1. MANAGING CHANGE IN THE TOURISM AND HOSPITALITY INDUSTRY SERVICE OPERATIONS MANAGEMENT

2. PRESENTED BY: SHAILAJA POOJITA GOOLAUP LINSHA GOPAUL NAZRAH BEEBEE MAKOUN ARVIN BURTHON SHAKEEL BENZEDID JESSY SOOKDIN KAVISH HURRECHURN

3. T OPICS Nature of organisational change Key issues accelerating change (external and internal force) Areas of the organisation managers expect change Change management process Managing change Managing resistance to change Overcoming resistance Leadership and successful change Managing conflict Article Analysis

4. Managing Change

5. W HAT IS CHANGE ? W HY CHANGE ? Change Any alteration of the status quo. Why change? Today The New World

6. C HANGE AND O RGANISATIONAL L IFE C YCLE Life cycles: Predictable stages of development organisations typically follow. Evolving through each stage requires organizational change to survive and grow, otherwise the organization may cease to exist in an identifiable way. There are four life-cycle stages.

7. 7 O RGANISATIONAL L IFE C YCLE Eentrepreneurial stage Collectivity stage Formalisation and control stage Elaboration-of-structure stage

8. characteristicEntrepreneurial stage Collectivity stage Formalisation and control stage Elaboration of structure stage StructureLittle or noneInformalFunctional centralisation Self-contained Decentralisation FocusSurvival; seeking resources GrowthEfficiency; coordination Restructuring InnovationInventionEnhancementImplementationRenewal PlanningLittle or noneShort rangeLong rangeLong range; Opportunistic CommitmentIndividual senseGroup senseComplacencyRecommitment managersentrepreneursEntrepreneurs and early joiners Professional managers Characteristics Associated with the four Life-Cycle Stages

9. Two change types Reactive change Change occurring when one takes action in response to perceived problems, threats, opportunities. Planned change Change involving actions based on a carefully thought-out process anticipating future difficulties, threats, opportunities.

10. K EY I SSUES A CCELERATING C HANGE The organisation External change factors economy regulations competition technical development politics Internal change factors structure jobs employees technology culture

11. Areas for Change in an Organisation Changing structure Changing technology (ex: automation, computerisation, E-commerce or E- business) Changing people (changing the quality and characteristics of employees) Changing Culture

12. 12 A REAS FOR C HANGE Culture Structure Human Resources Technology

13. 13 A REAS FOR C HANGE : S TRUCTURE Structural components: Job definitions Job groupings Teams Delegation Reporting relationships

14. 14 A REAS FOR C HANGE : T ECHNOLOGY Technology may drive change/innovation by: Requiring new work methods. Providing/removing competitive edge.

15. 15 A REAS FOR C HANGE : P EOPLE Human resources is the vehicle for changing knowledge, skills, perceptions & behaviours needed for a job. It utilises: Recruitment & selection Training Performance appraisal Reward systems.

16. 16 A REAS FOR C HANGE : C ULTURE Major organisational changes often require concomitant changes to organisational culture.

17. 17 C HANGE M ANAGEMENT P ROCESS Recognition of opportunity or problem Recognition of opportunity or problem Line up powerful sponsors Develop and communicate a vision Develop and communicate a vision Empower others to act out the vision Empower others to act out the vision Prepare to overcome resistance Plan for & reward visible progress Consolidate improvements & facilitate further change Consolidate improvements & facilitate further change Monitor & institutionalise change Reading 8.4 covers detailed information on change management process.

18. M ANAGING C HANGE : M ANAGING R ESISTANCE T O C HANGE Why do employees resist change? Self-interest: not fear change but fear loss (what are losses?) Security Competence: do not know how to do with the new job Relationships: afraid of the familiar contact with people like customers, co-workers or managers can disappear; afraid of losing their sense of belonging to a team or group Sense of direction Territory  It is important to understand employees’ fears of loss caused by change as it is a normal part of transition and leaders have to assist them overcome these fears.

19. 19 W HY DOES INDIVIDUAL RESIST CHANGE ? Misunderstanding Lack of trust Differential assessment Ability to adjust Laziness

20. M ANAGING R ESISTANCE T O C HANGE Managing resistance to change: Freeze cycle approach (Kurt Lewin 1947 ) Unfreezing Initial awareness of need for change is developed Changing Focus on learning needed new behaviours Freezing Reinforcing new learned behaviours by positive results, feelings of achievement, and rewards from others.

21. M ANAGING R ESISTANCE T O C HANGE UNFREEZE CHANGEUNFREEZEREFREEZE THREE-STEP PROCESS:

22. M ANAGING R ESISTANCE T O C HANGE Overcoming resistance METHODS (Kotter & Schlesinger) Participation & involvement Education & communication Facilitation & support Negotiation & agreement Manipulation & cooptation Explicit & implicit coercion

23. M ETHODS OF OVERCOMING RESISTANCE ApproachCommonly used in situation AdvantagesDrawbacks Education + Communication Where there is a lack of information or inaccurate information and analysis Once persuaded, people will often help with the implementation of the change Can be very time consuming if lots of people are involved Participation + InvolvementWhere the initiators do not have all the information they need to design the change, and where others have considerable power to resist People who participate will be committed to implementing change, and any relevant information they have will be integrated into the changing plan Can be very time consuming if participators design an inappropriate change Facilitation + SupportWhere people are resisting because of adjustment problems No other approach works as well with adjustment problems Can be time consuming and expensive and still fail Negotiation + AgreementWhere someone or some group will clearly lose out in a change, and where that group has considerable power to resist Sometimes it is a relatively easy way to avoid major resistance Can be too expensive in many cases if it alerts others to negotiate for compliance Manipulation + co-optationWhere other tactics will not work or are too expensive It can be a relatively quick and, inexpensive solution to resistance problems Can lead to future problems if people feel manipulated Explicit + Implicit coercionWhere speed is essential and the change initiators possess considerable power It is speedy and can overcome any kind of resistance Can be risky if it leaves people mad at the initiators

