Question:
Discuss about the Internal and External drivers for Change of the Le Chic Restaurant.
Le Chic is a restaurant that is located in a busy street within a major city. It is known for its commitment to good food along with that of quick service. The standard menu of the restaurant that includes a lot of delicious dishes attracts a large number of people. The major objective of the management is to maximise the efficiency and reduce the turnaround times. The outcome in relation to the objective focuses on consistency in relation to the customer service along with that of daily sales target (Scheidegger et al., 2015). The economic crisis along with that of competition has led to considerable losses and a new business strategy has been devised by that of the new manager called John to bring the company out of the crisis. It is being turned into a chain restaurant and will have an upmarket menu and a new bar area. New employees will be recruited and the experienced employees will give training to the new employees. This report focuses on the nature of change facing Le Chic Restaurant and analyse theories in relation to the restaurantal change.
Pest Analysis:
|
Political |
Economic |
|
Health regulations implemented by the government will bring about changes in the organization. |
Joint promotional alliances and partnership with cinema along with local bowling alleys. |
|
Social |
Technology |
|
Sponsoring community projects will help in building the brand image of the restaurant. |
Multimedia website helps in accessing menus, making reservations and giving feedback. |
Figure: PEST Analysis of Le Chic Restaurant
Source: (Bilz & Nadler, 2013).
Political- The health regulations in relation to the food industry has tightened in the last few years and there is increasing pressure from the government along with that of the health experts to maintain hygiene in relation to the food items.
Economic- Joint promotional alliances with potential partners will be able to increase the business in relation to Le Chic Restaurant. The partners will operate in the same area as that of the business and partnership with cinema and local bowling alleys will increase the opportunity of the restaurant (Kuo et al., 2016).
Social- Sponsoring community projects has demonstrated the social responsibility in relation to the business. It will help in developing a strong brand image and reinforce employee engagement along with that of customer loyalty.
Technology- New information system has helped in the linking of Le Chic with the suppliers and standardized the process of payment along with that of accounting process across the restaurants. A multimedia website has enabled the customers to access menus and make reservations. Customers also get the opportunity for downloading discount vouchers and give feedback.
SWOT Analysis of Le Chic Restaurant
|
Strength |
Weakness |
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Quick service and wide range of delicious dishes. |
Customer service not adequate and lack of communication between waiting and kitchen staff. |
|
Opportunity |
Threats |
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Fast food feel and it is being developed into a chain restaurant. |
Competition has increased with the opening of a pub along with two new restaurants in the vicinity. |
Figure: SWOT Analysis of Le Chic Restaurant
Source: (Hall & Ko, 2014)
Strength-Le Chic Restaurant gives the facility of quick service along with supplying delicious food. It offers a good range of delicious dishes that is inclusive of starters, main courses and desserts.
Weakness- It has only 35 employees which is too small for that of a restaurant and 50 % of the employees are working on the permanent basis. New employees will be recruited that will require considerable capital outlay and can leave the company bankrupt. The customer service is not up to the mark and lack of coordination between that of waiting and kitchen staff is leading to a lot of problems. Customers have to wait a long time in the queue to get their favourite item (Lu, 2016).
Opportunities- It has a fast food feel that attracts a lot of customers. It being turned into a chain restaurant will grow more popular and draw the attention of a large number of people.
Threats-Competition has greatly increased with the opening of a new pub along with that of two new restaurants in the vicinity causing the company to suffer from significant losses. The customer service is not that good which compels the customers to wait for a long duration of time and some of the customers wander off to nearby restaurants as they get plenty of options in the city. The profit margins have grown thin and losses were registered in the balance sheet of the restaurant.
The success of an organization is dependent on its internal and external environment. An organisation can grow by adopting certain strategies that can help in manipulating these factors. Macro environment consists of external forces which an organisation cannot control directly. The PEST analysis helps in identifying the external forces that affect an organisation. Micro environment are the internal factors that an organisation can control. The SWOT analysis helps in bringing out the internal factors that has influence on the performance of the organization. The PEST Analysis along with that of the SWOT analysis helps in revealing important aspects of the business and will help in devising a path that would help in overcoming the barriers and lead to considerable profit of the restaurant.
