Organizational Change Management In Woolworths: Evaluating The Self-Service Checkout Implementation
Introduction of the Self-Check Out System
Discuss about the Supermarket Self-Checkout Service Quality.
The report gives an overview of Organizational Change Management in Woolworths with the introduction of the self- check out. Woolworth’s represents the Australian Supermarket chain owned by Woolworths Limited (woolworths.com.au 2018). The self-check out also known as the self-service checkout refers to the machines that introduce a mechanism for the customers in processing their individual purchases from the retailer (Orel and Kara 2014). They acted as alternative to the traditional method of checkout that involved third parties. Here, the customer themselves performs the job of the cashier through the process of scanning and applying for the payment of the items bought. The report discusses about the evaluation of the change process through the mention of a timeline as a part of section one. There is also an analysis of the change process undertaken by the organization.
Although supermarkets worldwide embraced the self-checkout system with enthusiasm, Australia reacted relatively slowly to the systems especially when the United States grocery chains already tested the system by the year 2003(Hevesi 2017). Woolworths was however, the first supermarket in the Australian continent in committing to the technology. The immense popularity of the self-checkouts system brought about a change in the organizational process as Woolworths opted for more number of self-service stores.
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Change Announcement |
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Change Implementation |
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Conduction of Survey |
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Conduction of Interview |
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Conclusion |
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Strategy |
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Making Framework |
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Primary Data collection |
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Conducting Survey |
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Conducting Interview |
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Data analysis |
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Presenting findings and discussion |
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Providing conclusion |
According to (Hayes 2018), change management refers to the systematic approach in dealing with transformation or transition of the organizational goals, technologies and processes. The purpose of the change management lies in the implementation of the strategies for influencing, controlling and helping people in adapting to the changes. Lewin’s model for change management represents the most popular approaches. According to the model, the change process is split into three stages which includes the stage of unfreeze, the stage of making changing and the stage of refreezing (Cameron and Green 2015). The unfreezing stage refers to the creation of a perception towards change process; the stage of making change refers to the movement towards change while the refreezing stage refers to the solidification of the newer behavior as the ultimate norm.
Woolworths, the supermarket chain of Australia conducted a change process in the form of self-service checkouts. There were closer to 16 self- service system installed in the supermarkets with another 70 of stores in the pipeline. Although the supermarket failed in revealing the project cost but as per the Australian Financial Review, the estimated rollout cost was closer to an approximate figure of $ 7 million (Chung 2017). Supported by the global technology firm, NSR, the Self –service checkouts under the brand name of Fast Lane allowed the customers in scanning, weighing and paying for their groceries easily and quickly either by the use of the credit, cash or the debit cards. The system is also capable of dispensing reward dockets for petrol, top vouchers for the mobile phone and aids customers in taking out cash.
Evaluation of the Change Process
According to Leung and Matanda (2013), the self-serve checkout system act as convenient option for the customers since there is a positive feedback from the shoppers who use them. This encourages the supermarket chain in introducing them to larger number of stores thereby entailing its introduction to a wider audience. The system has various in-built safeguards for minimizing shoplifting. Each saleable item identified by its distinct weight and barcode tallied and scanned before check out. This prevents individuals from getting hold of the unpaid additional items. The system alerts the staff if the weight of the bag does not match the weight calculations depending on the product barcodes. The checkouts are user friendly, animated and features voice prompts. The supermarket always has a staff stationed close to the customers for assistance. Customers of Woolworths have dearly embraced the technology and have made it so popular that close to 20 percent of the transactions happens through Self-Serve checkouts. Although they will never be able to completely abolish the express or standard checkout but they act as an alternative for busy shopper.
