The Blue Marina Restaurant - Organizational change management PDF

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Organizational change management course work on The Blue Marina Restaurant in 2012.Report on the key change issues that impact on the Blue Marina Restaurant’s business strategy implementation...

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MODULE NUMBER: HRM09703

Title: Report on the key change issues that impact on the Blue Marina Restaurant’s business strategy implementation.

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MODULE NUMBER: HRM09703 Table of Contents 1. Introduction 2. Analysis of The Blue Marina Restaurant 2.1 SWOT Analysis 2.2 PEST Analysis 3. The Blue Marina Restaurant’s Transformation 4. Employee Reaction to the Proposed Changes 5. Recommendation For Planning And Implementing To Changes 6. Conclusion 7. References

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MODULE NUMBER: HRM09703 1. Introduction Every business is running according to certain model and strategy. In the process of its existence it encounters various challenges and experiences up and downs. As a matter of fact, contemporary world is constantly changing with fast speed, conditioned by advances in technology, competition and globalization. Modern markets require changes in strategy and image. Hospitality business, in particular, has to develop by means of innovative projects and creative ideas. The recent trends in business demonstrate high effectiveness in creating or refreshing brands with further promotion of these brands with highly effective marketing strategy. Changes must be implemented both of within organization (structure, climate, performance, resources) and outside the organization (marketing, competition, presentation). Change management plays the key role in modernization of old business and has to be implemented in order to survive under modern conditions of competition in service quality and performance efficiency. The Blue Marina Restaurant is one of the leading restaurants, located in the lively part of the city and is comfortable to be reached from local business centers. It has become famous for its excellent service and delicious food of the Italian tradition. For its “no-fuss” menu and affordable prices it attracts customers aiming to have a fast-bite while “surfing” the city and during lunch hours. But the increased and constant flow of customers, lack of effective coordination between waiting and kitchen, appearance of new eating options nearby and old-fashioned management approach have reflected on the restaurant’s balance sheet. The challenges that restaurant is facing today is to improve coordination between responsibilities, reduce turnaround times, increase the volume of customers together with service quality and refresh restaurant so that it is attractive for new customers too.

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MODULE NUMBER: HRM09703 2.

Analysis of The Blue Marina Restaurant In order to analyze the meaning of changes of restaurant’s organization and

environment there must be the analysis of current state of things. By using SWOT and PEST analysis, restaurant will reveal its weak and strong sides. It will also give a good picture of what aspects should be improved and where innovation must be integrated. 2.1 SWOT Analysis The analysis of present restaurants conditions as shown in the diagram: Strengths

Opportunities

-Good location -Constant flow of customers -Well-organized menu -Affordable prices -Delicious food in Italian traditions

-Opening of new restaurants in other locations -New customers -Restaurant transformed into network brand -Integration of new performance technologies -Improve customer service.

Ability Exploit Value to to Organization Weaknesses

Threats

-Long turnaround times -Lack of coordination

-Appearance of new eating options -General disturbance among customers

Risk Ability to Organization to Address

The restaurant’s strengths are: good location, constant flow of customers, well-organized menu, affordable prices and delicious food in Italian traditions; weaknesses: long turnaround times and lack of coordination; threats: appearance of new eating options and general disturbance among customers; opportunities: opening of new restaurants in other locations and integration of new performance technologies will improve customer service and make it

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MODULE NUMBER: HRM09703 possible to maintain the flow of customers. At the same time new restaurants will draw new customers and restaurant will be transformed into network brand. 2.2 PEST Analysis The politics of the restaurant is that customers can get good food for affordable price within 15 minutes. The economic factors of the restaurant depend on how its politics are realized in practice – the less time spent on service the more customers would be served. Social factor of the restaurant is that it follows the traditions of Italian kitchen. People like traditional food, especially for affordable price. Being the restaurant managed by Italian family its atmosphere is always friendly and sincere but it means nothing if staff cannot handle the responsibilities properly. Restaurant is technologically old. It needs new technologies so that staff could maintain high quality standards. These technologies must connect kitchen with waiting in order to speed up the process of taking order and cooking. A good example is that of McDonalds when one employee is taking order with an electronic pad which is connected with kitchen. 3. The Blue Marina Restaurant’s Transformation

Since staff has found it increasingly hard to maintain the desired levels of customer service and current business strategy is no more effective, the following changes, together with those proposed by Marcello are likely to benefit the business. The first objective is to change Blue Marina from single restaurant to chain restaurant. The transformation will afford its owners to draw new clients and create new brand with corporate values. It is necessary here to figure out whether it can handle the incremental and transformational changes. The refurbishment of the existing site and set up of two new restaurants in other locations will take time. During this time customers may get used to other 5|Page

MODULE NUMBER: HRM09703 eating options. Business model must elaborate the means of achieving the goals. The following sub-divisions of infrastructure business model include: value proposition – target customer – distribution channels – customer relations – value configuration – core capabilities – partner network (Nelly and Delbridge, p. 3).

