Discuss about the Strategic Human Resource Management for Cappuccino Coffee.
The purpose of this report is to evaluate various strategic options that can be employed for managing the Human Resources issues related to the change in the Cappuccino Coffee House. As already been discussed in the previous report, Cappuccino Coffee House, a global chain of coffee shops is planning to close fifteen of its stores that are located in six different countries and expanding its business in two new countries viz. Australia and the USA by opening eight new shops. However, due to these strategic business decisions, the organizations is expected to face certain issues in the change management as it is a proven psychological fact that human beings resists change even if it leads to their betterment (Awad et al. 2013). In this context, it is the responsibility of the change agents and top management to prepare the employees for strategic change with proper communication of the change and its importance. In addition, providing proper training and mechanisms to adjust to the change is also the responsibility of management so that the employees can adjust to the changed environment.
As discussed earlier, the organization is undergoing structural change by closing certain coffee shops in some parts of the world and expanding its business in a completely distinct countries viz. the USA and Australia. In order to successfully implement this strategic decision, the organization has to undergo various changes related to the cultural, ethical and CSR, as the host market is completely different from the domestic market. Therefore, it is important to for the organization to identify issues related to the change that is crucial for the successful expansion of the business.
As discussed earlier, the employees of Cappuccino Coffee House are expected to face various issues in the new markets in the areas of culture, ethics and CSR due to the apparent differences in the business and corporate values of the host country and the domestic markets where the company is currently operating. Therefore, to better understand the issues related to change and their impact on the organization and staff, following measures can be adopted:
Further, in order to understand the issue related to change and its implication on the organization and the staff, Fishbone Analysis can be an effective tool that has been discussed in context to the Cappuccino as under –
Fishbone analysis is conceptually a cause and effect analysis and helps the managers in understanding the issues at and the causes of that. Thus, it helps in providing complete assessment of the issues and assists in making most effective solutions to identified problems. The steps involved in this analysis is discussed as –
In order to address the issues identified in the Cappuccino Coffee House, the human resource management is required to implement the change process in a systematic and proactive manner discussed as under –
Overcoming resistance: The first step that has to be taken by the management is to develop means to overcome employees’ resistance to change. This can be achieved by clearly and consistently communicating the need of change in the organization to the employees. Employees are required to be taken into confidence before implementing the change program. The rationale behind the change and how it would help the organization and the employees in the long-run must be properly communicated to the employees. In addition, management must include the change champions who can spread the positive aspect of change to the employees. The management is also required to understand the issues that employees would have to face in the change process and develop appropriate support mechanisms to assist the employees in the change process (Boxall and Purcell 2011)
Engaging employees: In order to ensure that the organization achieves the desired change, the employees must be engaged in the change process right from the inception phase. In addition, the management should include the team leaders, supervisors, and the change champions in the change process to help the management understand employees’ perspectives so that effective decision in the change management process can be taken. Moreover, the roles and responsibilities of the employees must be clearly stated to avoid confusion and misunderstandings (Bratton and Gold 2012).
Implementing change: The organizational change takes time to imbibe in the organizational culture, therefore, it is crucial to implement the change in a systematic manner as –
Preparing for change – It includes steps such as defining the change management strategy of the organization, developing the change management teams that will be responsible for implementing the change in different departments, and defining the key roles and responsibilities of the individual employees (Cameron and Green 2015).
Managing the change – This step includes steps like formulating and implementing the change management plans that must include communications, operations, and resistance management.
Reinforcing the change: People have a tendency to slide back to the previous state if proper reinforcement mechanisms are not implemented. Therefore, it is important to monitor and evaluate the effectiveness of change programs and taking necessary corrective actions to whenever required (Rafferty et al. 2013).
Communicating the change: The final step in the change management process is to communicating the change achieved by the organization to concerned stakeholders.
Opinion leaders: Opinion leaders are those individuals that are well known and respectable by all the employees. They have the ability to influence and motivate the employees to participate positively in the change process. The management, therefore, can take the help of such employees to motivate the employees in achieving the desired change in the organization (Lengnick et al. 2011).
