Free Essay

Best Buy - the Importance of Organizational Culture and Change

In: Business and Management

Submitted By magali17
Words 1099
Pages 5
Best Buy - The Importance of Organizational Culture and Change
Organizational cultures that can be a liability to an organization include those that create barriers to change, create barriers to diversity or barriers to mergers and acquisitions. (Robbins, S. P. 2011) Organizational cultures are also good for change and revitalization of a company. This paper will provide background information on Best Buy and the ROWE (Results-Only Work Environment) Program. This paper will describe the culture of Best Buy. This paper will also discuss the approach to organizational change that the ROWE program illustrates. This case has sources of stress and this paper will discuss the sources that are apparent in the case. Changes have occurred and this paper will discuss whether the organizational culture has helped with the change.
Describe the culture of Best Buy
Best Buy’s culture has changed. The old culture embraced long hours. Managers rewarded those employees who were first in the building and the last to leave the building with tokens of appreciation. One employee earned a bonus and a vacation when he stayed up three days in a row to complete a report that was suddenly due. Yet, he was hospitalized due to the stress. The new culture revitalized Best Buy and changed how most employees view work. Employees thanked the organizers for allowing them to have a better home-work life balance. One employee was considering resigning after the birth of her child, but with the new program, she decided to stay with the company.
The old culture was not moving the company forward and needed change. Even though the quantity of work was the same, women were accepting jobs considered to be part-time. This was the only way to have the family time flexibility they needed. With the new change, productivity increased an average of 35 percent within six to nine months. Voluntary turnover dropped between 52 percent and 90 percent.
Discuss the approach to organizational change that the ROWE program illustrates.
The approach to organizational change that the ROWE (Results-Only Work Environment) Program illustrates is a mentality where work is not a place you go work is something to do. Best Buy decided to launch ROWE after realizing that a work-life balance program was not enough to change the culture within the organization. The Program has thirteen principles and rules. Employees can work when and where they like, as long as the employees get the job done. All meetings are optional, except for very few mandatory meetings. Employees may not judge how peers and colleagues spend their time. As long as employees meet all deadlines, employees can do what they want and whenever they want. ROWE is about results.
Discuss the resistance, both organization and individual that the ROWE program had to overcome.
The ROWE program had some resistance, both at the organizational and individual level. Resistance is a word used to describe what a person is doing if that person does not see things done his or her way. One of the rules of the ROWE program was that all members of the department had to approve the change. If one resisted, nobody in the department could be a part of the program. As amazing as the program sounds, the ROWE program received rejection from all employees of certain departments and from individual members of the management staff. The legal department resisted the new way of working. The in-house attorneys were concerned that they would be criticized as unresponsive if they incorporated a more relaxed way of working. The attorneys get compensated on how well they serve their clients and taking an afternoon off just did not seem like the right thing to do.
Managers resisted the change more than other employees did. One manager had to accept that his style of managing was to treat his employees as unruly children. He felt that with the new program, these employees were not going to abide by the rules. Managers also did not think that hourly employees like administrative assistants should be a part of the ROWE program. In the manager’s way of thinking, administrative assistants had to be at their desks throughout the day in case a member of management needed them.
Discuss the sources of stress that are apparent in the case.
Despite all the good changes that the ROWE program generated, stress is still apparent. Change is difficult when certain behaviors are already a part of the daily routine. An employee who works in the finance department received a call from one of Best Buy’s suppliers. Apparently, he did not receive payment for the last order and threatened to stop delivery of any supplies until he received payment. If she stayed at work to resolve the problem, she would not be able to go home and attend to a personal matter. The new changes were difficult to adopt. The employee was part of the ROWE program and she was allowed to make her own work schedule and leave, if necessary, without anyone judging her. The employee knows she could handle both matters just not in the traditional work order. Her fear was that someone would judge her for the way she would handle the situation.
Discuss whether or not the organizational culture has helped with the change.
The organizational culture has helped with the change. Employees are slowly transitioning into the new mindset. The early results showed that the ROWE program helped reduce voluntary turnover, improve productivity, and increased employee morale. With these results, more employees are adopting the ROWE program. One employee started to take some afternoons off to spend time with his Grandson. He shared in a meeting that he wished he had this type of flexibility when his children were younger. He believes he would have been a better parent and a better husband.
Organizational cultures can be a liability or can be good to an organization. Cultures can be a liability when these organizational cultures create barriers to change Organizational cultures can be good for change and revitalization of a company. This paper provided background information on Best Buy and the ROWE (Results-Only Work Environment) Program. This paper described the culture of Best Buy. This paper also discussed the approach to organizational change that the ROWE program illustrated. This case had sources of stress and this paper discussed the sources that were apparent in the case. Changes occurred and this paper discussed whether the organizational culture helped with the change. References
Robbins, S. P. (2011). Organizational Behavior (8th ed.). Mason, OH: South-Western, Cengage Learning.

