Project - Change Management in Restaurants
Project - Change Management in Restaurants
Project - Change Management in Restaurants
Evaluation Certificate
II
Declaration
III
Acknowledgement
IV
INDEX
Sr. No.
1
2
3
4
5
6
7
8
Topic
Introduction to Change Management
Theoretical Framework of Change Management
Literature Review of Change Management in restaurants
Research Methodology
Data Analysis w.r.t Change Management in Restaurants
Recommendations
Conclusion
Bibliography & Webliography
Pg. No.
2
6
16
20
21
28
29
30
Linda Ackerman Anderson states in Beyond Change Management that in the late 1980s and early
1990s, top leaders, growing dissatisfied with the failures of creating and implementing changes
in a top-down fashion, created the role of the change leader to take responsibility for the human
side of the change. The first "State of the Change Management Industry" report in the
Consultants News was published in February 1995.
2010s
In 2010, based on her book "RIMER Managing Successful Change", Christina Dean, Managing
Director of Uniforte Pty Ltd, established Change Management as a formal vocation in Australia
by writing the Australian National Competency Standards in Organizational and Community
Change Management, which led to the developed of the first Australian Diploma of
Organizational Change Management, and which is an internationally recognized qualification.
Approach
Organizational change is a structured approach in an organization for ensuring that changes are
smoothly and successfully implemented to achieve lasting benefits.
Reasons for change
Globalization and the constant innovation of technology result in a constantly evolving business
environment. Phenomena such as social media and mobile adaptability have revolutionized
business and the effect of this is an ever increasing need for change, and therefore change
management. The growth in technology also has a secondary effect of increasing the availability
and therefore accountability of knowledge. Easily accessible information has resulted in
unprecedented scrutiny from stockholders and the media and pressure on management.
With the business environment experiencing so much change, organizations must then learn to
become comfortable with change as well. Therefore, the ability to manage and adapt to
organizational change is an essential ability required in the workplace today. Yet, major and rapid
organizational change is profoundly difficult because the structure, culture, and routines of
organizations often reflect a persistent and difficult-to-remove "imprint" of past periods, which
are resistant to radical change even as the current environment of the organization changes
rapidly.
Due to the growth of technology, modern organizational change is largely motivated by exterior
innovations rather than internal moves. When these developments occur, the organizations that
3
adapt quickest create a competitive advantage for themselves, while the companies that refuse to
change get left behind. This can result in drastic profit and/or market share losses.
Organizational change directly affects all departments from the entry level employee to senior
management. The entire company must learn how to handle changes to the organization.
Choosing what changes to implement
When determining which of the latest techniques or innovations to adopt, there are four major
factors to be considered:
Measurement system
Sequence of steps
Winning the support of the employees with the persuasiveness of the appropriate
adjustments
Management aligns groups expectations, communicates, integrates teams and manages people
training. It makes use of performance metrics, such as financial results, operational efficiency,
leadership commitment, communication effectiveness, and the perceived need for change to
design appropriate strategies, in order to avoid change failures or resolve troubled change
projects.
Successful change management is more likely to occur if the following are included:
Effective communication that informs various stakeholders of the reasons for the change
(why?), the benefits of successful implementation (what is in it for us, and you) as well as
the details of the change (when? where? who is involved? how much will it cost? etc.)
Devise an effective education, training and/or skills upgrading scheme for the
organization
Counter resistance from the employees of companies and align them to overall strategic
direction of the organization
The change management process is the sequence of steps or activities that a change management
team or project leader would follow to apply change management to a project or change. Based
on Prosci's research of the most effective and commonly applied change, they have created a
change management process that contains the following three phases:
Phase 1 - Preparing for change (Preparation, assessment and strategy development)
Phase 2 - Managing change (Detailed planning and change management implementation)
Phase 3 - Reinforcing change (Data gathering, corrective action and recognition)
Change management is the processes, tools and techniques for managing the people-side
of change.
