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Essay: Change management (Novetel) with assessment of possible models (pros & cons)

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  • Change management (Novetel) with assessment of possible models (pros & cons)
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According to Prosci’s definition of Change management is the [application of] the set of tools, processes, skills and principles for managing the people side of change to achieve the required outcomes of a change project or initiative.

This report going to examine changes that currently occur in Novotel London Paddington with different factors that encourage change in organizations. Models of change management are compared with their suitability and effectiveness, models of leadership that appropriate to bring about an identified change in an organization are also mentioned.

1.2 Change that occurring in the organization: Applied Technology

In today business changes is necessary for an organization to response to the environment in which it is operating or adapt according to their circumstances and changes that occurring in the organization is applied technology.

Novotel is responding to change of technology by designed guest room that enable guests to access their own devices with wireless broadband connection in room.Very high quality of Wi-Fi connection is vital so that guests can browse the internet at any time, stay in touch with their community or share their leisure activities. Wi-Fi has become a determining factor when choosing a hotel. Novotel has accounted for this requirement perfectly and offers free Wi-Fi in all its hotels.

Novotel also concerning with a social media such as TripAdvisor, Facebook, Twitter, Instagram and Google by monitored on these major channels and interact with people by post pictures of the hotel with comments or sometimes fix issue that arising instantly on social media as we believed that impacts of social will influence and persuade people to come and stay at the hotel.

Novotel recently provided an online booking also check-in and check-out service for guests whose like to avoid the queue at reception counter by simply do this online via computer or mobile phone so guests can stay or leave the hotel as soon as they want. This new simple and intuitive rapid check-in service offers customers the option of checking in online before they arrive at the hotel and thus enjoying a more personalized welcome. It’s also a big time-saver.

The latest innovative service offered by Novotel is PLAY, the multimedia table. Due to 40% of Novotel’s guests are leisure travelers. The organization decided to offer XBOX 360 game consoles in dedicated public areas which are open to all its guests.

The Virtual Concierge digital service gives guests access to a host of additional services:

  • Recommended restaurants and cultural activities near the hotel,
  • Practical weather information,
  • Flight schedules,
  • Virtual post cards
  • Information about the brand

To take its guests’ digital experience that extra mile, Novotel’s virtual concierge is also available as a smartphone app (Novotel Virtual Concierge Mobile App) for Android and IOS devices. Guests with a taste for independence will therefore be able to use this app to tailor make their stays.

Online training that allows employees to learn at their own pace and at a time that’s convenient for them. In other words, they are good for self-directed training and refresher training and no matter which shift an employee works, training is always available anywhere there is an Internet connection, which makes these programs effective for training across multiple locations.

Because all the trainees will use the same program, training materials are standardized. The materials are also easy to update.Online employee training also makes tracking results easier. In other words, an employer is better able to see who has completed training and review their scores.

2. Reasons for the change in the organization

Internal Factors:

These factors are the internal business environment comprises within the organization which impact the success and approach of operations, the organization has control over these factors, so that it is important to recognize and managing the strengths of internal operations in order to meet the organization target. Internal factors are include;

  • Employee: This is one of an essential factors for successful business, due to performance of employees is directly related to productivity and level of customers satisfaction. Therefore team leader will needed to ensure that employees are motivated and satisfied with their job by provides necessary training also personal development programs.
  • Financial: Financial resources can lead to the organizational changes, such as an online training can reduce cost for hiring external trainers.
  • Organizational structure: The organization may needed to adapt or develop organizational structure such as changing of hierarchies and communications structure, which suitable for business strategy, new product lines, global expansion or everyday operations.