Similar Documents

Premium Essay

Best Buy - the Importance of Organizational Culture and Change

...Being difficult to fund the start – up my business; my best choice is to look for venture capitalists to adopt the idea and support my business financially and help me with the best management strategies advice to reach my goals and succeed with my venture. Convincing venture capitalists requires a solid business plan to be presented with an educated request for funding supported by backing evidence that my idea is marketable, a study of target market and target customers showing their acceptance to the idea. I started my business plan with the description of my business, description of the company’s structure including how many managers and how many number of employees, description of my product idea, a study about the...

Words: 3510 - Pages: 15

Premium Essay

Rowe Program at Best Buy

...Assignment #5: “ROWE Program at Best Buy” BUS/520 Nadine Gilles September 3, 2011 Dr. Dominique Sweeting 1. Describe the culture of Best Buy. Jody Thompson helped to pioneer the Results-Only Work Environment (ROWE) at Best Buy Corporation. The creation of this program was fundamental in the introduction of the Culture Rx Concept. Organizational culture is made up of the ideas and values shared by the employees of an organization. In the Best Buy organizational culture, there was a minimal amount of values being shared. The negative environment at Best Buy prevented the employees from bonding. There was not that much time available for employees to interact with each other. A survey was conducted to know the attitude of employees participating in ROWE. It was found that they felt pressured and felt they had to work hard. Employee’s lack of time to manage their work and consult with coworkers hindered the growth in all the divisions of Best Buy. Before ROWE was implemented at Best Buy, employee morale was very low and the turnover rate was very high. Employees were called to last minute meetings by management and were assigned to complete last minute reports with little or no notice. Most employees did not get to spend much time with their families and worked from home as well as in the office. The culture prior to ROWE was work at all times and make sacrifices for your job....

Words: 978 - Pages: 4

Premium Essay

Rowe Program at Best Buy

...Best Buy decided to change their culture to a more personal life friendly atmosphere. Prior to 2003 Best Buy’s focus was to get the job done. Best Buy only thought about the success of the company without regard to the success of the employee. A number of employees would work themselves to complete deadlines and their personal lives would suffer. This type of environment caused employees to feel ill or stressed. Employees would also feel...

