Organizational Change Leadership: Marriott and Hilton Hotels' Report

This report provides a comprehensive analysis of change management and leadership strategies within the context of Marriott and Hilton Hotels, two prominent players in the hospitality industry. The report explores how organizational changes impact a company's strategy and operations, examining the influence of internal and external drivers on leadership, team, and individual behavior. It delves into measures taken to minimize the adverse effects of change on organizational behavior, including the barriers to change and their influence on leadership decision-making. The report also assesses the contributions of different leadership approaches to organizational change, offering valuable insights into how these hotels navigate the challenges of a competitive market. The analysis covers strategic adaptations, the impact of technological capabilities, organizational culture, employee morale, political and economic factors, and competitive pressures. The report emphasizes the importance of adapting to market changes and implementing effective strategies to maintain a competitive edge in the hospitality sector, highlighting the need for innovation and customer satisfaction.

Understanding and
Leading change

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Impact of change on an organisation's strategy and operations.......................................1
P2. Impact of Internal and External drivers of change on leadership, team and Individual. .4
Behaviour..............................................................................................................................4
P3 Measures taken to minimise the impact of change on organisational behaviour..............6
TASK 2............................................................................................................................................8
P4 Barriers of change and their influence on leadership decision making.............................8
TASK 3..........................................................................................................................................11
P5 Contribution of different leadership approaches regarding organisational change.........11
CONCLUSION..............................................................................................................................12
RFERENCES.................................................................................................................................12

INTRODUCTION
To survive in competitive market world, the company always need to focus on
implementing changes in their overall organisational structure so that they can able to compete
with their rivals in an effective and efficient manner. Therefore the managers and leaders both
plays an important and crucial role in adopting new and innovative changes through implement
an effective strategies and policies so that they can fulfil the needs and demands if customers and
employees in an effective manner. Marriott and Hilton Hotels are two such competitors engaged
in providing hospitality services (Davis and Marshall, 2014). The both companies gives tough
competition to each other in competitive market. The project covers the methods under which
external and internal drivers of changes make impact on team, individual and leadership
behaviour in an organisation. There are different barriers which restrict company to adopt
changes and influence leadership decision making which will be also discussed under this report.
TASK 1
P1: Impact of change on an organisation's strategy and operations
Organisational change refers to changes or modifying the business structure so as to
achieve positive outcome in near future. As changes implemented in an organisational structure
brings either negative or positive impact on the business but it is compulsorily required for
company to adopt changes on continuous basis so that their business operation are not much
affected by internal and external factors. Marriott and Hilton Hotels are two such big
organisation which captures large market share in hospitality market industry. Thus, they are
much affected and influenced by external factors as well such as political. Economic, social,
technological etc. Marriott and Hilton Hotels are two competitors which deals in providing
similar services to large number of customers. Adopting changes helps an organisation to
achieve competitive advantages, new growth opportunities, increased efficiency etc.
All such changes which are required to implement in future make large impact on the
strategies and operations. It is the obligation of managers of different departments to first
identify the needs and requirements and the factors which influence the interest and behaviour of
employees and team which restricts them to achieve desired target (Drover and Ariel, 2015).
Thus to prevent such situations, it is the responsibilities of managers to make an effective
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strategies and policies which motivates employees to work parallel to such changes and
improves their efficiency as well.
The main reasons which motivates managers to bring changes in an organisational structure are
as follows:
Increase in market share: Marriott and Hilton Hotels both are engaged in providing
hospitality services to large number of customers living across worldwide. Thus, implementing
changes in providing services will help them in satisfying the interest and behaviour of their
customers and are able to retain loyal customers as well. This will help n gaining large market
share and gives tough competition to their competitors.
Competitive advantage: Adopting plans and policies in order to deal with various factors
which affects the business activities of an organisation will help company in gaining competitive
advantage in market world.
Innovation: Changes in the attitude and behaviour of employees through providing them
suitable training helps in bringing new ideas and ways of maximising the level of satisfaction of
their loyal customers. For example picking customers from the airport through luxurious cars
helps company in building reputed and good image in front of customers (Fragouli and Ibidapo,
2015).
Hilton Hotels: It is a global brand hotel which deals in providing hospitality services to
both business and leisure travellers comes from various countries. In 2017, it has been noted
from their portfolio that it has over 5200 properties with more than 856,000 rooms in almost 105
countries and territories. Hilton attains 14 brands across various market segments such as Conrad
Hotels &Resorts, Ghilton Graden Inn etc. In 2013, it has been recorded that the Hilton has
generated over $2.35 billion. The hotel has attained over 169000 employees who contribute their
efforts in achieving their desired goals and objectives.
