Executive Summary
A strategic approach is crucial because it provides direction by creating plans and policies to increase the organisation’s performance. Change is one of the approaches adopted by organisations to enhance their productivity (Hayes, 2022). THE One is among the organisations that have embraced change to improve their performance. Some of the changes adopted by the organisation are measures to increase employee performance and creating an online platform to meet the needs of tech-savvy customers. THE One used Kurt Lewin’s Change Model to adopt the changes. In addition, international management introduced concepts such as diversity management. To perform effectively in the global environment, the organisation should ensure that its work environment support employees and customers from different cultures. HR has a major role in ensuring that the organisation’s workforce is satisfied to achieve its goals.
Introduction
In the contemporary environment, change management is required to gain a competitive advantage. It helps create a conducive environment through strategic change and uses the changes to achieve organisational goals (Hayes, 2022). THE One is also prone to change due to the fluctuations in the internal and external environment. It is a homegrown furniture retailer and e-commerce company and provides its customers with quality products. The organisation was established in 1996 by Thomas Lundgren, Shakir Abal and Rashed Al Mazroueiin in the United Arab Emirates (UAE) and later on acquired by Al mana interiors (THE One, 2022). One of the changes adopted by the organisation is establishing an online platform to increase its sales. Therefore, some of the triggers that led to this change are the outbreak of the COVID-19 pandemic, which adversely impacted businesses, especially those that depended on brick-and-mortar sales.
The Relevance of THE One and Identification of the Drivers for Change
The Significance of THE One
THE One is among the leading companies in the retail and wholesale industry as a furniture retailer. It is a lifestyle brand established in the UAE that creates seasonal collections of the inexpensive home design that attract a diverse audience (THE One, 2022). Furthermore, the products are enchanting and useful and are developed to match various social living situations. As a result, it aspires to inspire individuals through cheap home fashion while also influencing the world. With a committed workforce, the company offer value to customers through the delivery of products that meet their needs in the market (THE One, 2022). In addition, the company engages in sustainable activities through initiatives such as ethical sourcing, local volunteering and many more. The organisation is working to ensure that its operations support its aim of becoming the world’s largest retailer.
Internal Drivers of Change
The drivers of change are considered signals showing that something needs to be modified. According to Boone, Kurtz and Berston (2019), a declining revenue is one of an organisation’s primary drivers of change. Making a profit is integral for an organisation that wants to operate effectively and expands. Without profit, it would be challenging for THE One to run its operations, such as paying its employees and other operations. This indicates that when the company is not making a profit, it is prone to make changes. As shown in figure 1, the company has experienced a steady decline in its revenue from 2016 to 2020. Based on this, the organisation would want to make changes to reverse the trend. Thus, revenue decline is a sign that the organisation needs to modify its operations.
For an organisation to be productive, its expenditure should not exceed its revenue. Levenson (2018) demonstrates that businesses are always looking for ways to reduce their expenditure by cutting costs and optimising resources. When the spending is high, the organisation is likely to fail to make a profit. One of the issues experienced by THE One is increasing expenditure emanating from its operational costs. This indicates that the organisation must increase the price of its products to counter the high cost of operations (Levenson, 2018). However, this reduces the organisation’s competitiveness in the market because the price is among the factors that can attract consumers. As a result, THE One must introduce changes to reduce its expenditure to achieve a competitive advantage and perform effectively in the industry.
External Drivers of Change
Political factors are among the external forces that drive change in an organisation. The government of a country can introduce measures that can positively or negatively affect the operations of a business. For example, in the UAE, the government imposed a blockade on Qatar to regulate its activities (Ulrichsen, 2018). A political blockade is an act of war where one country blocks entry to or departure from an enemy’s territory. Since the UAE is among the target market of THE One Furniture, the government’s action can reduce its market share. To ensure that the blockade does not adversely impact its operations, the company must adopt changes. For example, the company must look for other markets to counter the effect of the government’s move to block the UAE. Therefore, political decisions and moves are the main forces that foster modification in most businesses.
