Introduction
PEP is a retail company that operates in South Africa, Botswana, Lesotho, and eSwatini (formerly Swaziland). The company specialises in
value-focused clothing, footwear, and homeware products for the whole family. PEP was established in 1965 and has since grown to
become one of the largest retailers in South Africa, with over 2,000 stores across the country and neighbouring regions. The company
caters to a wide customer base, offering affordable and fashionable products that meet the needs of both urban and rural communities.
PEP's product range includes clothing for men, women, and children, as well as footwear, household essentials, and general merchandise.
They offer a variety of brands, including their own private label products, which are known for their quality and affordability.
One of PEP's key strengths is its commitment to providing affordable prices, making fashionable and essential products accessible to a
broad customer base. They achieve this through efficient sourcing, streamlined operations, and economies of scale. In addition to its retail
operations, PEP is also involved in social elevation initiatives in the communities where it operates. The company runs various programs
aimed at improving education, health, and poverty alleviation.
PEP's success can be attributed to its customer-centric approach, competitive pricing, and strong market presence. The company continues
to expand its footprint and innovate its product offering to stay ahead in the highly competitive retail industry. Whether it's for clothing,
footwear, or household items, PEP offers customers an affordable and convenient shopping experience, making it a popular choice for
budget-conscious consumers in South Africa and beyond.
Organisational metaphor
• Pep store has managed to follow the philosophy of Gareth Morgan’s (2006) and this theory was based on organisational
metaphors first written in 1989. (Bennett, 2004)
• According to Morgan’s theory he outlined the importance of applying the correct metaphors within an organisation. (Bennet,
2004)
• Organisational metaphors gives the organisation a chance to grow, excel, transform and stretch. (Bennet, 2004)
• Organisation such as Pep Store has managed to apply two views that is exposing new ways of seeing the society we are
working with and the organisation at the deeper level. (Bennet, 2004)
• The metaphors that is applicable for Pep storers is Organism and Flux and Transformation. (Bennet, 2004)
INDIVIDUAL
CHANGE
BEHAVOURAL APPROACH
• Understanding & influencing human behaviour
• Observable and measurable behaviour X internal process or
personality trait
E.g PEP=Customer data analysis
AIM= Understand, predict preferences, needs and customer
behaviour
SOURCES OF DATA:Online ordering
:Payment systems
:Delivery service
info on behaviour
McGregor’s theory
X used by
Directive & controlling leadership
External reward & Punishment to motivate
Y used by
Participative & Supportive leadership
Internal reward & Supportive
PEP can use Y theory and implement these steps
1. Communicate : vision, values and goals to its employees
Involvement : decision-making and problem-solving processes
This would foster a sense of ownership, commitment, and alignment among the employees.
2. Provide opportunities : learning and development
Help them : new skills and knowledge
This would enhance their competence, confidence, and creativity.
3. Recognize and reward : achievements and contributions
Celebrate: successes
This would boost their morale, satisfaction, and loyalty
By using a behavioural approach based on Theory Y, Pep could benefit from having more engaged, motivated,
and productive employees, who would deliver better results for the company and its customers.
COGNITIVE APPROACH
Focuses
internal mental processes such as
solving, and learning
perception, thinking, memory, attention, language, problem-
It concerns how people take in information from the outside world, and how they make sense of that information
E.g Pep could be related to its innovation strategy
AIM: create new and better products and services for its customers
Pep can to foster a culture of innovation among its employees, and implement the following steps:
1. Stimulate curiosity and creativity : exposing them to diverse sources of information e.g market trends, customer
feedback, competitor analysis.