External Factors:

PESTLE analysis is useful for organizations to analyzing and understanding these external factors that how can they effect to the operations and knowing how to take this analysis into consideration. The organization may fail to plan and operate properly if they are not take any one of these factors into account. PESTLE analysis are include;

  • Political: A government may influence the economy by impose a new tax or duty, political factors also include tax policies, trade tariffs and fiscal policy and these may affect to the business environment, For instance when the organization plan to expand their branch in new region.
  • Economic: These factors is directly impacts to the organization in long term. For examples the organization may have to adjust price of the products and services due to a rise in the inflation rate and it would make a difference to consumer demand and purchasing power.
  • Social: Such as cultural trends, population analytics, demographics and life style. These social factors directly affect to hospitality industry, For example the hotel get a very high consumer demand during the holiday season.
  • Technological: These factors include innovations and development in technology, the organization will have to research the change of technology and apply the suitable one into the organization such as apply new system or software that will help to increase efficiently in operations.
  • Legal: These factors affect to both external and internal sides, there are certain laws that affect the business environment in a certain country. Therefore the organization will have to careful analysis and ensure all employees are aware of these factors. For instance Health and Safety regulations, Consumer laws and Employment regulations.
  • Environmental: According to global changes in climate, geographical location and environmental offsets. Therefore these factors are became more important recently and also influence the organization to have environmental policies in plan such as energy saving and recycle.

3. Impacts on the change process

4. Models and effects of management of change

Lewin’s Change Management Model: Novotel currently apply this model into the process of changing restaurant menus. There are three stages process of change that describes by Kurt Lewin (1950) Unfreeze-Change-Refreeze;

  • Unfreeze: This first stage is usually the most difficult and stressful process as the organization will need to preparing the change process by determine what needs to be changed, then communication values of change and ensure that employees are ready for change. For example communicate the reasons for menus changing to team members which could be declining of sales, poor financial results or poor customer satisfaction.
  • Change: Changing is about look for new ways to do things this might take time and required employees participation to making the change successful. When apply this model into changing restaurant menus process, manager will needs to provide a training to staff in order to ensure that staff understand reasons for change and be able to explain ingredients to customers and also collect feedback from staff as well as customers to ensure they are satisfied with a new menus.
  • Refreeze: When employees are feeling comfortable and confident with the new ways of working, the organization is ready to refreeze too. By ensuring that the changes are applicant into everyday business and used at all time.The organization will have to continuous a feedback program and keep employees updated and supported.

Advantages: Lewin’s model of change is a simple and easily understood model for change, the model is done through steps, has proved useful to understand changes in relatively stable conditions, the nature continues and the dynamics of change in today’s business world.

Limitations: It is time consuming and focuses on the overall process of planned change, rather than on specific organizational development activities. Lewin’s model is more suitable for a top-down approach on change management as he recognized that for bringing change the organization will need a supporting from management level, but does not apply with the change from bottom to top.

Alternative Models

Bridges transition model: As people often resist and feel uncomfortable with change, this model will help the organization to understand how people are feeling as change proceeds, so that manager can guide their staff through it and staff will accept change and support it. There are three stages of transition that people go through when they experience change.

  1. Ending, Losing, and Letting Go. Manager will needs to understand that staff often resist to change because they do not want to go of something that they are comfortable with and they may experience these emotions: Fear, Denial, Anger, Sadness, Frustration or Uncertainly. For example the change of computer system that would help the organization to work quicker and more efficiency, but employees may feel uncomfortable as they not used to with new computer system and resistant of change may occurred. Manager will have to listen empathically, communication openly about what’s going to happen and explain how the organization can support employee with the change, For instance provide training and resources.
  2. The Neutral Zone: In this phase employee often confused, impatient, uncertain, low morale and low productivity and can also experience a higher workload as they will be attached to the old, while they are also trying to adapt to the new system. Manager will have to provide a direction, encourage team member to talk about what they’re feeling, frequently give feedback on how they’re performing regard to change and improve motivation by set short-term goals then employee can experience some quick wins.
  3. The New Beginning: In this phase is a time of acceptance the change employee are building the skills they need to work successfully in the new way, it’s essential that manager help their member to sustain it by set a long-term goal and reward team for all their hard work.