24. M ANAGING R ESISTANCE T O C HANGE Overcoming resistance to change Force -Field Analysis (Kurt Lewin) ‘a method involving analysing the two types of forces, driving forces and restraining forces, that influence any proposed change, then assessing how best to overcome resistance.’ Driving forces Factors pressuring for a particular changeRestrainingforces Factors pressuring against a change CHANGECHANGE

25. M ANAGING R ESISTANCE T O C HANGE Driving forces are factors pressuring for a particular change Restraining forces are factors pressuring against a change The status quo is a condition of equilibrium between the two forces Change occurs by increasing driving or reducing restraining forces that is reducing resistance to change

26. Good union relations Foreign competition Recent losses Cheaper outside sources Union desire to save jobs Company reluctance to save jobs Deteriorating company-union relations Stringent work rules Current benefit costs Current pay costs Employee absenteeism levels Company desire for flexibility in layoff decisions Current high Cost level Desired low Cost level Driving forces for change Restraining forces against change Force-field analysis of the forces maintaining high cost level at Xerox plant (p.587)

27. 27 C HANGE THE CULTURE FIT Culture issue is the first issue needed to address before tackling any needed organisational change: Ex: a regulated utility for which de-regulation meant a change in how they do business. Assumptions about customer expectations in a regulated environment led utilities in general to attend more to being a "good neighbour" than to providing low cost service. Those assumptions often meant that "good neighbour" behaviour, i.e., courtesy to customers, was rewarded more than efficiency and this value was reinforced by training programs, performance reviews, and the company newspaper along with more subtle forms of communication.

28. 28 Evidences show that successful culture change needs turnaround time for seven to ten years---need patient. The corporate CEOs were outsiders CEOs did started their jobs by trying to create an atmosphere of perceived crisis

29. 29 O NGOING CHALLENGE OF MAKING CHANGE SUCCESSFULLY Change process do not always work the way they should, instead an organisation needs to embrace change, be ready for change all the time (be a change-capable organisation) Managers need to act as change agents (change leaders) and build an effective change agent team Get all organisational members involved-encourage employees to be change agents

30. 30 L EADERSHIP AND C HANGE People change being led, not from being told Visionary leadership is needed An energised leader will do more focus the efforts of his or her employees Understanding and articulating a vision of where the group is going Sharing that vision Creating an environment where employees feel a sense of making the vision come true (ex: setting a plan of action) Creating incentives for change and rewards Refer to ‘Skills and competencies of a change leader’ to know the Roles, responsibilities, skills and competencies of a change leader.

31. W HAT IS CONFLICT ? Conflict is the perceived difference between two or more parties resulting in mutual opposition.

32. C ONFLICTS BETWEEN INDIVIDUALS AND ORGANISATIONS Choices facing employees in conflict: Leave organisation or work to climb into upper management Use defence mechanisms to defend their self-concepts Psychologically disassociate (lose interest in their work) Concentrate on material rewards Find allies & resist (e.g. strike)

33. C AUSES OF CONFLICT Communication factors Structural factors Size Participation Line–staff distinctions Reward systems Resource interdependence Task interdependence Power

34. C AUSES OF CONFLICT ( CONT.) Personal behaviour factors Communication styles Workforce diversity Differences in goals Reward structures Differences in perceptions Increased demand for specialists

35. B ENEFITS & LOSSES FROM CONFLICT BENEFITS Productive task focus Cohesion & satisfaction Power & feedback Goal attainment LOSSES Energy diversion Distorted judgment Loser effects Poor coordination

36. R ELATIONSHIP BETWEEN CHANGE AND CONFLICTS Types of intergroup conflict Functional Dysfunctional Changing views on conflict Traditional view—conflict is destructive & unnecessary Modern view—conflict is inevitable, & may produce better organisational performance Stimulating conflict Build group diversity, communicate to provoke change, encourage competition

37. M ANAGING INTERGROUP CONFLICT Changing situational factors leading to a problem (e.g. increase resources, redesign rewards) Appeal to superordinate goals (e.g. survival or beating competitors) Use interpersonal conflict-handling model.

38. Different styles of interpersonal conflict management and circumstances where each may be appropriate Forcing (formal authority, power use). Collaborating (combination of assertiveness and co-operation). Competing (reaction to non-competitive behaviour). Compromising (intermediate amounts of assertiveness and co-operation). Avoiding (neutrality). Accommodating (giving in to another’s wishes). 38

39. 39 Soure: Robbins et al. 2006. Conflict-resolution techniques

40. M ETHODS OF RESOLVING DYSFUNCTIONAL INTERGROUP CONFLICT Intergroup training Expansion of resources Bureaucratic authority Problem solving Limited communication Smoothing Confrontation & negotiation Intergroup conflict resolution

41. A CTIVITIES Case study: Managing Change Initiatives: Fantasy or Reality? The Case of Public Sector Organizations

42. T HANK YOU FOR YOUR ATTENTION ☻☺