Organisational Change Management

This assignment discusses the concept of organisational change management and its impact on Leith Bistro restaurant. It includes a PEST and SWOT analysis to identify external drivers for change, the nature of change facing the restaurant using important theory, possible forms of employee reactions to proposed change, and suggestions for execution and planning. The assignment provides insights into the challenges and opportunities of implementing change in a restaurant setting.

ORGANISATIONAL CHANGE
MANAGEMENT
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Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
1- PEST and SWOT analysis.................................................................................................2
2- Nature of change facing Leith Bistro using important theory............................................4
3- Possible forms of employee reactions to proposed change................................................6
4- Suggestions based on execution and planning in context of proposed change..................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Organizational change management can be defined as procedure of managing any kind of
change that companies in recent time want to do to gain competitive edge. It is an approach of
leveraging modification to being about an effective resolution and it usually includes three major
stages such as planning, execution & follows through. The current assignment will be based on
Leith Bistro, which fall under list of the most famous and popular restaurants in the United
Kingdom. They provide quality food items and services to target consumers in systematic and
ethical manner. This study will explain internal and external analysis by using SWOT and PEST
models to identify external drivers for change in company. It will define nature of change facing
firm using key concept or theory.
Furthermore, this report will describe forms of employee reactions to proposed change,
by using theory to underpin discussion and give reorganization to varied types of employees
employed by chosen organization. Moreover, this assignment will clarify appropriate suggestions
in regard to execution and planning for change. It will justify comparison based on change
management models and then selection of one that will be suitable and relevant to manage
proposed change in the chosen restaurant.
MAIN BODY
1- PEST and SWOT analysis
There are range of approaches, strategic models and framework available in the business
world that has been used by many companies. Here, Pest and SWOT as strategic frameworks has
been utilized in order to determine external & internal drivers for change in context of Leith
Bistro restaurant.
PEST analysis-
Political factor-
Trade policy, taxation rate, political stability and instability are the examples of this
category that can put positive and negative impact on companies, operated in any industry.
Change in tax rate or tax reform is one of the external drivers for modifications that impact
current taxation policy and practices of Leith Bistro restaurant negatively (Lin & et.al. 2020). It
drives management towards considering this factor and making change within their current
taxation rules which is quite important for company to do, but it takes some time.
Economic factor-
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Inflation rate, unemployment ration, disposable income and consumer spending are the
examples of economic factors that affect current practices of firms and drive overall practices
towards change. In context of Leith Bistro restaurant, unemployment is one of the elements and
external drivers for change that impact current employment, hiring, recruitment strategies of
organization (Aldric & et.al., 2020). It drive human resource manager to restructure or change
their existing tactics relate to recruitment and selection, which is quite beneficial for them as it
help firm to hire skilled applicants who can perform even better and increase productivity of
firm.
Social factor-
Education level, market trends that affect purchasing behaviour of people, lifestyle
changes are the elements of social factors. In recent time, people are more conscious about their
health and consider healthy habits through which he or she change the way they purchase food
items or other things (Nguyen & et.al., 2019). This external driver put pressure on Leith Bistro
restaurant and food production department to change its menu and ways of cooking food. It force
firm to include health items within existing menu that gain attention of all buyers towards them.
Technology factor-
Technology advancement is the best and most effective factor that put positive impact on
success and proposed change plan of chosen restaurant. It gives firm a chance to change their
marketing strategies and develop new one with digital marketing platforms through which
organization can attract new buyers and retain existing one for longer period of time (Buchanan
& et.al., 2018). With social media channels, company can promote their products and services all
over the world or new place where firm is interested to open new branches.
SWOT analysis-
Strengths-
Organization commitment with consumer’s to provide quick and quality food services in
one of the Leith Bistro restaurant strengths. It can make company able to attract continuous flow
of food lovers and stronger to retain existing visitors for longer period. The second strength or
capability of company is its standard menu which included affordable tasty dishes in different
variety that help firm to satisfy target buyer in ethical manner which in return increase sales and
profitability of business even better.
