Ch 1 MANAGING ORGANIZATIONAL CHANGE

Characteristics of Change

- A natural social process - Involves individuals, groups, organizations, and society - Is constant and accelerates at various rates - Is inevitable and unpredictable - Varies from high complexity to low complexity -Small change: adding a department or uniform color. - Big change: layoffs or implementation of technology. - managements responsibility to communicate the changes to the team

Market changes

- mergers and acquisitions - domestic and international competition - recession Chinese economy strengthens resulting in a new wave of potential customers for US companies.

Why do plans fail?

- not being specific about the overall goal - not enough alternatives - inadequate time or other resources - making assumptions about info or buy-in - inadequate delegation of authority - not recognizing organizational goals and needs - planning too narrow in scope (not recognizing community, legal and licensing requirements)

Restraining force

A force that tends to keep a situation from changing in a particular direction. ex: worker resistance, financial challenges, location challenges, fear of failure, etc. If the restraining forces are more compelling than the driving forces, change will be much more difficult to implement.

Force Field Analysis

A technique for determining which forces drive a proposed change and which forces restrain it. kurt lewin, diagnosing a present situation and as a device for prioritizing activities and developing action plans

Planning for change

Alignment: Aligning the organizational goals with the new system? Measurement: How will the success of the change be measured (what data should be collected before the changes)? Communication: How will the change be communicated to stakeholders? Compatibility: How compatible is the new system with existing dependent systems? What data conversion is required for the new system? Installation: Which installation process would work best for the organization?

Change targets

All individuals or groups affected by the change change their skills, knowledge or behaviors to comply with the planned change. managers must support change targets and allow them to make mistakes. change should be implemented gradually to avoid alarming change the workers and to allow them time to learn the new process.

Change within Organizations

Change within organizations is difficult, but constant. Asking team members to make changes can often be disruptive to their comfort zones. Change often leads to more work and sometimes less pay.

Implentating the change

Communicate the vision foster change through power measure process celebrate successes

Three primary power positions

Explorers conservatives inhibitors

Change Sponsors

Initiate change because they have the power and authority to determine why, when, and how changes will occur be someone within the organization who response to the change agent

Fostering change

Means improving cooperation, working for mutual gains Hiring good leaders who open to change and understand their industry.

Implementing the change

Outline the Need for Change Show the performance gap Understand the Resistance to Change Self-Interest Lack of Understanding and Trust Uncertainty Different Assessments and Goals

path to success

Page 36 -People come together and make the past disappear and talk about the "dark old days" -conflict is less frequent and more consensus -uncertain alternative give way to clear and obvious goals -accidents, uncertainties, and and confusion disappear into clear strategies -changes become habit, new systems are seen as essential

Steps of change

Recognition of need for change (losing revenue) Vision (Rebranding) Feasibility and Planning (best course of action towards their goal) Implementation of change (being bought out to another company)

Competitive change

Tech firms with lots of capital enter the hospitality industry where they build the nicest hotels in the industry.

critical path

The series of activities in a network diagram that determines the earliest completion of the project; it is the longest path through the network diagram and has the least amount of slack or float series of activities or steps that guide the change process

Work force changes

Your hotel is in a city where citizens speak mostly Spanish, so you your staff must be fluent in Spanish. -dynamic around establishment

Continuous improvement

a commitment to constantly make things better one step at a time final phase of change model look for additional opportunities to improve repeat the PDCA cycle

PDCA cycle

a plan-do-check-act cycle using observed data for continuous improvement of operations

transition management team (TMT)

a team of 8 to 12 people whose full-time job is to manage and coordinate a company's change process

gap analysis

a type of analysis that compares the differences between the consumer's expectations about and experiences with a service based on dimensions of service quality process used to evaluate the current situation to determine what incremental steps or actions need to be taken to achieve the goal.

explorers

aware of the need for change and are open to new ideas tinker with new approaches and discuss new ideas

Driving force

forces of change: economic conditions, regulatory conditions, new competition. If the driving forces are more powerful than the restraining forces, change will come easier.

Reengineering

fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance, such as cost, quality, service, and speed changing the way a hospitality organization manages its loyalty program.

Communication is key

honest and transparent communication must be constant updates from key sponsors in the organization Communicate how the change will effect the workers, what are the benefits, how long will it take and will anyone be in a worse position.

Action plans

individual support plans included in a marketing plan that provide the guidance for implementation and control of the various marketing strategies within the plan. Action plans are sometimes referred to as "marketing programs" outline the tasks to be completed for each step in the critical path

continuous improvement

involves always searching for new ways to improve work quality and performance implementing quarterly training workshops for all team members.

path to failure

many change efforts fail miserably change wasn't well planned measurements wasn't valid change targets resist the change bc its impact on work relationships

Communicate the vision

need to hear the vision repeated takes time to hear understand and believe the message

technological change

new management software requiring weeks of training and a redesign of the space.

Path to plateau

occurs when small changes with limited long-term impact are made but most important aspects of change are neglected

Inhibitors

people not convinced by logical reasons or demonstrated results unwilling to participate

Change agents

persons who act as catalysts and assume the responsibility for managing change activities could be an outside consultant, a person who is a leader within the organization such as a CEO or even outside forces like customers.

power strategies

plans actors use to develop & deploy power capabilities to achieve their goals present a nonthreatening image deal with conflict through collabs, compromise, accommodate align with a power others touch bases trade off strike when iron is hot small goals withdraw if no improvement

Monitoring the change

reevaluate the vision assess the plan for change evaluate the direction of change

Internal forces of change

reinvention, reengineering, fostering change and continuous improvement

external forces of change

technology, market, competitors, and work force

reinvention

the degree to which a potential adopter can adapt, refine, or modify the innovation to suit his or her needs an airline company decides to abandon the airline industry to enter the hospitality industry.

Foster the change through power

the politics of change the use of power to implement new ideas. change sponsors and agents must develop power bases if they want the change effort to be successful

Planning tools

those items that make it easier for a person or organization to set goals, develop strategies, and outline tasks and schedules to accomplish goals.

conservatives

wary of change but don'e oppose change on principle willing to change once it's been demonstrated for good results