Question:
Applying suitable analytical framework and in relation to an organisation (Travelodge hotels UK ltd), critically evaluate the way in which Travelodge managed, or is currently managing strategic change?
About the industry- This is extra vital that in current competitive ecology, both regarding business plus employability people must have a very clear understanding as well as sufficient knowledge of the segment or industry where they operate or are planning to operate in future. The actual hotel industry also has since many years struggled to properly establish things that truly make all the hotel staffs motivated as well as satisfied along with their tasks and jobs. Higher turnover of the employee in hotel industry also is assumed to be as a reason of nature of work, plus very low pay, as well as long hours of work (A. Senthilnathan and A. Ramya, 2011). Therefore, towards effectively addressing the turnover issue and handling of the industry through actual adjustments, all the hotels need to be very efficient and effective in changing its rules and regulations and even adjusting with the altering ecology. Hotel industry all time changes and the environment here is continually altering as the industry is highly flexible due to its nature of changing demands of customers and increasing number of competitors day by day.
About the firm- Travelodge actually is second largest and vast budget hotel brand and is third biggest chain of hotel regarding room numbers within United Kingdom as well as fastest developing hotel within UK. It actually operates in the hospitality industry. Right from the organizational perspective, Travelodge also has its proper headquarter at the Thames, England, UK as well as its parent firm is situated Dubai International Capital. The firm has attained a proper roll out strategy to initiate a novel operation within airline industry initiating with UK route (Travelodge.co.uk, 2015). The firm aims to operate like a novel strategic unit of the Travel Lodge Hotels as albeit beneath Travel Lodge along with code named as Travelodge airline. This is even intended towards embracing a lower cost plan like a lower cost tickets for travel as well as some other services, efficiently rivaling the Airlines within low cost tactical group like Easy Jet as well as Ryan air and also many others.
At the most fundamental level, change refers to a shift out of the present state i.e. the way in which things are existing today, via a transition situation and towards a proper future state in which things will be performed. Change also takes place all around the ecology – like at home or within the community as well as at work. These changes could be within motivated otherwise externally motivated environment. The alteration can also be a very dramatic exit from what people know or else it could be a minor. These changes could also be anticipated otherwise unexpected. Yet in all the cases, fundamental character of change actually is all about a shift from current state via a transition state till a proper future state (Trompenaars and Woolliams, 2002).
The change management also is essential as organizational change they impact the employees as well as the firm on a whole. The recently documented as well as managed procedure are executed through someone.
Framework intended for managing the change by the firm named Travelodge hotels UK ltd-
Though a lot has been documented about the management of change within large personal as well as public firms, very less has been actually written about the managing of the change within a forever-changing hospitality as well as hotel industry within particular (von Haldenwang, n.d.). The capability to successfully management and embracement of change is also of a great advantage to current hotelier. Also, to productively intact plus overcome the change, Hotels require to carry a very specific attitudes as well as a proper set of knowledge and skills towards going about change as well as planning for the inevitable change. Here the study has been undertaken and the hotel taken into consideration is Travelodge hotels UK ltd that has adopted and implemented a very competitive strategy and plan which includes reduction of the costs of functions. This is also to say that their trade and hospitality strategy is day by day towards a cost leadership in addition to persuading the business strategy that needs being open towards ideas as well as one which it responds speedily and flexibly towards ideas which re-present the opportunities for all the potential growth of the revenue (Tonn, 2003). The hotel can also aim to compete upon price otherwise differentiation.
On other hand, there also are several forms of innovations, first form is the incremental innovation which modestly improves and develops a firm’s procedure otherwise services or this can also be utilized in the fine-tuning of its commerce model which is the path that it creates value intended for its consumers. The radical innovation notably improves existing goods and services otherwise entirely replaces them along with novel ones. This radical innovation and change occurs less regularly than the incremental innovation partially as the firm does not have technical plus human resources needed for the radical innovation, as well as because this radical innovation will happen anytime and so quickly that the firm will not be able to get prepared for risks as well as uncertainty that comes along with this form of innovation. This also must be noted that, the innovation is also not a very competitive strategy within itself, but it can be used to develop a proper competitive strategy (Tanner, 2008). If strategy comprises of increasing rate at which the novel products otherwise services are brought in, then the innovation could also impact firm within additional to one or some different ways.
Over last 20 years pace plus scale of the organizational alteration have actually accelerated plus there has also been a major increase within number of looms towards management of change. There exist many types of change within any organization, few even forces as well as others deliberate (Reddi and Moon, 2009).
