Analyzing Change Management: HRM Report on Intercontinental Hotels

This report delves into the realm of Human Resource Management (HRM) and its crucial role in navigating organizational change, using Intercontinental Hotels & Resorts as a case study. The report begins by examining the impact of classical and contemporary management and leadership styles on change management, highlighting the importance of adapting leadership approaches to facilitate successful transitions. It then explores both internal and external triggers of change, such as competition, technological advancements, and government regulations, and how these factors necessitate strategic adjustments within the organization. The report also addresses stakeholder analysis, focusing on potential resistance to change and strategies for managing it effectively. Furthermore, it evaluates the contribution of HRM in the change management process, emphasizing the significance of employee training and development. The report concludes with an analysis of the interplay between management and leadership styles and their influence on change management, offering insights into the most effective approaches for fostering organizational adaptability and success.

HRM

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................1
Discussing the impact of the classical and contemporary management and leadership style
upon the change management within an organization................................................................1
Evaluating internal and external triggers of change which closely impacts the organization and
developing the change management strategy..............................................................................4
Conducting a stakeholder analysis to assess the possible resistance to change and critical
appraisal of the strategies which helps in managing the resistance............................................6
Critically appraise relevant strategies to manage these resistances............................................8
Evaluating the contribution of the human resource management upon the success of
organizational potential change management process................................................................8
Analysis of the impact of the management and leadership style on the change management
and critical evaluation of the style which are adopted by an organization...............................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Human resource management is the field of management which is highly concerned with
the maximization of employee performance. Human resource department of an organization
frames policies which help them in managing people who work within an organization. Besides
this, HR policies and strategies play a vital role in encouraging the workforce to make their best
efforts. Through this, organization can increase the employee productivity and profitability. HR
manager of an organization recruits, selects, trains and develops the human resources of an
organization. All these functions help the organization in achieving success in the dynamic
business environment.
The present report is based upon Intercontinental hotel & resorts which has 180 hotels
over 60 countries. It is one of the major luxury hotel & resorts brands who offer the quality
services to their customers. This project report will develop an understanding about the classical
and contemporary management style which helps in managing the change effectively. Besides
this, it depicts the internal and external factors which compel the organization to make changes.
Further, it will state the stakeholder’s analysis which helps the hotel in identifying the possibility
of resistance towards change. It also depicts the contribution of human resource management in
managing the change within an organization more successfully.
TASK 1
Enclosed in power point presentation
TASK 2
Discussing the impact of the classical and contemporary management and leadership style upon
the change management within an organization
Classical Management Theory emphasizes on issues and problems relating to organizational
management such as inefficiency, low quality, poor relationships between management and
workers. In terms of impact, classical theory aids in reducing organizational issues; therefore this
can be considered as vital for the management especially during the period of change. As per
scientific management theory, managers communicate information from one place to another;
thus as a result, application of such theory can help the employees to consider all the disciplinary
aspects (Inkson, 2008). Another important theory lies in this category is Bureaucratic
management theory where in different hierarchies are made; thus the theory is useful at the time
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of change management. Further, Human Relation Movement can also be adopted since it
emphasizes on development of human relations. At the time when organization considers
contemporary style of leadership, they get more support from the employees and as a result, the
value of change can be accelerated (Jackson, 2010).
Apparently, there should be proper leadership style adopted at the time when change is
introduced in the organization. In such case, democratic leadership style can be adopted where in
advice and opinion of all the employees needs to be concerned. Hence, at the time of facilitating
changes in the business entity, leaders must focus on proper human relations. Classical
management theory segregates work and it is broken down in smaller tasks since they are easy to
complete. Employees’ responsibilities are clearly defined. Hence, this can assist in implementing
change in adequate manner. This approach helps workers to become expert or specialist in a
particular area (Jackson, 2001). This approach also increases productivity and efficiency of
workers which ultimately help organization in achieving its overall objective. Hence, from the
theoretical discussion, it is clear that these theories have optimistic impact on the organization
especially in the period of change.
Positive impacts are required because the undertaken management style focuses on
employee interest; thus several benefits are provided to them on the same ground. According to
this theory, employees are motivated by monetary rewards so they will work harder and became
more productive. Thus, the theory would impact on change management and on the other hand,
employee motivation can be managed. Further, as per contingency theory, there is no best way to
organize a corporation or to make decisions because there are some contingency always attached
to the organization. Hence, this might affect the organizational performance during the period of
change implementation (Kelly, 2001). Moreover, system theory can impact employee
performance and they will be able to perform their job roles as per the delegated duties. Along
with the same leadership styles can also impact employee motivation level during the period of
change; therefore democratic style is the one that should be adopted.