Le Chic is being turned into a chain restaurant that will require an overhaul of the entire organizational system. It is offering an upmarket menu and giving the facility of a new bar area. New employees are being recruited who will need training and the experienced employees can provide extensive help in this regard by providing them with relevant information and relate experiences (that they have faced) that would be of immense help to the new employees.
The Congruence Model was developed by David A. Nadler and Michael L. Tushman. This theory is of great help in understanding the nature of business and in making it more effective. The four main components in relation to the Nadler Theory is individual, task, formal along with that of informal processes. It is found that the restaurant’s problem arise when these components do not match. Change in relation to one component can affect the other components on account of the personal along with process linkage that exist within the organization (Harris, 2015). The Theory of Nadler lays great stress on the process of transformation between that of input and output. It lays stress on the organizational culture along with strategic decisions that can help in meeting the future challenges.
Figure: Congruence Model of Nadler and Tushman
Source: (Kuznetsova et al., 2017).
Transformational Change occurs in relation to what one thinks in relation to what is happening. It involves changes in the mental process that can help in improving the performance. Le Chic Restaurant being turned into a chain restaurant and setting up of new restaurants in different cities highlight the business strategy and mindset of John, the new manager who wants to augment the performance of the employees in the organization. Incremental change revolves around introducing small changes instead of a drastic change. Recruiting new employees and providing them with induction training act as the incremental changes in the organization. Proactive change refers to the changes that are brought about in the organization because they are desirable (Silveira Chaves et al., 2014). New information system being developed that links Le Chic with that of the suppliers is indicative of the pro-active changes within the organization. Reactive change on the other hand refers to the changes that are initiated in the organization by virtue of external forces. Joint promotional alliances with potential partners will strengthen the organization and help in the expansion of their business.
Setting up of new restaurants will involve extensive communication and maintaining effective communication can help in reducing the problems. It is extremely necessary in this case to recruit the right kind of staff who has to mirror the ideals of the owner. The core principle in relation to Le Chic Restaurant has to be communicated from the outset to the staffs so that work is carried out effectively. Communication between the store is of crucial importance for this kind of chain restaurant (de Araújo, Gonçalves & Matias, 2014). The management should follow up on every trivial incident so that the problems are sorted at the beginning and do not lead to further complications. Great staff, on the other hand, can lead to best advertisement for the brand and contribute greatly for the organization. Proper training should be meted out to the employees so that they can perform their job effectively and it will help the employees to grow within the organization. A positive organizational culture can thus help in minimizing problems within the organization and lead to profit for the company (Volkema & Kapoutsis, 2016).
Pro-active reorientation strategy change can be brought about in the restaurant to bring improvements in the organization. A robust central management is of great importance in the case of a long chain restaurant. It is not possible to oversee all the operations so Point of Sale (POS) software can help in monitoring the operations. Central Kitchen Management is important for this kind of long chain restaurant as there are many outlets and consistency has to be maintained in relation to the different outlets (Pagaryan, 2017). Track has to be maintained in relation to the inventory needs and consistency of recipe can help in ensuring the success of the restaurant. POS can provide a solution in reducing complexities for the long chain restaurant.
A physical environment that is well-designed is necessary for any successful operation. Restaurants can make use of technology in their operations and make use of social media to expand their business. True loyalty springs from effective service which includes attention to detail along with that of appropriate service. Franchises will help in ensuring the success of the brand. A critical goal in relation to a restaurant is to serve the correct target and this can be achieved by analyzing the value that a customer has to the brand (Cho, Bonn & Kang, 2016). The distance between that of head quarters and sales outlet has an effect on the performance of the restaurant. It is found that the revenues are weaker for that of the distant units and they were not long-lived.
The reactions of the employees to change are on account of a number of factors. It is a reasonable fact that the employees will react as the process in relation to organisational change will involve moving from that of the known to that of the unknown. They cannot understand the nature of change occurring in the restaurants that causes them to react. The three factors that influence the reaction of the employees to that of change is emotion and cognition, communication and participation in decision-making (Kang & Lee, 2015). Many organisational change effort fail because of underestimation of cognitive affective nature in relation to change.