Advantages: This model is focuses on transition, not change. By helping the organization to understand people’s minds as they go through change and transition usually occurs more slowly.

Change is something that happen to people, even if they don’t agree with it but transition it’s what happens in people’s minds.

Limitations: While the model is useful for implementing change, it’s not a substitute for other change management approaches. It can’t be used as an independent change management model.

The Mckinsey 7-S Framework: This framework looking at internal and external factors, involves seven interdependent factors which are categorized as either hard or soft elements. The model can be used to identify what the organization need to be improve these could be restructuring, new processes, organizational merger, new systems or change of leadership.

“Hard” elements are easier for organization to define or management can directly influence them, these are including;

  • Strategy: Plan the organization strategy carefully to maintain and build competitive advantage over the competition by define how the organization intend to achieve the objectives, how to deal with competitive pressure or how to dealt with change of customer demands.
  • Structure: is the way the organization is structured and who reports to whom. This is based on the organization hierarchy, company/team divided and line of communication.
  • Systems: this means the daily activities and procedures that staff members engage in to get the job done. Also means main systems that run the organization, how the organization monitored and evaluated and what are internal rules and processes.

“Soft” elements are more difficult to describe, less tangible and more influenced by culture, includes;

  • Shared Values: These are the core values of the company or superordinate goals that are evidenced in the corporate culture and the general work ethic.
  • Style: The style of leadership adopted in the organization, by looking at the participative of the management or leadership style.
  • Staff: The employees and their general capabilities, the organization will have to defined what positions need to be filled, are there gaps in required competencies and what positions or specializations are represented within the team.
  • Skills: This means skills of the employees who working for the organization, do the current employees have the ability to do their job, are they any skills gaps and how are skills monitored and assessed.

Advantages: This model can help the organization to improve the performance, Align departments and processes during a merger or acquisition, examine the likely effects of future changes within the organization and determine how best to implement a proposed strategy.

Limitations: Management level may miss some areas of this model in which gaps in strategy conception or execution can arise and may difficult for analysis or explain what should be done for implementation using the model.

5. The leadership of change

Definitions: Leadership is a relationship of leader and followers to influences other individuals to achieve one or more goals. Leaders more concerned with ideas, more intuitive and empathetic ways, while managers more focus attention and energy on their role in events that occur, the decision making process and how things get done.

Current leadership style: In hospitality leader often be a manager or senior supervisor and they need to impress and make their team member understand how their task contributes to the overall guest experience and make sure employees are appreciated for doing it to the achievement of the organization’s overall objectives. Novotel apply “Democratic” leadership style in organization in order to encourage a decision making, improve staff motivation and involvement. A general manager will delegate responsibility among members of his or her team to facilitate member participation in making decisions.

Advantages of democratic leadership style

  • Employee turnover reduction: A democratic leadership makes people feel empowered at work as it is essentially performance based. A majority of the workers appreciate this method of management as it secures them a safe future with the company.
  • Encourage Empowerment: Team members under democratic leadership tend to be supportive and strong. Honesty flourishes and more collective working is done because the opinions of everyone are taken into consideration. Democratic leaders are usually popular within the organization.

Limitations of Democratic leadership style

  • Delay in decision making: Decisions making and implementation are delayed as compared to, autocratic leadership because under this style more than one person are involved in decision making process.
  • Can appear uncertain: Democratic leadership can sometimes come across as being indecisive. In certain situations, especially during a crisis, leaders must be very directive and democratic leaders do not function well in an authoritarian role. In the midst of a crisis, no time is usually available to address everyone concerned.

Theories of Leadership:

Transformational leadership is a suggestion for future leadership strategy to bring about an identified change in organization as the concept of transformational leadership is to increase higher levels of morality and motivation. The mains characteristics of this kind of leader includes; be able to inspire team member to reach for the improbable, gets people to look beyond their self-interest, be a good model of integrity and fairness, set clear goals, has high expectations also provide supports and recognition. There are four steps to develop a transformational process in the organization.