Change Management
Looking at the present condition of corporate market it has become important for the
companies to bring change within their approach and functioning. The main purpose of
constantly bringing modification in the business is to enhance the level of services as well as
meeting the expectations of the customers. Considering the present given case, top level
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management of Intercontinental needs to focus on bringing constant change at different level
such as strategic, tactical and operational level (Khasawneh, 2011). However, with constantly
increasing competition in hospitality industry it has become more crucial for the senior authority
of cited firm to understand the need of market and accordingly bring innovation and creativity
within the approach so that desired results can be achieved.
Furthermore, in order to improve overall functioning of Intercontinental it is essential for
the senior authorities to bring change at each level. In this regard, managerial level people have
to Due to constant evolution of business environment and to compete with rival’s organization
can make changes in senior management approaches. Furthermore, Management can follow
democratic leadership style because it is very dynamic and popular in large organizations. It
encourages the employees to share their ideas which are helpful in making best possible
decision.
Along with democratic style management can also adopt transaction style where employees get
rewards on the basis of their performance (Kot and Leat, 2008). Due to constant evolution of
business environment and to compete with rivals’ organization can make changes in senior
management.
New management can adopt techniques of classical management and contemporary management
theories in order to improve its efficiency and productivity.
 Dividing organization into hierarchies.
 Division of whole work into smaller tasks which help workers to became expert or
specialist in a particular area.
 Change in monitory incentives plans to motivate the employees of the organization.
 Organization can also follow contingency theory in order to meet contingencies attached
to the organization (Jackson, 2001).
Change in leadership style: Management can follow democratic leadership style because it is
very dynamic and popular in large organizations like Intercontinental. It encourages the
employees to share their ideas which are helpful in making best possible decision. Along with
democratic style management can also adopt transaction style where employees get rewards on
the basis of their performance. Furthermore, through the help of these leadership style employees
and other staff members can be encouraged in appropriate manner that lead to carry out the
operations of Intercontinental in more suitable and reliable manner (Inkson, 2008).
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Evaluating internal and external triggers of change which closely impacts the organization and
developing the change management strategy
There are several internal and external factors which act as a force or compel
organization to make change within an organization. Change is the rule of world which
organization needs to undertake in order to survive in the ever changing business environment.
External factors consist of competition, technology and government regulations. These external
factors have high level of influence upon Intercontinental and there by impacts the strategies and
policies of an organization. In addition to this, internal factors include desire for the growth as
well as wish to make improvement in the service process of an organization. All these factors
closely affect business activities, operations and strategies of Intercontinental (Kot and Leat,
2008). Competition is one of the main factors which compel Intercontinental to make
modifications in the existing service process.
To attract the large number of customers towards the hotel organization needs to offer
unique or innovative services to their customers. Through this, hotel is able to build distinct
image in the target market mind (Lertxundi, 2008). For instance: By offering bunch of the
chocolates to the children as well as yoga facilities to the old age people Intercontinental can
increase their customers base. In the present era, people give more priority to the yoga and
peaceful environment company can evolve the satisfaction among them. It has identified by the
several researcher that family decision making are highly affected by the children and old age
people. Thus, competition is one of the main aspects which compel organization to differentiate
their products from their competitors.
Along with it, innovation which takes place in the technological aspect forces business to
make changes in the business aspects. In the world of technological advancement organization
needs to be updating all kind of technologies (Mathis, Jackson and Valentine 2013.). For
instance: By introducing the online booking facilities which also provides information about the
room no as well as picture of the room which is allotted to them Intercontinental can easily
develop the satisfaction among the customers. As the services offered by hospitality industry are
intangible in nature. Thus, by giving such type of information Intercontinental can develop the
satisfaction among the customers. Through this, customers are able to get information about the
each and every aspect the hotel in which they plan to stay for their holidays.
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In addition to this, government rules and regulations also act as triggers of change which
impacts the working aspects of an organization. Government makes changes in their rules and
regulations time to time. Such aspects also compel Intercontinental to act in accordance with the
rules framed by the government. For instance: Government have introduced that hotel requires to
make all the health and safety arrangements for their guest. On the basis of this aspect
Intercontinental requires to follow all the legal aspects which help them in building the effective
image in the mind of the customers.
