1 Before Franchise During the first 6 years of franchising the import department was represented by only one person who covered all the main activities: 1.Customs clearance for goods coming from Asia 2.Customs clearance for goods coming from Europe

2 After: Own Brand During the first year of own brand, the import team has increased to 4 persons: 1.Gabriela Radulescu – import manager 2.Anda Ardelean – custom clearance specialist 3.Mihaela Groza – import specialist for merchandises (food/ non-food) 4.Madalina Popescu – import specialist for technical equipment (assets)

3 Organizational Change The change process in Carrefour import department was an effective one: - the goal was achieved with a higher amount of resources: Human resources IT resources (new software PSS)

4 Planned and Unplanned Organizational Changes Planned Changes Changes in products to import Changes in administrative systems Changes in organizational size or structure Introduction of new technologies Performance gaps were successfully avoided Unplanned Changes Governmental regulations Economic competition in the global arena Organizationa l Change

5 Cornerstones of Planned Change Understanding of the Technology: PSS tool Understanding the Environmental features: social environment, socializing with other import departments within the group Legislation changes concerning import procedures due to our EU admittance

6 Organizational Variables that Effect Change Organizational Structure Technology People in the Organization The increase of the volume for the imported goods, due to the incapacity of internal supplier to cover Carrefour demands The increase of the number of imported products

7 Forces ForForces For ChangeChange Interdeparta -mental collaboration Import legislation Technology Workforce

8 Resistance to change Resistance to change is the action taken by individuals and groups, when they perceive that a change that is occurring, is a threat to them Passing from Franchise to Group has increased the works volume, fact which lead to the discontentment of the team members, who has, in these conditions to spent extra hours at work.

9 Most people dont like change, because they dont like being changed. When change comes into view, fear and resistance to change follow – often despite its obvious benefits. People fights against change because they: Fear to lose something they value; Dont understand the change and its implications; Dont think that the change makes sense; Find it difficult to cope with either the level or pace of the change

10 Resistance to change As far as Carrefour Romania is concerned, the resistance to change is implicit an deferred. This manifests itself by: Loss of employee loyalty and motivation; Increased errors or mistakes; Increased rate of fluctuation for the personnel

11 Reasons to resist the change Import department The dramatically increase of the volume of goods The change of legislation due to the EU admittance The direct contact with a large range of suppliers Economic factors Need for a clear and proper legislation

12 What can be done? Communication: Both horizontally, as vertically, the communication is one of the most important factors within the import department, even if that might lead to time consuming. It is useful for all the team members, in the same time, in order to get beyond the change

13 What can be done? Participation: In Carrefours Import Department, all the team members participate – they help one to another - to accomplish in the best way their tasks. That helps everyone to know how we stand with a certain operation at a precise moment.

14 What can be done? Support: In the Import team, all members can lean on each other, providing themselves help and support when needed; Support is offered from the beginning through the import procedures, or, in case of some special activities, in order not to waist time, with researches.

15 Change Agent For the passage from franchise to Group within Carrefour the Change Agent role was played by Gabriela Radulescu – import manager(also chief of the Import dept) Her major responsibility was to help people within the dept to understand the necessity of the change as well as its advantages after implementation

16 Change Agents Personality and Methods Adopted for Change Implementation Managing people: requested from Gabriela a perfectionist leadership attitude as well as delegation of duties done progressively Methods chosen for implementing change: at first the obligation for all employees in department to send a copy of mails written to her and then, survey verification

17 Change Agents Relationships Within the Imports dept: Change agent Employees (liberty of action but requirement for them to know their activity specifics) Within the environment: Top management IT dept Change agent Customs Sales and customer care dept

18 Action Research Process Concerning the Change Diagnosys: internal needs + legislation requirements Analysis: volume of work + work time available Feed back: surveys among new employees hired into the dept Action: decision to form a 4 member team into the dept Results: new work procedures in the dept + new team Evaluation: no contracts signed with suppliers, acquisition cost, volume of key products bought

19 The Internal Environment: Resources, Capabilities and Core Competencies External Environment Satisfying the clients needs for low prices Internal Environment Ability to operate on low profit margins and focus on cost leadership. Great variety of low price products satisfying a satisfying a good level of quality.

20 Strengths: Import Department –Disposes of good skilled employees –Very good english speakers. –Good working conditions –Proper working environment –Good communication with superiors –Experienced and skilled manager in operating within international markets

21 Weaknesses: Import Department Difficulty in founding producers with a large production capacity. Poor motivation system for the employees. Poor evaluation system. Lack of information concerning the change. Scarceness of human resources.

