Leading Change in Hospitality Organizations

The assignment delves into the complexities of development within business organizations, highlighting the importance of studying internal and external factors. Two prominent groups in the Hospitality sector, Hotel Holiday Inn (IHG) and Hilton Group of Hotels, serve as case studies. The report examines leadership styles, decision-making, and change management strategies employed by these companies to overcome challenges and achieve positive outcomes.

UNDERSTANDING AND
LEADING CHANGE

TABLE OF CONTENTS
TASK 1 .........................................................................................................................................................3
P1. Compare different organizational on the basis of impact of change on strategy and operations.....3
TASK 2..........................................................................................................................................................4
P2. Evaluate ways in which internal and external drivers of change affect leadership, team, and
individual behavior within an organization..............................................................................................4
P3. Evaluate measures that can be taken to minimize negative impacts of change on organizational
behavior...................................................................................................................................................5
TASK 3..........................................................................................................................................................7
P4. Barriers for change and how they affect leadership decisions in organization system......................7
TASK 4..........................................................................................................................................................8
P5 Describe different type of leadership approaches to face organizational changes.............................8
CONCLUSION.............................................................................................................................................10
.................................................................................................................................................................11

INTRODUCTION
Organizations have to work in complex business environment which is dynamic in nature
and keeps on changing with time. Therefore, they have to work accordingly so that final
outcomes can be accomplished in set target. Organizational changes is a process in which
policies, procedures, values are altered in accordance to the prevailing needs. The selected two
companies in this report are hotel Hilton and holiday inn that are well established sector in
hospitality industry. Hilton have around 190 branches across the globe and is serving quality
products and services to their customers. This report include impact of changes on strategies and
policies and number of drivers that are present inside and outside the business environment.
Apart from it, there are number of leadership approaches that is applied in organizational system
in order to run the system in effective and efficient manner.
TASK 1
P1. Compare different organizational on the basis of impact of change on strategy and
operations.
Changes is a process that bring number of modifications in the whole organizational
system. Hence, management have to focus on this concept by regularly examining the changing
environment. Similarly hotel Hilton and Holiday Inn have to adopt such policy that bring number
of changes. Although, they have number of barriers that may across on their way that can hinder
their performance. These changes results in alteration of strategies and operations in number of
ways. Managers have to study these impact and then make decisions considering all these
aspects. Every business system is different from each other on number of grounds, similarly the
impact of changes are also different depending on the nature and types (Doppelt, 2017). Some
are illustrate below:
Basis of difference Hotel Hilton Holiday inn
Modifications in company’s
structure
There are number of
conditions that result into
reduction or expansion of
whole structure. This
situation comes when hotel
wants to expand their existing
business. Hence, company’s
structure changes (Harding,
2012).
Holiday Inn focuses on
customer’s demands and
wants and therefore make
changes according to their
feedbacks. So that, they can
able to build their image for
longer period of time.
Changes in strategy Strategies are the guidelines
that provide framework for
conducting that business. It is
focused for accomplishment
Holiday Inn have proper
system that include numbers
of managers that keep check
on number of changes that are

of future goals. Managers of
Hotel Hilton have to make
changes so that organization
could run smoothly. They
have introduce new rules and
regulations whenever needed.
taking place in the
surroundings and evaluate it
so that proper structure could
be introduced.
Changes in operations Operations include work that
is conducted in the company.
There are number of
departments exist in single
system. Hence, changes that
happen bring modifications in
operation system also. Hotel
Hilton alter their operation
system by adding or deleting
some aspects according to the
needs.
Holiday Inn have number of
operations that are carried out
in day to day life. Hence, if
hotel is planning to bring any
changes into the system.
Operations have to draft
several procedures so that
change model could be
introduced successfully.
Hence, from the above discussion it can be concluded that changes are flexible in nature
that has to be adopted by business entities in order to stand firmly in competitive environment.
Management have to bring changes in their strategies, process, operations and working style so
that tasks could be completed in time and in correct manner. Therefore, organizations have to
evaluate their change management model properly so that no hindrances would occur in future
time. It can be favourable and unfavourable depending on the nature.
TASK 2
P2. Evaluate ways in which internal and external drivers of change affect leadership, team, and
individual behavior within an organization.
There are number of internal and external factors that affect the functioning of business
organization in number of ways. Hotel Hilton and Holiday inn have to evaluate such elements
and then make decisions while considering all these drivers. External components are those
which are present outside the company and are beyond control hence, business have to accept it
in order to keep in pace with the changes. Internal changes that take place inside the business
system that can be under control of management. It directly impacts the leadership, team and
individual behavior within an organization (Yoder-Wise, 2014). Number of external factors that
are described below:
 Changes that are bought up by the government body: government of any nation make
rules and regulations that has to be followed by organization in order to remain
successful. It is not under the control of business system but they have to formulate into
their functioning. Hotel Hilton and Holiday Inn work according to laws and legislations.