Further, desire for the growth and development is also one of the main factors which
trigger the organization to make changes within an organization. In the present era, each and
every organization needs to make changes in their existing offering in order to attract the large
number of customers. It is one of the main factors which compel Intercontinental to offer unique
product and services to their customers. Through this are able to create the distinct identity in the
mind of the customers (Reddy, 2005.). In addition to this, desire to make improvement in the
process of serving the customers is also the main aspect which act as a force. By improving the
process of serving the customers hotel can attract their guests to stay more within an
organization. In addition to this, in the services industry success of an organization is highly
dependent upon the skilled and efficient workforce. Thus, it also compels organization to make
changes in their recruitment policies and strategies. Through this, Intercontinental is able to hire
the skilled and competent workforce. All these internal and external triggers closely impact the
business policies and strategies. Through this, organization is to build the strategic advantage
over others.
In order to implement the changes Intercontinental requires framing effective change
management strategies which helps them in achieving success. Intercontinental can manage the
technological change within an organization by conducting the training and development session
for their employees (Steger, Lang and Groeger, 2011). It provides more assistance to employees
to get familiar with the technological aspects. Training session enables employees to perform
their work without facing any difficulty. Besides this, such session also prevents the resistance of
the employees towards the change and there by helps in implementing the change more
successfully. Further, in order to offer unique product and services to the customers
intercontinental undertakes research and development activity. It helps hotel in understanding the
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needs, wants and expectations of the customers. Through this, organization is able to implement
the change in the right direction.
Conducting a stakeholder analysis to assess the possible resistance to change and critical
appraisal of the strategies which helps in managing the resistance
Change management is one of the most crucial parts of business decision making process.
This is because it has direct impact over overall performance and outcomes of an organization.
Therefore, management of Intercontinental hotel group takes various decisions related to change
in business operations as per the current market trends. In this process, stakeholders play
important role in success of changes within business entity (Aghazadeh, 2003). Apart from that it
has been evaluated that if Hospitality Company did not get support of stakeholders during
change management process than management would face several issues during application of
new system or business operations with hotel. In this process, Stakeholder analysis is determined
as term which is applied for analyzing the attitudes of stakeholders towards something.
Furthermore, this has found very effective during the preparation phase of a project to assess the
attitudes of the stakeholders regarding the potential changes. Stakeholder analysis can be done
regular basis with in hospitality firm to identify the changes in stakeholder attitudes over time.
Therefore, a systematic stakeholder analysis is carried out below in order to identify possible
resistance to change: Employees: In every organization, workers plays most crucial role for managing different
business operations with an appropriate manner. In context of hospitality, the
management of IHG could face resistance of employees if organization wants to
introduce some new business system and wants to implement alteration in service
delivery business. This is because employees are not aware about new system that leads
fear of unknown (Anderson and Kleiner, 2003). In addition to that new system can also
change job roles and responsibilities of workers as well as lack of appropriate skills for
new system are increasing the possibilities of resistance of change. In this process,
evaluation of current environment of workplace, social relation of employees with others
and present skills of staff associated with different job roles and responsibilities as per the
needs of changes helps managers of IHG in identification of such factors that influences
resistance of changes among staff members of hospitality firm.
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 Shareholders: The management of IHG has to carry out detail evaluation of attitude of
shareholders, market position of company, risk taking ability of organization, present
profitability of organization for identification of certain elements that increase the
chances shareholder's resistance towards new system. For example: If management wants
to expand business by making huge investment in other organization than managers of
IHG could face resistance of shareholder (Huang, 2001). This situation may be occurred
when company is not disclosing all the data associated with income, risk on investment
and etc. with shareholders. By conducting proper evaluation of attitude of shareholders
and market position of company, management of IHG is able to identify potential causes
of changes. Government authorities: The administration of every organization has to manage
different business operations as per the wide range of government rules and regulations.
In this context, it is evaluate that IHG has to carry out detail evaluation of wide range of
rules and regulations of public authorities as per the new organizational system.
Otherwise, if management fails during application of proper government rules regulations
then company could face legal action by public authorities. Therefore, it can be stated
non-compliance of proper legal norms during change management process has increased
the chances of resistance of government towards new business system. Furthermore,
company could face several issues during merger and acquisition along with staff
management practices if management did not consider different regulations associated
with different business practices.
 Suppliers: An organization associated with hospitality business has to manage
relationship with different suppliers for attainment of needs of different kinds of material.
In the context of IHG, it has found that change in quality of raw material with
considering the views of suppliers, change in ordering process, alteration in deliver
schedule etc. Have increased the possibilities regarding resistance of suppliers towards
new system. This is because suppliers have to restructure their operations as per the new
system of IHG therefore suppliers will not support company in new system. Apart from
that it is examined that avoidance of interest of suppliers is also playing important role in
order to increase the chance of supplier's resistance towards changes along with
application of new system.
