Work and Organizational Change at Lakeside Hall Hotel - Case Study Example

Case Analysis: Work and Organizational Change [Name] [Professor Name] [Course] [Date] Introduction This report explores the current state of affairs at Lakeside Hall Hotel, a hotel situated on the shores of Windermere in the English Lake District. The report provides a model design of the future by examining the problems confronting the organization, and the forces that drive and restrain change. The report argues that there is a need for changes managed at the organization to deal with the several operational management issues. Creating the Context Analysis of Lakeside Hall Hotel case scenario shows that the organization’s key to success has persistency in maintenance of high quality service. This has been the winning formula as it has enabled the firm to win customer loyalty and an extensive customer base. The hotel has been a preference for families, couples and the over 55’s who look to have a relaxing break. Recently, a number of problems that face the hotel have been observed. Among them, the hotel had the Investors in People national quality standard, which places the training and development of people as being crucial for an organization to achieve its business goals. Further, the hotel has failed two standards set by assessors. Additionally, several serious complaints have been brought to the attention of the owner (Mr. Michael Davies). These include lady guests complaining of the hotel operating like a brothel, since pornographic magazine have been found in the rooms. The leisure club lacks the ambience of a high-class establishment with cleanliness problems and an un-imaginative set of activities classes. There have been complains over the food quality and restaurant service standards. The decline in standards has had a substantial impact on the hotel’s marketability. For instance, occupancy figures are currently 69 percent from full occupancy in the previous years. From the analysis, it is critical to note that the hotel currently faces several operational management issues. The operational management of the hotel shows that the situation at Lakeside Hall Hotel will continue to worsen unless a change in strategy is adopted to restructure the organization. Definition of the Change Objectives The underlying objective of this report is to establish how a change management process should be designed to create a fundamental change at Lakeside Hall Hotel. The concept of the organizational objective to create sustainability of the organization stems from the problems confronting its operational management activities (Anonymous 2007). The fundamental change is aimed at transformation of the ethos (culture) of the organization in a manner that will ensure the future of the organization as well as to redirect the purpose of its operation into focus of action (Weiner 2009). Problem definition A range of drivers for change process can be identified from the Lakeside Hall Hotel’s case analysis. Poor customer service, Poor food quality, Issues with cleanliness, Need high customer ambience, Marketing problem, Employee training, Financial loss , Low sales, Diminishing customer base Lakeside Hall Hotel organization is clearly confronted with a major necessity for change if it has to retain its customer base and survive financially. A transformational process with far-reaching changes must be established by restructuring its operational management. The change process should be aimed at eliminating poor customer service, poor food quality, issues with cleanliness marketing problems, employee training, financial loss, low sales and declining customer base (Weiner 2009; Wigger 2008). From the analysis, it can be observed that some of the company’s solutions of the past have become the problems of the present. Even though the organization managed to promote financial survival in the past as well as to provide a leading edge in the hospitality industry, particularly to the market segment of families, couples and the over 55’s. In any case, distinct competitive advantage and lasting sustainability still evade the hotel. Lakeside Hall Hotel’s organizational structure needs restructuring. In the present scenario, only duty managers are responsible for the company’s day-to-day operational management. While one is charged with the duty of managing the personnel and hotel front activities, the other managers the food and beverage operation. Six department heads report to the two managers, with each responsible for their own department. The departmental heads include head housekeeper, leisure club Manager, Head Chef, restaurant manager, reception manager and bars manager. Each head ensures their respective members of staff are focused on customer service. Wigger (2008) observes that poor coordination of an organization generates problems in various parts of the organization. Common problems include “reinventing the wheel” or “firefighting” or making repeated mistakes in different departments of the organization. The stated objective of the Lakeside Hall Hotel is to provide satisfaction to the customers. However, since the hotel is embroiled or caught up in tackling a number of issues for each of the six departments with only two operational managers, the company has lost the focus of its primary objectives (Businessballs 2012). Theoretical perspectives and approaches Field Forces Analysis Force Field Analysis is an essential tool for systematic analysis of the factors found in complex problems. It will structure problems confronting the hotel in terms of factors for restraining forces (factors that support the status quo) and driving forces (factors support change in the desired direction). The underlying factors include resources, traditions, values, desires, needs and attitudes. As a change management tool, Field Forces Analysis helps discover the factors that must be addressed and monitors in order for the change to be successful (Bolero Associates 2000). Force field analysis can be adapted for the Lake Side Hall Hotel to add an additional element of the hotel’s control over the situation it currently faces. For