Change management is a method for reducing and managing resistance to change when
implementing process, technology or organizational change.
Change management is how we drive the adoption and usage we need to realize business
results.
Assess the scope of the change, including: How big is this change? How many people are
affected? Is it a gradual or radical change?
Assess the readiness of the organization impacted by the change, including: What is the
value- system and background of the impacted groups? How much change is already
going on? What type of resistance can be expected?
Assess the scope of the change, including: How big is this change? How many people are
affected? Is it a gradual or radical change?
7
Assess the readiness of the organization impacted by the change, including: What is the
value- system and background of the impacted groups? How much change is already
going on? What type of resistance can be expected?
Assess the change sponsors and take the first steps to enable them to effectively lead the
change process.
Sponsorship involves active and visible participation by senior business leaders throughout the
process. Unfortunately many executives do not know what this sponsorship looks like. A change
agent's or project leader's role includes helping senior executives do the right things to sponsor
the project.
Coaching and manager training for change management
Supervisors will play a key role in managing change. Ultimately, the direct supervisor has more
influence over an employees motivation to change than any other person at work. Unfortunately,
supervisors as a group can be the most difficult to convince of the need for change and can be a
source of resistance. It is vital for the change management team and executive sponsors to gain
the support of supervisors and to build change leadership. Individual change management
activities should be used to help these supervisors through the change process.
Once managers and supervisors are on board, the change management team must prepare a
coaching strategy. They will need to provide training for supervisors including how to use
individual change management tools with their employees.
Training and training development
Training is the cornerstone for building knowledge about the change and the required skills.
Project team members will develop training requirements based on the skills, knowledge and
behaviors necessary to implement the change. These training requirements will be the starting
point for the training group or the project team to develop training programs.
Resistance management
Resistance from employees and managers is normal. Persistent resistance, however, can threaten
a project. The change management team needs to identify, understand and manage resistance
throughout the organization. Resistance management is the processes and tools used by managers
and executives with the support of the project team to manage employee resistance.
Data collection, feedback analysis and corrective action
Employee involvement is a necessary and integral part of managing change. Managing change is
not a one way street. Feedback from employees is a key element of the change management
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process. Analysis and corrective action based on this feedback provides a robust cycle for
implementing change.
Celebrating and recognizing success
Early successes and long-term wins must be recognized and celebrated. Individual and group
recognition is also a necessary component of change management in order to cement and
reinforce the change in the organization.
The final step in the change management process is the after-action review. It is at this point that
you can stand back from the entire program, evaluate successes and failures, and identify process
changes for the next project. This is part of the ongoing, continuous improvement of change
management for your organization and ultimately leads to change competency.
Making Organization Change Happen Effectively
Change management is a term that is bandied about freely. Sometimes it's a scapegoat for less
than stellar results: "That initiative failed because we didn't focus enough on change
management." And it's often used as a catch-all for project activities that might otherwise get
overlooked: "When we implement that new process, let's not forget about the change
management."
It's a noun: "Change management is the key to the project."
It's a verb: "We really need to change manage that process."
It's an adjective: "My change management skills are improving."
It's an expletive: "Change management!"
But what exactly is it?
Change management is a structured approach for ensuring that changes are thoroughly and
smoothly implemented, and that the lasting benefits of change are achieved.
The focus is on the wider impacts of change, particularly on people and how they, as individuals
and teams, move from the current situation to the new one. The change in question could range
from a simple process change, to major changes in policy or strategy needed if the organization
is to achieve its potential.
Understanding Change Management
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Theories about how organizations change draw on many disciplines, from psychology and
behavioral science, through to engineering and systems thinking. The underlying principle is that
change does not happen in isolation it impacts the whole organization (system) around it, and
all the people touched by it.
In order to manage change successfully, it is therefore necessary to attend to the wider impacts of
the changes. As well as considering the tangible impacts of change, it's important to consider the
personal impact on those affected, and their journey towards working and behaving in new ways
to support the change. The Change Curve
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Who's Responsible?
