Burberrys Organizational Change: Impact on Employee Relations Sample

Introduction :Burberry’s Organizational Change: Impact on Employee Relations

1. Introduction : Managing Employee Relations During Organizational Change at Burberry

The nature of organizational change is related to many factors such as structural, leadership, operational changes and strategic shifts. They have to adopt organizational changes because of current market trends and internal challenges. The key challenges related to employee relations, which are arising from the change are communication breakdown, resistance to change, uncertainty of employee, lack of employee engagement, legal and ethical considerations (Kim and Ma, 2019). Burberry promotes an innovative and cooperative employment relationship in business, raising creativity and making a promise to sustainable luxury in the fashion sector. It is a well-known luxury fashion hub that was founded in 1856 by Thomas Burberry in Basingstoke, England. It has 418 store locations and is headquartered in London, England and the United Kingdom (Global Data, 2023). It is famous for its clothing materials, beauty and makeup products and high-class accessories. Burberry is a discoverer in taking up digital technology in the fashion industry. The report will analyze the company’s organizational change initiatives and their impact on employee relations. The analysis shows an understanding of the challenges and dynamics that are involved in managing employee relations during change in the report.

2. IMPACT ON EMPLOYEE RELATIONS 

The organizational change is affecting the employment relationship and has a positive or negative impact on its performance. In this regard, Burberry should communicate the organizational changes' reasons efficiently, to give possible benefits to employees. It helps build trust and confidence among employees and provides clear directions to them to achieve the business objectives and goals. Organizational change can impact employee engagement and its Morales, by offering new chances for growth and development and improving work procedures (Pellegrini, et. al, 2020). On the other side, layoffs or rearrangements can lead to decreased job satisfaction and employee engagement. By investing in employee skill development and training programs, organizational change helps business enhance the skills of employees and creates an impact on the employment relationship. They also build a commitment to employee growth and sustainability.

 During an organizational change, the uncertainty of job security in business, cause stress and anxiety in employee's mind and put fear in employees' heart. Clear and effective communication helps in overcoming these risks related to job uncertainty. Company can involve their employees in the decision-making process and strategic planning related to organizational change conditions to make them feel inspired, motivated and valued. This helps in contributing to business success and impacts the employment relationship positively (Otoo, et. al, 2019). The potential conflicts, breakdowns and employee concerns are the basic challenges in the organizational change context:

Potential conflicts: The potential conflicts happen with structural changes and cultural differences factors. When there is a change in organizational structure, such as technological advancements then employees resist towards changes in reporting lines, team structure and employee roles, meanwhile conflict may occur. The clashes of values and work styles can result from changes in the way teams integrate with different corporate cultures, such as due to the usage of latest software or applications. In the context of Burberry, to streamline operations digital transformation strategies adopted by the firm such as machine learning, cloud computing, AI etc. Meanwhile, conflicting situation faced by the firm in motivating personnel towards the change introduced. 

Breakdowns: It happens because of inadequate and double-way communication. If Burberry fails to provide clear, timely and adequate information on the basis of the change, its impact on workers as well as the overall approach, this may lead to confusion and speculation that will contribute to a breakdown of communication (Kim, et. al, 2019). In the absence of an opportunity for employees to give feedback or discuss issues, there can be a flow of one-way communication that does not meet the needs of workers and makes them feel unvalued.

Employee concerns: The employee concerns are related to job security, the uncertainty of the future, stress and anxiety of heavy workload and resistance to change. In times of change, workers often complain about their employment security, especially if the change is to be made through redundancies, restructuring or outsourcing. Employees are likely to be concerned about the company’s direction, their role and career options which may result in increased stress as well as anxiety. 

3. LEGAL AND ETHICAL CONSIDERATIONS

Burberry should steer organizational changes and focus on ethical & legal considerations to protect the basic rights of employees in an organization. It is crucial for company to adopt ethical and legal considerations to make smoother their operations & and avoid the legal complications that could be a barrier in this process. Burberry needs to obey relevant employment laws (2002) and guidelines for its employees on occurring issues such as laying-off, termination or working time rights (Brittain, et. al, 2020). If these laws are not followed there may be legal implications. If there are any amendments to the employment contract or terms, the company must ensure that these amendments are made in accordance with contractual and legal requirements.

The company must be transparent and truthful with respect to ethical considerations by communicating the reasons for changes to organizational structure, potential impacts on employees and telling the future vision of company. Ethical behavior includes treating all employees fairly and equitably during the time of organizational change. In accordance with ethical aspects, Burberry is not discriminating employees on the basis age, gender, race, religion etc. A positive ethical climate of business contributes to neglecting privileged treatment and ensuring equal opportunities for employees. Ethical organizations pay utmost attention to the health of their employees. In changing times, the issues of job security, heavy workload, anxiety, pressure and stress should also be addressed by business.

