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Task 1
Overview of Reliance Fresh Company
Among all Indian supermarkets, Reliance Fresh is one of the most develop and
advance one. The Reliance fresh is closely linked with the Reliance Business group
that was earlier started in India. Reliance group functions in several enterprise areas
such as Reliance communications, Reliance industries steel production, Reliance Oil
industries and so on. Reliance Company then grows and enlarges its business in 2004
in many parts of India. This supermarket is meant for selling of different types of
consumer goods, fruits, vegetables, electronic equipments to name. At present,
Reliance Company has about hundred supermarket centers of Reliance Fresh
throughout India. The company gains its position, popularity and fame by providingits end users with a very cheap price and efficient quality products and meeting the
needs of its day to day customers.
Motivating factors that drives Reliance Fresh towards organizational changes
The supermarket industry in India is developing and rising with intense speed. In most
cities of India, consumers find it easier to purchase products from supermarkets
instead of buying them from a certain retailers. Besides the Reliance fresh, QRS, G
Mart, Varkeys are some of the well known supermarket business companies in India.However, with the economic downturn and recession that has been going on within
the country majority of these supermarket centers began to lose its customers. The
Reliance Fresh is also greatly affected and its business went down during those two
consecutive years. However, the company still can’t seem to understand the main
reason behind the decreasing number of customers and the fall of business day by
day. The company then took up a research getting aid from professors or experts so as
to discover the main reason behind for diminishing business with each new day.
According to the research and study taken up by professionals or experts, it made
evident that the Reliance fresh was unable to provide high end services to its
consumers and was not able to meet the requirements of the consumers and therefore
could not remain competitive like its competitors. The study and research that has
been done disclose that the present business system in India is equipped with newer
technologies and improve business techniques and tools. Some of the approaches
adopted to improve business methods in India are as follows:-
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• Online Marketing: Nowadays, it has become quite a trend for most of the
supermarket centers to promote sales online. The use of this advanced method
of marketing pull more and more customers in to the business.
•
Home Delivery Services: Home delivery services are preferred by majority of customers in India mainly due to their tight daily schedule and at the same
time due to the congestion in transportation in big cities. This system enables
consumers to order any items or services they want through telephone or
internet while they will be delivered with the requested items within no time
right at their door step.
• Better Customer Services: - Customers can be provided with a better and
reliable customer services with well trained and experienced staffs.
Considering all these and making a wise decision, the Reliance Fresh is also
determined to introduce changes within the organization in order to provide its
customers with a more efficient and reliable customer service by enforcing
better facilities for its customers by providing them with advanced customer
care.
Bureaucratic Organizations
“The bureaucratic system of organization is primarily characterized by the existence
of a series of relatively stable vicious circles that stem from centralization and
impersonality" (Crozier 1964, p 193).
There are some main merits and demerits of Bureaucratic organizations. They are as
given-
Merits of Bureaucratic Organizations
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✔ Well defined Planning: - Effective planning is a critical element of success in
bureaucratic organization. By having a clear plans and strategies, the
management can understand about the organizational objectives for a set
period of time. One major advantage of having an effective plans and
objectives is that everyone in the organization understands their job roles and
tasks for growth and success and at the same time for the proper functioning of
the organization. Having a clear distinct plan prevents the higher management
from any doubts about their job roles and it also increases their commitment
towards the organization and job roles.
✔ Hierarchical Management System: - Most Bureaucratic organizations
follow the hierarchical style of management. The top managers decide about
the performance of every activities within the organization. Most of the
decision making is done by the higher management. They control and monitor
each and every action that takes place within the organization. Therefore, they
observe every activity of the employees to ensure if everything is in place and
every task is done accordingly.
✔ Clear Decisions: - The managers in the organization are responsible for
making the final decision orderly. These decisions are made and followed for organization growth and development. The manager should therefore
communicate each and every decisions made and also the goals and objectives
of the organization to the employees so that employees knows about the job
role they are required to take up and then perform their work more effectively.
