CHANGE MANAGEMENT IN HOSPITALITY

Running head: CHANGE MANAGEMENT IN HOSPITALITY: HP GROUP
Change Management in Hospitality: HP Group
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1CHANGE MANAGEMENT IN HOSPITALITY: HP GROUP
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Issues of Organizational Culture............................................................................................2
Organizational culture........................................................................................................2
Summary of case study and its issues................................................................................3
Organizational development and HP group.......................................................................4
Culture of New Zealand and HP group..............................................................................5
Change Management Action Plan..........................................................................................5
Principles of change management theory..........................................................................5
Change management and HP group...................................................................................6
Change management action plan.......................................................................................6
Organizational Structure........................................................................................................8
Role of organizational structure in meeting organizational goals......................................8
Recommended organizational structure for HP group and justification..........................11
Conclusion................................................................................................................................11
References................................................................................................................................12

2CHANGE MANAGEMENT IN HOSPITALITY: HP GROUP
Introduction
Change management has been accepted as the mandatory step that all organizations
must take in order to ensure that the organization does not become stagnant (Konovalova et
al., 2017). Change also comes to the organization when any major acquisition or merger takes
place. In acquisition change management the main concern is to align the old culture of the
organization with the new culture. In these kinds of situations, both the merging and the
merger company needs to take time to understand the culture of the others to make the
process of change smoother and successful (Kužnin & Walker, 2017). Change has become
necessary as without this adaptability and flexibility, an organization becomes unable to
compete in the fast changing world of today. This report, explores the issues that emerged in
HP chain’s takeover of Ferns hotels and reason behind those issues are analyzed. Moreover,
the proper approach to change management with consideration organizational culture and
structure has been recommended. Finally, the role of organizational structure for change
facilitation has been evaluated.
Discussion
Issues of Organizational Culture
Organizational culture
Organizational culture can be defined as the core personality of an organization.
Every organization has a unique culture which creates the essence of that organization. The
shared values, beliefs and assumptions create the standard on how people behave in
organizations. These shared values and beliefs direct the behavior, dress, act and performance
of the people that are related to the organization (Dhir, 2019). Organizational culture also
provides guidelines about the behavioral aspects of the people in the organization. The

3CHANGE MANAGEMENT IN HOSPITALITY: HP GROUP
organization’s philosophy, objectives, visions, expectations and values create the basic of the
organizational culture.
There are certain characteristics of positive organizational culture. They are risk
oriented and strive for continuous innovation; they are perfectionists and have an eye for
details and they put great emphasis on outcome-based approach as they believe in
achievement. An organization practicing good culture are also people oriented, fair and
believes in teamwork. Most of such organizations are aggressive in nature and wants to
establish stability on their operations (Rahimi & Gunlu, 2016). People and organizational
culture is closely related and both have the ability to influence the behavior of the other and
make changes as per the situations.
Summary of case study and its issues
The Ferns hotels was a family run business that was famous for their value based
services, quality of products and services and their customer services. The chain initially had
three four and five star hotels, which appealed to all the people who came as almost all of
them could afford one or the other. When the business was passed on to the two sons of the
original owners, the problem started to emerge. They had different visions and goals and thus
the company started to lose money. A time came when they had no other option but to invite
merger to save their company.
HP chain is an American group of hotels that acquired the New Zealand based luxury
hotel chain, Ferns. After the acquisition, the American company applied their own
organization culture and brought disruptive changes in the Ferns hotels. They sold off the
three and four-star hotels and brought over American workforce for the management of the
hotels. Under them the earlier general managers worked. Soon, it was found that the