Change Management Assignment - Report Example

Course name: Professor’s name: University name: City, State Date of submission: A REPORT ON CHANGE MANAGEMENT PROCESS IN THOMAS COOK Introduction This report is on how Thomas Cook manages changes in the business world that affect their daily business operation. Thomas Cook being one of the best leisure travel group in the world like other organizations globally that are also affected by the current changes that are taking place in the world of business. In this report, styles of management and organization changes that Thomas Cook has employed order to cope with the changes are demonstrated. In this report, the organization structure has been critically looked at taking into account the internal and external changes affecting the business activities. Management and leadership style of the company has been analyzed. Thomas cook has one of the most flexible organization structures that quickly changes with the changes in the business environment. The principal goalof the research is to know how Thomas Cook tackles the changes occurring in the enterpriseclimate.To enable it to remain still as one of the leading companies in the hotel and leisure travel business field.This analysis will help know which areas the firm has succeeded in managing changes and which areas it still needs to observe. One of the key areas that help Thomas Cook manage changes is its organizational structure. It has a top to the down management structure. Decisions are made by the top managers and passed down to the specific levels. This report also provides lessons learned from the new change management. Application of theory Due to the advancement in technology, increasing in knowledge in the workforce and change in the existing work practices, change is witnessed everywhere in the business world[Bur04]. Even though organizations need to manage these changes, about &0 percent of the change programs put in place by companies do not yield the expected results[Bal04]. Due to the increasing in the significance in change management, a lot of literatures looking for concepts have been written on the change management process and factors that lead to its success. Since this literatureis many and is ever increasing, there has been found to be a lot of contradictions in the theories describing this change in management[Tod05][Fer06] The planned approaches theory comprises of three stages. The first phase is unfreezing the current behavior. In this, an organization lets go of the strategies that it is currently using to run its activities. The second step is moving to the new behavior. Here the business analysis promotes the new behavior and changes it organizational structure to suit it. The third stage is refreezing the new behavior. The organization implements the new behavior and maintains it. These steps have been in existence for years and have been working on the framework for internalizing the process for change management[Tod05]. Over the years, this model has seen many changes and modifications to suit the changes in change management process[Hol09].This theory also allows organizations to plan for changes that they expect to occur in the new future since it views changes as linear. Organizations apply thismethod when they want to switch from on strategy to another that will enable them manage changes in their operations efficiently. Post-modernism theory by Bernard Burnes examines change management in terms of history, literature by other authors and other methods of management (Burnies 2014). In these organizations now faces new periods in which the processes of production, distribution, and consumption by consumers have not only rapidly changed but have also become difficult to learn their patterns of change. It requires organizations to come up with new ways of management that suit the change in their daily activities. Management needs to be flexible in decision-making. They have to allow all other departments in the organization to make decisions that affect them immediately. In doing so, time wastage in passing orders from top management to employees will be minimized. This will increase the productivity of an organization. The theory states that this time come after the modern time of capitalist and associated with instability in its processes in contrary to the stable way of the capitalist time[Don03]. In these organizations should be prepared to manage changes as they come because it is impossible to tell which changes to expect. In this theory, changes in the business, the environment is unstable and uncertain. It 's hard to project on the changes that may occur in the future[Bed04]. Today the world is going digital, there is a lot of major breakthroughs in the field of technology. These have forced a lot of organizations to automate their process. They have had to put new infrastructures in place to accommodate these rapid changes in the business world. It is difficult for organizations to tell how the world of business is going to be ten years from now since everything is changing rapidly. This theory gives organizations chance toconsider new advancements in the enterprise environment. For example today their increase is in internet usage brought by the introduction of smartphones in the market. These means that organizations need to change their organizational structures to accommodate this new advancement in technology. Organizations managements are required to be open minded and put into considerations that all strategies they have put in place may need achange in the new future. The complexity theory of change management by Burnie is viewed as a parent to many theories. We get ideas from different subjects in the natural sciences[Sta03]. This theory deals with the appearance of the order of ever changing non-linear systems. This shows that the changes are constantly changing, and efforts by the organizations to manage them seem to fail[Hai02]. The orders of events in these systems are unpredictable, and the patterns of behavior appear in a similar manner but irregular in form. The process by which they appear in is of self-organization and governed by limited number of simple order generating rules[Bla00][Mac01]. In agreement with these theories, writers say