instance, in an attempt to improve customer service, all the driving forces and the restraining forces have to be identified (Ordi 2013). Afterwards, each force can be rated based on its significance and the level of control it imposes over that force. The total are then determined and a table developed. This implies that for each force, greater the sum of significance and the control, the more effect the change agency should have in seeking to address the force (Businessballs 2012). Additionally, if the agent of change can find some forces that explain others, then this would mean the usefulness of its actions would be greater. For instance, if improved operational planning has the potential to increase the rate of customer satisfaction as well as poor employee training and recruitment processes. Since it possesses cross-impacts, then it can be noted that the agency had decided to give attention to operational planning (Ordi 2013). Overall, Force Field Analysis is a management tool essential for informing decision-making, specifically in planning and implementing change management programs n organizations. It can be a powerful method of gaining a comprehensive understanding of the various forces action on a potential Lake Side Hall Hotel’s change issue as well as for assessing their strengths (Ordi 2013). In respect to the Field Forces Analysis process, this report defines the problem by establishing the nature of the organization’s current situation (Bolero Associates 2000). It further defines the change objective. Further, the driving forces and the restraining forces are identified. Lastly, a comprehensive change strategy is developed through a quasi-stationary equilibrium. Indeed, given the shift to the information age from the industrial age, an advent of technologies and organizational theories has changes substantially. Wigger (2008) notes that traditional concepts of organizational change and change management do not offer effective solutions to organizations that cope with a fast- growing uncertainties of the modern world. Biomatrix model Biomatrix model refers to a general system model applied in integration of different organizational concepts and approaches. Typical concepts and approaches within the hospitality industry include operations research, cybernetics, marketing, ideal operational management and coherent management structure (Wigger 2008). Basically, the model focuses on processes or organizational activities that give rise to an organization as an entity. The model is hence a process-based systems model rather than structure-based systems model. This perspective explains its relevance to the state of affairs at Lakeside Hall Hotel. In actual fact, the main problems confronting the hotel (as discussed above) are basically process-based problems rather than structure-based problems. For instance, the hotel’s basic operation consists of several activities that include: staff training, food service, housekeeping, administration and sales and marketing (Wigger 2008). By changing perspective, each of the above named activities has the capacity to be transformed into an entity. For instance, looking at individual organizational units such as the sales and marketing department, it is made up of various other activities which in turn have the capability to change the entity organization (Fernandez and Rainey 2006). The risk however,( as has been noted earlier) is that these activities can develop their own purpose as a result losing focus and site on the objectives of the entity organization. At Lakeside Hall, the sales department and their inability to perform have piqued much interest that their purpose (which should be the selling perspective) has seemed to take over, while the actual purpose of the hotel as an entity has been to create customer satisfaction through quality delivery (Anonymous 2007). The process activities can have different purposes for the organization as an entity. For instance, aside from contributing to the hotel’s external or internal environment, they can be self-directed (Wigger 2008). For instance, the hotel’s sales manager coordinates marketing activities alongside the sales staff within the department and two sales staff who work remotely in Manchester and New Castle. While the inner activities focus on the hotel’s inner environment, the remote sales force focuses on the external environment. This demonstrates a classical example of self-directed activities that, although supports the functioning of the organization, needs to be improved so that the remote sales team become more performance-focused (Weiner 2009). Methodologies for implementing Biomatrix theory Biomatrix model provides a practical and methodical approach for change management and systematic organizational transformation (Wigger 2008). With reference to the problem formulation, it is clear that the problems that the hotel faces are not distinctly isolated within either of the departments. Rather, they are linked across the entire organization. The ideal intervention therefore needs to view the organization as an entity and how fundamental change can be created and implemented (Wigger 2008). Based on Biomatrix model’s perspective of fundamental change, the most dramatic changes should be on ethos (organizational culture) and should go hand in hand in emphasizing the fundamental objectives of the organization (in this case the mission, vision, purpose, corporate strategies and objectives) (Wigger 2008). Such changes would contribute to significant transformation of the organization. The underlying methodology to organizational transformation will evolve around three key areas, namely, forces of change, change over time and problem solving and dissolving (Wigger 2008). Driving Forces and Restraining Forces The driving forces comprise the factors or pressures that promote change in a desirable manner. Biomatrix theory postulates that if change happens in one aspect, it affects the other aspect through their interaction. This can either be emergent or intended. The theory further hypothesizes that change shifts from aspect to aspect in two conflicting