Pederson Builders

Merchant Limited

Change Management
Introduction
• Market Competition: Increased competition from national companies has made it challenging
for Pederson Builders Merchant Ltd to attract customers from the general public. Adapting to
changing market dynamics is essential for sustained success.
• Employee Engagement: Ensuring employee engagement is crucial as they play a vital role in
driving business performance. Engaged employees are more motivated, productive, and
willing to embrace change.
• Customer Expectations: Evolving customer needs and preferences require businesses to adapt
their offerings and customer service strategies accordingly.
• Leadership Capabilities: Effective leadership is vital for leading and managing change. Strong
leadership can inspire employees, navigate resistance, and create a positive change culture.
 C.P5 Explain factors and stakeholders that influence
change in a given context in an appropriate format.​
Internal Factors:
• Leadership capabilities
• Low staff morale due to inadequate wages and
limited growth opportunities
• Difficulty in filling vacant positions, leading to
increased workload
• Stable sales and increasing overheads
• Culture - If the culture is positive in the
organization it motivates employees towards high
productivity.
External factors :
• Political - New legislation ,new government rules,
monetary policies etc.
• Economic – Increased competition. The market and
economic situation of the country.
• Social - Changing customer preferences and demands.
Changes in taste and fashion or the increase in
spending power of one group.
• Technological - Being able to sell goods online or
using automation in factories to make the production
quicker.
C.P5 Explain factors and stakeholders that influence
change in a given context in an appropriate format.​

Stakeholders influencing change:

Beatriz and Daniel: As the leaders of the organization, their active involvement,
support, and commitment are vital for driving and sustaining change.

Store Management Teams: The democratic style adopted by store management

teams can facilitate change implementation by involving employees in decision-
making processes and addressing their concerns.

Employees: Their active participation, buy-in, and willingness to embrace change

are crucial for successful implementation. Open communication channels and
employee engagement initiatives can help ensure their commitment.

Customers: Building strong relationships and effectively communicating the

benefits of change to trade customers will help maintain their loyalty and support
during the transition.
P6 Explain own recommendations for actions to be
taken to improve business performance for a given
context, and in an appropriate format​

• Enhance Leadership Capabilities:

• Develop leadership training programs that focus on strategic thinking, decision-making, and
effective communication.
• Foster a leadership style that empowers and motivates employees, ensuring they feel supported
during the change process.
• Improve Employee Engagement:
• Establish mechanisms for collecting and acting upon employee feedback, ensuring their concerns
are addressed.
• Recognize and reward employee contributions to create a positive work environment and foster
commitment to change.
• Restructure Compensation and Benefits:
• Conduct a comprehensive review of the wage structure to ensure competitive remuneration for
employees.
• Provide opportunities for career growth and professional development to motivate and retain top
talent.
• Enhance Customer Focus:
• Conduct market research to gain insights into evolving customer needs and preferences.
• Adapt product offerings and customer service strategies to align with customer expectations and
enhance satisfaction.
Change Management Theory

• Unfreeze:
• In this initial stage, the focus is on creating awareness and preparing individuals and the
organization for change.
• It involves breaking down existing mindsets, routines, and resistance to change.
• Key actions include communicating the need for change, addressing concerns, and building
a sense of urgency.
• Change:
• Once the unfreezing stage has taken place, the actual change is implemented.
• This stage involves introducing new processes, structures, or systems to drive the desired
outcomes.
• Clear communication, employee involvement, and effective training are crucial during this
stage.
• Refreeze:
• The final stage aims to reinforce and stabilize the changes that have been made.
• Efforts are focused on embedding new behaviors, norms, and systems as the new "status
quo."
• This stage helps ensure that the changes become a lasting part of the organization's
culture.
Conclusion