Technological Factors: There are number of technological changes that take place frequently.
Thus, they have to adopt modern and advanced system so that they can work in proper and
correct manner (Peters, 2012).
 Environmental changes: Holiday Inn and Hotel Hilton, work according to norms and
regulations related to environmental protection. It is consider one of the external factor
that is beyond control.
 Political Factors: There are numerous rules and regulations that are framed by political
situations. Thus, hotels have to accept such modification and alterations. It also involve
decision that are taken up by political sectors that may affect the functioning of entity in
number of ways.
There are several internal factors that are present inside the business system and in under control
and can be handled properly by the management system. Some are discussed below:
 Type of employees: workers and employees are important resource of any business
organizational system. There are three different management levels that involve distinct
nature and kinds of employees performing various kinds of functions.
Team structures: Team are formed in order ton complete assigned work task. They align their
objectives with the organization’s aims and goals (Suchman, Sluyter, and Williamson, 2011).
All the above discussed drivers affect various elements of organization which are discussed
below:
 Leadership: Every system have different leadership styles that is followed in their
system that guide very employees towards right direction and path. Whenever there are
some changes in external factor bring some changes in leadership styles and structure.
 Individual behavior: there after different individuals that work together in hotel Hilton
and Holiday Inn. Any changes that occur inside and outside organizational system have
to modify their attitudes and behavior.
 Team Structure: Changes also impact team structure that is working in business
organization. It have to be modified in accordance to these alterations. It consist of
number of employees that come together to achieve final vision and mission.
P3. Evaluate measures that can be taken to minimize negative impacts of change on
organizational behavior
Changes that are happening in inside and outside business system that may pose negative
and positive effects over the system (Bin Taher, Krotov, and Silva, 2015). Holiday Inn and
Hilton adopt number of measures to minimize these negative effects so that company can
perform well and lead to accomplishment of final goals and objectives. Managers have to frame
number of alternatives that may reduce impact of negative elements that may hinder the
performance of business system. There are number of options that may adopted by management
of holiday inn and hotel Hilton to minimize the negative impact that are discussed below:

 Market research: It is very much important to work in accordance to customer’s
behavior and preferences. Therefore, business have to frame policies that according to
current prevailing market situation. Marketing manager play a prominent role in this
sector as they continuously keep a check on this matter and take proper decisions
considering all the aspects and concepts. It results in adoption of changes appropriately.
Adoption of advanced and innovative technology system: Holiday Inn and Hotel Hilton work
according to advanced technology system in order to maintain their established image in market
place. Technology is a process that keeps on changing with time and have to adopt their working
style in accordance to it (Hrebiniak, 2013).
 Performing CSR activities: In order to reduce negative effects Business Company have
to perform number of activities that contribute in upliftment of society. It include
performing production and manufacturing activities that lead to protection of
environment and surrounding. It helps in building goodwill of the business in customer’s
minds as they are contributing something in the society where they are operating.
 Building strong image: It is very important to construct the image in customer’s minds
so that they remain for longer period of time It is very much useful of reduce minimize
negative impacts. There are number of firms that re operating in same industry, thus it
become important to perform efficiently in order to work distinctively as compared to
others.
 Proper attention should be drawn on customer’s preferences: It is essential to
consider consumer’s point of view so that success could be achieved. Customers are the
real kings of the market place thus, Holiday In and Hotel Hilton have to carry out their
operations in relation to customer’s preferences and demands in order to satisfy their
demands in proper manner. They also remain happy with their services. Therefore, it
become necessary to carry out policy, decision while considering customer’s feedbacks.
 Creative thinking: It is important in today’s competitive world to be innovative in
process. It enable to stand apart from other competitors who are performing similar
functions. Innovation is a process that involve coming up with new thoughts, ideas and
work process. There are number of competitors that are performing same functions, thus
in order to stand apart unique actions have to be performed (Lawrence, 2015).
 Perform according to set policies and rules: every organization have to work according
to set standards so that they cab bale to attain sustainable growth and market share.
Therefore, management have to make sure that all work process must be conducted in
accordance to frameworks that have been made.
From the above discussed measures, it can be concluded that holiday Inn and Hotel Hilton
adopts number of solutions into their system so that final aims can be achieved in proper time
and result in earning final outcome in achievable manner.