✔ High level of Co-ordination:- Bureaucratic organizations generally have an
efficient and outstanding ability for organizing the work force of the
organization. With each and every activity managed and controlled by themanagement alone, it makes easier for operating and maintaining effective
movements of work force in the establishment of the bureaucratic
organization.
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✔ Specific Duties: - In the establishment of the bureaucratic organization, all
employees are assigned a particular job tasks. Specialization of job has been in
practice in the bureaucratic organizational systems so as to make the
performance of the organization better and advancing towards success. In this
system of job, job roles are distributed among all employees where each
employee is assigned a specific task. Hence, the employee gain more
experience in that job role. The use of this approach brings development in the
organization in many ways.
✔ Increased Level of Efficiency:- As each and every employee are ask to take
up a specific job role the organization is advancing towards success and job
tasks are perform more effectively. The organization makes use of every
capacity of whatever is produced in the organization in the best possible
manner. Bureaucratic organization provides on-job training to each and every
employee within the organization to heighten a more advanced growth of both
the employees and the organization.
Demerits of the Bureaucratic Organizations
✔ Changing slowly: - A Bureaucratic organization has a firm and preplanned
aims and ways to attain their objectives in many different ways. It uses a
scientific ways so as to understand every issue that takes place within the
organization and at the same time solve those problems by changing the way
the organization operates. However, this method is not always effective as
position of the market, economy and the way business is not stable. With
change taking place in the market every now and then, it is mandatory for any
organization to quickly adapt towards change for the growth of the
organization and to stand out from its continuous competitors. Unfortunately,
the bureaucratic organization is not quick in adapting towards the idea of
change which is a major hindrance for the organization to be success in the
near future.
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✔ Lack of Motivation for Employees: - The bureaucratic organizations follow
a very strict and habitual method of work which makes the employees lose
interest towards their allocated job role and at the same time it creates
confusion and makes the employees bored. The employees therefore cannot
complete their work more efficiently as expected of them. This tediousness,
inefficient work quality and employee’s lack of motivation can lead to the
downfall of the organization.
✔ No encouragement for Innovation:- As all the decision making are done by
the higher authority in bureaucratic organizations, the lower authority or
employees are not involve in any decision making process which minimize the
employees commitment and interest towards the organization. Employees are
not even allowed to contribute ideas and feedbacks in the bureaucratic
organizations. This is a serious obstacle for innovation to takes place within
the organization. For instance, in WIPRO each and every employee is
motivated and asks to contribute ideas for effective innovation to occur inside
the organization. The company then enforces continuous innovations due to
the many feedbacks and information contributed by the employees.
✔Absence of humanitarian Treatment towards employees: - In bureaucraticorganizations employees are considered as a machine which means the
organization adopts a mechanist method in managing the organization and also
the employees. This is one major failure of the bureaucratic organization and
this practice gave rise to misunderstanding between the organization and the
employees.
Organizational Development
Organizational development can be defined as the process of increasing an
organization’s effectiveness through a planned and organization wide endeavor.
Organizational development is a process of implementing strategies to change the
way the organization works, its culture, values, and organizational structure, so that
the organization is well poised to adapt to the changes taking place in the market,
such as new technologies, changing buyer behavior, new marketing techniques, and
new challenges, etc. (Warren Bennis, 1976).
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System Model of Action Research
It is possible to manage continuous changes that take place within a firm by adopting
Kurt Lewin’s formulation on action research for organizational growth. According to
Kurt Lewin, the development process of the organization undergoes through the three
stages of management in change process like Unfreezing, Changing and Refreezing.
Unfreezing is all about those preparations made by an organization to successfully
adopt the idea of change that will be taking place within the company. Each stage of
changes acts on the permanent changes which are carried out during the establishment
of the organization. Also, the Refreeze stage means the way work has been monitored
and to track the change that has been carried out within the organization.
Figure: - Action Research Model – formulated by Kurt Lewin
Overview on the main techniques used in organizational development
Crucial skills necessary for the growth of an organization involves the following:-
Sensitivity training: - This can be also called T groups where T stand for
training. This method aims at making a modification about the conduct and
nature of the people by inefficient and improper interactions done in the
organization.