  • Step 1 Create an inspiring vision by setting a purpose of changing, then communicate and inspiring team member to see vision of the future.
  • Step 2 Motivate team member to buy into and deliver the vision, talk about vision often and help team member to see how they can contribute to it.
  • Step 3 Manage delivery of the vision, leader will need a full support from team member to deliver the changes. Communicate each member about how their roles and responsibilities connect to the plan.
  • Step 4 Build ever stronger, trust based relationships with team member by providing training and resources to achieve their developments and career goals, building of trust also important by being open and honest with interactions.

Advantages of Transformational leadership style

  • Strong Motivation: The transformational leader gets the entire staff involved in envisioning company objectives and then motivating staff members to exceed their personal expectations to achieve those objectives. The employee’s value to the company is consistently reinforced by the transformational leader who inspires staff members to go beyond what is expected of them to advance their own careers as well as help the company reach new levels of growth.
  • Personal touch: One of the ways a transformational leader inspires employees is through personal coaching and contact with each staff member. The transformational manager reaches out to employees who are on board with the company vision to help them improve their skills and get excited about achieving company goals. Leader also attempts to convert staff members who are not interested in the company vision become energized about moving the company forward. To do this, the transformational leader uses an “open door” policy that encourages employees to seek for advice and schedules regular one-on-one meetings with each employee.

Limitations of Transformation leadership style

  • Lack of details: A transformational leader is effective at motivating and rallying a staff behind a singular company vision, but leader often lacks the attention to detail required to create a strong corporate structure or follow company policies, according to the Mind Tools website. The transformational leader is concerned with the overall big picture and sometimes neglects the daily operational details.
  • Disguising reality: The transformational leader operates primarily through motivation. Leader encourages employees to succeed by convincing them to take on more responsibility and improve themselves through training and hard work. But a transformational leader can sometimes blur the line between reality and inspiration, according to the Changing Minds website. To get the results leader wants, the transformational leader will continue to encourage an employee through inspiration and praise for the employee’s performance. The reality could be that the employee lacks the skills to perform the job tasks assigned to him and the transformational leader offers only words of encouragement when training is needed.

6. Conclusions

In order to improve and remain competitive advantage also customer satisfaction, bringing change is necessary in hospitality industry and changes that currently occur in Novotel are includes internal and external change, for instance change of management, change of organizational structure, applied technology, committed to sustainable development and change of customer trends. There are various factors that effect to organization change such as employees, financial, organization structure and PESTLE factors. Impacts on the change process can be advantages for the organizations as changes can be a new opportunities for growing, encourage innovation, increased efficiency and satisfaction also improved employees attitudes. Meanwhile some disadvantages or challenges can be costly, internal resistant of change, choosing the wrong decisions and expertise or skills will be required for the change process.

Lewin’s change management model is a currently model that apply with Novotel changing process as manager try to unfreeze current ways of working by ensure that employees are ready for change through communication of value and reasons for change, then provide direction and supporting during change process and refreeze the change by continuous a feedback program and keep employees updated and supported. In additional Bridges transition model and The Mckinsey 7-S Framework can be an alternative model for manage changing.

7. Recommendations

Increase employee performance and satisfaction by provide more practical training program such as foreign language training, training the proper way to carrying tray and handling customer complaint for instance. Anyway each staff may have a different opinions toward training and development program, therefore manager or senior supervisor can do a staff surveys to find out what areas their team member interesting or would like to develop themselves.

Improve speed and quality of internet in order to increase customers satisfaction. As Novotel recently provided a free WIFI to all guests whose staying at the hotel and aims of this is to satisfied customer, but the hotel have received obdurate complaints regarding to poor quality of internet which is posted on a social media and this can be damage a reputation, so that quality of internet need to be improved to increase satisfaction and prevent future complaints.

2018-4-3-1522757635

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Excellent - the evaluation of the advantages and limitations of each change management model is useful for many assignments.
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