Words: 1258 - Pages: 6

Premium Essay

Rowe Program

...ROWE Program at Best Buy Describe the culture of Best Buy. Best Buys culture involves all chains of command. Employee's from salary to hourly share responsibilities to satisfy their client needs. The company’s culture has changed to a more flexible program to accommodate employee’s personal life. Culture is defined as “the shared and learned values, beliefs, and attitudes of its members.” (2011, Hellriegel, Slocum) Best Buy also believes in rewarding employees who invest time in their job and make personal sacrifices to get the job completed. Unfortunately Best Buy needs to change their organizational strategy to be more flexible, especially for working women. Discuss the approach to organizational change that the ROWE program illustrates. The Results-Only Work Environment program known as ROWE is “employees can work when and where they like, as long as they get the job done.” (2011, Hellriegel, Slocum) This approach gives the employees the flexibility of work schedule without punching a time clock everyday. This program began at Best Buy’s headquarters in Minneapolis, Minnesota. ROWE was built on 13 principles and rules. This is ranging from no traditional work schedule to no results, no jobs. With the ROWE program Best Buy have worked to keep it chaos free, for its 75 percent of the employees it have been implemented for. The company has strayed away from traditional staff meetings with the program for its employees....

Words: 1014 - Pages: 5

Premium Essay

Zappos

...Organizational Mission/Vision and Goals………………………………………….6 4. Organizational Strategy……………………………………………………………..6 5. Zappos Structure………………………..………………………………….……….8 6. Control Features………………………………………………………...…………..9 7. Organizational Culture………………………………………………………...…..10 8. SWOT Analysis …………………………………………………………………...11 9. Conclusion and Recommendations………………………………………………..12 References………………………………………………………………………...13 1. Introduction. The term “E-commerce” has roots in the 1970’s with the development of Electronics Funds Transfer (EFT) and the introduction of the Automatic Teller Machines (ATM) in the 1980’s. With the development of the Secure Socket Layer (SSL) standard in Mosaic web browser and the explosion of the Internet in 1990’s the term has been universally accepted as the ability to buy and sell via the Internet (Graham, 2008; p. 776). Zappos.com is an online shoe and apparel shop that was found in 1999 by Nick Swinmurn and developed into the largest online shoe store. Today this online retailer “offers 500 brand names and 90,000 styles and stocks over 2 million pair of shoes” (Lamb; 2011; p. 97). Currently, the headquarters of the company is based in Henderson, Nevada. Its products include shoes, apparels, handbags, accessories and eyewear. In 2009 the company announced that it will be acquired by Amazon.com. At the very beginning the company’s name was ShoeSite.com that was changed a few months after the sites’ launch....

Words: 3375 - Pages: 14

Premium Essay

Diversity

...There are three levels of diversity they are internal dimensions, external dimensions and organizational dimensions. These three levels put together define our personal identity and has a great impact on how each one of us view the world. Our personality is the center of our lives because it defines our characteristics that describe who we are. The internal dimensions are age, race, ethnicity, sexual orientation, gender and physical ability. You also have to deal with the external dimensions geographic location, income, personal habit, recreational habits, religion, educational background, work experience, appearance, parental status, and marital status. And the organizational dimensions are functional level/classification, work content/field, diversity department/unit/ group, seniority, work location, union affiliation, and management status. These are all part of managing diversity in an organization. You have to approach managing diversity in an organization with an open mind and without bias. You cannot manage this as an individualistic culture but as a collectivist culture, it is about what is best for the company not what is best for you as an individual. How do you manage diversity in an organization? According to Franceso and Gold there has to be an organizational level of diversity. The first step to managing diversity is the organizational vision, having a vision statement explaining what...

Words: 1119 - Pages: 5

Premium Essay

Cis517 Term Paper

...Russ White CIS517 May 17, 2015 The Different Organizational Structures There are three different organizational structures in regards to project management, and each has their specific pros and cons associated with their method. A functional organizational structure is one that is best when the focus is a single product. Functional structures aren’t designed to change quickly, and they are the most common type of design. These contain various specialized units that then report to top management, or the top tier of the structure. The grouping is based on similarities. It’s the top tier’s job to make sure that each individual tier below them is able to communicate and coordinate their efforts as one unit. Clustering the individuals with similar knowledge allows specialists to grow within their fields. (Griffin, 2015, p. 1) The main goal of functional structure is to place the human and informational resources in one place to maximize performance. A great example is the structure associated with a University. They have various faculty members who only teach a specific specialty or subject. These individuals are only supposed to teach their specific subject. (Schwalbe, 2013, p. 49) There are some disadvantages to functional organizational structures, with the biggest issue having to do with communication....