TASK 3
P4. Barriers for change and how they affect leadership decisions in organization system
To bring change in any business is a very difficult task. Number of barriers and
hindrances are attached to such changes (Nkomo, and Kriek, 2011). These barriers must be
handled properly in order to run business operations smoothly. Also, to match with the current
business scenario, it is of utmost importance to bring changes in Hotel Hilton. The current
market is so competitive that in order to maintain the customer base, it is very necessary to
modify the techniques of doing business. Complexities pose number of difficulties in front of
management therefore, managers play important role in this respect by framing such policies that
is directly linked with overall development and productivity level of business system. There are
number of barriers faced by an organization which is discussed here under:
Weak and Futile Communication system: When two persons exchange their ideas and
messages, it gives rise to communication. To communicate effectively, the medium of exchange
of information must work in a healthy way so that correct information can be provided.
Otherwise, it may lead to barrier in communication system. Therefore, it becomes the
responsibility of management to maintain an effective communication system. There are number
of measures that can be adopted to minimize the barriers that may hinder the process in number
of ways. This lead to generation of number of problems and obstacles (Johnson, 2016).
 Emphasizing critical business areas: By critical business areas, we mean some areas of
responsibilities of an organization. Business leaders and managers must emphasize on
these areas in order to achieve the organizational objectives. Ignoring such areas may
bring can create huge barriers for the success of the company.
 Selecting inappropriate style of leadership: Leader is a person who commands a group
or an organization. He is the one who leads the way of other members of the
organization. It is the leader and his style of leadership which enables an organization to
achieve its goals more efficiently. However by choosing an improper and ineffective
style of leadership, an organization creates a barrier for itself. Leaders are building blocks
of organization system as they carry huge people together for achieving final goals and
objectives. Therefore, it become necessary to select that leadership style that is more
appropriate for the system.
 Resilience to change: Humans don’t want to leave their comfort zone. That is why they
are very resilient to change. It is very hard for them to accept the change. It acts as a
barrier in front of business organization. To remove this barrier, proper training programs
and knowledge sessions must be organized where benefits of such modifications will be
communicated to employees and they must be told about the modified working
schedules.
 Change is complex: Changes are very complex to implement. There are infinite numbers
of problems which arise during the implementation stage. This common barrier is often
faced by most of the companies. To cope up with such a situation, organizations either
drop changes or they alter changes in such a way that they could be easily implemented.

There are changes that can hinder or foster the performance of company in number of
ways.
Organizational Culture: Organizational Culture involves everyone in the organization. It
includes employees, bosses, rules, regulation, policies, strategies etc. Culture plays an important
role in the success of every organization as it directly impacts the performance of persons
connected with it. Therefore culture must be flexible enough to welcome any change as a rigid
culture of any company will become a barrier to accept any changes (Whitney, and Cooperrider,
2011).
Discussion made hereby clearly shows that decision making of leaders and changes are inter-
related. Therefore, it is very important for the leaders to take such decisions which will help the
company to remove such barriers of change and will also help the employees or workers to work
without facing any problem. Hotels have to study all these barriers that are posing huge problems
in front of management system.
TASK 4
P5 Describe different type of leadership approaches to face organizational changes
Every company follows some leadership styles in order to carry individual’s actions towards
proper and correct direction. Hence, there are number of leadership approaches that must be
evaluated by the system so that it can be applied in accurate way. Every leadership style have
certain features and characteristics that must evaluate before applying in to the system. There are
certain skills and characteristics that must be possessed by leaders that make them different from
others individual. It may include communication, innovative, problem solving skills (Salmela,
Eriksson, and Fagerström, 2012). Traits also play prominent in facing organizational changes in
order to implement in whole structure effectively. Some leadership approaches are discussed
below:
 Autocratic leadership approach: According to this style, leaders play prominent role in
decision making in which they do not involve any suggestions from their subordinates
hence, this results into hindrance of individual’s performance. The main feature of this
style is that leaders have all powers. By applying this type of style may hinder the
performance of individual at negative level. This approach is also known as authoritarian
leadership and characterized for individual control over all decisions and little input from
group members. It is beneficial because with the help of it leaders make almost all
decisions and work tends to be highly structured and very rigid. It help in making quick
decisions and clear chain of command oversight. But the weakness of it is that it
discourages group input.
 Democratic leadership approach: This approach is opposite of autocratic style as it
involve workers and employees to share their thoughts and actions in decision making
process. It provide them freedom to work according to them in set system. Hence,
employees have flexibility to work according to their will. This style foster the overall
performance level of staff members as they are consider important part of the system.
This leadership style is also known as participate leadership or shared leadership. It is