Weaknesses-
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The main weak point of selected restaurant is its infrastructure that is not attractive and in
form of basic restaurant style, which could not quite enough to attract people at place. It can put
negative impact on profits margin and brand image of company within food & beverage industry
as opposite to their competitors. Furthermore, lack of communication and coordination between
Kitchen and waiting workers is another weakness of firm that also affect in similar manner that
above one can does. As internal driver for change, it drives company to make changes within its
existing organizational structure.
Opportunities-
Advancement of technologies is one of the external factors or drivers that allow
restaurant to change its overall business activities and permit to develop the new one which is
quite beneficial in term of increasing profitability, productivity, consumer base and give
excellent chance in regard to reach at global level. These chances provide a lot of benefits to
organization and strengthen it to gain further opportunities as well in systematic manner which
help to get desire outcomes successfully.
Threats-
Intense competition within Food & beverage industry is one of the biggest threats for
Leith Bistro business success and growth as it put negative impact on progress of venture within
market place. This external driver, drive firm towards make changes within their existing
strategies and approaches in context of food preparing and serving.
Moreover, changes in Food safety act also play vital role in change of management and
business practices in negative manner. It moves company towards considering all policies and
rules of government governed for industry which they should follow. It can be a threat for
chosen brand because when authority make changes within these laws it give negative
experience to firm.
2- Nature of change facing Leith Bistro using important theory
In the whole world, everything is always changed; nature of modification is accelerating
at an exponential ration (Manu, 2017). Different change streams came together and create on one
another, causing a compounding impact, it can be explosive and disruptive. Some changes are
happening suddenly without any plan and few are planned because of specific reason. Here
change can be done in Leith Bistro restaurant in order to gain competitive advantages, increase
consumer satisfaction level and improve food service quality.
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Nature of change that chosen restaurant facing is planned that relate to Evolutionary
theory because it could be done for gaining competitive benefits and increasing profitability,
which is really very essential for firm do obtain.
Company is facing problems because of poor restaurant style that affect product delivery
and its services in workplace where many people come to eat main courses, desserts and pastries.
After considering issues, John as manager develop plan or new business tactic that can
successfully reverse firm’s current performance and assure management that its venture will
survive for long period of time.
Evolutionary concept can match with this situation because it comprehends evolution as
set of modifications accumulated in structural types of companies, venture and communities in
general (Costantini, 2019). According to this theory, any type of change can comes from cycle of
retention and variation selection. In first variants occur randomly, simply happen and second
variation is developed because of ability for scarce assets, ecosystem selects best fit companies.
Finally, retention permit maintaining or perpetuating some form of success modification, so it is
effective in procedure of success (Theories of organizational change based on the process,
2018).
Leith Bistro restaurant make change within their current business model and structure
because they wants to obtain several benefits in term of reaching at international level, gaining
business rivalries advantages and increasing profits margin even better. As above concept, drive
change that is recurrent, explained and accumulative by probabilistic distribution inside
variation, selection and retention procedure of companies like selected restaurant (Barber &
et.al., 2020). This framework also defines nature of change that helps firms to take decision in
context of gaining success in the future. It exists on different current inside evolutionary theory
field. It explains change from varied entity perspective (Metcalfe, 2018). For example, Leith
Bistro firm perspective is to satisfy people and make them happy by serving excellent services
and delicious food products starting from appetizers to sweet dish at the end. It can be said that
change within venture and existing concepts are quite beneficial and helpful and in regard to
Leith Bistro it meet in same manner. By making modifications in restaurant firm would obtain
several advantages that help a lot in different terms.
