billion (Hanna, 2020).

However, dominance and size do not make Walmart resistant to the pressures faced by other retail operations. (Cummings, Bridgman & Brown, 2015), explores the way demographics and technology are changing companies and workers are adjusting to the change. Thus, change in the mentioned case is based on the development of software projects for complementing automation in the workforce

Stakeholder mapping

In the mentioned stakeholder analysis map, the stakeholders for the project act as hubs of influence. As stated by (Lozano, Carpenter & Sammalisto, 2020), those with power would be rightly managed through the use of basic analysis. However, the probable line of influence shows that outsourced managers would be managed in the basic analysis that does not consider the aspect of influence. However, the probable line of influence in the mentioned context has an evident connection with the change manager, one through the training manager and the other one is direct. Despite limited power, their level of interest is at the highest level indicating the fact that they need to be carefully managed. Partly so they do not create a negative impact on the project, but also they could easily emerge as key players and project champions. The line of influence can help in identifying the stakeholders within a specific quadrant and demands special attention. Legal falls within the low and high power square so the base level of the project needs to meet their needs. However, they often influence the finance who in return influences the CIO. In this case, it can be easily stated that legal exhibits no political interest in the project and it is the role of a project manager who needs to exhibit proactive role in identifying the exact instance, when the legal needs to be involved (Al-Ali, Singh, Al-Nahyan & Sohal, 2017). The agents are further outsourced and can exercise limited choice in the domain of software procurement. Their interest and power is low; however, they can successfully influence the managers who in return can influence the change manager. The issue of the mentioned influence chain is not likely to influence the project until the project for automation is live. On the contrary, it could damage the perception related to project success and ultimately lead to the automation software being replaced (Domingues et al. 2017).

The project exhibited success in analyzing the position of the stakeholders. In the mentioned case, it can be seen that Walmart, can make use of stakeholder theory for enhancing the level of productivity. The employees in the mentioned scenario are the greatest stakeholders as they are the ones connecting with the customers. The employees should feel valued and work harder to embrace the prospects of automation. As supported by (Morin et al. 2015), this hints towards high rates of employee retention and better customer services. If productivity is high, then the service given to the customer needs to be improved. However, in the mentioned scenario, there remains no involvement of the customers at top positions. With the mentioned improvement, there comes a scope of loyalty, as customers are often termed as the stakeholders and considered in making decisions. As stated by (onlinemasters.ohio.edu, 2020), the theory of reasoned action can be implemented for ensuring that customers analyze the situation based on pre-existing attitudes and refer customers to the business. Thus, it can be recommended, the customers were not involved in the mentioned automation project. The project for automation is not limited to, changing the way of jobs done by the employees; rather it works on changing the ways customers interact with the automation.

Topic 2

The change in the project for automation of work creates new jobs, but more importantly, it changes the nature of jobs even at the entry-level one. (Weatherdon et al. 2016), offers a suitable overview related to the considerable investment, retail giants such as Walmart maintains on the existing infrastructure about the employee training and support and supporting technical innovation such as the use of in-house incubators and robot workers.

The success and failure of the change are well reflected in the financial statements of the company. The case details regarding the rise of e-commerce affected the discount stores in Walmart resulting in an evident decrease in annual revenues from $142.5 billion to $97.7 billion within nineteen years (Hanna, 2020). During the same time, the supercentres of Walmart witnessed an increase in revenue by 16% (Hanna, 2020). The omnichannel strategy focuses on a seamless approach to the customer experience with an emphasis related to improved automation technology and employee training both in the back office and floor. One strong move was to speed up the technology was the $3.3 billion acquisition of online retailer in 2016 with Jet.com, an investment that instantly improved the infrastructure of its e-commerce (Hanna, 2020). Walmart additionally invested in the automation of a series of functions such as cleaning the floors and unloading the truck, to scanning the inventory for promising better curbside delivery. The public statement made by senior executives made it clear that Walmart was equally invested in training the human worker. Reports state that the person in charge of the project on automation believes that technology is not the answer to everything. The secret to success will always be the people. It is humanity that drives creativity and powers the competitive spirit keeping Walmart at a competitive spot. Thus, it can be conclusively stated that the change was planned. The change may not be adequately planned and result in conflict among the workers, demanding proper leadership and guidance (Humphries & Grant, 2020).

The work in the mentioned context tends to be complex, as automation is a complex topic. In a similar vein, it can be opened, change agile organizations and leaders, and replace functional units that allow the rapid flow of information and decision making for the product (Lawrence, 2020). For instance, the leader in the mentioned case can make use of growth and development related opportunities that can be further utilized for employee retention. Looking ahead, the leader sensed that Walmart was going to focus on efficiency in response to the change in the market's continued integration of the acquired companies. Seeing the scope to improve the experience of the existing employees, can ensure the creation of cost efficiency learning within the organization, bringing together the leaders (Beech, 2017). The leader can design and implement a shared service organization that plays an important role in focusing on efficiency in regards to response to changes within the retail market (Augustsson, Churruca & Braithwaite, 2020). The leader can design and implement shared services that can centralize vendor management and training development. This in return can work on standardized processes and branding, coupled with cost savings and negotiated contracts (Uhl & Golleni, 2016). This, on the other hand, can work on creating a consistent employee experience across learning functions and efficiently address the associated learning needs of the employees and Walmart.

