CASE PROBLEM 1: Resisting Change at Car Destination 

1. How strong does the resistance to the new business model at Destination appear to
be?

The Chief Executive Officer plans to implement a new model called The No-Hassle Destination,
in which new and used vehicles will be sold at a fixed price and sales reps will be paid a fixed
wage rather than commissions. The company will also transition from a sales-oriented to a
customer-oriented enterprise, with employees primarily focused on meeting the needs of
customers. Employees is resistant about the move, based on what was seen during the CEO's
announcement. Some of the workers who voiced their opinions have already expressed their
opposition to the new plan. Employees are opposed to the move because it means they would be
paid far less than they were previously.

Change happens in almost every organization, and it typically happens in response to internal or
external factors. In this case, Doreen believes the company should adapt to suit changing
consumer needs. She believes that the days are gone when sales representatives were a
customer's only source of knowledge and could affect their buying decision; now, with
technology in their possession, customers can check the internet for specs and pricing, and when
they arrive at the dealership, they don't want to haggle about price; all they need is the car they
identified through the internet. Because of changes in consumer behavior, the availability of
technology is changing how many companies work. Clients can get all the details they need on a
product online, making it more convenient.

2. What advice can you offer Doreen for overcoming the resistance to change? 

Employees at Car Destination are opposed to the move because they are concerned about the
consequences. Salespeople have been making a lot of money from commissions for years. The
extra fee charged to a sales agent based on the amount of sales made is known as sales
commission. The greater the commission paid to an employee, the higher the revenue. These
members have been collecting a lot of money in the form of commissions, according to the case
study. They are concerned that modifying this paradigm would have a negative impact on their
ability to earn. The commission served as a motivator for the employee's work. Staff must be
strongly motivated to support the organization's goals, because if this incentive is lacking, the
company's profitability will suffer, as will employee turnover. If the company eliminates the
commission, the best sales reps are likely to leave, and the company's profitability will suffer.
One of the main factors for the company's high profits has been the factor of sales commission
that it has offered to its workers over the years. It has served as a means of compensation for
workers, and it has aided in increasing their work satisfaction and motivation in the business thus
far. Job satisfaction has a significant impact on an organization's success. Employee satisfaction
is the best way for an organization to keep its workers. Every company must understand how to
keep their workers engaged in order to produce exceptional results. Car Destination was able to
report high profits despite the harsh economic conditions and poor performance of its rivals due
to the high satisfaction of its sales reps. Changing the way workers are compensated may have
negative consequences for the company, impacting its profitability.
Another factor that will lead workers to oppose the shift is that the CEO stated that with the new
model, car rates will no longer be negotiable, but will be set. This would be particularly rough on
the workers, as one of them has said that consumers buying used cars are prone to haggling. It is
clear that the employee derives a great deal of pleasure from being able to negotiate. If the rates
are set, it will be a case of "take it or leave it." As before, the prospective customer will be denied
the opportunity to quote their price. Since it would shut out this community of consumers, such a
policy is incompatible with the company's goal of cultivating a customer-centric culture. This
will also lead to lower employee satisfaction, which will have a significant impact on the
company's success.

If the organization insists on the move, there are tactics it may use to overcome opposition and
enforce the new model, even if it means some workers will lose their jobs. Maintaining contact
with employees is one of the most important tactics the business could employ. When an
organisation undergoes transition, it is usually the leaders who have the information and
withhold it from the subordinates. Employees are left in the dark and unsure of what is going on
in such situations, which could lead to the change failing. When there is coordination, it ensures
that all of the people involved in the transition are aware of the company's goals, the obstacles
they can encounter along the way, and the strategy for dealing with them. Employees at this car
dealership, for example, are speculating about what could go wrong with these changes because
the CEO isn't providing sufficient information on how this plan can function to keep everyone
happy. If such knowledge is clear, they will be less concerned and will be more supportive of the
transition.

Employee contribution to the company's adjustment can also be strengthened by participation.

One of the most effective methods for overcoming employee opposition is to include them in the
preparation and execution of transition. Staff will feel more important to the company if they are
involved, and they will own the transition. Staff will feel more important to the company if they
are involved, and they will own the transition. In this scenario, the CEO might consider including
any of the company's sales reps in the decision-making process. The employee may be able to
provide valuable input that will aid in the development of a suitable change plan.