The first form if change and alteration in the hotel is, the systematic change which is slower and less ruthless as well as focused plus even more cautiously constructed as well as timed. There also are several approaches towards systematic changes in the hotel like the quality improvement and work reprogramming, tactical planning and even benchmarking. The characteristic and nature of all these looms could also be excessively formalized plus so smother initiative in firm. Other form is the organic change which is performed internally within the hotel or in some other terms it also seems to rise from positions without being officially managed (Carnall, 2001). Main issue and problem with organic loom is the groups within the firm that might begin towards working at proper cross-purposes as well as this also might result in the scramble over the resources, yet the outcome of the loom can be also dramatic. Planned changes also are iterative, recurring and an ongoing procedure which comprises of the analysis, action as well as evaluation, plus are also further future oriented. It also is a loom that maintains that if once change takes place; it actually must be properly self-sustaining towards maintenance of momentum. This even means that, every change agents otherwise stakeholder who are organization, managers as well as recipients together diagnose organization’s issue and equally plan as well as design specific changes. Some other type is also emergent change that is an incessant procedure of experiment as well as adaptation aimed upon matching organization’s abilities to needs plus dictates of the energetic as well as uncertain ecology. This form of change also is attained by the hotel through a quantity of small till medium level incremental alterations. Another form is, the dramatic change which is generally initiated within times of the crisis otherwise of a very great occasion when power also is concentrated as well as there is too must wager to be managed (Powers and Barrows, 1999).
Organizational change and a firm’s proper change management agenda is used by the Travelodge as a very systematic process that has also become core as well as vital part of the organizational life and employees’ work life in the hotel. Change within the firm does never have to be very dramatic otherwise far reaching, actually sometimes change also is incremental as well as hardly noticed. Sometimes a novel piece of tool and equipment otherwise software also is introduced otherwise sometimes a person also leaves plus even somebody novel joins the hotel. Sometimes the change is very large plus dramatic like a total re-organization, proper merger otherwise a good take-over, plus no one as well as nothing in hotel is maintained unaffected. Sometime economic crisis in the firm has provided proper sense of the urgency which has even helped it everywhere to attain a successful implementation of the changes which also would have otherwise been very difficult (Carnall, 2002). Several cultural and the structural factors also have vital plus direct effect upon very accomplishment of hotel’s aims and goals. These are even highlighted when the hotel stabs to redefine itself, towards change of their image within an attempt towards maintaining or enhancing their abilities.
In this hotel, hotel is forced plummeting yearly profits as well as in answer they also have adopted a very competitive and tactical strategy which includes reduction of their functional costs plus even reduces the service prices within hope of enhancing their hotels tenancy. Being extra innovative in many ways also needs being properly open towards the ideas through previously untouched sources inside as well as outside of hotel, plus designing the hotel that responds hurriedly and flexibly towards ideas which represent chances for the potential revenue development (Chadee, Raman and Michailova, 2011).
Causes which generally triggers the change could be cataloged as interior triggers like new employees, conflict, de-motivation, sales plus profit drops, Skills gap and even loss of main staff member and exterior triggers like economy, competitors, supply, funders, government policies, customers, Media, public, shareholders and technology (Mr K Jones, Montedison UK Ltd, 1986). Such triggers intended for change are also analyzed utilizing several managerial techniques and tools which also are available for gaining a necessary understanding about environment, externally as well as internally
The firm uses this tool that has some five extents which are named as political, economic, technological, legal, social and environmental. It is even used towards picking up some factors within local otherwise micro, as well as national or even macro contexts which managers require to take into consideration. Some other tool is the stakeholder analysis which is a proper cultural otherwise values audit tool that supplies an understanding to some of people elements over plus beyond the resource audit. Third tool named as SWOT analysis is also used which is very simple loom that measures all the strengths, threats, weakness as well as opportunities that the hotel has and that it faces due to its competitors. It supplies a structure within which the hotel lays out need plus readiness of hotel for the change (Clapperton, 2010). As also mentioned earlier the hotel uses a good change and competitive strategy which is applied if hotel faces any loss of the customers, and lacks of in the pricing power otherwise observes any shrink in the profit margins.
Initially following the change that has already affected the hotel there is proper resistance towards the change and these resistances could be grouped within several categories like individual such as fear of any failure, ignorance and even loss of status, lethargy and even role loss. Other can be team which comprises of social loafing and pairing as well as lack of the openness, which also could be organizational, or even external factors like the investors, suppliers and regulators, media as well as politics otherwise collaborators (Kennedy, 2001).
Despite of risk of the resistant behaviors that has been recognized by the hotel’s management department several people in the hotel experience, very less of them that tend towards taking time to methodically analyze conditions regarding determination of potential employees who might also resist change along with many reasons.