beneficial because it provide more ideas and creative solutions and help in generating
high productivity. It help in decision making because with the help of it the manager can
easily participate in decision making process and provide their decisions. But the
weakness of it it that the communication is failures.
Laissez –Faire leadership approach: according to this leadership style, managers motivate their
employees to make effective contribution in decision making process. They are free to make
solution to the problems that have raised. Hence, innovation ideas and work process is
encouraged so that final goals can be accomplished in set time period. This type of leadership
style enable every individual worker to show case their talent and knowledge which contribute
directly in company’s growth at higher level (Hintz, and Bahia, 2013).
Holiday Inn and Hilton have democratic style of leadership in which employees and
employers work together in proper coordination. Staff members are not bounded and are free to
apply their skills whenever necessary. It have several advantages that is associated with it as it
motivates every individuals as their views are taken into consideration while performing
particular work task. That is the reason these industries are performing well and earning huge
profits in market place. Apart from these leadership approaches there are several change model
system that can also be implemented into business system and are discussed below:
 Lewin’s Change Model: According to this change model, all modifications and
alterations that has been introduced into the system become a typical rule that must be
followed by each and every identity that is working. He had devised I into three steps
that are discussed below:
 Unfreeze: this is a first step in which managers have to examine behavior, attitude of
each and every individual of organization system. They have to be prepared for
accepting the current change that is prevailing in the market place (Stanleigh, 2013).
 Change: At this stage, changes that have been formulated will be introduced into the
system by management. These changes can be in strategies, policies, working process
so that final aims can be attained properly without any obstacles. As there are
different departments that are performing diverse functions thus, changes are made
accordingly.
 Refreeze: This stage occur after the changes have been introduced and executed in the
organization. Hence, new structure has been implanted that involve number of new
and innovative ideas, work process and strategies that has to be formulated.
 Kotler’s model of change: According to Kotler, changes are very efficient and good
for the organization system. It is divided into eight steps that must be executed in
correct way so that work can be conducted in accurate and attainable mode. He
include each and every concepts that is present in any single organization which
involve mission, vision, objectives, policies and procedures that has been laid down
in that company institution. Organizations prefer this type of change model into their
system.

From the above discussion holiday Inn and Hotel Hilton have to apply appropriate
leadership styles into their current management system. They also follow Kotler’s change
model so that they can work according to the current conditions. There are number of
situations that are unfavourable for the company’s performance but have to be faced
properly. Management play a vital role in this regard as they have to examine number of
alternatives available and then choose best among it that can be applied into the system.
CONCLUSION
From the above report, it has been concluded that organizational change and development
is an extremely complex subject that can be a difficult task for many companies. From small
organizations to large organization, they all are going to have to make changes at some point.
Various factors present in internal as well as external environment have to be studied properly in
order to bring out the best for any business organization. It includes the study of measures which
are used to eliminate negative impact on the organization and its growth. Both employees and
management have to provide each other the tools and motivation necessary to follow a model of
change. The style of leadership chosen to face infinite challenges present inside as well as
outside the business premises also plays an impactful role. The decision making of leaders will
decide how the organization is going to be effected by the change. Two of the most reputed
groups of Hospitality (Hotels and Accommodation) sector, i.e. Hotel Holiday Inn of IHG and
Hilton Group of Hotels are highlighted here in this report. These companies have to face all such
problems and they have to solve them in best possible way to bring out some positive outcom
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