Leaders: Organizational leaders command the most authority and respect from the employees; therefore, it is advisable for them to take an active part in ensuring the change management programs are effectively executed (Cummings and Worley 2014).
In the process of change, it may be possible that the strategies does not yield the desired results and cause problems that can further complicate the issues. Therefore, the management must be ready with the new plans or strategies to manage unforeseen issues in the process and provide appropriate solutions to mitigate the effect of these new issues on the change management process.
In this context, the management should take following steps in case the previous change management process fails that is discussed as –
It is crucial for the management to measure and evaluate the effectiveness of the change management efforts taken by the organization in order to achieve the desired results. In order to measure the impact of change in the organization an effective evaluation plan is required. An effective evaluation plan helps to provides relevant information about the effectiveness of the change management programs highlights the weakness of the change process functions and also identifies the opportunities present in the business environment to further enhance the organizational change management objectives (Hayes 2014). Further, most of the issues identified are related to the cultural, ethical and corporate social responsibilities of the organization in the new locations of the organization, therefore, following steps are to be taken to measure the change –
Conclusion
From the above discussion, it can be concluded that the change management is an important business strategy that becomes important for the organization, as the business environment is highly dynamic and becoming complex by the day. Therefore, in order to sustain in the market, it is necessary to continuously adapt as per the changing business requirements. In this context, the change management strategy adopted by Cappuccino Coffee House requires proper understanding, formulation, implementation, and execution of the change management programs. In this context, it is important to understand that issues that employees might face during the change management process. Change is associated with the fear of unknown, change in the status quo and other problems. It is therefore, the responsibility of the change agent and the management of the organization to identify the possible issues in the change management process and provide proactive solutions to minimize the impact of these issues on the change management objectives. In addition, it is also advisable to include the influences such as opinion leaders, organizational leadership in the change process as they command greater respect from the employees and can influence them to participate positively in the change management process. Lastly, the management is required to measure and evaluate the effectiveness of change process and develop strategies for the future development.
References
Awad, R., Sherratt, S. and Jefferies, M., 2013. Proposing a new model for organizational change management. Change Management: An International Journal, 12(3), pp.17-28.
Battilana, J. & Casciaro, T. (2012) ‘Change agents, networks, and institutions: a contingency theory of organizational change’, Academy of Management Journal, 55 (2), pp.381-398.
Benn, S., Dunphy, D. and Griffiths, A., 2014. Organizational change for corporate sustainability. Routledge.
Boxall, P. & Purcell, J. (2011) Strategy and human resource management. 3rd ed. London: Palgrave. ‘Human resource strategy and the dynamics of industry-based competition’ (pp.257-280).
Bratton, J. and Gold, J., 2012. Human resource management: theory and practice. Palgrave Macmillan.
Cameron, E. and Green, M., 2015. Making sense of change management: a complete guide to the models, tools and techniques of organizational change. Kogan Page Publishers.
Cummings, T.G. and Worley, C.G., 2014. Organization development and change. Cengage learning.
Hayes, J., 2014. The theory and practice of change management. Palgrave Macmillan.
Lengnick-Hall, C., Beck, T. & Lengnick-Hall, M. (2011) ‘Developing a capacity for organisational resilience through strategic human resource management’, Human Resource Management Review, 21 (3), pp.243-255.
Rafferty, A.E., Jimmieson, N.L. and Restubog, S.L.D., 2013. When leadership meets organizational change: The influence of the top management team and supervisory leaders on change appraisals, change attitudes, and adjustment to change. Psychology of Organizational Change: Viewing Change from the Employee’s Perspective, pp.145-172.
Truss, C., Mankin, D. and Kelliher, C., 2012. Strategic human resource management. Oxford University Press.
Vazirani, N. (2013) ‘An integrative role of HR in handling issues post mergers and acquisitions’, SIES Journal of Management, 9 (2), pp.82-88.
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