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3- Possible forms of employee reactions to proposed change
It can be analysed that change is rapid in ventures, but it does not make it easier for
management to deal with it (Paraschiv, Niţu & Savin, 2019). For many workers, organizational
modification can bring about depression, nervousness and stress that could impact performance
and productivity level in negative manner. Staffs reactions in regard to change in work area or
company can be divided into two different forms, first one is positive and second one is
negative (Belschak & et.al., 2020). When people are aware about any change in organizations,
they are ready to except it and it can put positive impact on their work as well. Aware individual
about overall concept or new thing can appropriately take part while planning change as it
provide many benefits to company in term of obtaining innovative ideas, creative thoughts from
workers side and other things which manager can consider. It analysed that when individual
begin to react to modification in firms, they may start to feel anger, concern, fear or resentment.
It can resist modifications passively or actively and feel need to express their thoughts, emotions
and concerns to management.
While, when workers are unaware to modification in firms it lead to negative staffs
reaction that impact productivity and performance level of applicants negatively. Most of people
due to unawareness of organizational or structural changes resist to work in effective manner and
except modification (Amarantou & et.al., 2018). One of the most common reactions of workers
to proposed change is resistance, it quite general for candidates to not want to attempt a new
thing or learn a new rule and role in work area. As a nature or behaviour, this thing is define as
an reaction or action towards the current and further change made by Leith Bistro company for
making their business more successful and well known in industry which make people able to
visit again and also help to promote their services in positive manner.
There are ranges of theories accessible in the world of business that relate to different
types of employee reactions. For example, Kotter & Schlesinger theory is related to resistance
to change that is form of employee reaction after hearing unplanned and undisguised plan for
modification in existing practices of company (Wentworth, Behson & Kelley, 2020). According
to this concept, there are 4 main reasons that people in workplace are resist change and not ready
to except appropriately. It includes parochial self interest, misunderstanding, low tolerance to
change and varied assessments of condition. Along with this factors, above theory also define set
of 6 key approaches that companies like Leith Bistro in recent time can use to deal with this type
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of employee reaction, which is essential to manage. For instance, education and effective
communication is part of employee resistance overcome procedure that bring a lot of benefits to
firms in term of building strong workforce, increasing collaborative and coordination practices in
workplace. Manager in companies need to generate awareness in workplace about change before
implementing it because it make teams ready to except further changes and allow to make
contribution for managing change, either structural or management.
Accordant to above theory, when an applicant has a low tolerance for modification,
maximized ambiguity that outcomes as result of having to work his or her job differently can like
cause a unacceptance to new manner of serving services and products to target consumers.
Different types of employees employed By Leith Bistro restaurant-
Workers are the key strengths of every company they provide firm a power which they
can use to achieve set aims and objectives. They also give strength to a venture that management
effectively utilize to gain competitive edge. There are diverse type of workers has been hired in
organizations like Leith Bistro by human resource department who is accountable for this
practice. John as manager in organization decides to recruit 60 new applicants and plan to deploy
them across three restaurants. While all candidate would have to take part in induction training to
meet new standard and value of service under proposed change as new business strategy. He
decided that few experienced applicants will be transferred to newly open branches of his
restaurants to support with on job development and training for new hires. With existing basic
restaurant style or structure, organization already hired 35 workers, in which 50 % of them are
permanents, working either morning or evening shifts. And rest of are split between relief and
part timers who are mostly ones to do twice shifts over workload times. Firm will plan to hire
new staff which is necessary for their growth and great success in the future.
4- Suggestions based on execution and planning in context of proposed change
Comparison and contraction based on change models-
Ranges of change models are available in corporate world that can be discussed and then
compare here. Lewin’s change management model is one of the most effective and popular
methods that help company in several terms to manage change which they have planned to gain
competitive advantages and consumer satisfaction successfully. This concept describes three
different phases of change administration that firm can follow and get success after
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implementing proposed modification. In includes unfreeze, change and refreeze as stages that is
useful for venture in the future and recently as well (Cone & Unni, 2020).
Figure 1Lewin's Model to change
(Source: Lewin’s Change Management Model, 2020)
There are many things about this theory which make it different from other theories or
models relate to change management.