The style in the mentioned context can be termed appropriate. There remains no doubt that the use of technology can change the nature of work. Citing the example of Walmart, it can be stated that technology changes the nature of work. Those demands can work on an outlining approach embraced by Walmart to train the workers inclusive of focus used to build long term transferable skills through the use of effort such as Pathways, a program designed to teach associates about the retail business model. The mentioned approach can be termed suitable, as it works on developing the needed soft skills used to work in the chosen service sector. Employees who have completed the program received a raise and an increase in job opportunities (Bonanomi, 2020). However, few complained that there is a lack of clarity and it took too long to move through the steps.

Topic 3

As influenced by (Cummings, Bridgman, & Brown, 2015), the event of change is made smooth through the use of a suitable model. From a similar perspective, it can be easily pointed out, the transtheoretical model has the required potential for organizational change. As stated by (Morin et al. 2015), the transtheoretical model can be used to reduce the resistance to change while promising increased participation, reducing the rates of dropouts and increase the change progress among the employees. Analyzing the financial reports, it can be well stated Walmart was subjected to setbacks as the psychology of change was ignored.

The stages of transtheoretical models are often termed to be confusing due to a series of steps. (Weatherdon et al. 2016), supported the fact and the change management model put forward by Lewin to make things simple within the organizational context. The first step is the unfreeze and involves making the employees aware of the need to change and breaking the initial status quo. Thus, it is evident to understand the fact that the employees should work on observing the positive sides of the change. The application of automation can work on reducing the time taken to do a certain task. Walmart makes extensive use of human labor. For instance, the management of inventory is an important aspect that makes use of labour. However, managing inventory through the use of human labour can lead to potential errors (Razzetti, 2020).

The section such as the back office and the floor demands extensive human labour and even the cash counter. Nevertheless, it becomes important to understand that automation cannot replace human labour. It can enhance the task by implementing better ways of doing things within a stipulated time. The employees should understand that their profession is under no threat and they would be provided the needed training that can help them with the change in job. In a similar regard, after the period of uncertainty created during the unfreeze stage where the employees are subjected to a series of uncertainty. As influenced by (Lawrence, 2020), the change from unfreeze to change does not happen within a short period, people take time to accept the new direction and provide proactive participation in the change. As opined by (Rasnacis & Berzisa, 2017), the change curve model concentrates on the specific issues related to personal transition within the dynamic retail sector. Employees are highly worried about their job due to the advent of automation. To make the change acceptable and contribute to organizational success, employees at Walmart need understand how automation can help them. In addition to that, it becomes important to note that not everyone will fall in line as they feel that the change is important and will benefit Walmart.

This may emerge out as a common assumption and the possible pitfalls should be avoided. Communication and time are important keys to change occurring successfully (Morin et al. 2015). The employees need to understand that they need to understand the possible changes and feel connected with the organization through the period of transition. As supported by (Weatherdon et al. 2016), the act of managing change demands a lot of effort and time. The implementation of hands-on management is termed as one of the best approaches for ensuring seamless implementation of change.

The next step to successful change implementation is the act of refreezing. As supported by (Lozano, Carpenter, & Sammalisto, 2020), during change employees accept the innovative ways of working making the organization ready to refreeze. The indication of refreezing is inclusive of stable organizational chart and consistency within job descriptions. The employees need help within the refreeze stage for institutionalizing the changes. This step can work on making sure that the changes are in use all the time and implemented in the right way. Thus, with a new sense of stability, employees tend to feel comfortable and confident with the new ways of working.

The plan to implement new change is often done through several elements. The elements of change are as following:

Goal: Understand the need to change and ways to implement automation within the workforce. The project of automation software is further developed for understanding the actual effect of the same on the company. There remains no doubt that employees are the ones significantly affected. However, in the service sector, such as within the retail industry, it becomes evident to understand the fact that customer service is rightly addressed through the use of human labour (Domingues et al. 2017). Nevertheless, there has been no mention of the customers in regards to the current project of automation. The project in the mentioned case does not take into consideration the customers.

Rules: Additionally, there remains no set of specific rules that can work on controlling the process of change management. A lack of prior information makes it difficult to understand the path to be followed. In the referenced case, it very well may be observed that Walmart, can utilize partner hypothesis for upgrading the degree of efficiency. The workers in the referenced situation are the best partners as they are the ones associating with the clients. The representatives should feel esteemed and work more enthusiastically to grasp the possibilities of mechanization. As upheld by (Lawerence, 2020), these insights towards high paces of representative maintenance and better client administrations. If the profitability is high, at that point the administration given to the client should be improved. Be that as it may, in the referenced situation, there remains no contribution of the clients at top positions. With the referenced improvement, there comes the extent of unwaveringly, as clients are frequently named as the partners and considered for deciding. As expressed by (Lozano, Carpenter & Sammalisto, 2020), the hypothesis of contemplated activity can be actualized for guaranteeing that clients break down the circumstance based on previous dispositions and allude clients to the business. In this way, it very well may be prescribed, the clients were not engaged with the referenced robotization venture. The task for computerization isn't restricted to changing the method for occupations done by the representatives; rather it takes a shot at changing the manners in which clients communicate with the robotization. Thus, it can be conclusively stated the gap in the change plan is evident. However, the risk is not high that it can lead to organizational disruption.