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Critically appraise relevant strategies to manage these resistances
Ending Uncertainties
It has been evaluated as a most effective approach for management resistance of
stakeholders associated with IHG during change. This is because uncertainties associated with
change are identified as major reasons for resistance (Ankli and Palliam, 2012). In addition to
that it is evaluated that change influences breakdown of existing hierarchies along with reporting
relationships, job profiles and etc. Therefore, effective communication of the new standards and
values of new system with different stakeholders assists manager of IHG for increasing the
effectiveness of change. In addition to that by combining with an effective two-way feedback
and communication mechanism, hotel organization is able to resolve any doubts or issues in the
process of managing resistance to change.
Micro-Management
Any successful change management intervention process is scheduled with an active
involvement of the change management leadership. In the context of hospitality business, it has
been evaluated that management has entrusted to different stakeholder with the change needs and
requirement of new processes and systems by clearing doubts, ending uncertainties, suppressing
rumors, etc. All these factors have played important role for managing resistance of changes
among stakeholders (HR strategies, 2015.). In this process, IHG has to provide detail
information about new system with government, shareholders, employees and other individuals
who are directly associated with changes.
Design Appropriate Rewards as Motivators
By designing wide range of rewards as part of managing resistance to change,
management of IHG is able to influence motivation level of workers and other individual toward
new system. Otherwise, management could face resistance of stakeholders towards new system.
In this process, Money is an identified as powerful motivator but it cannot influence perception
of all individuals or stakeholders. Therefore, management has to use different kinds of monetary
and non-monetary rewards in order to influence behavior of others.
Evaluating the contribution of the human resource management upon the success of
organizational potential change management process
Human resource management is the key essential element which determines the various
perspectives which contributes in meeting the goals of the organization in an effective and
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efficient manner. There are different aspects which ensure the overall functioning of the
organization (Armstrong, 2006.). As Intercontinental is the fast growing hotel it involves the
different aspects which measure the overall performance of it as well as of the employees. The
contribution of the human resource is very essential to carry out the various operations within the
organization. This also reflects the key prospects which are essential to define the various
dimensions which need to be changed in order to enhance the performance standard of the
employees. There are various techniques and the strategies which are adopted in order to endure
the different prospects which contribute in proper management of the various activities which
contributes in the effective arrangement and valuable input to the company which helps in
getting the desired level of output.
As the change is the part of the environment in which it operates and it is very essential to
determine that the respective characteristics that are related to the overall functioning of
Intercontinental. There are several perspectives that determine the overall performance of the
employees that are engaged in order to carry out the various operations with the objective to
attain the goals. Different process are incorporated in order to ensure that the effectvi4e
accomplishment is done as per the services which they perform to meet the qualitative and the
qualitative aspects that ensure the effective accomplishment by delivering the best services to the
customers and ensure that they effectively manage the different changes which support the
transition between the several aspects which is related to the overall orientation of the respective
aspects which ensure the effective accomplishment as they are customer-oriented. All the needs
and the demands of the customers as they determine to effectively meet the services which they
are offering to the customers (Bandt and Haines, 2002.). Intercontinental work structure is
differentiated into the several levels that determine the effective allocation and the effective
implementation of the various changes which are present within the work environment in which
it operates.
Change management is the effective aspect which assures proper growth and expansion of the
organization as it is very essential to function in an effective manner that needs the formulation
and innovation into the different aspects which they perform in order to meet the demands of the
customers. Intercontinental ensure that the employees inherits the key essential aspects which
determine that they have the potential to meet the target by providing the best services to the
customer. For each and every organization change is mandatory in order to sustain for the long
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run. The various policies and procedures are adopted in order to ensure that the changes prove to
be beneficial for them (Goulding, 2001). Intercontinental effectively make the use of the
different change management process which is introduced within the work environment to
sustain for the long run. With the implications as well implementation of the respective aspects
ensures that the organizational objective s is attained in an effective and efficient manner.
Innovation which takes place in the technological aspect forces business to make changes in the
business aspects. In the world of technological advancement organization needs to be updating
all kind of technologies. With the proper adaptation of the new technology they have gained the
resistance for the implementation of the change which is incorporated within Intercontinental to
make the overall functioning effective and meet the change within the work environment in
which it operates.
Analysis of the impact of the management and leadership style on the change management and
critical evaluation of the style which are adopted by an organization
Intercontinental hotel &c resorts is going to plan for the change within an organization
which helps in delivering quality and satisfactorily services to their customers. For instance:
Intercontinental hotel make changes in the organizational policies in relation to the timing hours
of the employees (Bergin, 2009). Management of an organization has decided that timing hours
of the employees is increased. It is usual that employees always show the resistance towards the
change. In this case, leadership and management style provides assistance to the intercontinental
in managing the change more efficiently.
