This essay gives the solutions for wilko case study. The topic is about the the impact of delayering on wilko’s shop floor employees, managers and the organisational structure in wilko case study.
Introduction to Wilko Case Study
The case of Wilko, the value retailer, is given by (Armstrong, 2017) with the heading of ‘Wilko puts 3,900 staff at risk of redundancy”. Before starting with the effects of the new decisions taken by Anthony Houghton, Wilko retail director, it is important to go over what is being changed at Wilko.
The very main idea of the case is stated as “Wilko is consulting with 3,900 employees about a shake-up of shop staffing roles, the latest retailer over the past week to axe jobs amid rising costs and a tough trading environment” (Armstrong, 2017) and this first paragraph of the article directly makes the reader understand why the employees are at a risk of redundancy. It is stated by Mr. Houghton that the changes in Wilko’s retailing strategies are made in order to fit to the needs of the operations that the company will undergo in the future.
It is predicted also by Retail Week that the changes in staffing will affect thousands of store staff. Lastly, Mr. Houghton states that the old structures of retailing have created complexity which makes it harder to control and manage retailing operations and added that “The simpler, newly defined store structure will give teams greater variety within their roles and result in more team hours on the shop floor, delivering a better customer experience” (Armstrong, 2017).
So, it is now understood that the changes are done in order to get the retail operations of the company optimized for the future operations but it creates some inevitable effects for the current situation and for the current employees of the company from staff to the managers and also the organizational structure of the company. This paper will analyze how delayering will impact Wilko’s shop floor employees, managers and the organizational structure of the company.
Wilko Case Study Solution
First of all, the most amount of impacts will be on the shop floor employees because they are the ones who are the main subject to the changes made on the retail operations of the company. To start with, the first and most important impact for the shop floor employees will be about their motivation. As stated in the earlier parts of this paper, there is a risk that these employees can face redundancy. In addition to this, it seems that there are still some uncertainties about the future of their job. In that sense, as the employees will be worried about their job, this issue will eventually have an impact on the motivation of the employees towards their job.
This lack of motivation may result in decreasing efficiency of the work that the employees put if not managed in the suitable way. As the motivation of the shop floor employees decrease, the level of commitment of the shop floor employees will decrease as well and this may lead to some complications with the retailing operations. Secondly, the energy of the shop-floor employees may decrease as well because they will always have the risk of redundancy somewhere in their mind. As a result of all these, the operations of the company may have a decline.
In addition to the motivation of the shop floor employees, the employee engagement may be reduced as well. If the employees are engaged, it means that they are willing to work harder and longer and they are all focused on the needs of the organization and on their assignments. In the case of Wilko, it is stated that the new retail structure will result in a greater variety with the roles of the employees. It means that, employees will have several different roles compared to what they are doing currently. In that sense, if the employees are not supervised and educated in the right way, there might be some problems with employee engagement.
In that sense, Wilko should give the shop floor employees some opportunities for development. The company should not only give some written programmes for learning the new skills but they should also let the employees practice for the so-called increasing variety of roles that they will have to handle. If this is done in the right way, the employees can get adapted for their new roles in an easier way and they can come up with a more efficient work. This is also a reason for decreasing effectiveness of the work of the shop floor employees that will interrupt the operational effectiveness.
Lastly, the trust of the shop floor employees is another way that these changes would have an impact on. This issue can be analyzed in terms of human resources management activities of Wilko. As the shop floor employees see that the company can give up on them easily in a need for a change, they will trust less to the company as they have a risk of redundancy anytime. In that sense, the decreasing trust of the employees can affect employees in several ways such as decreasing their commitment, loyalty and also decreasing their motivation to put a high level of work. The commitment of the employees can be stated in other words as the connection of the employees to Wilko.
As the employees trust less to the company with the fear of losing their job, they will psychologically bind less to Wilko and eventually the commitment of the employees both to their job and to Wilko will decrease and also the shop floor employees will become less loyal to Wilko. As the shop floor employees become less loyal, another problem arises for Wilko because they can lose their employees to other companies as they have a risk of destroying the trustworthy relationship between the individuals and the company.
Wilko Case Study Answers – The Second Dimension
The second dimension of the impacts of the changing structure of operations is about the managers of Wilko. It is not only the shop floor employees that will face the possible harsh results of the structural and operational changes of the company but also the managers have the risk of facing these results as well. During this time of change for Wilko, the most important assignment falls to the managers of Wilko.
The first issue about the impact of the changes undergone by Wilko on the managers is the attitude of their management styles. To put it simply, the managers should not behave as the boss but as leader. This phrase is one of the mostly use phrases used for management managers lately and it applies for the case of Wilko as well. As stated several times earlier in this paper, the changes at Wilko may have several possible impacts on the shop floor employees and these impacts may result in hazardous decreases in the effectiveness of the operations done by these employees. In this sense, the ways to overcome those impacts were mentioned as well.