The COVID-19 pandemic disrupted lives, livelihoods, and businesses across the globe. According to IMB (2021), “the COVID-19 pandemic has accelerated digital transformation at 59% of organisations we surveyed, and 66% say they have been able to complete initiatives that previously encountered resistance.” Like other organisations, THE One experienced the impact of the pandemic, hence driving change in operations. To curb the spread of the COVID-19, governments introduced measures such as social distancing, restriction of movement, and others. As shown in figure 2, the pandemic created an urgency requiring organizations to become digital. In addition, most organisations began to sell their products through the internet to reduce the impact of the pandemic on revenue. As a result, organisations changed their operations to adapt to the changes introduced by the pandemic.
Any change must be managed efficiently to ensure that it does not negatively influence workers, achievement of objectives, goals, and, most significantly, profit. Tkaczyński and Gacek (2020) agree that the basic prerequisite for survival is sufficient profitability to enable organisations to sustain their wealth creation capacities. THE One operates on an online platform that is continually evolving and adapting to changes in society, the environment, and, most critically, technology. For example, the firm should adopt the use of digital platform to enhance its operations. The organisation ensures that any modifications introduced in the e-commerce industry are implemented to remain relevant and move with the trend. In addition, the corporation exists to make sure that the changes are adopted effectively by involving relevant stakeholders. Therefore, THE One adopts technology to remain relevant and ahead of its competitors.
THE One has responded to the changes in consumer needs in the market to increase its productivity. Due to the effects of climate change, there has been an increasing demand for environmentally sustainable products (Creutzig et al., 2018). For instance, consumers want furniture that is eco-friendly and sustainable. The organisation’s main purpose is “changing the World Together’ through doing good. To this end, we support a number of local and international charities and employ physically and mentally challenged individuals” (THE One, 2022). This indicates that the organisation intends to engage with sustainable suppliers to make sure that its products are eco-friendly. As a result, the company is keen on introducing any measures to meet the changing needs of its consumers.
Critical Evaluation of Relevant Theories and Concepts to The Organisational Structure
The Organisational Structure of THE One
An organisational structure is a framework that describes how specific activities are focused on attaining their aims. These roles may involve enforcing norms, positions, and responsibilities. Furthermore, the structure of an organisation controls how information is shared (Khan, 2019). As shown in figure 3, THE One has a functional organisational structure where work and employees are divided based on their area of specialisation. In the functional organisational model report, staff members operate under managers in their functional areas, who report to an organisation’s chief executive officer. For example, the assistant manager in HR must report to the manager. Therefore, the management in this organisational structure must centrally coordinate the specialised departments.
Functional structure has advantages and disadvantages that can impact its operations. The most prevalent benefit of this technique is that clustering personnel according to expertise provides a consistent degree of departmental competency. There is a chance that the employees will become highly skilled (Kabeyi, 2019). The speed of operation is another benefit of this form of organisational specialisation. A manager is more likely than someone with less expertise to manage a technical problem. However, the structure has disadvantages, such as the challenge of promoting cross-functional activity and resistance to change. Due to many departments that operate independently, an organisation might face high resistance when implementing change. As a result, THE One should ensure that the disadvantages of the model are addressed to ensure that they do not adversely impact its operations.
The Theories That Support the Organisational Structure
The first theory that supports THE One structure is the Bureaucratic management theory. According to Kvachev (2019), the concept serves as a basis for the systematic building of every organisation and is designed to ensure the efficiency of operations and economic effectiveness. It is an effective model for management and administration in bringing a company’s structure of power into perspective. The theory emphasises well-defined responsibilities for staff and management based on systems that streamline power and clarify who is and is not in charge. With a functional structure, THE One can divide authority based on the responsibilities of every employee. For example, the HR manager is the head of the HR department and is allowed to make independent decisions. Thus, bureaucratic management theory shows that organisations should have defined roles to run their operations effectively.