Firstly, a most understandable reason for every person people towards resisting change initiatives is the feeling for damage of self interest of the staffs through all novel circumstances. Also, staff face increased phase of nervousness or anxiety from the changes or even from the proposed changes within the work ecology, same happens in case of the hotel as well (Cook and Glass, 2011). The word self interest involves a political connotation which refers towards power relationship amongst the staffs in the firm. In some other words, novel ideas regarding the path of employees work frequently impacts the relations amid dissimilar individual groups. Organizational staffs actively struggle to avoid as well as divert control also they seek towards maximization of their self interests that they might or might not observe as coincident along with the firm’s, and also they attempt towards resisting domination of some others while the advancing otherwise defending of their own field of control plus autonomy. This even means that, employees can resist the changes to uphold their social position in organization. This resistance could even become overt.
Secondly, aim of change efforts in this hotel has always been towards creation of a novel pattern of working that staffs are probable to adopt. From such perspective it is also argued that staffs of the hotel do not actually resist to idea of the change yet to all its potential results. As seen in this hotel, the actual re-structuring has made reordering of the personnel as well as management structure, and also the roles were about re-definite (Graetz and Smith, 2010).
Third, more or less all recommendations for a very successful implementation of change by the hotel emphasizes upon necessity towards making people understand the real meaning of any kind of change. The hotel also states that staffs might tend towards resistance of change at the time if they are unknown about their own needs, purposes as well as outcomes and also the same for the change. This is even vivid in Travelodge programs for change management. Adding to the inadequate knowledge and understanding about any change, if staffs are suspicious regarding real meanings, aims and objectives of change and also the initiators of the change, there is very high risk of resistance. Thus hotel carries on a plan which includes a series of proper prior information which is supplied to all the staffs of the hotel before implication and application of any kind of change otherwise alteration that could affect the staffs and even the firm on a whole. Such a strategy makes the hotel to ensure that all the resources are handled carefully and optimally by the firm (Covington and Thamotheram, n.d.).
Fourth, plan for management of change aim towards moving the organization from existing position towards some ideal situation and this period is called the transition phase which is a type of journey for the hotel that carries extra uncertainties along with it and also makes the firm to work more carefully. Uncertainty for the firm can be lack of any data and information regarding future events or even upcoming changes which can later enable staffs to raise various issues and frustration among staffs can damage the performance of the hotel as hotel staffs are always directed connected with the customers and they serve the people visiting the hotel directly. When staffs lose their own control and management, it becomes very difficult for the firm to make balanced decisions that would construct desirable results. As an outcome, individuals that experiences defeat of control are likely to oppose change as of the apprehension supplied by uncertainties regarding change (Gornick, 2008).
How managers of Travelodge overcome challenges
For overcoming change, managers in the hotel also face challenges and risks while implementing the plans and strategies. The main element within implementing change otherwise managing change process is the communication. Managers undertake plans and strategies for proper communication with the staffs so that they enable an enhancement of good relations amongst people in the hotel which could influence the sales of the hotel ultimately (DiPlacido, 1976). Carrying a completing communication loom towards staffs helps the managers to maintain good environment in the hotel chains of Travelodge. Additionally, staffs’ attitude, discernment of managers’ activities, staff’s motivation as well as continuous enhancement of working ecology could be some other characteristics a manager accountable for change undertakes in the Travelodge. Below there is list of general challenges which are posed for the managers tasked along with implementing of the change management as well as they can even mitigate several resistance:-
Employees Communications: At the time of change process manager take proper time to communicate with staffs as not every employee is outspoken otherwise bound to support their thinking to themselves as well as this could also result in the ‘underground’ confrontation towards change. When all this takes place it can also result in some delays as well as might hinder the understanding of employee’s unfulfilled needs as well as expectations. Here the hotel feels that it is on the unfreezing stage of Lewin’s model.
Employees Co-operations plus Collaborations: Managers within the hotel ought to think plus understand that dissimilar people do not carry similar views otherwise opinions regarding change, majority of people also tend to get worried regarding change. Thus the need for proper communication and collaboration is understood by the managers due to which they ensure growth and development of collaboration among all the staffs so that they could help and support each other at the phase of change.
Employees Motivation: Motivating the staffs is considered as a vital task by the hotel. This is serious especially at the time of change implementation phase, manager also ought to ensure that staffs stay motivated as well as are always ready to listen any words from staff’s, and even takes proper time towards explaining things that are happening, which helps the staffs morale to get enhanced and thereby happy staffs accept things and changes easily (Dr.S.Jansirani, 2013).
