Action Research and Organizational Development

For this assignment, first carefully review the required background materials. Make sure you are highly familiar with the main steps involved in action research and organizational development discussed in the readings. When you are finished reviewing the background materials, take a close look at the scenario in the Case Assignment below. Case Assignment Action research is the process of inquiry that is used to assist an individual or organization in solving a problem or improving a situation. For each scenario below, think about the reasons why things did not work out well for the company and more specifically, think about action research in terms of developing a plan for action. Your task for this assignment is to explain what steps the organization should take by reviewing the standard action research and organizational development steps covered in the background materials. Try to assess which key step is missing in the scenario below. Then write a 4- to 5-page paper using three scholarly sources from the required and optional readings list addressing the following for the scenario below: The Perils of XYZ Widget Company Sales have gone down at the XYZ Widget Company and nobody in the organization, including the CEO, seems to know why. They decide to hire you, an organizational development consultant, to do some action research. You and the CEO spend a lot of time discussing how to proceed and create a contract. The contract specifies that you will limit the scope to finding factors that led to the decrease in sales, come up with a plan of action within one month, and answer the following questions using the background data from the scenario below. Scenario: XYZ Widget Company has lost 20% of its market share over the past two years resulting in a sales loss of 1.5 million in 2017 and 2 million in 2018 for a total of $3.5 million. Each widget costs the consumer $29.99 to purchase, and the average customer will purchase three widgets annually. Each XYZ widget is produced for $8 dollars and is of higher quality than the competition. One competitor (Jim’s Widgets) in the widget industry with a similar product has increased market share by 12% due to a lower production cost of $4 per unit and price to the consumer of $9.99. The CEO of XYZ Widget Company is reluctant to lower prices and has had to eliminate commissions and bonuses of sales employees who exceed goals. In addition, seven of the 21-member sales team were laid off for non-performance of sales goals. Develop an Action Research Strategy Plan covering the following Action Research Phases in a report to the CEO. • Data gathering and Diagnosis • Feedback • Planning Change • Intervention • Evaluation 1. What are the reasons behind the decrease in sales? 2. What actions or strategy (data/sales/changes) should be taken to turn sales around and regain market share? 3. What strategy should be taken to increase employee morale? 4. How long should this strategy take to complete? • Support your research with three references that include at least one reference from a peer-reviewed academic journal or textbook found in Trident University’s online library. • Report content should include a brief introduction to the assignment, background information about the organization being studied, the organizational chart, and your discussion of organizational structure in terms of the concepts or theories being applied in the assignment. • Use subtitles, bullets, and tables to improve presentation values. • Attention is to be given to citing sources of information in-text as well as in the reference list at the end of reports. Citation and reference style instructions are available here. • Submit your report in the Case Dropbox for this module on or before the date due, as indicated in the TLC Homepage. • Reference your sources of information with both a bibliography and in-text citations. Citation and reference style instructions are available at Trident University's Introduction to APA. Another resource is the “Writing Style Guide,” which is found under My Resources in the TLC Portal. • Since you are engaging in research, be sure to cite and reference the sources in APA format. The paper should be written in the third person; this means words like “I,” “we,” and “you” are not appropriate. For more information, see Differences Between First and Third Person. Submit the presentation through the appropriate Dropbox by the due date. Your submission will be graded with the assignment’s grading rubric. Grading Note: Students’ Quantitative Reasoning skills were assessed in the Signature Assignment in Case 3 of MGT301 at the Introduction Level. In MGT401, they were assessed in a second Signature Assignment at the Reinforced Level of Quantitative Reasoning. This assignment is the Signature Assignment at the Emphasized Level of Quantitative Reasoning. Your submission for this Signature Assignment will be assessed on the criteria found in the grading rubric for this assignment to assess Quantitative Reasoning at the Emphasized Level. Citation and reference style instructions are available here and Trident University's Introduction to APA. You will find the following useful as you critique sources: Cornell University. (2015). Critically analyzing information sources: Critical appraisal and analysis. Retrieved from http://olinuris.library.cornell.edu/ref/research/skill26.htm Cornell University. (2014). Evaluating Web sites: Criteria and tools. Retrieved from http://olinuris.library.cornell.edu/ref/research/webeval.html   For a good overview of the foundational concepts of organizational development, read the following introductory book chapter. Pay special attention to the seven steps of action research, which will be a major emphasis for the Case Assignment: Lurey, J. & Griffin, M. (2013). Section 2: Chapter 4: Action research: The anchor of OD practice. In Vogelsang, J. (ed). Handbook for Strategic HR: Best Practices in Organization Development from the OD Network. Saranac Lake, NY, USA: AMACOM Books, pp. 46-52. [EBSCO eBook Business Collection. Note: when looking up a book in the EBSCO book collections do not copy and paste the entire reference into the search engine. Only enter in the title of the book. If you do a search on “Handbook for Strategic HR: Best Practices in Organization Development from the OD Network.” this book will come up. Now read up in more detail on action research with the following chapter. This chapter has more detail about the main steps of action research such as entry, contracting, etc. Note the names of the steps are a little different than the previous book chapter such as “action planning” instead of “planning change” or “research” instead of “data gathering and diagnosis”. But it is the same basic step-by-step approach: Haneberg, L. (2005). Chapter 3: The action research approach to change. Organization Development Basics. Alexandria, VA: American Society for Training & Development. [EBSCO eBook Business Collection]