that organizations are complex systems. They say that for them to manage these changes they should respond to changes in their environments continuously in the same process as the spontaneous, self-organizing change[Mac02]. Organizations such as Thomas cook should adopt this theory in managing changes that affect the way they run their business. They should come up with an organizational structure that are flexible and change as the business environment changes. Organizations are a complex system, the management of business require using a new approach. The role of management need is to change in order for organizations to appear as non-linear[Bee00]. Organizations need to restructure their management processes. They should allow urgent decisions to occur at all levels of management. Emergent change theory is described as change as it happens[BUR11]. According to Burnies, the emergent approach is associated with two common beliefs. The first belief is that change is emergent processes that keep on changing and has no end. The second belief is that changes originate from the acts and decisions that people in organizations make. For example, change may emerge from a conflict from two sides that are trying to make adjustments to the changes that are from the external environment of the organization. In these, change is an ever ending sequence of events that affect how an organization operates. Business need to be aware that any decision they make to solve a current shift in the companyoperation will trigger another change. This tells them that they should always be ready to manage the next change in their operation. The emergent change comprises of ever moving accommodations and alterations that result to change without an initial intention to do so. These changes occur when a business deal with the current changes and opportunities in their daily routine. The fact that these changes are unforeseeable means that the enterprise cannot predict their and outcomes understand them when they occur[Daw03]. In order for organizations to avoid this kind of changes, they need to become open learning and as they make decisions they look into the future and see the kind of changes that will originate from these decisions. This theory creates undue confusion and uncertainty in an organization since it has no clear goals[Bam03]. Change management case study Human resource department The human resource management department at Thomas Cook organized well. It helps in recruiting employees who are highly qualified, skilled and well experienced the field they will be working. This helps in keeping up with the ever-changing knowledge by the workforce. It also helps the company remain creative and innovative in the services it offers to its customers. This allow it to cope with the changing demands of their clients[Gra121]. The human resource department is also concern with updating its new employees on the policies and procedures that the company follows in its daily operations. Moreover, it introduces new employees to the culture and the values of the business. This ensures that the standards of service delivery are maintained to avoid any changes that may result in customer complaints[Mic122]. In addition, the human resource department conducts a performance review of all the employees to ensure that quality services rendered to their customers. Rewarding employees with good performance, and those who are underperforming disciplined accordingly. This helps keep the quality of service rendered at its best. In case of any changes in the market demand, employees are trained to meet this new demand. These ensure that the company does not lose customers due to their incompetence. It also enables the organization to cope with changes as they come. Use of the Mckinsey’s 7s model Firstly, the management of Thomas Cook asks the views of all its stakeholders before making a critical decision that affect the operations of the company. These helps to come up with the best action plan on a given issue. It also ensures that all changes in the external and internal business environment are put into considerations and dealt with efficiently. It provides that the decision made will give the best end goal. Secondly, the management has a definite structure of operations that helps integrate employees working at different levels more efficiently meet their objectives. Thirdly, the organizations ensure that all the set policies and procedures put in place and adhered to in order to achieve its targets. Fourthly, the organizations utilize its internal employees adequately to ensure it meets the tasks set. Fifthly, it allows different managers use different styles of management as long the end goal is the same. Sixthly, the management shares the policies and objectives they make with the employees so that they can have coordinated actions. Lastly, the organization always ensures that the skills of its workers are enhanced so that objectives can be met efficiently and effectively[Bha11]. This model allows Thomas Cookto manage effective changes in the business world. Employee engagement In Thomas Cook, all workers are work together within the cultures and values of the organization towards meeting the same end goal. The primary objective at Thomas Cook is achieving goals targets efficiently and within the stipulated time frame. For these to happen, all employees are required to work together and help each other in performing duties so that they achieve the end goal[Mil10]. This level of employee relationship heavily relies on the relationship that the employer has with the employees. This is evident with Thomas Cook. The management of the company has a very healthy relationship with the employees. The freedom of the managers and other employees motivates the employees to perform their duties efficiently which is good for the company. The management also shares with other employee’s crucial information on changes in organization strategies[Plo07]. This transparency makes all the employees feel like members of one family and makes them give their best to the company. Moreover, all the employees are allowed to take part in workshops and training so that they can upgrade their skill to cope with the changes in their job specifications. These