Organizational Change Management - Assignment

Running Head: ORGANIZATIONAL CHANGE MANAGEMENT
Organizational Change
Management

ORGANIZATIONAL CHANGE MANAGEMENT 1
Contents
Introduction......................................................................................................................................2
Analysis of the Change Context......................................................................................................2
Analysis of Nature of Change Facing Le Chic................................................................................4
Possible Types of Possible Reactions to the Proposed Change.......................................................6
Recommendations............................................................................................................................7
Conclusion.......................................................................................................................................9
References......................................................................................................................................11

ORGANIZATIONAL CHANGE MANAGEMENT 2
Introduction
Organizational change can be defined as the management theory which focuses on the changes
undergone by them during their evolution. Both short term and long term changes are applicable
on the principles of organizational change theory. The adoption of the strategies relating to
organizational changes becomes easier when the organization is familiar with the various stages
of the organizational change (Kaufman, 2017).
The given scenario is about Le Chic Restaurant which is located in the centre of a major city on
the busy street. The layout of Le Chic is that of a basic restaurant along with having a fast- food
feel to it. Currently, the business is capable of meeting its objectives but it may not be able to
deal with the future circumstances in an appropriate manner. John, the new manager, has
proposed an aggressive change strategy for the purpose of demonstrating the ‘entrepreneurial
spirit’.
As the consultant of Le Chic, this report has been prepared for the purpose of addressing the key
change issues that significantly impact the implementation of the new business strategy by Le
Chic. This report contains the analysis of the change context, nature of change, possible types of
employee reactions to the proposed change along with the recommendations on how the
proposed change should be planned and executed by the management.
Analysis of the Change Context
There are some internal and external factors which will have a significant impact on the
implementation of change strategy by Le Chic. Such change can be evaluated with the help of
PEST Analysis and SWOT Analysis. The external drivers of change include factors such as
globalization, international constraints, technological innovations, hyper competition,
advancement in education, etc. On the other hand, the internal drivers of change include
innovation and culture. PEST Analysis covers the political, economic, social and technological
influences that impact the organization. While the strengths weaknesses, opportunities and
strengths will be evaluated in the SWOT Analysis. The analysis of the change context provides
the following-

ORGANIZATIONAL CHANGE MANAGEMENT 3
The first and the foremost change in Le Chic will comprise of its conversion in chain restaurant.
1.5 million will be invested on the redecoration of the current site and on the setting up of the
new restaurants in various cities. This change is the result of the external drivers such as
competition such as opening of a pub and new restaurants in the same locality which are
demanding a change to be brought in the organization. Le Chic only has a basic restaurant style
layout which is not preferred by the premium customers. It is also planning to differentiate its
offerings for the purpose of attracting the premium customers and thereby establishing itself in
the market. It will further assist Le Chic in dealing with the losses being incurred from the past
10 years.
The restaurant is also aiming at the maximization of its efficiency and the reduction of
turnaround times. However, it was very difficult for Le Chic to uphold the anticipated customer
service levels due to lack of synchronization between waiting and kitchen staff. This was the
internal driver of change. For this purpose, it is recruiting 60 more employees in the organization
and will provide them induction training such that they can effectively meet desired standards of
service (Pugh, 2016). The inconsistencies in the processes will be further improved with the
help of new information system which will standardize the accounting, payment and ordering
processes across restaurants. Le Chic will publicize itself through joint promotional alliances in
the areas where the establishment of the restaurant is planned in the chosen cities. Undertaking
social responsibility will provide it a strong brand image, return on investment and customer
loyalty (Al- Haddad & Kotnour, 2015).
Political Economic Social Technological
Economic
crises
adversely
affecting the
restaurant
Taxes will
increase with
increase in
investment
Changes in
wage policies
of government
will impact the
affordability
of number of
employees
The income
level of the
The taste of
customers in
different cities
is different
Demand for
giving
preference to
social
responsibility
Changes in
technology
provide an
ease in
maintenance
of accounting
and ordering
processes.
New ways