Vuckovac et al. (2017) put forward that some people prefer the importance of human touch and customer. They prefer going to the cashier instead of an impersonal machine. Some expresses the fear of technological influence and their unfamiliarity makes them apprehensive about using a newer technology. While using the machine, if there is detection of an unfamiliar item then the consumers have no choice but to wait for the intervention of the staff member. Authorization from the staff members is required for the sales of goods such as alcohol. Moreover, the theft rate is also higher on the self-service automated systems than the regular checkouts. A study conducted on one million transactions in United Kingdom recorded the losses close to 3.97 percent of the stock incurred through payments via the self-service technology. The figures were higher by about 1.47 percent (Writers 2008). Research identified one of the discrepancy lies in the fact that the everyday customers who does inculcate in the process of stealing might disproportionately take to stealing at the self-service checkouts.
As per Collier and Kimes (2013), the convenience of the self-service system out ways the flaws and there exists couple of the intertwining trends that helps in explaining the rise of the self-checkouts. The implementation of the system ensures more frequent visit to the supermarket compared to before. This ability of wandering up to a self-checkout with hardly any wait time proves to be a useful means for shopping. Most of the shoppers consider the self-check out system since it is easier and faster to use. Although the variation takes place with the age with only 90 percent of the shoppers, aged between the 18 to 36 years prefers self-service checkouts while only 50 percent of the people above 60 years prefer the system
Advantages and Disadvantages of Self-Service Checkout
Thus, Woolworths expresses an interest in adopting it for increasing number of the stores. Therefore, based on the Lewin Change Model, Woolworths moved forward in further embracing the self-service checkouts for scanning the items bought by the consumers. The supermarket opts for increasing number of the self-service checkouts in most of the stores located in the inner cities. Each of the stores refitted with only a single automated checkout. Such a move of the supermarket is targeted towards the consumers who seek for quicker service.
Woolworths replaced all the traditional checkouts process with the self-service checkout system even in some of its stores located in the inner city as part of the renewal program for winning back customers. The retailer of Woolworth is making a point in embracing the self-service by implementation of limitation on trailing item. The move initiated after its rival Coles recorded an annual theft bill of about $1.1 billion
Conclusion:
To conclude it can however be said that, Woolworths increasingly adopts the self-service kiosks in its stores since the convenience of such a system outweighs any of its disadvantages. The increase in the customer usage along with the constant development of such service kiosks helped in enhancing the customer experience. The service although cost effective has not completely abolished the requirement of the staffs.
References:
Cameron, E. and Green, M., 2015. Making sense of change management: A complete guide to the models, tools and techniques of organizational change. Kogan Page Publishers.
Chung, F. 2017. [online] Available at: https://www.news.com.au/finance/business/retail/the-vast-majority-of-our-customers-do-the-right-thing-woolworths-embraces-selfservice/news-story/565a656c01e07e3bf621f8d283979c39 [Accessed 29 May 2018].
Collier, J.E. and Kimes, S.E., 2013. Only if it is convenient: Understanding how convenience influences self-service technology evaluation. Journal of Service Research, 16(1), pp.39-51.
Hayes, J., 2018. The theory and practice of change management.
HevesI, B. 2017. [online] Available at: https://www.dailymail.co.uk/news/article-4211198/Woolworths-rolling-self-service-checkouts.html [Accessed 29 May 2018].
Leung, L.S.K. and Matanda, M.J., 2013. The impact of basic human needs on the use of retailing self-service technologies: A study of self-determination theory. Journal of Retailing and Consumer Services, 20(6), pp.549-559.
Orel, F.D. and Kara, A., 2014. Supermarket self-checkout service quality, customer satisfaction, and loyalty: Empirical evidence from an emerging market. Journal of Retailing and Consumer Services, 21(2), pp.118-129.
Vuckovac, D., Fritzen, P., Fuchs, K.L. and Ilic, A., 2017. From Shopping Aids to Fully Autonomous Mobile Self-checkouts-A Field Study in Retail.
woolworths.com.au 2018. [online] Available at: https://www.woolworths.com.au/ [Accessed 29 May 2018].
Writers, S. 2008. Woolworths introduces self-serve checkouts. [online] Available at: https://www.itnews.com.au/news/woolworths-introduces-self-serve-checkouts-108848 [Accessed 29 May 2018].