Marriott Hotel: It is also one of the global brand hotel which also deals in providing
hospitality services to large number of customers comes from different countries. It has over
6000 properties in 122 countries and territories through out the world. Marriott occupies more
than 1.2 million rooms along with 195,000 room as additional in the development pipeline. It has
been ranked #33 according to the fortune's “100 Best Companies to work for”. Marriott Hotel
has attained more than 226,500 employees who contributes their maximum efforts in achieving
desired goals and objectives of an organisation (Goldstein, Sauer and O'Donnell,2014).
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Hilton and Marriott hotel have their own identity in market which may affect due to external
factors. Both the organisation attained strong rand image in competitive market which have
capabilities to adopt changes in order to improve their business operation more successful. The
management of both Hilton and Marriott Hotel has the responsibility to formulate an effective
strategies and plans regarding adoption of changes in organisational structure.
Strategies Hilton Hotel Marriott Hotel
Competency based strategies It is important for manager to
analyse the requirements and
needs of customers while
arriving at their Hotels. It is
essentially required for an
organisation to conduct
training and development
programs for their staff
members so that they can
understand how to welcome
the customers in more
impressive way so as to
maximise their satisfaction
level. It also required to focus
on improving their services
and amenities provided to
customers which brings good
image in customer's mind.
This organisation also engaged
in providing similar hospitality
services to large number of
customers. The management of
Htoel need to conduct research
on the needs and requirements
of customers and accordingly
implement strategies to bring
some changes in order to fulfil
them in an effective and
efficient manner so that they
can able to retain loyal
customers.
Pricing strategies As an organisation attain brand
image in competitive market
thus charges hight amount on
the services they provide
which decreases the interest of
customers to visit at their
It is also one of the banded
image hotel which capture
large market share in market.
They also charged high prices
from their customer for the
service they offered thus also
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venue. Thus the company need
to focus on reducing their
prices for their services so that
it will enhance the interest and
behaviour of customers.
required to adopt pricing
strategies wit a motive of
attracting large number of
customers of different income
level groups.
Hilton and Marriott Hotel both carries different image and reputation in market and have
their own working culture and working process. In Hilton, efforts and contribution of staff
members are valuable of company which help them in making their business more successful.
Thus it is important to enhance their skills and knowledge so that they can understand the interest
and behaviour of customers and accordingly put efforts in welcoming them in an impressive way
(Groppel, 2011). On the other hand, Marriott Hotel also required to develop their workforce
through conducting training programs and learning programmes so as to give tough competition
to their competitors.
P2. Impact of Internal and External drivers of change on leadership, team and Individual
Behaviour
In recent era there has been a consistent increase in the working of companies across the
world, Globalisation has taken place and whole world has became a village. Companies are
expanding their operations worldwide. In the same manner, Marriott and Hilton Hotels are two
multinational giants and has business operations all over the world and therefore it gets
influenced with various factors which includes both macro and micro factors. The macro factors
would include political, social, economical and environmental factors and micro factors include
factors which affects company directly like, suppliers, employee's morale, technological
capacity, demand of services in market etc. All these factors have a positive as well as negative
effects on working of the company, it relies on companies that they adapt to such factors and
start working on it with a view to increase their business in an effective and efficient manner.
The management of the companies have the responsibilities to accept these changes and should
amend their policies accordingly (Ellenbogen, Berger and Batjer, 2010). If these changes are
accepted in proper manner it will enable their business to grow and prosper in market. These
factors have an impact on leadership and behaviour of team and individual employees of
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company. If an organization makes changes within policies and procedures to implement what is
happening in the external world, it will lead to success for organization and goals of
organizations can be accomplished easily.
Impact of Internal Drivers of change on Coca cola and Pepsi
 Technological Capabilities : It can be considered as the most important internal factor
which have a direct impact on changes in external environment. Marriott and Hilton
Hotels are both hospitality industry and in order to gain and maintain market share they
keep on adopting advanced technologies for the purpose of serving their customers well.
These advanced technologies drives employee to perform well and to remain updated
with latest technology which is quite beneficial for them personally as well.
 Organisation Culture : The kind of culture that a company has in its working have a
huge impact on behaviours of individual within the organization. Employees belongs to
different cultures and religions and therefore it is the responsibility of management to
consider these changes and implement certain policies within organization which will
make the environment conducive for their growth and development.
 Employee Morale : The morale of staff and employees plays a very crucial part in taking
an organization to a new high in its field. The satisfaction of employees is also major
driver of change within organization.
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Impact of External drivers of change on Coca cola and Pepsi
 Political : Both these companies have global business operations and therefore they are
affected by political uncertainties prevailing in those countries, the policies and
regulations framed by politicians of those countries will have a direct impact on workings
of company.
 Economical : It includes factors like cash flow in an economy. Sources of funds, per
capita of people etc. If there is higher per capita income in market it will boost demand of
products for these companies. Therefore Marriott and Hilton Hotels should implement
these economical changes within their organization effectively (Hall, 2010).