2. Encourange critical thinking and reasoning:
Challenging them
test their assumptions
Evaluate their evidence
Justify
their arguments
This would help them refine their ideas and solutions
BELIEF SYSTEM
THEORY
Belief system theory is a branch of cognitive psychology that studies how and what people believe, and how their beliefs
affect their behaviour and decision-making
Stories we tell ourselves
education, experience
define our personal sense of reality, and they are influenced by various factors. e.g culture,
Benefit of Pep using belief system theory is related to its diversity and inclusion strategy
AIM : to create a respectful and supportive work environment.
cognitive approach to address the potential challenges and opportunities of having a diverse and inclusive workforce, and
implement the following steps:
1. Raise awareness and understanding on self-belief : how they shape their perceptions, attitudes, and behaviours.
To help them recognize and respect the diversity of perspectives, values, and beliefs among their colleagues and
customers.
2. Facilitate dialogue and collaboration across different belief systems:
To help them find common ground and shared goals and overcome potential conflicts, biases, and stereotypes, and
foster a culture of trust, empathy, and cooperation.
3. Leverage creativity and innovation:
To help them generate new ideas and solutions that reflect the needs and preferences of its diverse customers. This
would help them create more value for the company and its customers
PSYCHODYNAMIC APPROACH
Way of understanding and influencing human behaviour based on
interaction of drives
and forces within the person, particularly the unconscious, and between the different structures
of the personality
FOCUS: It focuses on how early experiences, such as childhood trauma, shape one’s personality
and relationships, explores how unconscious motivations e.g as social pressure, biology, and
psychology, can affect one’s behaviour.
psychodynamic approach Pep could be related to its employee wellness strategy:
AIM: support the mental and emotional health of its employees
to help its employees cope with stress, anxiety, depression, or other psychological issues
Implement the following steps for employee wellness :
1. provide access to professional counselling or therapy:
To create safe and confidential space for them to express their feelings and thoughts.
This would help them identify and resolve the underlying causes of psychological issues e.g unresolved conflicts, repressed
emotions, or negative self-image.
2. Encourage its employees:
reflect own behaviour patterns and personality traits, and how they influence their interactions with others.
This would help them develop self-awareness, self-regulation, and self-esteem.
3. Foster supportive and empathetic work culture:
helps them build positive and trusting relationships with their colleagues and managers
This would help them feel valued, respected, and understood
SATIR’S MODEL THEORY
Satir’s model theory
based on the belief that we all have four basic needs:
love, belonging, self-esteem, fun and play, and power and control
Focus: how we interact with others, how we can access our universal Life Energy to achieve transformational
change.
psychodynamic approach can benefit Pep using Satir’s model theory is related to its organizational
development
AIM: improve the effectiveness and efficiency of its business processes and systems.
Pep can use psychodynamic approach to help its employees cope with change, and implement the following
steps:
1. Assess current situation and identify areas that need improvement or change:
e.g communication, collaboration, innovation, or customer satisfaction.
This would help them understand the gaps between their current and desired state, and the challenges and
opportunities they face
2. Involve employees in change process:
To help them express their feelings, thoughts, and expectations.
HUMANISTIC PSYCHOLOGY APPROACH
way of understanding and influencing human behaviour that focuses on the whole person, their uniqueness, their
free will, and their potential for growth and well-being
stresses the importance of self-actualization, which is the process of fulfilling one’s innate abilities and talents
Pep could be related to its employee engagement strategy
AIM: improve the satisfaction and motivation of employees
Pep could use a humanistic psychology approach to help its employees achieve their potential and well-being, and
implement the following steps:
1. Provide a supportive and respectful work environment:
they can express their opinions, ideas, and feelings without fear of judgment or criticism.
This would help them meet their needs for belonging, self-esteem, and self-expression
2. Offer opportunities for learning and development :
they can acquire new skills, knowledge, and competencies that match their interests and goals
This would help meet their needs for growth, achievement, and self-actualization.
MASLOWS
HIERARCHY
OF NEEDS
humanistic psychology approach at Pep using Maslow’s hierarchy of needs could be related to its employee
wellness strategy
AIM: Improve the physical and mental health of employees.