Topic 4

Appreciative inquiry is an affirming way of implementing change. The appreciative inquiry approach was subjected to a paradigm shift that can help in ensuring better chances of decision making that can be understood through the following table:

Appreciative inquiry (AI) is inclusive of organizational development and evaluation of change management. (Stavros, Torres, & Cooperrider, 2018), identifies the series of quantitative empirical studies. (Lewis, 2016), focusing on the possible effectiveness judging as per the definition. Critique of AI is rare and (Weatherdin et al. 2016), stated the fact that AI often encourages dysfunctional attitudes, behaviour, and work-related perception. (Razzetti, 2020) supports the fact that AI discourages analysis. Further arguments suggest AI should not be evaluated as per separate variables rather it should be perceived as an ongoing process.

(Humphries & Grant, 2020) Suggests focusing on discourses of evaluation that make use of the performative nature of dialogue and opening up to several possibilities. Thus, appreciative inquiry can be termed as an approach to develop a clear understanding of the strength and limitations of different perspectives. For instance, Walmart makes use of automation calls for analysing the perspective of stakeholders such as the employees and the managers. Citing the example of Walmart wants to develop its capacity for innovation for expanding the domain of research and development for earning more market share through the use of automation. Thus, in the mentioned scenario', the strategic focus should work on developing the domain of automation through the event of innovation.

In the phase of discovery, Walmart should work on discovering the phases where it has been best around innovation and work on identifying the common factors that fuel the aspect of innovation. The case insights about the ascent of internet business influenced the rebate stores in Walmart coming about a clear decline in yearly incomes from $142.5 billion to $97.7 billion inside a range of nineteen years (Hanna, 2020). During a similar time, the supercentres of Walmart saw an expansion in income by 16% (Hanna, 2020). The omnichannel technique centers around a consistent way to deal with the client's involvement in accentuation identified with improved computerization innovation and representative preparation both on the back office and floor. Based on the above articulation, it tends to be convincingly expressed the part of development for the picked business may appear to be somewhat startling. Be that as it may, the referenced arrangement can be properly tended to through cautious arranging.Thus, it can be conclusively stated that a proper contingency plan can be termed as the right way of mitigating the possible risks (Beech, 2017)

Topic 5

Resistance to change can be termed as an action undertaken by a group of employees or a single individual when they perceive that change taking place is a threat to them. The solution which becomes increasingly popular is to participate. However, a practical matter of participation is not a good way of managing the actual problem it may lead to trouble. In a study conducted by (Morin et al. 2015), the key to the problem is to understand the actual nature of resistance. Employees, in this case, do not resist the technical change, rather they are worried about the social change, the change in their human relationship with their profession.

Resistance is often created due to possible blind spots in staff attitudes which staff has due to preoccupation with the possible technical aspects of new ideas. Walmart's management can make use of concrete steps to deal constructively with the staff’s attitudes. The steps are inclusive of new performance standards of the staff and encouraging them to take up things in a different way (Lewis, 2016). The top executives can make their efforts and discuss the possible impact of automation. The mentioned activities can be done by shifting attention from the schedule, lined up work assignment, making the employees receptive to change.

The following are the ways that can be used for implementing change. To increase the need for change and linking the issue. People, in this case, are worried about job security which needs to be changed. Additionally, Walmart should be able to understand the importance of care and concern. Walmart should work on communicating with the employees about the expected progress. The employees need to interact and describe the possible vision behind the changes. As stated by (Lawrence, 2020) for ensuring resistance management, it is important to identify the people who support the change, these individuals are in support of new ways of working. An open conversation is thus termed as the best way of resolving problems associated with resistance to change. The managers should work on building a channel of open conversation with Walmart employees to make sure that there is no confusion about the use of automation.

The barrier to change is that employees tend to be unprepared to handle the change. Provide training that can help in excelling in change. Helping employees may make them feel encouraged and hopeful after the advent of change. Finally, timing is everything, good timing is important, implementing major changes quickly. Introducing change in a limited amount is possible to give the workers a scope to acclimatize (Augustsson, Churruca & Braithwaite, 2020). Not only does this ensure the limited amount of interruption within Walmart's business for ensuring productive business. The problem in the mentioned case is the use of automation that can cause a threat to the jobs. The problem in the mentioned case can be answered through a series of interventions aimed to maintain the level of productivity within the business organization. Training the employees can be termed as one of the best ways of explaining to them the ways change is for the better for Walmart.

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Hence, it can be concluded that change is a slow and progressive intervention that can be implemented to ensure that the level of productivity is rightly maintained.

Reference list

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