Cost Structure

Finance

The activities that deliver customer utility and the resources that enable these activities are configured.

Infrastructure Value Configuration

The capabilities and competencies needed to execute the company’s business model.

Revenue Model

Type of a client restaurant is targeted at.

Offer

Customer

Value Proposition

Target Customer

Core Capabilities

Distribution Channels

Partner Network

Customer Relationship The network of other organizations that the company engages with to deliver customer utility as efficiently and effectively as it can.

Company creates utility for customers.

The company will use to deliver its products and services to its customers.

The links a company establishes with its different customer segments.

Transformational change model in the case of Blue Marina restaurant has much to offer. It includes gradual change from individual to corporate in the process of adjustment to new conditions. These gradual changes also involve changes in technology and business management. Knowledge management innovations will play a decisive role in employees’ performance quality. Induction training and distribution of experienced staff to new restaurants are to develop service quality throughout the whole net. From the previous model it is seen that one of the components is “target customer”. Differentiation of offerings in the menu will allow to covering various types of customers. Variation in decorations will also contribute to the aim. Additionally, transformation from 6|Page

MODULE NUMBER: HRM09703 single unit to network brand will improve restaurant’s image and will give the opportunity for revenue flow. “An important strategic decision is to build and maintain a favorable and strong brand, which in turn will create a desirable external image for the company.” (Sadler cited by Shahri, p. 51) Business to employee e-business model is targeted at “time efficiency, alignment of service and employee empowerment” (Mootheril, p. 3) Integration of new system for customer service will improve the internal processes of ordering, payment and accounting. The model implies ordering tools – payment options – accounting tools. These innovations will contribute to turnaround time. Since, restaurant network will have web site where customers may view menus and make reservations, e-business model will improve its service options. Distribution of discount vouchers will promote restaurants throughout the whole city. The implementation of the above business models will create competitive advantage for the restaurant chain. 4. Employee Reaction to the Proposed Changes

It is clear that staff will react on the changes both positively and negatively. The staff of the restaurant got used to the model of doing things and will argue the necessity of changes. The popular approach to the evaluation of training is revealed in Kirkpatrick’s theory established in 1976. He defines “four levels of training outcomes: reaction, learning, behavior and results” that include “participants’ reaction to the training program” (Bates, p. 341) as shown in the diagram below.

Level 1. Reaction

Evaluation How the delegates felt, and

Level 3. Behavior

Evaluation Change of their behaviour, and this can

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MODULE NUMBER: HRM09703 be immediately and several months after the training, depending on the situation:

their personal reactions to the training or learning experience, for example:

-Did the trainees put their learning into effect when back on the job? -Would the trainee be able to transfer their learning to another person? -Is the trainee aware of their change in behaviour, knowledge, skill level? -Did the trainees put any of their learning to use? -Are trainees able to teach their new knowledge, skills, or attitudes to others?

-Level of participation. -Did the trainees like and enjoy the training? -Did they consider the training relevant? -Did they like the venue, the style, timing, etc? Ease and comfort of experience.

The results on the business or environment from the improved performance of the trainee - it is the acid test.

The measurement of the increase in knowledge or intellectual capability from before to after the learning experience:

2. Learning

-Did the trainees learn what was intended to be taught? -Did the trainee experience what was intended for them to experience? -What is the extent of advancement or change in the trainees after the training, in the direction or area that was intended?

4. Results

The outcome is depending on the objectives of the training: -Increased employee retention. -Increased production. -Higher morale. -Reduced waste. -Increased sales. -Higher quality ratings. -Increased customer satisfaction. -Fewer staff complaints.

The four levels involve evaluation by means of questionnaires and evaluation. Reaction indicates the participants’ feedback, level of participation and concerns. The evaluation of participants’ reactions must be provided after each session in order to eliminate the risk of poor learning. Learning evaluation must be performed before the learning process and after it in order to track the dynamics of improvement. Participants must be interviewed and their performance must be estimated. Behavior level defines how participants apply learned material in practice. The evaluation of behavior must be performed in day-to-day observations, because this will allow to seeing professional growth. This part is very important for hospitality business. Finally, results show whether training was successful and the decision is right. As a rule, employees encounter innovations with rejection but since they 8|Page

MODULE NUMBER: HRM09703 will now have ways out, they will have to follow instructions. New employees will not display rejection and are likely to absorb new information with pleasure. According to Colin Carnall (2003) changes either in structure, technology, product or strategy creates new roles and responsibilities among employees. Here, the problem is “whether or not this new role will be fitting to the current one” and “can cause role strain, and is a major source of employee’s anxiety, stress and uncertainty” (p. 240). Employees always follow their needs and evaluate their satisfaction with job. If new conditions are likely to change the habitual constitution of things at work place – tension is inevitable. Thus employees should be explained why changes must take place and how these changes will affect them.