The compliance issues and potential breaches of employment laws related to Burberry are equal employment opportunity, wage laws, health and safety, employee benefits, termination process, employee agreements and working hours. The company has to take care of the employment practices and also ensure that their employees are not discriminated against on the basis of race, color, religion, nationality, age, gender as well as other characteristics (Brondolo, et. al, 2022). For this purpose, company strictly follows all the rules & regulations enclosed in Employment Rights Act (1996) and (2002).

They have to follow the rules and guidelines of the government for wage and hour laws of employees, and compliance with minimum wage, overtime payment and child labor. 

Following laws and regulations of working hours, overtime compensation and rest breaks is important to avoid violent activity in business. Employers should provide a positive environment to workers by ensuring their health and safety measures and maintaining the laws of safety in business. Employers must protect the private information or data of their workers and maintain compliance with data privacy laws. The company has to make proper termination procedure in their HR policies, to avoid partiality with employees and wrong termination privileges. They need to follow contractual responsibilities and adhere to employment agreements and contracts. The company has to adopt proper anti-discrimination policies in their management to avoid partialities, harassment and discrimination among employees.

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4. STRATEGIES FOR MANAGING CHANGE-RELATED EMPLOYEE RELATIONS 

The present strategies of business include necessary factors for effectively managing employee relations during organizational change are as clear and effective communication, employee engagement & involvement, leadership visibility, change management rules, recognition & rewards, positive environment, culture, employee development programs and fair treatment to employees (Kim, et. al, 2021). Clear communication is important to achieve the objectives of business by understanding the behavior of employees, transparency gives clarity of work, effective communication between employees and employers solves the occurring doubts and conflicts also helps employers to tell about the new change in business employees. The business approach to involve employees in their work and decision-making makes them feel valued, motivated and inspired. 

They take feedback from employees about the change and their opinions and ideas for the company's development. They provide training and important resources to employees to adapt to the change easily and build the skills that are required for management operations in the organizational area. The employers fill them with the necessary knowledge to face any activity of the business. Leaders and senior executives of the company play a vital role in the period of change, they direct employees and support them to ease concerns and establish a commitment to their well-being. They maintain a positive culture and environment in business to enhance stability, reduce turnover and absenteeism, and maintain continuity of business (Burberry: Our culture, 2023). 

Open communication, employee involvement and addressing concerns are the main elements of human resource management. Within Burberry, open communication increases trust and confidence between employees and leaders. It is crucial to recognize the reasons behind the occurring changes in Burberry to achieve the goals. Transparency in employee communication helps the company maintain its brand image among several luxurious fashion customers (Lee and Li, 2020). The company brand focuses on its values and sustainability morals, open communication supports them to communicate the new changes related to its values or brand integrity. Employee involvement in decision-making processes, functions development and operations handling of business makes them feel valued, motivated and satisfied with their job. It also provides a sense of ownership to them.

 The commitment of ownership will be significant to the success of new strategies and initiatives. When imagination and innovation are at the core of Burberry’s business, it can have more positive outcomes if employees take part in its creative procedure. The concerns are related to maintaining productivity, increasing reputation, employee retention and overcoming resistance. The high competition in the fashion industry can impact the company's productivity, so retaining skilled and expert employees is important for the business. It can be possible by promoting a positive work culture and atmosphere and addressing the concerns of employees. It helps in providing satisfaction to employees and reduces employee turnover. Most of the concerns and issues are related to change management. Business can clarify these concerns by effectively communicating with employees about the issues of concern and knowing their opinions about change. 

5. EMPLOYEE ENGAGEMENT AND COMMUNICATION 

The role of employee engagement in maintaining a positive employment relationship in Burberry is highly significant. According to the Herzberg theory of employee engagement, at workplace some factors act as motivator and others fall under the category of hygiene. During the change period focus is placed on fostering employee engagement, adapting innovations, building trust and confidence, maintaining the well-being of employees, retaining loyalty as well as creating a sense of purpose. When the changing face occurs, engaged employees become more flexible in doing work. They have a deep emotional affection for their work, colleagues, and company, which enables them to deal with the uncertainties as well as challenges. Clear and effective communication is vital for engaged employees (Ver?i?, et. al, 2021). It is important to inform the employees about the reasons for change and the vision of the organization during the change period.