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Grid training and development:- In this technique, the advisors make use of
methods that is able to understand the current fashion of the managers and at
the same time raise them to analyze that can contribute a greater work
environment that drives the organization towards success. The development in
grid Organizational consists of six major stages such as training, team
development, intergroup development, organizational goal setting, goal
attainment and stabilization.
Process consultation: - As stated by Edgar Schein, process consultation
involves those of an advisor that makes it possible for the customer so that
they can perceive, understand and at the same time being influence by those
activities that takes place inside the internal surroundings. He also mention
that several stages of the process consultation includes initiating a contract,
defining the relationship, selecting a setting method, gathering information
and diagnosing, interfering and less involvement and bring to a halt.
Team development
Survey feedback
Third party peace making
Role playing
Structural techniques
Task 2
Reliance Fresh’s stakeholders
It is critical for the higher authority of the organization to take into account the major
elements prior to enforcing the way change is designed inside the organizations.
Likewise, the higher authority of the Reliance Fresh must pay specific care in
assessing those available resources, needed techniques and skills and also the
infrastructural facilities. The organization’s stakeholder must be aware and fully
understand the idea of change. This is a crucial factor for successful planning and
enforcing of organizational change. Reliance Fresh’s management requires their
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stakeholders to offer great help and endless support so as to successfully carry out
change in an organization. An organization always consists of central stake holders
who always remain loyal to them and on the other hand those stakeholders who
remain in the organization just for a short period of them. Employees, consumers,
government departments, suppliers, distributors are among the stakeholders of an
organization.
Ways in identifying the key stakeholders with the use of Force Analysis and
Stakeholder Analysis
By adopting the method of stakeholder analysis and force analysis, Reliance Fresh
can easily understand who their key stakeholders are. The use of this analysis method
makes it possible to recognize potent stakeholders of the organization who contribute
important roles in the organization and who are required to quickly adapt towards
organizational change. This method easily identifies every information of those
stakeholders who are willing to accept the idea of change and who are resistant
towards change. Information about those important and key stakeholders is as
illustrated-
Reliance Fresh’sStakeholders
Valuable Stakeholders
Key Stakeholders
AuthoritativeStakeholders
Reliance Fresh’semployee’s Employees
Reliance Fresh’sShareholders
Customers Customers Customers Customers
Council
Suppliers Suppliers Suppliers Suppliers
Reliance Fresh’s
competitors
Reliance Fresh’s
competitors
Reliance Fresh’s
competitorsGovernmentAuthorities
GovernmentAuthorities
NGO
Pressuregroup( Environmentalist and like groups)
Financial Institutions Financial Institutions
Distributors Distributors
Call Centres Call Centres
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By examining the roles contributed by the central person of the Reliance Fresh
Supermarket centers and also those methods by which the organization ensure that
key stakeholders are quickly adaptable and adopt the idea of change.
Reliance Fresh’s employees
The management of Reliance fresh taken a decision to come in talk terms regarding
the change with all employees by making them understand about the requirement,
meaning and views of change so that they can easily adopt the idea of change. As
employees are the driving force of any organization, it is necessary for the higher
authority to successfully convince them to happily adapt to change so that the
employees can have positive attitude towards change and be motivated towards their
job role which will in turn lead to organization growth. Reliance Fresh’s management
aims at conducting training and discussions with the employees and all higher
authorities to provide special facility and attention to all the employees to come out of
their confusion and resistance towards change and at the same time make every
employee to understand the benefits of organizational change so that they are at ease
when any time when change occurs within the organization and they can handle the
change in a more efficient way.