Kirkpatrick’s 3 elements of change is in relation to empathy, participation along with that of communication. They can provide help to a great extent in the effective management of change. Kirkpatrick puts forth an organized model that can help in managing change. According to Kirkpatrick, the following steps can assist in managing change along the proper lines:
The employees of Le Chic restaurant were apprehensive of the changes taking place in the restaurant. Their emotions ranged from that of anger, fear to suspicion in relation to the new rules and policies introduced in the restaurant. The changes taking place in the organization should be communicated to the employees and there should be jusitification for the changes taking place. Expectations should be shared along with the benchmarks.
The employees of Le Chic Restaurant should be communicated the essential fact that change is necessary and it will benefit them on the whole. They should be made known that the change will result in their profit and contribute to their overall well-being. An important element of Kilpatrick is in relation to empathy and it can help in making the employees adjust to the changes brought about in the organization (Lee, Back & Chan, 2015). The reactions differ from that of one person to that of another. It is indicative of the ability to be able to walk in the shoes of other people and feel what other people are going through so that the reactions from the management look humane. Managers would be able to achieve their goals with the full support of the team.
The personal files of the employees of Le Chic Restaurant should be glossed through so that the managers can know about the employees. The employers should know the person on individual basis so that they feel empathetic towards the person. Empathy provides clues for communication along with that of participation (Jung et al., 2015). The next step in relation to managing change is that of participation. Participation helps in reducing the resistance and motivating the people to make changes in the workplace. Instructional meetings will help in ensuring participation. The learners or the employees of Le Chic Restaurant should participate under the guidance of that of the leader. The leaders should contribute the idea that lies behind the decision of brining about the organizational change. There should be discussion that can help in reducing the confusion and the leaders can set forward the need for bringing about change within the restaurant (Bilz & Nadler, 2013). The leaders can set forth questions and the employees can answer their leader. The employees of Le Chic Restaurant should actively participate that will help in accepting the change if they are involved. It will help them in meeting a goal and responding properly to a new situation.
Communication is another important aspect that can help in managing change in an organization. Change management is a two-way method and the right amount of communication between the people in the top management and the people working at the lower level can help in reducing conflict within an organization. Effective communication will help in building a better relationship between the staffs of an organization (Tsai & Liao, 2017). It will bring about productivity in the organization and provide growth for the restaurant. Systematic communication between the employees of an organization is an important phase and helps in creating support.
To help the change agents to identify the acceptance of the employee it is significant to operationalize the definitions in relation to reactions to change. Resistance is inclusive of a multidimensional attitude in regard to change that is composed of the affective, cognitive and behavioural component. These dimensions can be characterized from that of “acceptance” to that of “resistance”. These are the three important dimensions that are considered in the aggregate in order to bring about acceptance in the employees and reduce the resistance in relation to change.
Technology is evolving from time to time so the employers have to stay constantly updated in regard to new technology so that they can effectively handle change. The employees of Le Chic Restaurant should be made aware that learning new technology is important in the fast-paced life of the modern world. Training programmes should be delivered to the employees so that the employees can effectively cope with the changes in the modern era (Bilz & Nadler, 2013). It takes time to implement the new changes in the organization so the right amount of patience on the part of the management and employees will prove to be of great benefit for the growth of the organization.
Psychological contract is indicative of unwritten set of the expectations in relation to employee relationship that is different from that of the formal contract. Psychological contract is inclusive of the informal arrangements and perceptions existing between the parties. Psychological contract can develop on the basis of communication and it is extremely necessary that the top management explains the changes brought about in the Le Chic restaurant to the employees so that they do not resist against it.
The coping cycle mechanism can help in overcoming resistance within a restaurant. The new business strategy should be marketed to each group and the new plan should be communicated to them. All the employees in the organization should be able to understand why such changes have been brought in the restaurant. The team members should be invited within each functional group so that they can participate in meetings.