3. What is your opinion of the potential effectiveness of “The no-hassle Destination”

business model? Explain your reasoning.

Given the current state of the organization and how the no-hassle Destination model is supposed
to operate, as well as the potential outcomes, it is recommended that the company reconsider
implementing this model. It's a risky business model, and there's no guarantee that the company
can continue to make money, as other businesses that have tried it have struggled. To begin with,
this model puts the business at risk of losing high-performing sales reps because they know they
can make a lot of money from commissions; they will never agree to take a fixed salary and
instead look for another company that can fulfill their needs. As mentioned in the case, offering
commission has allowed the company to keep its payroll costs low; however, if they switch to
fixed salaries, these costs will rise, affecting the company's profitability.

The only change the company can make is to improve its customer service. The emphasis of a
car destination should be on building a team dedicated to delivering excellent customer service.
Customer support would boost the company's success by increasing customer satisfaction and
increasing its ability to attract new customers. It will be a place where all of the customer's
requirements are met. Customer support can be improved by providing sales reps and other staff
with instruction on customer service techniques.

CASE PROBLEM 2: The Anti-Bias Training Session

1. To what extent do you think that the employees’ expression of their conscious biases
in a workshop accomplishes anything worthwhile?
 
Derek omitted a beauty bias as a sales manager. When a candidate is knockout in appearance he
assumes she might not be smart. This can result to loosing a competent and attractive candidate
that may push the sales up for the company. Tanya, Brice and Connor has racial bias among
Asians and African American. Eva and Crystal have ageism bias. Gianna has weight bias. Ivan
has sex bias. Though it allows them to get things done, it may hinder further progree for Star
Growth company. Increasing revenue and earnings, lowering costs associated with attrition and
litigation, improved employee recruiting, better marketing and promotional ideas, and innovation
are all possible benefits of encouraging cultural diversity within a company. A diverse workforce
may also assist in avoiding public relations and advertisement that is offensive to a particular
culture or demographic. A diverse workforce may also aid in the avoidance of offensive
publicity and advertisements directed at a specific cultural or demographic community. In
culturally diverse communities, there is a high risk of conflict, but mutual cooperation within the
community may help to mitigate problems.
 
2. Which one or two of the biases expressed do you think might be harmful to a
climate of cultural diversity at Star Growth?
 
Biased tendencies may also have an effect on our work lives. They may have an impact on how
we recruit and employ people, how we engage with people from different groups, what guidance
we consider, and how we conduct performance reviews. Biases can also lead to us making unfair
assumptions about a protected class, which can lead to discrimination lawsuits.
 
From the top down, all organisations — colleges, publicly and privately owned businesses, and
government agencies — must emphasize the importance of treating all staff, applicants, clients,
and students with dignity and fairness. Equal opportunities organizations are often called upon to
investigate allegations of abuse or discrimination committed by individuals in positions of
power. When senior leaders treat people with disdain or act differently against them because of
their gender, age, or skin color, they send a message that discriminatory conduct is appropriate in
the organization. 
 
Among biases omitted by the senior management position is beauty bias by Derek. This might be
harmful to a climate of cultural diversity at Star Growth. Being in management and disrespecting
people because of their beauty might send a message that the behavior is acceptable. 
 
 
3. If you were in this workshop, explain whether or not you would express any
conscious bias you might have.
 
Yes, I will express any conscious bias I have. Because, we must first recognize our prejudices
before we can answer them. Many citizens, on the other hand, are unaware of their feelings for or
against those classes. You have the ability to change your way of thinking until you are aware of
any prejudices you have. Begin by learning about the community (or groups) against which you
have a prejudice. Make an attempt to interact with others in the audience. Spend time with them
and get to know them on a personal level. But keep in mind that you should interact with these
people as individuals rather than as members of a community. You'll eventually realize that your
previous assumptions about them were incorrect or that they didn't apply to every member of this
group.
 
Mindfulness is another useful tool for overcoming biases: simply be conscious when you have a
biased thinking. Pay heed to your own thoughts. Take it a step further and ask yourself why
you're thinking about this person in the first place. Thought knowledge will assist you in
replacing negative thoughts with optimistic imagery.