The second theory that promotes the adoption of functional organisational structure is the systems theory. Determining the organisation’s primary aim, ensuring that its numerous elements work together to attain this objective, and comprehending the phases that control a system’s intake and outcome are all features (Roberts, 2019). This management strategy is especially beneficial for discovering and profiting from the different patterns an organisation’s operations follow. In a functional structure, the departments must work together to achieve the purpose of THE One in the market. For example, the technical team headed by the ICT manager must ensure that the technical infrastructure is operational. As a result, systems theory presents the idea that the departments in an organisation are supposed to work as a system to attain a common objective.
The third theory that can be used to understand the concept behind a functional organisational structure is the Neo-Classical theory. It claims that a company is a hybrid of formal and informal organisation structures (Coccia, 2019). The informal model of the organisation emerges through social relationships among employees and is impacted by the formal model. Normally, clashes can exist between organisational and employees’ interests, requiring integration. Based on this, specialised departments are set to ensure that people with similar skills are placed together. The main purpose is to promote the social interaction of the employees to enhance their productivity in the industry. Therefore, the main aim of the structure is to make sure that the employees work together to achieve its objectives.
Appraisal of Change Management Concepts and The Role of Management in The Success of THE One
Kurt Lewin’s Change Management Model
Role of Management in The Success of THE One
The management of the organisation has helped in communicating its goals and objectives. To increase the company’s performance, top-level management ensures that staff comprehend the overall objectives and priorities (Anbu, 2019). In addition, they ensure that stakeholders understand where the company is heading and what a leader plans to achieve. Front-line managers are directed by management to set goals for each employee. When creating goals, the existing state of the firm, as well as its overall strategy and orientation, are taken into account. For example, during change management, the top leaders and managers are integral in ensuring that relevant stakeholders, especially the employees, understand the need for the change and the organisation’s intentions. Therefore, the management ensured that staff members were introduced to organisational goals.
The finance manager ensures that the operations are performed within the set budget. The manager handles the complex task of assessing the accountants’ financial information. They keep track of the financial situation and prepare as well as implement the company’s financial plans (Anbu, 2019). The financial manager aims to maximise the business’s worth to the owners, which is accomplished by considering long- and short-term repercussions. Profit maximisation is one strategy, but it should not be the only One because it prioritises short-term gains above long-term rewards. A business with more cash can make more investments, whereas a corporation with fewer funds must cut back on some of its expenses, particularly those that are unnecessary.
Human resource managers aid in selecting, retaining, and developing the best individuals for highly-skilled employees. Regardless of the fact that every organisation is made up of individuals who need its services, cultivating their knowledge and competencies and motivating employees to attain higher levels of success are all important (Anbu, 2019). Hiring, recruitment, training and development, employee motivation, performance evaluation, and compensation will all aid the organisation in meeting its objectives. Therefore, HR managers are vital to the company’s success because they determine employee motivation and ensure that staff have adequate skills.
Critical Assessment of the International Management from A Cultural Perspective and Its Influence on THE One Linked to Working in Global Marketplaces
International management is the management of operations in an organisation serving markets in more than one country. Firstly, it involves working with people from different cultures (Fatehi and Choi, 2019). This management comprises understanding and appreciating people’s diversity and improving great management techniques by minimising prejudice and increasing inclusiveness. Working effectively with a diverse workforce involves more than simply effective management. Since THE One intends to expand its operations across the globe especially using its online platform, working with people from diverse cultures is inevitable. For example, the managers are supposed to learn about different cultures. In addition, the organisation must create a conducive environment to ensure that individuals from different cultures are comfortable.