22 Discovering Core Competencies Core Competencies: 1. 1.Strategic Intent; 2. 2.Customer focus 3. 3.Own private labels; 4. 4.Operational Excellence; 5. 5.International Experience; 6. 6.Talent Management; % Profit internationally generated Capabilities Low profit margins and cost leadership Resources: Good Corporate Image; Human Financial Discovering Core Competencies Competitive advantage: Knowledge and skills to operate and create successful hypermarkets Criteria of Sustainable Advantages Value Chain Analysis

23 Key Questions for Managers in Internal Analysis Are our core competencies easily imitated?

24 Resources – What Carrefour Has Imports department has to work with: - Skilled human resources - Strong brand name - Professional parteners - Good communication system

25 Value Chain Analysis -Identifying Resources and Capabilities That Can Add Value Primary Activities Technological Development Human Resource Management Firm Infrastructure Procurement InboundLogistics Operations OutboundLogistics Marketing & Sales Service MARGIN MARGIN Host Country purchasing Regional Distribution Centres Heavy Promotion Private label

26 Import Process New import process One man show No software Unspecialised people – no work division STRATEGICSTRATEGIC DIRECTIONSDIRECTIONS New department composed by 4 peoples PSS software connected to Carrefour France Specialised peoples Business Process Reengineering Current Process Future process

27 Radical Change The old one man show became the manager of the import manager and he built the new specialised team.

28 BPR – Process Type 1 ProceedsBounders for processes Import proceedsCentralized import; one main warehouse; on line order using pss software; products distribution to the hypermarkets. ProductsThe new entry products imported – 6 month before decision; Products imported directly from the supplier.

29 BPR - Process ValueNo Value Specialized jobsGeneral/unspecialized jobs Cooperation /team workingIndividual approach Process managerHierarchical manager Centralized importIndividual import

30 BPR – Process Type 2 ClassDescription Interorganizational processImport Department is a part of Logistics Department – subordinated to the top management Interfunctional processDivision of work- specialized jobs; the people are trained. Interpersonal processAll the peoples into department are subordinated to the import manager; the peoples in department collaborate Job ProcessThe manager is coordinating the entire department;

31 Delegating Because of the increase and diversion of the goods, the working volume has grow up. Once the volume working grows, the number of the employees in import department changes and the tasks get much better delimitated. The most important responsibilities in the import department are: import-custom, the contracts between Carrefour and direct suppliers, reports, new direction of the strategies.

32 Delegating: how its made? Delegating in the Carrefour import department didnt change because of the new employed persons, every new employee knows hes responsibilities, and they are responsible for their own actions. The duties of each employee were settled from the beginning of their hiring. The duties were made such way to be supplied by other employee, to communicate and to cooperate with other employees in the import department.

33 Why not delegating? Each employee has to finish the job until the end of the working program. The duties and responsibilities have to be done during the working program. Carrefour agreed with the idea: when an employee can help, he may help without asking or delegating him to do that job.

34 Right person to delegating The final decisions into the import department are allocated to the import manager. When the import manager is not available for a period of time, he delegates his responsibilities to the persons who will supply him. For some tasks, the manager delegates a certain person. In the moment of delegating he also provides all the information in order to complete the task.

35 Carrefour most important points of reference: We empower all our employees to take initiative and give them the freedom to act as entrepreneurs. We listen to them and accept their differences. We deal honestly with customers, employees and suppliers and we respect them.

36 Time Management During the franchise period, the import department was led by only 1 person, Gabriela Radulescu. She was in charge of all department activity, completing high importance tasks but also the less importance ones. She had a busy schedule, and she planed the time by prioritizing the activities.

37 Before: Franchise High Urgency Low Urgency High Importance Low Importance Passing commands Contacting the suppliers Elaborate an import schedule Reading s Coffee Break on changes to job Supervise the import activity Answering calls

38 After: The Group After Carrefour was integrated into the Group the amount of work increased and the import department needed 3 more people. Because one person could not be able to complete all the tasks by herself, she delegates the majority of them. To achieve the best results she redistributes the time, and focus only on the more important tasks.

39 After: The Group High Urgency Low Urgency High Importance Low Importance Special import operations Supervise the import activity Elaborate new procedures of work Reading s Coffee Break on changes to job Making reports to the Group Answering calls

40 Causes that produce stress at Carrefour Import Department The sudden change of the working conjuncture. The solving of a big number of new problems at a high level The lack of experience in some domains Working with other chiefs in transvers

41 The principal types of stress at Carrefour Import Department Acute stress is caused by : -The necessity to solve a problem in short time -The learning by doing without any feedback -The involvement in reunions and trainings after the working schedule Chronic stress: -The lack of satisfaction at the work place (for some employees) -The unsafely of the work place stability (for some employees)

42 The effects of employees stress on Carrefour The appearance of conflict situations The increase of the terms in solving problems The decrease in some situations of work quality The rate increase of errors due by fatigue and stress

43 Organizational measures in the diminution of stress Changes in work goals and deadlines Job design Increased employee participation Improvements in the physical work environment Changes in work schedules, more flexible hours