5. Recommendation For Planning And Implementing To Changes Transformation of The Blue Marine Restaurant will require the following research: the locations of the two new restaurants must be studied in the frames of comparativeness (concentration of other compatible eating opportunities), relation to places where people usually need the kind of institutions (business centers, universities, park and squares) and evaluation of restaurant dimensions in the context of certain location. The restaurant’s management should make the analysis of what type of customers usually visit the area. Additionally, some kind of discourse analysis may benefit the research. Since approximately 60 new employees are to be recruited, owners should establish a reasonable payment rates both for current workers and for the recruits. They also should take into consideration the needs and motivations of new recruits during the interviews (transportation expenses, costs of education, marital status, number of children in order to adjust payment rate). Training of employees should be organized in the way that before new

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MODULE NUMBER: HRM09703 restaurants are opened, some group of recruits will be able to face initial responsibilities effectively. Since there going to be a net of restaurants, owners should think on value creating model. Restaurant management should elaborate corporate values and establish a set of corporate ethical norms to be followed by supervisors and employees. They are to include, leadership model (ethical and collaborative), norms of behavior, quality standards, service standards, coordination clearance and elaboration of a unified policy. New restaurants and the existing one should be equipped so that people with disabilities were able to come and feel comfortable. The requirements will include parking are, entrance area, entrance itself, passages, tables, rest rooms, bar tables and menus (for blind people). The combination of infrastructure model and business to employee e-business model will benefit the changes and expectations of the owners. Combination of employees’ empowerment, value propositioning, definition of target customer, creation of distribution channels, development of customer relations, value configuration, improvement of core capabilities and development of partnership network will lift the business to the new level. 6. Conclusion The unified business model has been selected to solve the issues that restaurant has been facing for the recent month. The elements, which the model includes will create conditions for reduction of current turnaround times and will create the compatible advantage for the restaurant. The network’s originality, high quality standards, fast performance, collaborative environment, ethical business paradigm and partnership with other businesses will create an attractive image of the chain of restaurants. Additionally, the collaborative performance of the three restaurants will definitely meet the 15% increase of profit margins within five years. 10 | P a g e

MODULE NUMBER: HRM09703 References Bates, R. (2004). A critical analysis of evaluation practice: the Kirkpatrick model and the principle of beneficence. Evaliation and Program Planning , Vol. 27, 341-347. Carnall, C. A. (2003). Managing Change in Organizations (4th ed.). Harlow, England: Pretice Hall. Chen, Y.-C. (2011). A Case Study on the Business Performance Management of Hilton Hotels Corp. International Business Research , Vol. 4 (No. 2), 213-218. Chisholm, R. F. (1988). Introducing Advanced Information Technology into Public Organizations. Public Productivity Review , Vol. 11 (No. 4), 39-56. Collaboration for Innovation. (2010). Retrieved July 25, 2012, from Capgemini: http://www.capgemini.com/m/en/tl/Collaborating_for_Innovation_.pdf How to Build a High-Perfomance Organization. (2007). Retrieved July 29, 2012, from American Management Association: http://www.gsu.edu/images/HR/HRI-highperformance07.pdf Huber, G. P. (1990). A Theory of the Effects of Advanced Information Technologies on Organizational Design, Intelligence, and Decision Making. The Academy of Management Review , Vol. 15 (No. 1), 47-71. John, I. (2009). Human Resource Management (9th ed.). New York: McGraw-Hill/Irwin. Mootheril, F. (2008, February). Achieving Organizational Effectiveness With B2E E-Business Model. Retrieved July 30, 2012, from School of Business Information Technology: http://researchbank.rmit.edu.au/eserv/rmit:6753/Mootheril.pdf

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MODULE NUMBER: HRM09703 Neely, A., & Delbridge, R. (2007, December). Effective Business Models: What Do They Mean for Whitehall? Retrieved July 29, 2012, from Sunningdale Institute: http://www.ifm.eng.cam.ac.uk/people/adn1000/documents/2007_neely_delbridgeepm_whitehall.pdf Perfomance Management in Hospitality Sector. (n.d.). Retrieved July 29, 2012, from Change++: http://www.changepp.co.uk/performance-management-systems/Performance %20Management%20in%20the%20Hospitality%20Sector.pdf Performance Management for All Ages in Hospitality Businesses. (2011, September). Retrieved July 30, 2012, from Institute of Hospitality: http://www.instituteofhospitality.org/news/2011news/september_2011/performance_management_for_all_ages Schenk, H. (2008). Firms, managers, and restructuring—implications of a social economics view. Retrieved July 28, 2012, from Utrecht University: http://www2.econ.uu.nl/users/schenk/Downloads_Articles/Companion%20Soc %20Econ_2008_Schenk_RestructuringWaves.pdf Shahri, M. H. (2011). The Effectiveness of Corporate Branding Strategy in Multy-Business Companies. Australian Journal of Business and Management Research , Vol. 1 (No. 6), 5159. Zott, C., Amit, R., & Massa, L. (2010, June). The Business Model: Theoretical Roots, Recent Developments, and Future Research. Retrieved July 30, 2012, from University of Navara Business School: http://www.iese.edu/research/pdfs/DI-0862-E.pdf

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