Secondly, international management encompasses hiring employees from across the globe. Organisations can now recruit and retain employees from all across the globe with the help of technological improvements. Firms adopt specific policies and programs to increase employee inclusion, promotion, and retention of people of different backgrounds and cultures (Fatehi and Choi, 2019). The initiatives and policies are designed to foster an environment that is welcoming to groups that have previously been denied access to work and higher-paying jobs. As a result, THE One is supposed to ensure that appropriate policies are set to support a diverse workforce. The organisation should outsource HR services in designated countries to promote efficiency to hire a skilled workforce. Therefore, THE One must adopt appropriate strategies and foster an organisational culture to support a diverse workforce.
Thirdly, a focus on key stakeholders such as employees and customers is critical in international management. With the integration of the digital age, it is easy to interact with people regardless of location, especially through social networking (Fatehi and Choi, 2019). This contact is achievable due to a strategic approach tailored to the demands of both existing and new customers. The IT-driven society enables businesses to express their message to customers more effectively through their channels, motivate them, and pique their interest in their product more quickly. This also enables the organisation to build trust and address customers’ needs through their products. THE One should ensure that its digital operation is working effectively to support. As a result, functional digital infrastructure is needed to support the operation of effective communication with people from different countries.
The Analysis of the Impact of the Strategic Approach to HR and Its Application Within THE One
In the business world, high staff turnover may affect firms. However, most organisations do little to reduce turnover instead of increasing it by removing jobs and substituting them with lowly paid ones (Stewart and Brown, 2019). A strategic approach encourages the development of training programs that promote flexibility and simplify the transfer between roles, activities, and projects. As a result, as soon as a crisis develops, HR should be involved in developing all training initiatives. In addition, since one of HR’s most essential roles is to limit losses in an organisation and minimise turnover rates, they should design regulate training programs to retain outstanding people in THE One. Thus, a strategic approach enables the HR to adopt appropriate measures to solve employee turnover.
One strategic approach to HR for operational efficiency is to go beyond the laws and regulations by leveraging employees’ strengths and capabilities. This is possible by integrating management tasks. Planning, managing, hiring, directing, and supervising are examples of these functions (Stewart and Brown, 2019). The purpose of planning is to establish the standards and goals that will be utilised to design and enhance procedures and make predictions. Organising entails assigning or delegating specific responsibilities to employees as well as the creation of departments. For example, THE One should ensure that its HR focus on adopting alternative ways of managing employees to rules. The main purpose is to demonstrate to employees that they are important.
The strategic approach ensures that HR adopts measures that lead to employee satisfaction. This satisfaction depends on the management’s feedback from staff members in an organisation (Stewart and Brown, 2019). Employees are unaware of the amount of labour and effort they are putting in, owing to a lack of feedback. As a result, managers must master the art of feedback. Feedback has a big positive impact in the workplace. It can assist in building trust, boosting employee happiness, keeping employees motivated, and reducing turnover. Using this strategy, THE One can focus on feedback to understand the employees’ issues in and outside the organisation. A feedback mechanism is considered a strategic approach because it assists the organisation in addressing the needs of employees.
Additionally, a strategic approach assists HR in developing specific tactical viewpoints to build a more robust work culture. Using an environmental study, many motivational measures for work culture might be generated (Stewart and Brown, 2019). Furthermore, HR must enhance the virtual worker’s experience when it comes to remote working. It is critical to have a virtual technical support team to help employees when they encounter problems while working. Based on this, the HR team of THE One have the potential to effect change and modernise the employee experience through its IT infrastructure. The company should adopt a more modern approach that benefits younger and more tech-savvy staff and improves talent acquisition and retention.
Conclusion
The changes adopted by THE One are meant to improve its productivity and retain a competitive advantage. There are several triggers that enabled the organisation to consider changing the status quo. For example, the need to change was influenced by declining revenue and employee performance within the organisation. To adopt the changes, the organisation used the Lewin change management model. The framework enabled the company to engage relevant stakeholders, especially the employees, in the change process. In addition, like an e-commerce business, THE One should consider creating a conducive environment to support a diverse workforce and effectively manage customers across the globe. The HR team of the organisation should focus on modernising its operations to achieve the needs of customers and employees.
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