Reliance Fresh’s customers
The main aim of reliance fresh to adopt organization change is to meet the increasing
needs of the customers in a more effective way by giving a high quality services and
improved facilities to their customers. The organization will take into considerable
account the customer’s requirements prior to adopting the idea of change. The
organization then come up with an idea to carry out an in-shop survey so as to better
understand customers thought about the idea of change and also to ensure what
exactly is the customers’ need. The Reliance fresh management team communicate
the idea of change to the customers by providing them with organization’s leaflets,
broachers and well experienced trainers who are required to help the customers to
better understand the technical changes with the use of the methodology. The
customers can therefore realize and utilize the auto-check out machines touch screen
device and the ability to go shopping online.
Reliance Fresh’s suppliers
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With the extension of market by bringing forth additional services and goods in
market, suppliers are highly required towards the management of change in a more
effective way. In this way the company can have a wide range of suppliers supplying
goods to the end users. The company wills carry out a meeting with its suppliers to
introduce about the proposed change of the organization. The company will discuss
about the way business can be carried out more efficiently and ways to gain more
profit with the supplier to make them more motivated and interested towards the
organization. In this way the suppliers can contribute even more roles for the
development of the company.
Reliance Fresh’s competitors
Reliance fresh aims at exposing the weakness of the day to day rivals and extend a
better services to all the consumers. The company will express in observing about the
changes that takes place in its competitor’s market in order to provide better service to
its end users than its competitors did.
Financial Institutions
Reliance Fresh is in need of financial help that can be given by some financial
organizations so that it can be ready to carry out the proposed change more effectively
in the real world. The financial aids required may be the fund to be invested for those
activities on training, purchasing touch screen devices and computers. It then come up
with an idea to present their financial requirement budgets in order to received
financial aid from other organizations. The organization will then be highlighting the
way it will grow its business based on the proposed change.
Task 3
Reliance Fresh maintains itself as one of the most supermarket business in Indi. To
improve its business and gain more customers the organization comes up with a
method to meet the needs of the customers by offering high end customer service and
other organizational changes which are as shown below:-
➢ Touch screen devices: Reliance fresh has a big supermarket shops where
every shop has a five floor or more. However, the large area of the market
confuses customers to spend extra time to choose the product they need. The
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company therefore decided to carry out the idea of placing touch screen
devices in each floor to make it easier for the customers to buy their needs in
the most efficient manner and to attract more consumers with these improved
techniques of shopping.
➢ Bring in an additional auto-check out stations: Reliance fresh introduces a
well designed auto-check out directions in every floor in the shop to avoid
customers standing in queue and to satisfy them even more.
➢ More Ethnic products: Reliance Fresh aims at including and displaying
additional cultural products all around the shops that can pull foreign
customers coming from other countries. The foods of North India differ from
those of the South Indian ones. The company aims at adding additional
products of South India in the market to attract North Indian shops and North
Indian goods to attract south Indian customers and so on. India, being a place
of varied culture and ethnics, bringing this change in the market will be the
best way to gain customer’s attention and make profit in the most effective
way.
➢ Effective Online Services: Online business has been today’s way of doing
business and attracting customers. People in India choose to purchase goods
online. Therefore, the company is required to enforce online marketing to
attract all these people to stay competitive. Online shopping saves time and is
a more convenient way of shopping.
➢ Home Delivery Services: Home delivery services are preferred by majority of
customers in India mainly due to their tight daily schedule and at the same
time due to the congestion in transportation in big cities. This system enables
consumers to order any items or services they want through telephone or
internet while they will be delivered with the requested items within no time
right at their door step.
➢ High Quality Customer Services: - Customers can be provided with a better
and reliable customer services with well trained and experienced staffs.
Considering all these and making a wise decision, the Reliance Fresh is also
determined to introduce changes within the organization in order to provide its
customers with a more efficient and reliable customer service by enforcing
better facilities for its customers by providing them with advanced customer
care.
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Models that contribute towards change in Reliance Fresh
There are several different modes available that the company can use to bring about
the idea of change within the company. Kotter Model was considered as the most
effective way to bring the proposed change in real life in the market floor. Relaincefresh company has introduce the change in the following manner.
Implementation
Those changes that are mentioned above can be carried out in five different phases
within the Reliance Fresh Company. Cost and time consume are briefly described as
given.
