Reasons for Change

Lowes is ane of several faces well known as a home monetary fund which, draws customers thats homeowners interested in do it yourself home projects or contractors. fit to research Lowes has employed over 238,000 people, with the economy taking a process for the worst Lowes was also affected. Which caused them to lay complete over 1,700 employees in 2010. many another(prenominal) another(prenominal) were in manager positions that had been with the company for years and was hired during a while when business was booming.Lowes decided by laying stumble generous sequence higher paying(a) employees that it would benefit the organization as a altogether by replacing them with lead off time employees. Lowes intended on hiring 8,000 to 10,000 variance time sales associates between the 1,725 stores statewide. These workers would be paid less collectable to their positions being entry level for instance sales associates that would be paid a lot less. Part time employees wou ld not be empower to any benefits such as health insurance, 401k, retirement, and etc.Although, most Lowes would possibly pretermit one manager position the store would be given 4-8 branch time workers to compensate for the loss. The manager that lost their jobs would be compensated by receiving severance pay and assistance with job placement. Those workers that wasnt laid off witness how some employees received pay cuts depending on their position. One of Lowes contest is Home Depot which was placed in and unfortunate situation that guide them to laying off many employees. This lead to them letting go full time employees and replacing them with part time associates that was paid less.As a vector sum Home Depot received a lot of back eyelash due to this decision. Lowes was advised to pay close attention to how their customers react to the many compounds. Because, the changes made deep down the organization will affect employees and customers. Lowes took a pretend on downsi zing and reconstructing which had a 46% achiever rate harmonise to research (Leban & Stone,2008). By Lowes making these changes it allowed them the opportunity to lay off higher paid employees while replacing them with lower paid sales associates inside the organization.The purpose for this change was to save the organization money while continuing to accommodate their customers by maintain slap-up customer service. Another reason Lowes felt it was essential to make changes within the organization was because, of the economy and the downturn that effected the construction industry. Lowes receiving over half(a) of their business from construction industry so when business slows up so does Lowes. Some of Lowes customers are homeowners also which was affected by the turn in the economy which caused them to do fewer home repairs.Lowes organizational change could consider been categorized by total quality guidance. Lowes began to focus mainly on the sales associates and how they interacted with the customers. Due to the middle managers not previously playing a major role within the organization. Lowes decided that the middle managers thats not managing a department or currently working on the al-Qaeda that remained on with them was instructed to monitor the sales associates. The organization strategy was to hire to a greater extent part time workers to better serve their customers while building a rapport while becoming a asset to the organization.When reconstructing and downsizing, quality management driven change will work well due to the success rate being 37% ( Leban & Stone, 2008). With the economy going declivitous it would benefit Lowes to increase their prices however, it may not be wise at this time. Although, changes would be essential to too save money within the organization. erst Lowes made major changes within the organization they increased its quarterly make by 17% from the previous year (Portillo,2011). According to research within the first 9 months in 2005 profits increased by 3.5% (Portillo, 2011).One mustiness question how Lowes was able to lay off some of their full time managers and hire many more part time workers. This change occurred when the economy was bad and a lot of people had already lost their jobs. Lowes was expression for a way out that would benefit their organization as a whole. Their solution was done with hopes of saving money while increasing profits. This change has made a difference thus far and hopefully in the near future they will be able to promote part time employees and offer benefits.