Change can be effectively managed in the short term with the help of communication (short term), meetings (medium term) and change curve model can be made use of in the long run which describes the organisational process in relation to change more effectively.
Congruence management model is a diagnostic tool that can help in evaluating whether the elements within an organization are working in an integrated manner and is helping in improving the performance. This helps in the identification of the problem areas and puts emphasis on broad elements. The internal elements within an organization help in transforming the input like resources into services (Stevens, MacDuffie & Helper, 2015). For the hospitality industry, customer service experience is of crucial importance and restaurant management should hire, train and lead the staff in the proper manner. The employees should be well-trained so that they can implement the principles in the proper direction. The staff will be able to gain knowledge and provide great service.
Attention to business along with that of financial details can help in transforming the small changes into that of large returns. The key metrics related to that of sales, inventory and marketing should be monitored from time to time and the recent trends should be assessed and constructive actions undertaken on that basis. The Point of Sale system will be helpful in tracking and analysing transactions. It can prove to be effective in managing inventory and track the marketing efforts (Gonzalez et al., 2015). The inventory control system will help the restaurant to track the purchase along with that of the yields. It will help in analyzing and adjusting the pricing and perform cost analysis in relation to the beverage inventory. Properly controlling the direct cost will prove to be an effective measure in helping the management to operate the restaurant. The personnel related to food preparation will follow the standardized recipes that is developed by the owner in order to control the food cost (Aalbers, Dolfsma & Blinde-Leerentveld, 2014).
There should be 100 % compliance with the policy of sanitation in order to ensure the health of the employees. Maintaining quality standard along with that of maintaining high turnover rate can prove to be a grave challenge. A rewarding working environment will help in reducing the training cost help in ensuring employee satisfaction. Reduced staff turnover will produce few errors and result in minimum product waste (Heo, 2017). Program of training along with education will help in ensuring that the staff member implements the exact standard of service. The Company should have detailed work descriptions along with that of descriptions in relation to each position from that of the entry-level to that of the managers. This will help in ensuring that the guests receive quality experience from the employees (Lasek, Cercone & Saunders, 2016).
Organisational change can be managed effectively by taking into consideration the Congruence model. The Congruence Model consists of the following aspects- Input, transformation process and output. The new employees who are recruited should be hired by keeping in mind the aims of the organisation and those who would be hired should be tech-savvy to deal with the changes. The new employees should be given training so that they can carry out their tasks perfectly and deal with the changes. The weekly management meetings will prove to be an effective forum for reviewing and discussing the operational performance. Joint promotional alliances with the potential partners will strengthen the company and make it popular in the market. The employees can be talked to on an individual basis so that the hurdles they are facing in the organisation can be discussed and counselling can be provided to them to relieve any kind of mental turmoil that they go through on account of the changes. On the individual basis, the employees should change their traditional mindset and work on the basis of the needs of the time and organisational goals (Silveira Chaves et al., 2014). The transformation process of Le Chic Restaurant will lead to good output and augment the performance of the employees. The creative strategy of the business would enable the company to earn profit and help in increasing the annual turnover of the company. The social responsibility schemes will make the employees responsible and increase their loyalty for the company.
The following measures can help Le Chic Restaurant in successfully handling change and grow its business:
Conclusion:
Joint promotional alliances can help in increasing the business of Le Chic Restaurant. A multimedia website will enable the consumers to access menus and make reservations. Customers are also benefitted with the opportunity of giving feedback so that they can be used to bring about changes in the restaurant. New employees should be given training and the experienced employees should help the new employees by furnishing them with adequate information. Extensive communication can prove to be an effective strategy in resolving the problems in the restaurant. The right kind of staff should be recruited who mirror the ideals of the owner. A robust central management is extremely necessary for a long chain restaurant. Point of Sale (POS) software can help in the assessment and monitoring of problems in the restaurant. Attention to detail is crucial for a restaurant and can lead to profit for the business. The management of the restaurant should be empathetic that can help the employees to adjust to the changes in the restaurant. The employers should be taught about innovative technology and trained in the adequate manner so that they can handle restaurantal change in the effective manner.
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