Sample Solution

     

The Perils of XYZ Widget Company: An Action Research Approach

Introduction

This report presents an action research strategy plan for XYZ Widget Company, an organization facing declining sales and market share. The plan outlines the key phases of action research, gathers and analyzes data, suggests solutions, and addresses employee morale. The aim is to identify the root causes of declining sales, propose a strategy for recovery, and recommend methods to improve employee morale.

 

Full Answer Section

        Background Information XYZ Widget Company has experienced a significant decline in sales and market share over the past two years. Despite offering a higher-quality product at a higher production cost ($8) compared to competitor Jim's Widgets ($4), XYZ has lost market share to Jim's lower-priced offering ($9.99). This suggests potential issues with pricing strategy, marketing, or customer perception. Additionally, the CEO's reluctance to lower prices and subsequent cuts in sales commissions and layoffs could negatively impact employee morale. Organizational Chart [Insert a basic organizational chart here, including CEO, Sales Team, and any other relevant departments] Missing Step: Diagnosis and Feedback While the scenario mentions data gathering (sales figures, market share loss, competitor analysis), a crucial step seems missing: diagnosis and feedback. Action research emphasizes collaborative analysis of data to identify core issues and provide feedback to stakeholders (Lurey & Griffin, 2013). This step would involve in-depth analysis of sales data, customer feedback, competitor offerings, and internal communication practices. Interviews with sales representatives and potentially customers could provide valuable insights. Action Research Strategy Plan
  1. Data Gathering and Diagnosis
  • Conduct in-depth analysis of sales data to identify trends and customer purchase patterns.
  • Gather customer feedback through surveys or focus groups to understand customer perceptions of XYZ widgets compared to competitors.
  • Analyze competitor marketing and pricing strategies to understand their competitive advantage.
  • Interview sales representatives to assess their experiences with sales goals, customer interactions, and overall morale.
  1. Feedback
  • Share findings from data analysis with relevant stakeholders, including the CEO, sales team, and potentially customer representatives.
  • Facilitate group discussions to analyze the root causes of sales decline (e.g., pricing strategy, marketing effectiveness, customer service issues).
  1. Planning Change
  • Based on the feedback, develop a multi-pronged strategy to address identified issues. This may involve:
    • Pricing Strategy: Consider a price reduction or offer bundles with additional value (e.g., extended warranties, free accessories) to compete more effectively.
    • Marketing and Sales Strategies: Develop targeted marketing campaigns to highlight the quality and value proposition of XYZ widgets. Refine sales strategies and consider offering incentives or commission structures that motivate the sales team.
    • Customer Service: Analyze and improve customer service interactions to enhance customer satisfaction and loyalty.
  1. Intervention
  • Implement the chosen strategies and monitor their effectiveness through ongoing data collection and feedback loops.
  1. Evaluation
  • Regularly evaluate the impact of the implemented strategies on sales performance, market share, and employee morale.
  • Make adjustments to the plan as needed based on the evaluation results.
Solutions to Increase Sales and Market Share Based on the potential issues identified, some possible solutions include:
  • Price Adjustment: Consider a strategic price adjustment to be more competitive while maintaining profitability. This could involve slight price reductions, bundled offers, or targeted promotions.
  • Enhanced Marketing: Develop targeted marketing campaigns emphasizing the superior quality and value proposition of XYZ widgets. Leverage multiple channels such as digital marketing, social media, and in-store promotions.
  • Improved Customer Service: Analyze and improve customer service interactions to ensure a positive customer experience. This could involve training programs for sales representatives and streamlining customer support processes.
Employee Morale The CEO's cost-cutting measures (reduced commissions, layoffs) likely impacted employee morale negatively. Action research can help address this by:
  • Open Communication: Organize open communication sessions with the CEO and sales team to address concerns and foster trust.
  • Recognition and Reward Programs: Implement recognition and reward programs that incentivize sales representatives and motivate them to achieve goals.
  • Training and Development Opportunities: Provide training and development opportunities to enhance employee skills and knowledge.
Timeline The timeframe for implementing the action research plan depends on the complexity of the chosen strategies. However, a realistic timeframe could be:
  • Data gathering and diagnosis: 2-3 weeks
  • Planning and intervention: 4-6 weeks
  • Evaluation: Ongoing, with adjustments made as needed
Conclusion XYZ Widget Company faces challenges due to declining sales and market share. Applying action research can provide valuable insights into the root causes and allow for the development of a comprehensive strategy for recovery. By implementing a data-driven, collaborative approach, XYZ can regain market share, improve customer satisfaction, and enhance employee morale.    

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