HRM 587 Week 4 Assignment

HRM 587 Week 4 Assignment

HRM 587 Week 4 Assignment Diagnosing the Change

Diagnosing the Change: JCPenney and American Apparel

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Introduction

Both JCPenney and American Apparel have been through extraordinary change within the last couple years. This change is still taking place and it’s unclear whether or not the organizations can be successful amid such difficulty within the clothing retail space. Nevertheless, there are tools and strategies organizations can employ in order to address these challenges. Change does not come easy, but understanding the many factors and multi-faceted realities is important in order to overcome resistance and restraints. Likewise, the appropriate diagnostic model helps us to ascertain the driving forces within the successful implementation of change. Most of these models would be helpful, but based on the present realities it appears that the 7-S Framework is the most fitting model to address their present circumstances.

Overview of the 7-S Framework

There are two essential parts to the 7-S Framework. These include the concepts that “organizational effectiveness comes from the interaction of multiple factors” and “successful change requires attention to the interconnectedness of the variables” (Palmer, 2008).

The following list is the seven categories included:

1. Structure
2. Strategy
3. Systems
4. Style
5. Staff
6. Skills
7. Superordinate Goals

(Palmer, 2008)

Applying the Data Based on the 7-S Model 

            Each of these categories is applicable to the organizations in some way. By highlighting the realities within each category, the obstacles and potential catalysts to foster change can be determined. As depicted in the diagram, all of these categories are integrally connected. At the center is “Superordinate Goals.” This is essentially the vision of the organization, and thus plays a central and unique role within the model.

Structure

            As clothing retailers, JCPenney and American Apparel have similar company structures. One of the main differences is the size of the organizations. JCPenney has been around much longer and is far larger in size and scope. Consequently they have a larger hierarchy and bureaucracy, potentially making change more difficult and costly. In the case of JCPenney, part of their failed transformation included cutting management at high levels of the organization, particularly at its headquarters (Tally, 2012). Though much smaller, American Apparel is vertically integrated and is not reliant on outsourcing (American Apparel, 2014). Its CEO and founder, Dov Charney, has held close influence over the organization up until recently. The board of directors has been criticized for their incompetence and their desire to oust and/or usurp the influence of Charney (Reuters, 2014).

Strategy

            For clothing retailers, the strategies of JCPenney and American Apparel are very different. JCPenney reverted to their traditional brand appeal as a discount retailer targeting a wide-range of potential customers, i.e. all ages, both sexes, many different styles. Their prior CEO, Ron Johnson, tried to change the company’s approach by renovating the stores and eliminating the gimmicky sales promotions in favor of everyday low pricing (Berfield, 2013). American Apparel’s strategy is mainly (though not exclusively) to appeal to young adults, through slightly alternative and immodest advertisements and product selection. However, they also emphasize that their product is made in America and that their employees are paid reasonable wages (Casey, 2008).

Systems

            The systems change at JCPenney was tied into the layoff off many employees. The remaining staff and any new hires were retrained, and an attempt at recreating the company culture was made. This included making it more appealing to younger people and helping older employees to think and act in a new way (Michele, 2012). In terms of systems change at American Apparel, things have mostly remained the same. Their high industry wages, emphasis on diversity and creativity is not only one of their stre……………………………………………..

HRM 587 Week 4 Assignment

HRM 587 Week 4 Assignment

HRM 587 Week 4 Assignment

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