Words: 3774 - Pages: 16

Premium Essay

Gene One

...Although I believe that they were looking out for the company’s/employees’ best interest, the lack of a solid game plan has led us to this point where the working relationship between management has failed. While attempting to uncover the optimal solution I will look at the factors that should be considered when evaluating all options. My hopes are to bring to light why one solution is better than the next as it relates to the vision and goals of the company. This will be done by examining evidence from outside sources that have been through similar situations. This solution will be centered on transformational leadership and organizational culture. By identifying the primary causes of the failed strategy’s implementation, I will dissect and attempt to salvage the IPO strategy that Gene One will still need to carry out. In reading this scenario, one thing obvious from the onset; the senior leadership team at Gene One is not all on the same page. Anytime there is a culture change within an organization there will be resistance by some to change. In the case of Gene One they are no more immune than any other company. Evidence of this could be seen from the interactions of Teri and Michelle at the 1st leadership meeting after the board’s approval of the IPO plan. “What’s the matter, Michelle? Not finding enough challenges in finance, so you want to get into research? We’re in the plant research and bio-agriculture industry....

Words: 4848 - Pages: 20

Premium Essay

Fasgsga

...Increasingly corporations in Canada have stressed the importance of embracing diversity and have stressed the benefits of creating inclusive work environments which:  Promote the work of all organizational members and ensures that it is acknowledged, respected, and that employees are compensated equitably for it  Value diversity both within the organization and outside of it  Implement a meritocracy – rather than non-job-related ascribed characteristics – ensuring the need for equality and fairness underpins the organizational culture  Emphasize individual accountability at all levels of the organization  Constantly communicate the organization’s commitment to diversity both through language and through action and in a clear manner (Digh, 1998; D’Netto & Sohal, 1999; Schmidt, 2004; Beaver & Hutchings, 2005; Conference Board of Canada, 2006; Conference Board of Canada, 2008; Shen et al., 2009) In other words, inclusive work environments do not simply recognize that differences exist among different...

Words: 5280 - Pages: 22

Premium Essay

Recycled Furniture's Mngmt Style

...Part two will focus on Robert passing the reigns to the next manager, and comparative contrasts between the two styles, what implications all the changes will mean for Thor Enterprise and how the new approach will change the shipping division of this international company. Part One When Robert became a part of the Recycled Furnishings’ business he had already proven himself a capable manager at his previous company, and was eager to help his new company succeed. His management style would be described as coming from the human resource theory school of thought. This is evident by his ability to match needs of the company with the skills of the employees at his disposal, which is a primary objective of the human resource theory (Bradley, n.d.). Being a baby boomer, Robert would have certain traits that are typical of ‘Boomer’ workers/manager that are of particular importance. Attaining personal growth in the work place, involvement in the decision making process, a good work ethic, and more of a team, rather than individual, work environment are typical traits (Tanner, n.d.). Robert in particular had a keen sense of how to train his workers to perform in the best single way possible. The theorists that understood this best were Frank and Lillian Gilbreth. Frank and...

Words: 1616 - Pages: 7

Premium Essay

Leadershio Plan

...BUSA414 - Understanding Organizations Through People Assignment 3: Personal-Learning Implementation Plan Values, Culture & Work-Life-Balance – Bringing Learnings to Life By Jonathan D Jensen March 22, 2015 This paper explores concepts and understandings of three topics from BUSA514 course material, and an implementation plan detailing initiatives to apply learnings on three topics both personally and organizationally. The three topics addressed in this paper are, Values, Organizational Culture, and Stress/Work-life balance. Each topic including, actions for implementation, will be discussed in turn. Values Values are standards or principles of behavior that an individual or corporation professes to be important and to live by. They set a standard of conduct. Corporate values, as defined by Van Lee, Fabish, & McGaw, (2005), are “a corporations institutional standards of behavior.” (P3.). A clear set of values can act as a moral compass. Society believes that individuals, corporations should adhere to a certain standard of behavior, but how does a corporation’s adherence to its values influence business performance? According to Val Lee et al., “the majority of companies have difficulty connecting values to operational results” (p10). Values can be somewhat intangible, making it difficult to measure a return from them – “Return on Values” (ROV)....