When you are defining your objectives and activities, it's very important to coordinate closely
with others: project managers, managers in the business, and the HR department. Ask "who's
responsible?" For example, who's responsible for identifying change agents? Defining the retraining plan? Changing job descriptions and employment contracts? And so on.
As every change is different, responsibilities will vary depending on how the change activities
and project are organized. Only when you know who's responsible and how things are organized
in your situation will you know what's within your scope, and how you'll be working with other
people to bring about the change.
Change Management Activities
Once you have considered the change management objectives and scope, you'll also need to
consider the specific tasks. Again, the range of possible activities is broad. It's a question of
working out what will best help you meet the change challenge in hand, as you have defined it in
your objectives and scope, and how to work along side other people's and projects' activities and
responsibilities.
The essence of this is to identify the tasks that are necessary if you're going to give change the
greatest chance of success.
Coming from this, the activities involved in managing change can include:
Ensuring there is clear expression of the reasons for change, and helping the sponsor
communicate this.
Identifying "change agents" and other people who need to be involved in specific change
activities, such as design, testing, and problem solving, and who can then act as
ambassadors for change.
Assessing all the stakeholders and defining the nature of sponsorship, involvement and
communication that will be required.
Planning how and when the changes will be communicated, and organizing and/or
delivering the communications messages.
Assessing the impact of the changes on people and the organization's structure.
Ensuring that people involved and affected by the change understand the process change.
Making sure those involved or affected have help and support during times of uncertainty
and upheaval.
Assessing training needs driven by the change, and planning when and how this will be
implemented.
Identifying and agreeing the success indicators for change, and ensure they are regularly
measured and reported on.
Understanding Change
The Change Curve This powerful model describes the stages of personal transition involved
in most organizational change. It will help you understand how people will react to the changes,
and so you can better plan how to support them through the process.
Lewin's Change Management Model This describes how you generally have to "break up" the
current state of things in order to make improvements, using the concept of "unfreeze change
refreeze". Our article shows the different things you need to do at each stage to support those
impacted.
Beckhard and Harris's Change Model Giving another perspective on change, this describes
how change initiatives require the pre-requisites of real dissatisfaction with the current state, a
vision of why the new state will be better, and clear first steps towards getting there, to be
successful.
Planning Change
Impact Analysis This is a useful technique for uncovering the "unexpected" consequences of
change.
Burke-Litwin Change Model This complex model helps you to work through the effects of
change between 12 elements of organizational design.
McKinsey 7S Framework Somewhat similar to the Burke-Litwin Model, this well-known tool
helps you to understand the relationship between seven "hard" and "soft" aspects of
organizations.
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Leavitt's Diamond In the same vein as the McKinsey 7S and Burke-Litwin models, this tool
allows you to work through the impacts of a proposed change on the interrelated elements of
tasks, people, structure and technology in any organization.
Organization Design
structures. This article describes these, and discusses the things you need to consider when
choosing the best design for your situation.
SIPOC Diagrams
project's stakeholders.
Stakeholder Management A process for planning your stakeholder communications to ensure
that you give the right people the right message at the right time to get the support you need for
your project.
Mission Statements and Visions Statements
structured way of helping you to communicate what the change is intended to achieve, and to
motivate your stakeholders with an inspiring, shared vision of the future.
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LITERATURE
REVIEW
OF
CHANGE
MANAGEMENT
IN
RESTAURANTS
Resistance to change is often understood from the management standpoint as a perceived
behaviour of organizations members who refuse to accept an organizational change (Cheng &
Petrovic-Lazarevic, 2004; Coghlan, 1993). It is also defined as a multifaceted phenomenon
which introduces unanticipated delays, costs, and instabilities into the process of a strategic
change (Ansoff, 1988). Bemmels and Reshef (1991) understand it as any employee actions
attempting to stop or delay change.