Pep could use Maslow’s hierarchy of needs to help its employees meet their different levels of needs, and implement
the following steps:
1. Provide adequate compensation and benefits:
E.g fair wages, health insurance, and retirement plans.
This would help them meet their physiological needs and ensure their basic survival.
2. Ensure a safe and healthy work environment:
where they can work without fear of accidents, injuries, or violence.
This would help them meet their safety needs and reduce their stress and anxiety.
3. Foster a positive and supportive work culture:
where they can form meaningful relationships with their colleagues, managers, and customers.
This would help them meet their social needs and enhance their emotional well-being.
4. Encourage and empower employees to pursue personal and professional goals, and provide feedback and
Organisational metaphors
Organism
Flux and Transformation
Organism simply mean that collective response to its
environment and, to sustain a long run it must adapt as the
environment changes. (Chambers, 2008)
• An organisation is not an absolute task, it is everchanging
system inseparable from its environment. (Sharrock, 2007)
Pep stores has managed to interact with the organisation that
is operating within. (Chambers, 2008)
• Managers are always open minded to understand the
transformation of the economy. (Sharrock, 2007)
Managers have followed trends, what kind of item is in demand
and the target market. (Chambers, 2008)
• Flux and transformation suggests that both organisation and
environment influence each other and must respond to
transformation. (Sharrock, 2007)
Pep store cater primarily to lower income market segment
offering affordably, quality merchandise for men, women, kids
and babies. (Chambers, 2008)
Pep store has managed to sustain the vision of retailing to
lower income consumers. (Chambers, 2008)
To maintain this vision, Pep store has concentrated on building
customer experience. (Chambers, 2008)
During the pandemic lot of organisations had to close and
income per capita of consumers had to decline. (Chambers,
2008)
Pep store has managed to sustain lower price for products.
(Chambers, 2008)
• Looking at the Covid 19 pandemic, lot of organisation had to
adapt to the sudden transformation. (Sharrock, 2007)
• During Covid 19 the baby’s product segment delivered, while
back to school July trading was impacted by lockdown.
(Sharrock, 2007)
• Pep store had to shift to the 4th industrial revolution.
(Sharrock, 2007)
• Online shopping had to be introduced to sustain the market.
(Sharrock, 2007)
Change model to the organisation
•
A change model is utilized to help outline, simplify, and describe the process of change within an organisation. For example, organisation changing how its sales team approaches
new clients may adapt to transformation management model to help outline specific parts of the sales process that need change. (Bennet, 2004)
•
Pep store has managed to apply the ADKAR model that was established by Jeffrey Hiatt. The ADKAR change management model is a people-focused way to initiate change at all
phases of the process. (Bennet, 2004)
•
ADKAR model aims to offer an effective approach to facilitating change on professional organisations and individual’s bases. (Bennet, 2004)
•
Jeffrey Hiatt has further explained each acronym and how the model works to initiate change on this individual level:
•
Awareness: Looking at this step, it explains to all individuals that change needs to happen. This step is explained by covid 19 pandemic. Everyone within the society was affected
by the pandemic. Pep store has managed to instil a sense of awareness for all consumers regardless of their educational background. During the pandemic, everyone had to
sanitize and wear mask. Pep store has managed to create the safe environment for all the consumers because it followed al the cautions and regulations of covid 19. (Chambers,
2008)
•
Desire: This step plays a significant role for organization to grow and transform. Individuals are persuaded to participate and support the company changes. Pep store has
managed to encourage all the employees to adapt to change and to grow the company, members of the organisation must play their role in ensuring that the company’s excel
and transform throughout. (Chambers, 2008)
•
Knowledge: This step is introduced by managers and supervisors to provide all individuals the knowledge of what strategies to implement to successfully participate in and
complete the changes. Pep store has managed to create programmes that empowers all employees and members of society. Managers and supervisors during the pandemic
managed to educate the employees to understand the 4th industrial revolution. When managers and supervisors introduce new strategies within the organisation, it must ensure
that all individuals understand the objectives, values, mission and vison of the organisation. (Bennet, 2004)
•