Staffs Attitude: This is a focus at the time of implementation stage where a manager tries his/her level best to properly understand attitudes of the employees. Additionally stability, immobilization as well as denial are the factors considered here as a part of human cycle of the negative response within hospitality.
Suitability: The plan and strategy as well as tactics pursued by the Travelodge address key strategic problems underlined by firm’s new tactical position. Main question which Travelodge’s management asks themselves is that whether novel operation would create any economic sense; and permit Travelodge towards attainment of benefits of the economies of scale regarding staff, marketing as well as sales plus are environmental friendly or not (Gill, 2002).
Feasibility: Here the firm is concerned about availability of the resources towards implementation of strategy. The vital questions which Travelodge’s management asks here before implementation of strategy is that whether resources are timely and effectively available or not and also that they could be developed or else obtained cheaply or not from any institutional stakeholders as well as the comfort of all types of investment recovery are also analyzed by the hotel at this stage. Travelodge’s management also performs a good cash flow evaluation and forecasting as well as resource consumption analysis towards ascertaining worthiness of the investment (Drazin and Joyce, 1979).
Acceptability: The novel operation is acceptable by several stakeholders of the Travelodge, chiefly, institutional investors as well as regular shareholders. They are also very much concerned about return upon the investment in the financial as well as non-financial fields and also risk involved.
Below there are some points that the managers and practitioners at the hotel experience and face confusion about the change as well as management of change.
1) Identification of confusion – Sometimes the managers might experience confusion with staffs that they are supporting or helping. Here the confusion is observed and also lack of the clarity regarding change as well as management of the same is even observed. The manager calmly observes and tries to find out the issues with the
– Project leaders as well as team
– Answer designers plus developers
– Executives as well as senior leaders
– Some other change management experts (Fargus, 2000)
2) Use states of the change – at both organizational level as well as individual level – like a path towards introduction and also position management of change a proper conversation regarding the present state, transition stage and also the future state helps the managers to sort out issues (Woods and King, 1996).
3) Introduces notion through asking some simple question – The managers here act smartly. They ask few questions to themselves and few to the staffs. These queries are like who will continue doing jobs in a different way as an outcome of the project otherwise initiative? Who will be on the same position? Who will be promoted and also who will get demoted? (Forte, 1986)
There are several steps Travelodge still need to takes if it wants to attin better results and mange changes extra efficiently.
Plan for Change- As there are several places and situation where change can take place, the actual realization about the effectiveness and efficiency of the organizational change generally emerges unintentionally or develops within extra orderly manner. For change in the hotel to be perfect and effective, all forms of change must be considered by the firm and focusing on merely a single form might hamper the results of the firm.
Proper formulation- Travelodge requires organizing as well as formulating the management of change strategy which could also look into the inducing change through single staff towards another instead of focusing upon their hotels yet they must also consider dissimilar customs within different fields. Eliminating such concern reduces the stresses made by things that are regarded as the unwanted communication (Whiteley, 2002).
Change confrontation management: resistance of change must be effectively decreased by reducing resisting forces other than enhancing the driving force. Such driving force also carries the terror of punishment as well as forcing people towards acceptation of change could even result within increased resistance.
Keep the staffs updated: Throughout total change procedure the hotel must ensure that staffs are kept updated with each and every step and every single change is it vital or even minor. The hotel management also must make it very clear to staffs on things that they must expect, and things that they must neglect. Such updates and information also would reduce the anxiety amongst staffs which is a result of uncertainty and risk carried in by the change.
Communicate following change: After the change takes place the firm also needs to take in a good follow up process in order to ensure that the firm and staffs attain the personal as well as group aims and goals most efficiently and are not facing any issues with the change that took place. This is suggested as it’s seen that the hotel lacks a proper follow-up process.
Conclusion:
In a nutshell, resistance towards change blocks end outcomes and changes are always meant to give out, means innovation forever is undermined, as well as whatever alterations is generated is merely a reaction to the action of the change that takes place.
It is even vital to know and understand the ways in which it proves the extent to which the change is beneficial and also degree to which it is not beneficial. Along with great demand of employees and very flexible ecology in the hospitality sector, it is always good for the leading managers within change management procedure to pay extra attention towards attitudes, motivation and cooperation as well as be very receptive towards the views brought in by staff because this would later help employees and then effect the hotel positively. Towards successful attainment and overcoming of the change, Travelodge managers need to carry very specific attitudes as well as skills for the envisioning and even anticipating. And also having aware about impending change and alteration the firm needs to be acquainted with how too efficiently to communicate change to the co-workers and clients as well as external collaborators.
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