 The search for information and participation in communication channels are more likely to occur among already engaged employees. Involving employees in business decisions and creating a sense of purpose in them. Burberry organizes meetings to show employees about how their contribution is helping business in achieving aims & objectives in long term. They tell their roles & duties and also help them to understand the change policies. The idea of involving employees in their decision-making processes gives employees a feeling of value, motivation and satisfaction (Lee, Choi and Kang, 2021). Moreover, talented personnel help in developing new innovative ideas for business growth and suggest suitable ideas to accomplish success. Trust is the most important element of an organization between leaders and employees. By maintaining trust among employees, business can easily communicate the changes, policies and instructions to them

Effective strategies are vital for maintaining communication channels and addressing feedback under the Burberry organization context. It helps in maintaining a positive atmosphere in the company and attaining success. By utilizing multiple communication channels, the company can resolve employee’s queries within suitable time frame. For this purpose, Burberry can also find innovative communication tools such as raising tickets on HR portal, organizing periodical meetings, e-mailing etc (Yoga, Korry and Yulianti, 2019). By this, firm would become able to ascertain areas where employees are facing problems or challenges. Thus, investing money in creating an app or website for Burberry is essential to consider employee moves and information. 

Contractual arrangements in the employment relationship will be ruled by legally binding agreements setting out the rights and obligations of both the employer and the employee. Aspects such as employment, responsibilities, work hours, compensation, and termination circumstances are typically included in these terms. A variety of additional benefits and incentives meant to increase employees’ job satisfaction and security, such as health care, pension plans or bonuses, are part of the benefits package. Electronic data interchange EDI refers to the electronic exchange of employment-related information, safeguarding secure and efficient communication between relevant parties. To keep a smooth data flow and prevent disruption in employment relations, it is vital that potential EDI challenges are addressed.

6. LEADERSHIP AND MANAGEMENT APPROACHES 

Effective leadership & management approaches that can support positive employee relations are transformational style, domestic & comprehensive leadership, collaborative management, effective communication, conflict resolution, adaptive management and employee engagement. Transformational leaders inspire their employees and give direction to them for obtaining the goals of the organization (Pellegrini, et. al, 2020). The leaders of Burberry inspire creativity and innovation among their employees and connect them with values and brand integrity. Inclusive leaders promote equality and fairness in the organization, they are strict in nature but they are hardly connected with the values and morals of business.

 They develop a sense of belonging among employees. The leaders of the company encourage inclusivity by giving fair treatment to employees and creating a positive culture in business (Burberry Culture reviews, 2023). Collaborative management enhances employees’ involvement in the decision-making process, taking daily inputs and developing a sense of ownership among employees (Rybnicek and Königsgruber, 2019). The company managers can collaborate with staff members of various departments on innovative and highly demanding projects involve their presence in decision-making and strategic planning processes, and foster open and clear communication channels to expand their collaboration network across diverse areas. The leaders should clearly inform their employees about new changes, updates and vision. The Burberry leaders ensure that their employees are up to date with new information about the company that is connected with their brand integrity.

Effective leadership helps mitigate resistance and enhance cooperation of Burberry during the organizational change period. The company leaders must communicate the reasons behind the changes in a clear and transparent manner. The need for change becomes understood by workers to address concerns and develop a clear vision of the future (Vilkinas, Murray and Chua, 2020). Communication is a fundamental requirement for a common understanding of objectives. When direction and objectives are clear, it is more fruitful for employees to collaborate and work in line with organizational objectives. 

They are involving employees in the decision-making processes that are related to changes (Leading the Burberry Way, 2023). When employees are able to express their opinions and thoughts on decisions that affect them, they accept changes and do not decline them. Inclusion leads to a sense of ownership and commitment. Employees who feel that their ideas are more willing to collaborate and contribute to an open working environment will be considered critically. However, on the critical note, participative leadership is time consuming exercise which results into delay in decision making. Further, personnel’s inability of decision making adversely impacts organizational growth and success. 

Leaders should establish empathy and understanding toward employees who are experiencing uncertainty and anxiety. Emotional support can help decrease resistance by showing that leaders are concerned about their employees. A supportive approach helps build trust in leadership. When employees feel supported they are more likely to collaborate positively with business and create a positive impact on the organization’s objectives. 

7. CONCLUSION & RECOMMENDATIONS

Conclusion 

In summary, the introduction part reflects on the nature of the organizational change at Burberry and the key challenges linked to employee relations that arise from the technological advancements. The potential conflicts and employee concerns are affected by employment relationships in organizational change. The legal and ethical conditions help protect the rights of workers in an organization. The compliance issues are related to wage and hour laws, employee benefits, termination and equal opportunity for employees. The role of employee engagement is significant in the report in maintaining a positive employment relationship during the change period and elaborates effective strategies for developing multiple communication channels for the organization.

Recommendations

Firm should maintain open and clear communication with employees regarding the organizational change and keep updating them regularly.

Company is advised to invest money in training and development programs for employees that are required for the adoption of organizational change.

Organization should highly invest their time and efforts in hiring an effective leader for the organization to guide the vision and mission to employees clearly. 

Focus need to be placed on legal and ethical compliance to confirm that all changes in the organization are appropriate to employee laws and guidelines.

References

Books and journals 

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• Kim, Y., 2021. Building organizational resilience through strategic internal communication and organization–employee relationships. Journal of Applied Communication Research, 49(5), pp.589-608.
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