Leadership can be defined as an organizational ability to guide or influence the decision
making of others. Leader is one who set out the direction and inspiring vision which motivates
the human resource of an organization to give their best efforts towards the attainment of goals.
In addition to this, leader also plays a vital role in coordinating the varied interest of the entire
workforce who works within an organization. Effective leader helps organization in building and
sustaining competitive advantage over others. Along with it, leadership style consists of the way
through which they direct and motivates the people of an organization. It also states the ability of
leaders according to which they implement the business plan in an effective manner. There are
several leadership and management style such as democratic, autocratic and laissez faire
leadership style.
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Intercontinental follows the democratic leadership style to encourage their workforce.
This style of leadership is also known as participative leadership style which helps organization
in encouraging their workforce (Dahl and Smimou, 2011). Human resource department of
Intercontinental involves their employees in the decision making process of an organization.
They encourage their workforce to give their valuable input to the company which helps in
getting the desired level of output. It develops the feeling of association among the employees of
an organization. By developing the feeling that their suggestions matters for the organization.
Through this, company can build the workforce of motivated people by boost up their morale. In
addition to this, HR manager of the company also discuss the issues with the employees of an
organization. Along with it, they also encourage the workforce to make contribution in the
strategy which helps them in resolving the problem. Involvement of the employees in the
decision making aspects evolve satisfaction among them. Usually there is the less chance that
motivated workforce shows resistance towards the change in comparison to the less motivated
people.
Participate leadership style provides assistance to an organization in implementing the
change within an organization more successfully (Richards, L., n.d.). As employees of
Intercontinental take participation in the decision making process so they are aware with the pros
and cons of the changes which company is going to plan. In addition to this, democratic style of
leadership also encourages their employees to make innovation in the services which are offered
by the hotel. Besides this, by practicing this style Intercontinental can retain and sustain the
workforce for the longer duration. Thus, participative management style provides assistance to
an organization in managing the change effectively to the large extent.
Participative management style consists of both benefits and drawbacks which closely
affects organization while they planning to implement the change (Dalzell and Wallace, 2000.).
In participative leadership style employees are also the part of management decision making.
This aspect prevents the resistance from the employee’s side and there by enables organization to
take benefit by implementing the change within an organization. For instance: employees are
also involved in the management decision in relation to the increase in the timing hour’s
approximate 1 hour.
On the basis of this leadership style employees are also involved in framing the strategies
and policies. Thus, there is no resistance from the side of the other employees towards the
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change. In addition to this, by communicating the benefits to the employees Intercontinental can
manage the changes more effectively. For instance: Management of Intercontinental can increase
the timing hours by communicating the employees that they organize daily activities which
provide opportunity to learn something different (Gillen, 2007). In addition to this, it also creates
enthusiasm among the employees which helps them in work in the more efficient manner.
However it is to be critically evaluated that it is not necessary that each change which are
introduced by an organization will provide benefit to their employees in the monetary terms. One
of the main drawbacks of the democratic leadership style that usually employees give suggestion
which provides benefit to them rather than the organization. As one of the main objective of
Intercontinental is to maximize their profitability by offering the quality and unique services to
their customers. Therefore, company involve their employees in the decision making process to
assess their point of view. Through this, management of an organization is able to indulge the
change without facing any difficulty. In addition to this, Intercontinental also communicate the
reason to their employees the reason due to which they are unable to implement their
suggestions. This aspect also develops the satisfaction among the workforce. Through this,
organization is able to increase the timing hours of their employees without any resistance.
CONCLUSION
From this project report it has been concluded that human resource management plays a
vital role in managing the human resource of an organization. It can be seen in the report that
different types of leadership styles place different impact upon the change management.
Participate leadership styles provides assistance to Intercontinental in managing the change more
effectively. Democratic style of leadership places positive impact upon the change management.
Whereas autocratic leadership styles negatively impacts the change management. Besides this, it
can be concluded that there are several internal and external factors which forces Intercontinental
to make changes within an organization. Further, it can be inferred that Intercontinental follows
participative leadership style which helps them in managing the change within the company. It
can be seen in the report that the various stakeholders and the people associate with the
Intercontinental aspects which ensure the effective allocation of the resources in order to attain
the goal. These aspects ensure to build up the effective implementation of the various aspects
which needs to consider at the time of undertaking strategic planning.
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