Ability: This phase is performed by managers and supervisors to supply all resources to the staff as possible to help them implement changes. For the change to be implemented
the employees within Pep must have all the resources needed to carry this mandate. Supervisors and managers ensured that the sanitizers are made available for all the
customers. (Bennet, 2004)
•
Reinforcement: This serves to acknowledge and support the staff members as they continue to develop and work through transition. The employees of Pep store play a
significant role in enforcing the new changes and company's policies. The policies are applicable to all members of society that will be shopping at Pep store. (Sharrock, 2007)
•
This change management model plays a significant role in the organisation such as Pep store, it gives managers and supervisors a clear understanding of what changes are
occurring, the reason for the changes and how these changes will affect the employees personally. ADKASR model is beneficial because staff members are permitted to
participate in initiating and continuing to be successful in implementing organisational changes. (Bennet, 2004)
PEP over the years has formed several teams to help manage change in different ways throughout the company. A review from a former PEP stores employee stated that,
“PEP works in teams to establish a kind of world-class way to solve solutions by being dynamic, helpful and making their customers look and feel good.” (PEP, 2022)
PEP STORES TEAMS:
•
Sales teams: This team consists of sales associates, cashier and store managers who are all responsible for driving up sales and interacting with the customers to make
them feel more welcomed, for example PEP’s “customer experience team” which focuses on customer inquiries which can be used to enhance shopping experience.
•
Visual Merchandising Teams: This team creates PEP stores displays and layouts which appeal to the customers and make them want to buy. For example, the team
would arrange the products in manner that catchers your eye from the time you walk in.
•
Inventory Management Teams: Responsible for handling stock levels, restocking and tracking the inventory. An example would be their inventory replenishment team
which ensures products are available on time in store and online.
•
Marketing and Promotions Teams: These teams work on advertising, promotions and events which will grab the customers attention. An example would be PEP’s ‘’
more denims as the seasons change’’.
•
Operations Teams: This team ensures that everything operates the way it supposed to without fault from the moment the moment its delivered, to putting on the shelf. An
example would be the ‘’Operations support teams’’ who operate as the customers case services to ensure satisfaction all round.
Tuckman’s model
PEP stores restructuring of their layout and product placement which improved the costumers shopping experience. We’ll now look at
Tuckman’s model of team development to see how this change was implemented. Keeping in mind that Tuckman’s model is designed
for teams, but you can implement it in an organisation which helps with the team development stages. Tuckman’s model looks at how
employees and management adapt and progress with the store layout in a successful manner.
• Forming: This is where the team comes together and its individuals get to know one another, Making it easy to introduce employees
and management to the new change concept and its benefits of how it will appeal to the customers.
• Storming: PEP uses this stage to iron out some issues and conflicts that arise in the teams because of ideas clashing and
employees having a different opinion as to how the new layout will be organised, which leads to unwanted disagreements.
• Norming: This stage helps PEP move to a more resourceful way where they can now establish norms, values and a union
understanding of the change which leads to employees working together as teams coming up with new ways for the layout of the
store and the whole organisation.
• Performing: PEP store at this stage has an effective team working together to implement the new layout and from that the
employees can work around the new setup and get familiar with the surroundings to make sales easier.
Schein’s model
PEP stores have implemented online shopping and e-commerce which is a way of moving forward in this tech world we live in. we’ll now
look at how Schein’s model was applied to PEP’s organisational culture.
• Artifacts and creation: PEP stores shift to online shopping and e-commerce shows an artifact of change, the creation of this new
platform creates digital integration which allows the business to help tap into a new market.
• Adopted Beliefs and Values: PEP’s change reflected a shift in the organisation’s values and beliefs regarding customer convenience
and established market trends. This shows that PEP stores value change that brings a new kind of customers and shows that the
business is moving forward.