Obviously being viewed as adversarial and detrimental, resistance to change has gained a
negative connotation (Waddell and Sohal, 1998) that allegedly confounded the problem of
effecting change by promulgating a dichotomous thinking of labour versus management (Dent
and Goldberg, 1999). Recently, an appreciation of resistance to change from a more pluralistic
employee- centered perspective and its role in organizational change (Waddell and Sohal, 1998)
has lead to the resistance to change interpretation from a psychological point of view (Conner,
1998), as a natural outcome of people's internal defence mechanism (Bovey and Hede, 2001), or
15
background conversations among employees that constitute the constructed reality (Ford, Ford,
& McNamara, 2002). Paterson and Hartel (2000) interpreted resistance to change as a people's
cognition and affect or the perceived organizational justice done, while Rousseau (1989),
McLean Parks and Kidder (1994) find it significantly related with the violation of the
employment psychological contract.
Resistance to change may be categorized into three groups of factors (Mabin, Forgeson & Green,
2001): organizational, group and individual. Organizational factors are caused by threats
presented by unknown or unwelcome organizational structure and process change and threats
induced by the environment inside or outside of the organization. Group cohesiveness and social
norms under threat and participation in decision-making not properly attended would trigger
resistance to change. Individual factors related to the personality impose different emotional
reactions to change (Bernerth, 2004). Compared to the other factors, individual factors have been
intensively researched (Cheng & Petrovic-Lazarevic, 2005a).
An interesting approach to the individual factors comes from Harris (2002) who divides them
into: Lip Service: Sabotage by Disregardings an instrumental compliance in that in recognizing
the legitimate authority of the hierarchy and the benefits of the continued employment,
employees overland orally conform but covertly resist attempts to be subjugated; Prolonged
Argument: Sabotage by Erosion involving the tenacious use of vociferous and protracted oral
arguments upon all possible occasions to erode enthusiasm, support, or argument with the
management-espoused change; Hijacking: Sabotage by Transformation where employees
endeavor to transform the adopted change into something more acceptable to their function, or
simply something more personally palatable; Scarcity Creation: Sabotage by Undermining
including the purposeful behaviour of a more confrontational form; Direct Conflict: Sabotage by
Battle reflecting extremely pronounced personal opposition to change that could result in
resignation.
The other approach emphasizes eight distinctive phases through which people would likely to go
through whenever they feel trapped in a change that they do not want but cannot control
(Conner,1998; Cheng & Petrovic-Lazarevic, 2005b). These are: stabilities a stage prior to any
announcement to change; immobilization where shock is considered the initial reaction to a
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negatively perceived change; denial characterized by the inability to assimilate new information
into the current frame of reference; anger followed by frustration and feelings of being hurt;
bargaining indicating that people can no longer avoid confronting with the reality; depression
expressed by an emotion stage in a form of resignation to failure, feeling victimized, a lack of
emotional and physical energy, and disengagement from ones work; testing with signal of
acknowledgment of ones limitation, the attempt to regain control, and the freeing oneself from
the feelings of victimization and depression; and acceptance where people respond realistically,
are more grounded and productive relative to the previous phases within the new context.
Lewin identified three steps to change: unfreezing, moving and refreezing (Levasseur, 2001).
Minimising barriers to change and maximising the opportunities of a change effort are
accentuated in the unfreezing process. In the moving stage, recognition of need for change and
the acceptance of change have to take place in the workforce. Accordingly, managers as change
agents are expected to restore or reinforce the new system actively with all employees in the
refreezing step.
This simple three-step model explains the importance of implementing successful change by
unfreezing the existing situation followed by change movement and making the new behaviours
and norms absolute.
Throughout the course of action, managers need to ensure that all communication channels
contribute to information sharing and accurate absorption of relevant information by all
employees (Dale, 1989). According to Abrahamson (2000), dynamic stability involves tinkering
and kludging. It means carrying out change by involving elements within an organisation and
engaging more employees gradually. Employees are to be constantly aware of proposed changes
because they are the ones who make it happen. Managers, on the other hand, should collect
feedback continuously by interacting with employees as well. By applying such concept of
dynamic stability, an organisation might look forward to a successful outcome in change
implementation.
