Action Research and Organizational Development

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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?
Assignment Expectations
• Answer the assignment questions directly.
• Stay focused on the precise assignment questions; don’t go off on tangents or devote a lot of space to summarizing general background materials.
• Make sure to use reliable and credible sources as your references. Articles published in established newspapers or business journals/magazines are preferred. If you use articles from the Internet, make sure they are from credible sources.

Sample Solution

Understanding the Task and Background Materials

Task:

  • Apply action research principles to diagnose the sales decline at XYZ Widget Company.
  • Develop an action research strategy plan, outlining data gathering, feedback, planning change, intervention, and evaluation phases.
  • Identify the missing action research step in the given scenario.

Key Action Research and Organizational Development Steps:

Based on the provided information, the core steps in action research and organizational development typically include:

  1. Problem Identification: Clearly defining the issue or problem.
  2. Data Collection: Gathering relevant information through various methods.
  3. Data Analysis: Interpreting collected data to identify root causes.
  4. Feedback: Sharing findings with stakeholders and gaining input.
  5. Action Planning: Developing strategies to address the problem.
  6. Intervention: Implementing the planned actions.
  7. Evaluation: Assessing the effectiveness of the intervention.

Analysis of the XYZ Widget Company Scenario

The case highlights a significant sales decline at XYZ Widget Company. While the company has recognized the problem and engaged an external consultant, there seems to be a gap in the initial stages of action research.

Missing Step: The crucial missing step is data collection. While the company has identified a sales decline and its financial impact, there is limited information about the underlying reasons for this decline.

Developing an Action Research Strategy Plan

Data Gathering and Diagnosis

  • Conduct comprehensive market research: Analyze competitor pricing, product features, customer preferences, and distribution channels.
  • Employee surveys and interviews: Gather insights into employee morale, sales strategies, and perceptions of the company’s position in the market.
  • Financial analysis: Examine sales trends, cost structures, and profitability to identify patterns and anomalies.

Feedback

  • Share findings with the CEO and key stakeholders.
  • Facilitate open discussions to gain insights and perspectives.
  • Build consensus on the root causes of the sales decline.

Planning Change

  • Develop a strategic plan based on the data analysis and feedback.
  • Identify potential solutions, such as price adjustments, product enhancements, sales force training, or marketing campaigns.
  • Prioritize actions based on their potential impact and feasibility.

Intervention

  • Implement the chosen strategies.
  • Monitor progress and make adjustments as needed.
  • Provide ongoing support and coaching to employees.

Evaluation

  • Measure the effectiveness of the implemented strategies.
  • Assess changes in sales, market share, and employee morale.
  • Identify lessons learned and areas for improvement.

Addressing the Assignment Questions

  1. Reasons behind the decrease in sales:
    • Increased competition from Jim’s Widgets due to lower production costs and pricing.
    • Decline in employee morale due to commission cuts and layoffs.
    • Potential gaps in marketing and sales strategies.
  2. Actions or strategy to turn sales around:
    • Conduct a comprehensive market analysis to identify opportunities.
    • Evaluate the feasibility of reducing production costs.
    • Develop a targeted marketing campaign to differentiate the product.
    • Implement sales training and incentives to boost employee performance.
  3. Strategy to increase employee morale:
    • Improve communication and transparency about company performance.
    • Implement recognition programs to acknowledge employee contributions.
    • Offer opportunities for professional development and growth.
  4. Timeline:
    • The timeline for implementing the action research plan will depend on the complexity of the issues and the resources available. A realistic timeframe could be 3-6 months for initial data collection and analysis, followed by 6-12 months for implementing and evaluating changes.

By following these steps and addressing the identified issues, XYZ Widget Company can improve its chances of recovering lost market share and achieving long-term success.

 

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