directions. While one promotes change, the other opposes change (Ordi 2013). Based on the Biomatrix model, the analysis provides an indepth understanding of Lakeside Hall Hotel and the interacting problems. The seven system aspects as suggested by the Biomatrix model will be used to analyse the current system driving and restraining forces. Seven systems aspects Seven systems is a core concept of Biomatrix theory that identifies seven forces that interact with each other to create a system. To ensure an optimal development of a system, each of the forces need to be developed. The seven include environment, ethos, aims, process, structure, governance and substance (Wigger 2008). Environment The relationship between the organization and its environment is the first of the systems aspects. It entails the relationship with different stakeholders (Wigger 2008). The organization’s major forces that drive its relationship with its environment include its sales force. The hotel has sales manager who is responsible for directing the company’s marketing activities. The organization also has a sales staff that works within the sales department and two remote sales staff, one based in Newcastle and the other in North East and North West. However, the restraining force includes the remote sales staff being less performance-focused and lacking realistic goals and development opportunities. In addition, the organization’s communication system to its stakeholders is wanting. For instance, the mail shots to previous and potential guests only take place twice a year. This is rather slow basing on the need for the organization to constantly update its guests on its changes in offering. In any case, in order for the organization to survive within an environment where communication to stakeholders is essential, the organization will have to improve its communication and sales activities. Wigger (2008) points out that stakeholders always have to be constantly familiar with an organization. Analysis of Lakeside Hall hotel shows that the stakeholders (mainly the guests) are not often familiar with the organization. Additionally, there is no clear understanding of the ways the “remote” sales team should approach the stakeholders. Ethos Ethos refers to an organization’s culture. With regard to Lakeside Hall Hotel, it includes the beliefs, world views, attitudes and values of the organization. Ethos directs the workforce of the hotel in their activities (Wigger 2008). The organization’s success has been driven by its strong values of high quality service, which has enables the guests to come back time and again. The major restraining force however is that the organization has held onto its old values and seemed to be reluctant to change in consistency with globalization. For instance, the hotel continues to hold onto its traditional standards of service so that the leisure club lacks the ambience of high-class establishment with cleanliness problems. Aims Biomatrix model reflects the aims aspect in the objective, mission and vision of an organization. With the aims aspect, the hotel can distinguish itself other players in the hospitality industry with similar offering (Wigger 2008). Aims can translate the ethos into certain outcomes. Consequently, disruption of the ethos can be reflected in the aims of Lakeside Hall Hotel. Analysis of the hotel shows that changes have not been made regarding its mission and vision over the years. In any case, the driving force under the aims aspect includes the hotel’s mission to ensure that the organization provides quality customer service that satisfies the needs of the customers. In which case, the organization has persistently encouraged each department head to have to responsibility of ensuring that all staff is focused on providing customer service that exceeds the expectations of the guests. It is however critical to analyze the restraining force within the aims aspect. For instance, it can be observed that the hotel’s heads have focused on customer service that they have forgotten to the actual and intended functions of the organizations leading to poor food service among other drawbacks. Process The process aspect in Biometric model refers to the activities that ensure the flow or smooth operation of the organization into realizing its goals. The processes can be assigned to each individual activity or function of the hotel’s departments that are designed to achieve specific objectives. Wigger (2008) suggests that the more repetitive the pattern of the activities are, the more random the process. Several core processes can be identified at Lakeside Hall Hotel. Training: The hotel is actively involved in staff training. This is a major driving force for change at the organization (Wigger 2008). Indeed, training has been integral part and parcel of the hotel that enables its employees to study for NVQ qualifications in their respective areas. The process has been enabled in coordination with a local college. However, the restraining force is management training. Indeed, management training has been ad hoc area for improvement. For instance, the management should be trained to be more accommodative to change. Additionally, some members of staff lack an understanding of the potential of electronic media (Pryor 2008). Structure The structure aspect of the Biomatrix model is strongly linked to the process aspects since a proper structure facilitates a repetitive pattern and constancy of the organization’s processes (Wigger 2008). The structure process is composed of the acting (such as workforce) and the support (equipment). At Lakeside Hall Hotel, the hotel has a definite organization’s structure. The company has two duty managers responsible for the day-to-day operational management. While one is charged with the duty of managing the personnel and hotel front activities, the other managers the food and beverage operation. Six department heads report to the two managers, with each responsible for their own department. The departmental heads include head housekeeper, leisure club Manager, Head Chef, restaurant manager, reception manager and bars manager. Each