The hospitality industry plays a pivotal role in the nations un-employment rate (Sparks,
Wildman & Bowen, 2001; IBIS, 2004; Roberts & Deery, 2004). The restaurant industry as a
constituent of the hospitality sector is dominated by small to medium businesses. Restaurants
generate 52 per cent of the hospitality sectors income and more than 55 per cent of the workers
in the Australian hospitality sector (Australian Bureau of Statistics, 2000). The Australian
restaurant industry is vulnerable to the environmental changes. Events such as natural disasters
17
and recent terrorist attacks around the world strongly affect the restaurant industry. Its
vulnerability is primarily manifested through intensified rivalry among competitors which
generates a need for implementing changes in restaurants (Goett, 1999). According to the
Australian Bureau of Statistics (2004), the Australian state of Victoria has 25 percent of the
Australian total population with 72 percent belonging to Melbourne residency. This signifies that
whenever restaurant industry volatility takes effect, it can profoundly influence the rate of
employment in Melbourne due to its high density of population.
In the restaurant industry change affects customers, managers and employees (IBIS, 2004). In
this research we classify customers as part of the restaurants external environment, while
managers and employees are part of the restaurants internal environment. The restaurant industry
is characterized by close interactions and relationships between employees and managers. The
intention of organizational change is to attract new customers, or at least preserve the existing
ones, and improve the restaurant efficiency.
Managers being stimulated to increase organizational effectiveness are initiating change with the
expectation to motivate others to do more than they originally intended, and often even more
than they thought possible (Cheng, Petrovic-Lazarevic, 2005c; Yukl, 1998).
In the restaurant industry, as leaders the managers should activate the respective relational and
collective identity of the followers to explain the underlying influence processes caused by
change (Johns & Teare, 1995). These should not only look at how to lead, but, perhaps more
importantly, at how followers are prepared to be led (Okumus & Hemmington, 1998).
It is commonly understood that the efficiency in the restaurant industry is dependent primarily on
employees (LeBlanc and Mills, 1994). But it is also understood that employees do not
necessarily support changes (Hathaway, 2003). Enz (2002) finds that due toclose physical
interactions between employees and managers a restaurants performance can be directly
influenced by such interactions. Namely, when a change takes place employees may display
resistance to change emotionally, for example anger as defence mechanism, fear as anxiety, or
sadness as low in morale (Johnson, 2001). They can also express cynicism, scepticism and
underperformance (Bernerth, 2004). Employees may go further by blaming management for not
acting in their best interest and consequently undertake jobs and tasks with a poor attitude. In
effect, employees may communicate such attitude towards customers and express their
dissatisfaction and frustration (Harper, 1998). Walkup (1997) states that motivated employees
will perform more efficiently in serving customers.
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In the labour-intensive food service industry, motivating a group of employees is not an easy task
as each employee is a different and uniqueindividual with dissimilar personalities and attitudes
(Bowers, 1995).
Restaurant managers today are therefore faced with a big challenge of having a qualified and
motivated workforce for as long as possible (Catlette & Hadden, 2000).
RESEARCH METHODOLOGY
Research methodology refers to the techniques used to structure a study and gather and analyse
information in a systematic way (Polit & Beck 2004:731). The methodology describes the
research design, the census, data collection procedures and the measuring instrument (De Vos,
Strydom, Fouche & Delport 2005:252).
Research Paradigm
A paradigm refers to a world view, a general perspective on the complexities of the real world. It
refers to the way of looking at natural phenomena that encompasses a set of philosophical
assumptions that guide ones approach to inquiry (Polit & Beck 2004:13, 726).