enable them to remain at par with the changes in the job markets and also deliver services that are the same level with the changes in consumer demands. A good relationship between employees and the management allows the organization to effective deal with changes that affect the business. Marketing and advertisement In order to deal with high competition in the business, Thomas Cook has adopted the new advertising and commercialization strategies. It is embracing the use of internet in marketing and advertising its services. One can now book for a tour with them online via its website[The12]. It has also embraced the use of social Medias to advertise and market its services. In addition, via social Medias like Twitter and Facebook, Thomas Cookcan announce new offers to its potential customers[Man091]. Moreover, Thomas Cookcan receive feedbacks on the quality and services it offers to its customer and able to improve where it did not perform to the expectations of the client. It is also able to ask for suggestions on where to improve and receive immediate feedback on the same[Kap101]. This kind of interaction with the customers enables Thomas cook to learn about the changes in consumer demand and allows it to manage these changes as the come. It also gives them the opportunity to create loyal customers. With loyal customers, the company is assured of excellent returns each year. Personal change management Personal change management is crucial for an organization that aims at managing changes that are affecting business operations. It involves coming up with a plan that they have carefully thought. It also requires that before implementation, consultation with the person that this change is going to affect directlydone[Wig09]. The organization has to aware of the outcomes that change will bring before they implement the change. They need to know the people these change is going to affect and how these people will react to the change[Ore06]. In Thomas Cook, before a change occurs on an individual group of stakeholders they consult the group and seek opinions of the group members on the intended change[Ore03]. For example if they intended to change how some employees perform their duties to suit changes in consumer demand, they consult the employees to see how these changes will affect them. Before revising their chargers, Thomas cook usually carries out intensive research on market behavior and consult with its loyal customers to see how these charges will affect their clients. In addition toimproving the services they offer they have to asktheir customersto see if they will be okay with the new service to avoid losing customers. 2009 was a bad year for Thomas Cook Company. Travel industry faced recession in the year. The company had to release some of its employees in order to cope with the changes. This recession led to the closure of 16 percent hotels, and 8 percent travel companies left the market [Ore03]. For Thomas Cook to deal these changes it decreased the number of employees it had. It also gave huge discounts to its customers. Thomas Cook was faced with the problem of cash flow since it customers were booking and paying for holidays at the last minute. During this time, the company had to change its strategy. It focused more on the market instead of the services it rendered. During this time, the quality of services offered was according to the demand of the customers. They ensured that they did not exceed the expectations of the clients or go below them [Ore03]. These were to enable them to cut the cost of providing services in order to cope with the recession crisis. They also made sure that the profits they made this year were reasonable. They did not concentrate more on making very high profits but ensured that they retained their customers. They adopted a cost leadership strategy that enabled them manage the changes that had faced the travel business. Conclusions and lessons learned In conclusion, Thomas cook despite being one of the leading Tours and Travel Company is also affected by the changes that occur in the business environment. In these, it has to apply theories of managing changes in order to cope with the changing periods in the enterprise world. It has to be aware of the post-modernism changes that are there in the business environment today and be prepared to deal with them effectively. From this report, it is clear that Thomas Cook is aware of changes and has put into place strategies that allow them to deal efficiently with these changes. Lessons learned Firstly, organizations need to be aware of the fact that the business environment is rapidly changing and be prepared to manage these changes. Secondly, companies need to be conscious of the fact that these changes in the business world are not linear, and they are unpredictable. Thirdly, organizations need to reorganize their management strategies to allow urgent decisions to take place at all levels of management. These will prevent time wastage on waiting for orders from the top management. Fourthly, Organizations should embrace the current breakthroughs in communication and technology fields. For example, with the introduction of smartphones in the market, most people have easy access to the internet and social media. These will enable organizations to advertise and sell their products via the internet and social Medias and reach a large number of targeted customers in a very short period. They will also be able to get immediate feedback on the quality of their products and services and improve where need be. References Bur04: , (Burnes, 2004), Bal04: , (Balogun, 2004), Tod05: , (Todnem, 2005), Fer06: , (Fernandez, 2006), Hol09: , (Holbeche, 2009), Don03: , (Donaldson, 2003), Bed04: , (Bedeian, 2004), Sta03: , (Stacey, 2003), Hai02: , (Haigh, 2002), Bla00: , (Black, 2000), Mac01: , (Macintosh, 2001), Mac02: , (Macbeth, 2002), Bee00: , (Beeson, 2000), BUR11: , (BURNES, 2011), Daw03: , (Dawnson, 2003), Bam03: , (Bamford, 2003), Gra121: , (Gray, 2012), Mic122: , (Michalos, 2012), Bha11: , (J, 2011), Mil10: , (Miles, 2010), Plo07: , (Plowman, 2007), The12: , (The group, 2012), Man091: , (Mangold, 2009), Kap101: , (Kaplan, 2010), Wig09: , (Wiggins, 2009), Ore06: , (Oreg, 2006), Ore03: , (Oreg, 2003), Read More