Phases Authoritative
person
Budget Time taken
Phase 1
a) Conduct Survey Marketing Agency 100000 INR Week 1
b) Products
needed to be
Marketing
Manager
Week 2
Introducing auto-checkouts touch screen
machine, cultural
goods and reliable
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elaborated
c) Products
finalization
Marketing
Manager
Week 3
d) Sources of the
purchase
products
Finance manager
and purchase
manager
2000000 INR Week 4
e) Determining the
right suppliers
for the products
newly launched
Finance Manager
and Team
Week 4
Phase 2
a) Beginning of
first TrainingSections
HR Manager 75000 INR Week 5
b) Initiating the
Second level
training
sections
HR Manager 80000 INR Week 6
c) Finalizing the
whole budget
Finance manager 580000 INR Week 1
Phase 3
a) Bid for Self
Check out
machines and
touch screen
product locator
Marketing
manager
Week 2
b) Check out on
bids
Finance manager
and purchase
manager
Week 4
c) Purchasing
machines
Finance Manager 2000000 INR Week 5
4) Fixing of
machines in stores
Company’s
technicians
Week7
Phase 4
1) Product
advertisement
Marketing
Manager
250000 INR Week 8
Phase 5
1) Customer Customer care 50000 INR Week 10
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feedback manager
2) Sales evaluation Customer care
manager
Week 14
First Phase
It includes four sub phases where market research is the beginning of the first sub
phase. Reliance Fresh must carry out a research on market on those products which
are highly required by the customers by the use of external agency. One week’s time
is allocated and the price for doing research is100000 INR. The next sub phase starts
with bringing about the final list of new goods and the store manager will be the
person in charge. Reliance Fresh purchase the finally decided products in the third
stage where the price to be expend is 2000000 INR. Here, the purchase manager will
be the person in charge. Reliance Fresh brings about new products in the market in the
fourth stage.
Second Phase
Here, there are four sub phases. Reliance Fresh introduces the touch screen machine –
identification of products, auto-check out devices in the starting phase. Next sub
phase commences by inspecting bids that is done by marketing manager and the most
suitable one among all will be chosen. Training will be given to employees in the
third stage so that they can handle new products more effectively. The last stage is to
introduce new devices in the market.
Third Phase
Employees are given adequate training in this stage. Reliance Fresh will carry out a
two full day training program in the first stage with the employees to convince them
with the idea of change.
Fourth Phase
Reliance Fresh will draw its attention towards advertisement of new products in this
stage and at the same time the end users will be communicated about the change that
currently takes place in the market. The company does advertisement through
newspapers, websites and leaflets and so on.
Fifth Phase
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The activity rating and growth gained from feedbacks given by the customers based
on the record of sales done is included in this stage. This rating enables the company
to make the right move.
Improvements in organizational change expected of the implementation process
It raises the satisfaction of end users.
It gives rise to additional customers.
The organization gains more profit.
The employees gain more knowledge and are more specified.
Improvements were made on the market and the shops.
Technological organizational developments were attained.
Number of sales is maximized.
References
1. “Peter F. Drucker (1967), The effective executive, 1st Edition, Butterworth-
Heinemann”
2. “Andrew M. Pettigrew, Howard Thomas, Richard Whittington (1985),
Handbook of strategy and management , 1st Edition, Sage Publications”
3. “David A. Buchanan, Andrzej Huczynski (2001), Organizational behaviour:an introductory text, 1st Edition, Stanford University Press.”
4. “Gareth Morgan (1998), Images of organization, 2nd Edition, Sage
Publications”
5. “Rob Paton, James McCalman (2008), Change Management: A Guide to
Effective Implementation, 1st Edition, Sage Publications”
6. “Esther Cameron, Mike Green (2004), Making sense of change management,
1st Edition, British Library Cataloging-in-Publication Data”
7. “Axelrod, Richard H. Terms Of Engagement: Changing The Way We Change
Organizations. San Francisco, California: Berrett-Koehler Publishers, Inc.,2000”