Research design
A research design refers to the overall plan aimed at addressing a research question, along with
specifications to enhance the studys integrity. A plan specifically conceived and implemented to
bring realistic evidence to bear on a research problem, question, or hypothesis. It refers to the
overall approach to or 14outline of the study that details all major components of the research
(Houser 2008:183; Polit & Beck 2004:730; Stommel & Wills 2004:26). The study used a
descriptive correlational design.
Data source
Primary Data- The primary data would be collected from the customer by administering a
structured questionnaire which would be prepared later.
19
Secondary Data- Apart from primary data collected, the data collected from the web and
literature viz.
The Sample
Sample size will be 20
Sampling Type
A total number of 20 Managers and Executives of Accord Group of Hotels in Mumbai (Sofitel
and Novotel)
Data collection
Data will be collected through questionnaire via mail.
Data Analysis method
Data will be analyzed by using excel 2007and using graphs, charts and percentages.
20
21
22
5. There are logical reasons for change which are visible and the goals are transparent *
6. Communication about the change is limited to only those directly concerned with the
project *
23
8. Conflicts within the change are looked for and try to be solved *
24
10. Does the Change Management Process affect the service in the Restaurants?
25
26
RECOMMENDATIONS
Change is a painful process that leaves some of the most motivated employees limping. How can
you initiate change while keeping morale high?
Change with a purpose. Initiate change only when it will make you more productive or
profitable.
Chart a course, but dont fly solo. Its easier to sit by yourself and create organizational
charts and systems designs, but it will only be successful if you get people involved in the
solution.
Reward innovation. Let all employees know that ideas are welcome and encouraged.
Respond to suggestions promptly and award suggestions that pay off.
Treat the solution as a temporary measure. Dont commit to it until youve tried it
and youre sure its the best fit.
Go slow. Choose one significant change at a time. After your teams completely
implemented the change, move on to others. Their confidence will make the next change
go more smoothly.
27
CONCLUSION
Once you have considered the change management objectives and scope, you'll also need to
consider the specific tasks. Again, the range of possible activities is broad. It's a question of
working out what will best help you meet the change challenge in hand, as you have defined it in
your objectives and scope, and how to work along side other people's and projects' activities and
responsibilities.
The essence of this is to identify the tasks that are necessary if you're going to give change the
greatest chance of success.
Coming from this, the activities involved in managing change can include:
Ensuring there is clear expression of the reasons for change, and helping the sponsor
communicate this.
Identifying "change agents" and other people who need to be involved in specific change
activities, such as design, testing, and problem solving, and who can then act as
ambassadors for change.
Assessing all the stakeholders and defining the nature of sponsorship, involvement and
communication that will be required.
Planning how and when the changes will be communicated, and organizing and/or
delivering the communications messages.
Assessing the impact of the changes on people and the organization's structure.
Ensuring that people involved and affected by the change understand the process change.
Making sure those involved or affected have help and support during times of uncertainty
and upheaval.
Assessing training needs driven by the change, and planning when and how this will be
implemented.
Identifying and agreeing the success indicators for change, and ensure they are regularly
measured and reported on.
28
Abrahamson, Eric. 2000. Change without pain, Harvard Business Review, 78(4): 75-79.
Anonymous. 2003. Making change work for real. HR Focus, 80 (1): S1-S2.
Ansoff, Igor. 1988. The New Corporate Strategy, John Wiley & Sons, New York, USA
Australian Bureau of Statistics. 2000. Cafes and Restaurants Industry 1998/99, Canberra.
Australian Bureau of Statistics. 2004, Population by Age and Sex, Victoria Electronic
Delivery, Canberra.
Bernerth, Jeremy. 2004. Expanding our understanding of the change message. Human
Resource Development Review, 3(1): 36-52.
Bovey, Wayne H. and Hede, Andrew. 2001. Resistance to organizational change: the role
of defence mechanisms. Journal of Managerial Psychology, 16(7): 553-548.
Catlette, Bill. and Hadden, Richard. 2000.Prepared to go, but eager to stay. Workforce,
79(8): 32-33.
30