Change Management

Management is essential for the organization by using organization resources effectively and efficiently to increase potential and capability to the organization since planning to control. The main management and the vital tool that business focus on is human resource Management because it is important for improving and developing business. Human resource management is getting things done and completed by other people to achieve the goal. Management is a strategy or action that the management team in an organization cooperate to complete a task or reach a company goal. Moreover, management is an important component in business, the manager needs to plan and manage the human resource in the most effective way. Management has five major step which is; planning, organizing, commanding, coordinating and controlling. Management is a process to be a successful business with must follow these five steps. Furthermore, these five steps will be effective or ineffective depending on leader potential.

 

Company background

 

 

ASDA is a one of British largest supermarket retailer in the UK. Founder of ASDA is Asquith family, first business that operates from this family is butcher’s shop. Moreover, Peter and Fred Asquith son of W.R. Asquith assist the company and become co-founder of ASDA company. Nowadays, ASDA has operating 631 stores around the UK. ASDA have provided a variety range of channel distribution; Firstly, ASDA supercenter which is a large store which provides a wide range of a product such as food, beverage, and houseware. Secondly, the ASDA superstore which offers a fresh food, café, pharmacy and non-food product. Thirdly, ASDA supermarket which is a convenience store that offers mainly on food and convenience product. Lastly, ASDA Living which focused only non-food product such as houseware, fashion products, and general merchandise.

 

Brexit and ASDA

 

ASDA will have an impact from Brexit. First, the UK has voted to leave the European Union, due to the issue occurred from European countries toward the UK. Moreover, Brexit also has an impact on retailer business such as ASDA concerning about food delivery and transaction issue, Fresh food delivery from which import from European countries can be rotten in UK border. The issue happens from a delay of payment received, money will be slower transfer by 50%. The delay of bill payment to the supplier can harmful to their small supplier, the supplier will need to borrow or loan money to pay their staff and pay their bill. The difficulty of the trading condition can damage ASDA since the delay of money transaction ASDA will be lost their suppliers with don’t have potential to wait for money from ASDA. Many big companies use this delay to extend their bill, so they can have more flexibility in financial.

 

Henri Fayol management theory

Henri Fayol is the person who gives a definition of management which is using in modern management strategy. The theory gives a basic definition to management such as a division of labor, scalar chain, unity of command and centralization. Moreover, Henri Fayol created 14 principles of management which can be used in management strategy in real business. The 14 principles of management consist of a division of work which is developing their employees.

1. Division of work develop practice and familiarity
2. Authority is the right and power to give an order.
3. Discipline formal and informal agreement with the firm and its employees
4. Unity of command is a superior of one person
5. Unity of direction is a plan of action with having the same goal
6. Subordination of individual interests to the general interest
7. Remuneration is fair to pay
8. Centralisation is a great or less extent
9. Scalar chain the authority level of the company
10. The order can be explained as put the right man in the right place
11. Equity is the justice in an organization
12. Stability of tenure personal is the duration of jobs deadline.
13. The initiative is a limit of authority
14. Esprit de corps is the need of encouragement to work in a team in an organization.

ASDA can apply 14 principles of management theory to solve the Brexit problem. In addition, ASDA must use remuneration of 14 principles to deal with transaction issue. According to big company financial strategy, they try to extend their bill to increase their financial flexibility, this is a disadvantage and negative impact to the small supplier which must pay their bill in short term. Furthermore, the company must find a strategy to pay their supplier at a fair price and duration. Since retailer business must rely on operating a business, the retailer has to maintain their supplier to have the best product to sale for their customer.

 

 

References

 

(C Beyon, 2017) Management models and theories associated with motivation, leadership and change management, and their application to practical situations and problems

from https://www.healthknowledge.org.uk/public-health-textbook/organisation-management/5c-management-change/basic-management-models

 

(ASDA,2018) Our history

from https://corporate.asda.com/our-story/our-history

 

(ASDA,2018) Company facts

from https://corporate.asda.com/our-story/company-facts