Words: 2769 - Pages: 12

Premium Essay

Managing Change in Aerospace

...Them Syndrome Team Building Employee Involvement Pride in Ownership Buy In – Resistance to Change Team Building Organizational Identity Personalities Closed Mindedness Mutual Respect Open/Honest Communication Followers vs. Subordinates Honesty Forth-coming of info Secrecy Change Agent Recognition Programs Clinging to the Past Commitment Denial Change Management 2. A detailed plan of what you would have done to prevent the atmosphere of distrust from ever happening, had you been in charge....

Words: 2001 - Pages: 9

Premium Essay

Employee Attitudes During the Recession.

...In the modern theory of organizational behavior a need for employee motivation and engagement is found to be effective. 4. Organizations are focusing on ways to...

Words: 4020 - Pages: 17

Premium Essay

Alto Chemicals Case

...Culture and the Informal/Voluntary Network 2. Formal Teams 3. Integrators 4. Matrix Design 5. Cells and Networks 2d -Assess Internal Fit : Systems Which systems optimize the employee performance -To keep the employee in the loop... Recruitment Performance appraisal Rewards Additional sys (inform. Mang.) 2d -Assess Internal Fit : Culture Culture : values Climate : Practice Key Themes Dominant culture vs sub cultures Espoused versus real cultures Case Nestle , espresso is a completely different organization . ALTO CHEMICAL EUROPE (ACE): ORGANIZATIONAL CHANGE CASE STUDY Stabilizer market situation Shrinking , Drop off in consumption 600.000 tons x 1.000$ prices vary to month 30% over capacity competition KEY STRATEGIC ELEMENT Profitability $40 to $80 (4% to 8%) Price Leadership (set by HQs) Non-price sensitive acc. - wire/cable (2% contribution to cost = 4% of 2% for these customer) - small / medium Raise volume Tin (we have it) Give customer expertise Sales Management Reponse - Ideas (Dramatic change in behaviour) More work , new customer aquisition , convert to tin Accept loss of price authority Service oriented selling Incentives (not based on volume any more) What should Graaf do to pursuade the Sales Management ?...

Words: 743 - Pages: 3

Premium Essay

Organisational Bhaviour

...| [Year] | [Organisational behaviour] | | Table of Contents 1 Understand how organizational structures and cultures impact in the effectiveness of the organization 3 1.1 Analysis the characteristics of different organizational structures 3 1.1.1 Definition of Organizational culture. 3 1.2 Evaluate the importance of organizational culture theory in developing organizational effectiveness 4 1.3 Analyze the culture and structure of one organization and evaluate how they impact on its effectiveness 5 1.3.1 Tesco Structure 5 1.3.2 Tesco Culture 6 2 Understand how the organization can improve employee effectiveness to respond to business opportunities 6 2.1 Analyse how organization can facilitate innovation and creativity 6 2.2 Assess the importance of learning in organizations 7 2.3 Evaluate the effectiveness of team working 7 2.4 Analyse the effective management of change in organization 7 3 Understand organizational decision making 8 3.1 Analyse the approaches of organizational decision making 8 3.2 Assess approaches to risk and uncertainty in decision making 8 3.3 Evaluate the effectiveness of organizational decision in a specific organization 8 4 References: 10 * Understand how organizational structures and cultures impact in the effectiveness of the organization Analysis the characteristics of different organizational structures Definition of Organizational culture....

Words: 2988 - Pages: 12