head ensures their respective members of staff are focused on customer service. In defining the restraining force, it is critical to note that Lakeside Hall Hotel’s organizational structure needs restructuring. This is because the two managers can easily be overwhelmed by the activities, leading to “firefighting” and “reinventing the wheel.” Governance Governance aspect of Biometrix theory refers to the administration and control of an organization. The model proposes that governance should influence all other aspect through regulation, planning, monitoring and coordination of processes (Wigger 2008). The influence should however be mutual when it comes to structure and ethos aspects. At Lakeside Hall Hotel, customer service are supposed to be linked to performance (Hoffman and Sandt 2012). This is a major driving force for change. However, an assessment however shows a number of restraining forces. For instance, the sales department seems not to be performance focused and fails to provide realistic goals and development opportunities to the “remote” sales team. Substance Substance (also known as matter, energy and information or mei) comprises the hotel’s resources such as technological, human and financial resources (Wigger 2008). A major driving force for change at the organization is that the hotel has a well coordinated resource management that deals with maintenance of the resources and capacity building (Weiner 2009). However, a number of restraining forces are observable. For instance, the hotel premise is lately badly maintained. There are also a number of complains about the hotel operating like a brothel as pornographic magazine have been discovered by guests in the rooms. The leisure club lacks the ambience of a high-class establishment, poor food quality and restaurant service standards. Discussion: Recommendations and Ideal Design Comprehensive change strategy Based on the outcome of the analysis of driving and restraining force, it is clear that problems within the organization interact with each other and cut across several level of Biomatrix (Wigger 2008). Hence a change design that works from a different level to solve the issues instead of creating new ones is necessary. The diagram below shows a quasi-stationary equilibrium. It shows that change can occur following a combination of strength of any driving force, addition of new driving force and eliminating or reducing the restraining forces. This report uses the second option. Recommended strategies Environment: Lakeside Hall Hotel should scan its environment to identify its stakeholders. Hence, stakeholder management should be internalized as continuously active process in the organization. Assessment of the actual needs of each stakeholder and setting up a communication plan should later follow. The organization should therefore develop a structured approach to manage its stakeholder relations. This could be through proactive networking by use of internet technology tools such as developing website where hotel reviews can be accessed. Other means include using the social media to ensure the hotel closely interacts with stakeholders (Fernandez and Rainey 2006). Ethos: The organization should identify the values that are desirable for its development and the workers in consistency with globalization changes. The employee attitude should be translated into behavior that is desirable to the development of the organization. In any case, the culture and behavior of should be that that is accommodative to change instead of resisting change. This is a critical area in the sales department. This should however be exemplified by the staff through the action of management (Perrini et al 2011). Aims: The organization should develop an organizational purpose to avoid losing focus on core objectives. Vision and mission statement should be developed that is translated across the organization. The vision and mission should turn Lakeside Hall Hotel into a recognized brand by offering quality services to the quests. Processes: To promote participation, the staff should be encouraged to work more as a team through cross-departmental collaboration. HODs should present their strategic action plans on a weekly basis to the duty managers. The staff should be trained on customer service as well as on quality management (Perrini et al 2011). Structure: the organization should adopt an organizational model that fits the information age. A three-dimensional model is ideal as it emphasizes interaction between departments. A typical one for Lakeside Hall Hotel is illustrated in the diagram below. Fig 1: Three-dimensional matrix organogram, adapted from Wigger (2008) Governance: The hotel should have up-to-date clear policies covering all departments. For instance, it should provide regulatory system restricting use of prohibited material or substances (such as pornographic materials or drugs). Substance: The organization should emphasize training and developing workers (such as the remote sales staff and the housekeeping staff) and placing them appropriately as well as set high performance standards. Recognition and rewards should also be used to motivate workers (Fernandez and Rainey 2006). Conclusion An in-depth diagnosis of Lakeside Hall Hotel shows the need for change management to improve the operational management. The Force Field Analysis provides systematic analysis of the factors found in complex problems facing the hotel. The underlying factors include resources, traditions, values, desires, needs and attitudes. These factors are examined using the Biomatrix model. In the end, it is found that the hotel should eliminate restraining forces to change the organization to assume a desirable and sustainable direction. Ultimately, the organization will have to develop a structured communication approach to manage its stakeholder relations, have up-to-date clear policies covering all departments, apply a three-dimensional model in its organizational structure, and lastly, translate employee attitude into behavior that is desirable to the development of the organization. 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