• Underlying Assumptions: PEP store is a well known company, but this shift might showcase employees and management who will
assume this change won’t work, because they used to human interaction has always been the norm.
• Cultural Artifacts: PEP stores new change could lead to communication being misunderstood and lean dynamics because of the new
online system.
• Cultural Norms: It PEP’s employees and management embrace the e-commerce shift; leadership can be more confident and
experimentations on the matter can be easy to undertake.
One possible model that could be applied to explain how this individual change can occur is Lewin’s three-stage
model/Schein’s model, which consist of o unfreezing, changing and refreezing stages. Unfreezing involves
creating a sense of urgency and motivation for change, Changing involves learning new skills and adopting new
behaviours, and refreezing involves reinforcing and stabilizing the change.
For example, PEP could use the following steps to apply this model:
• Unfreezing: PEP could communicate the vision and benefits of the digital transformation strategy to its
employees and explain how it will help them serve the customers better, improve their performance and
increase their competitiveness. Pepkor could also identify and address any resistance or barriers to change,
such as fear of losing job, lack of skills or resources, and organizational culture.
• Changing: PEP could provide training and coaching to its employees on how to use the new digital tools and
platforms, such as online ordering, payment systems, inventory management, etc. Pepkor could also
encourage feedback and collaboration among its employees and reward them for adopting the new
behaviours and skills.
• Refreezing: Pepkor could monitor and evaluate the outcomes of the digital transformation strategy, such as
customer satisfaction, sales growth, operational efficiency, etc. Pepkor could also provide ongoing support and
guidance to its employees and celebrate their achievements and successes.
RESISTANCE
• Communication- Open and transparent communication can help understand why PEP is changing and how to
move forward with it.
• Training and Support- Training employees and management can make a big difference in terms adaptation and
removing concerns about the change.
• Leadership Support- A recognized leader with empathetic support can help the employees feel heard and
accepts which will make it easier to lead them to new beginnings even though employee’s attitudes and
behaviours has an impact, which leaders invests time and is actively participating in the change a sense of
importance and urgency can be reached.
By considering Schein’s model and addressing resistance using these strategies, PEP store can operate within
online shopping networks and e-commerce creating a smooth transition for both parties in the store.
Conclusion
The retail company, PEP, has demonstrated remarkable success in managing change within its operations, and this can
be attributed to several key components, which align with the principles discussed in TED Talks on change management.
1. Leadership: PEP has displayed strong leadership in driving change within the organisation. They have recognised the
need for change and have actively embraced new strategies and approaches to stay competitive in the retail industry. The
leadership team has effectively communicated the importance of change to employees and ensured their buy-in and
commitment to the transformation process.
2. Adaptability: PEP has shown a high degree of adaptability in response to changing market dynamics and evolving
customer preferences. They have recognised the need to continuously innovate and refresh their product offerings to meet
customer demands. This flexibility has allowed them to stay relevant and maintain a competitive edge, even in the face of
challenging circumstances.
3. Employee Engagement: PEP has prioritised employee engagement throughout the change process. They have created
a culture of openness, transparency, and collaboration, where employees are encouraged to voice their opinions and
contribute to decision-making. This has resulted in a motivated workforce that embraces change and actively participates
in driving the company's success.
4. Continuous Learning: PEP has fostered a culture of continuous learning and improvement. They have invested in
training and development programs to equip employees with the skills and knowledge needed to thrive in a changing
environment. This commitment to learning has allowed employees to adapt to new technologies, processes, and customer
behaviours, ensuring the company's continued success.
In conclusion, PEP's ability to manage change successfully aligns with the principles discussed in TED Talks on change
management. They have exhibited effective leadership, adaptability, employee engagement, and a dedication to
continuous learning. By prioritising these components, PEP has remained at the forefront of the retail industry, providing
customers with affordable and fashionable products while navigating the ever-changing business landscape. Their
success serves as an inspiration for other organisations aiming to navigate change and thrive in an evolving marketplace.
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