These ways are to be implemented by the managers. In order to implement these ways, the managers should have a leader attitude instead of having a boss attitude. To make it clear, the managers should be included in the fieldwork during the adaptation period of the employees instead of giving them orders and expecting them to meet the requirements by themselves. In this way, by using this attitude change, the managers can build better relationships with the employees and motivate them towards the job and the new roles that they have. In addition to increasing the motivation levels of the employees, the managers can increase the commitment and loyalty to Wilko. As the employees get adapted to their job more by the aid of the assistance of their managers with a leader attitude, they will eventually put a more efficient performance to their work. As a result, the structural changes of Wilko will impact the managers in terms of changing their attitude towards to employees and undergo the tasks together with them as a leader.
In addition to the changes of the attitudes of the managers, the managers will also have to increase their ability of building relationships and working in teams. To start with building relationships, it is a fact that can be obtained from the case of Wilko that there will be a high employee turnover for the company both in terms of shop floor employees and in the management level. In addition, it is stated in the case that the company may hire 1000 new managers as a result of the structural changes. In that sense, the managers may have to work with different managers and also they may have to team-up with new shop floor employees.
As a result, the managers of Wilko will have to build better skills of building relationships in order to increase both the communication within the managers and also the productivity of the employees in their teams. The new responsibility of the managers to increase the communication between the managers will make it possible for the managers to exchange information and experience within each other and this will result in adapting faster to the changes in the company and also decreasing the time to get the work done. Additively, if the managers can have the skills of building better relationships with the employees, they will be able to come up with more productive team-work which will add up to the overall productivity of the company.
Apart from the impacts of the changes on the managers and on the shop floor employees, there will also be some inevitable impact on the organizational structure of Wilko as a result of the structural changes. When the structural changes of the organization the organization are implemented, the organization structure is likely to change to a flatter structure. Flatter structure is a type of organizational structure which is differentiated from a traditional hierarchy. According to Forbes, “Unlike the traditional hierarchy which typically sees one way communication and everyone at the top with all the information and power; a “flatter” structure seeks to open up the lines of communication and collaboration while removing layers within the organization” (Morgan, 2015).
It is also added by (Morgan, 2015) that even though there is still some hierarchy that exists in flatter structure, it is not something bad. Despite of the small amount of hierarchy in the structure, the main focus of organizational structure becomes communication and collaboration which are used for improvement of experience of the employees and challenging the status quo around traditional management (Morgan, 2015). These properties of flatter structure can help the organization overcome the challenges that are brought by the changes mentioned above. It is seen that a great amount of attention is attached to communication between employees, especially between managers and this is supported by the Flatter organizational structure as well. It will help the members of the company communicate in a better way with each other and as a result of this exchange of information, knowledge and experience will be a lot easier.
Additively, removing or challenging the status quo within Wilko will help the employees to adapt to the new system in a better way. Also, this will help the employees build loyalty for the company as well, decreasing the employee turnover. Lastly, using a Flatter structure removes the layers within the organization as stated above and leads to better collaboration within the company. The changing operational structure of company can benefit from these properties of flatter structure highly and this may decrease the amount of time needed for adaptation. Mentioning flatter structure in particular does not mean that Wilko should strictly adopt flatter structure, it means that the properties of flatter organizational structure is suitable for the new operational goals of Wilko.
Thus, Wilko can make some changes on the organizational structure by having in mind the importance of communication and collaboration within the company as they can shorten the adaptation period. In addition, they should mind removing the layers within the company and make is easier to open up new lines of communication. To put it another way, these are the main issues of the organizational structure of Wilko that the new structure of the company will have an impact on.
Wilko Case Study Conclusion
To conclude, the structural changes that are brought by the top management of the company have impact on several issues about the company such as the shop floor employees, managers and the organizational structure of the company. In terms of shop floor employees, the risk of redundancy can decrease the motivation, loyalty and performance of the shop floor employees and this may result in a decrease in the overall performance, efficiency and productivity of the company. In terms of managers, the main issue for the managers is to have the attitude of a leader instead of having the attitude of a boss. So, the managers should be leaders, not bosses.
Additively, the managers should adapt themselves for teamwork, building good relationships within the company and communicating better in order to fasten the period of adaptation. Lastly, in terms of organizational structure, the impact will be mainly on the communication ways of the organizational structure, removal of the layers within the organizational structure and also having a less amount of hierarchy within the organization. In this sense, ‘flatter organizational structure’ seem suitable for the changes in the company because it carries all the properties mentioned above.
You can also view Jaguar Land Rover Case Study on our website as well.