ADKAR is another change model that support and contribute in managing current and in
further change within organization. It was developed by Jeffery Hiatt that is a bottom up
approach which concentrates on people’s behind organizational or structure change. This is less
of sequential approach and more of set of aims to reach with each aim making up a word of
acronym. By concentrating on achieving set goals, this concept can be utilised to efficiently plan
out modification on organizational and individual degree. Awareness, desire, knowledge, ability
and reinforcement are the main components of ADKAR model. These approaches are useful and
beneficial for Leith Bistro restaurant when they follow it while making plan and execution to
entire structure change.
Comparison between ADKAR and Lewin’s change management models-
The main point of comparison between both these concepts is stages. Lewin’s change
model comprise three important phases while ADKAR consist five essential phases that allow
firm to deal with modification in companies (Galli, 2019). Kurt model steps could not take much
time to implement change in firm, on the other hand second concept consume a lot of duration
and efforts to implement 5 stages that is not possible to do within short term period. Lewin
model describe many rules that can be followed in implementing change in workplace for
instance, modification need to be implement for valuable reason, it always be gradual and
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planned not sudden happen. Furthermore, ADKAR concept to change cannot define any rules,
but still it work effectively and bring a lot of benefits.
As compare to Kurt Lewin’s change model, ADKAR is the best and most efficient
because it provides guidance to implement change in deeper manner that solve each problem like
employee resistance and other as well. It helps to obtain desire outcomes and achieve objectives
of venture. This model caters an easy and simple concept for company included in change.
Lewin’s theory has less change to provide desire outcomes because it just implements three
stages that could not enough to do entire things in effective manner. While ADKAR, model take
time to make changes. It develops a common language for change leaders, management and
workers.
Recommendations base on analysis-
Leith Bistro and its manager will make plan to turn their old business structure into a
chain restaurant, which is quite beneficial for firm in term of increasing consumer’s base, profits
margin and sales level even better. Management can plan and execute overall procedure by
following and considering following suggestions that are;
 Restaurant should follow the stages of ADKAR change model because it is helpful in
context of planning and then executing proposed change like turning to Chain restaurant
and open in three different locations after plan success. Based on above analysis, this
model is the best.
 For instance, manager must aware people about organizational change by conducting
official and face to face meeting with all workers which make them able to comprehend
need for change in company. Awareness is the first stage of chosen concept that can be
done in several manners. It helps to make further plan and then execute by experienced
person in workplace.
 Firm should identify desire of staff members after passing above phase which is
important for management to get success after implementing proposed change plan.
Organization must spread knowledge about it, enhance the ability of people to except
change and move to last stage that is reinforcement that means rewards.
 Restaurant must execute plan effectively by building a strong team who are able to
monitor success and growth and carry out his or her roles.
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CONCLUSION
By summing up above discussion, it has been concluded that Leith Bistro restaurant
effectively implemented their proposed change plan which in return increased profitability,
productivity, sales and generate revenue. By developing new business strategy in form of
changing restaurant model into chain structure, organization gained a lot of benefits in term of
increased customer base and build strong brand image in three different market where they
launched branches of its main restaurant. From above analysis, it has been summarized that by
using and applying PEST and SWOT analysis models Leith Bistro firm determined external &
internal drivers for change that affect business activities in positive manner. It has been analysed
that firm overcome negative impact of some drivers by taking right decisions and actions.
Furthermore, resistance to change is employee reaction that has been managed by implementing
and following the methods of Kotter & Schlesinger theory. In order to get desire outcomes and
increase sales organization has employed several peoples who are able to contribute in gaining
success after implementing plan to change.
Moreover, it has been discussed that Lewin’s and ADKAR models to change bring a lot
of advantages for Leith Bistro firm, But it has been recommended that second concept is quite
effective because it allow to make efficient plan and execute in systematic manner. By following
5 stages of ADKAR model company get competitive benefits and increased their consumers base
as well as reached at international level.
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