 Competitors: It is also important factor which need to be consider by company and
accordingly implement new and innovative changes that will help an organisation to
move ahead from their competitors and attained strong band position in market.
P3 Measures taken to minimise the impact of change on organisational behaviour
Change can be considered as a most essential element for each business organisation.
Growth and success of firm is based on change management policies that are used by an
organisation in respect to minimising the adverse impact of change on firms various operations
and behaviour. It is very crucial for an organisation to implement all changes in effective manner
as some are having positive as well as negative impact on organisational performance and
productivity. Firms that are effective in managing the change in efficient manner are able to lead
the firm towards higher competition and growth. In an organisation manager and its higher
authority plays vast role in managing all business operations through implementing various
measures and theories such as system theory and complexity theory etc. these theories are widely
applied by the manager of Marriott and Hilton Hotels in order to reducing the negative impact of
change that are described as under:
System Theory: This can be considered as an effective theory that is used by
management of Marriott and Hilton Hotels in order to enhancing performance of employees at
work place. This theory helps in managing organisational all operations in effective manner as to
implement all resource at right place. This approach has huge impact on developing innovation
among organisational activities and efficiently managing the contingent situations. According to
the description of this theory leader plays various role in managing employees activities and
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provide them significant direction to carry out its operations in well planned manner. It consist to
be an advance model which helps in reducing the negative impact from firm or its operations.
Complexity Theory: This is an another essential theory that is established by Marriott and
Hilton Hotels as effective functioning of organisational activities and operations. This plays an
effective role in analysing the diversity that is available in both internal as well as external
factors like organisational departments, customers, political, social and suppliers etc. the basic
objective of this theory is to determine the impact of complex situations under the macro and
micro environmental factors within an organisation in order to minimise them in effective
functioning of organisations (Harris, 2012). The major function of this concept is to determine
the important information from the environment and perfectly store the knowledge into this
system. This render various opportunity to the management and higher authority in regards to
design some policies that are helpful in providing a significant direction to workers to effectively
perform their function with the helps of such plans and strategies.
Continuous Improvement model: This model is effective attaining high growth and
success at market place. This model is widely applied by Marriott and Hilton Hotels in order to
attaining their desired goals and objectives in efficient manner. This model is significantly based
on proper cycle of development which consist four elements such as Plan, Do, Check and Act
that helps in implementing changes that are happened in future in effective way.
Plan: It is the first stage where the manager determine what changes need to be made in
an organisational structure.
Do: In this step, the required changes has been implemented in real business operations.
Check: In this step, the manager need to check whether implementing changes brings
positive outcome to company or not.
Act: In this step, the manager need to implement corrective measures if any problems
occurs while adopting changes in working environment (Mayfield, 2014).
There are other measures as well through which management can minimise the impact of change
on organisational behaviour:
Communicate with employees: Communication is necessary element which assist
management to identify the skills and knowledge of their employees. It also creates a better
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relations among employees which directly maximises their contribution towards organisational
gaols and objectives. It will further help in increasing their commitment and loyalty towards
company for longer period of time.
Provide job security: To bring out maximum output from employees, the management of
both Marriott and Hilton Hotels are required to assure their employees about job security so that
the workers can perform freely and develop new and innovative ideas to cope with the changes
arises due to business environment.
Assure employees that change can bring more advantages and opportunities: The
management of both Marriott and Hilton Hotels are required to assure employees that apart from
the negative impact, changes in organisational structure will brings beneficial advantages and
opportunities to employees. For example, providing rewards or extra monetary payments to the
employees giving high contribution to company thus it directly help them in achieving growth
and success ion their professional career.
Sharing vision and goals with employees: It must required for management to conduct
orientations programs where they can share its vision and objectives to the employees and tell
them about their expectations from them. This will bring motivation and guidance to the
employees to perform allotted roles and responsibilities in more effective and efficient manner.
TASK 2
P4 Barriers of change and their influence on leadership decision making
There are many external as well as internal barriers which has great impact on an
organization's capacity to adapt itself to changes and influencing the power of management to
take decisions. Internal barriers are the one presented within an organization and are manageable
to certain extent consisting employees, technology and external barriers are those which cant be
controlled by and are presented outside an organisation such as are government regulation. The
analysis used by the management of both Pepsi and Coca Cola which helps in identifying these
factors leading an organization to be resistant for change is Force field analysis.
Force Field analysis
It is useful tool which helps in identifying and analysing the problems faced by a
company while introducing changes . Force field analysis set up a relationship between factors in
favour and against such changes.
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Step 1: Plan for change
This step is concerned with setting objectives and analysing reasons for making
amendments in existing procedure and policies. The basic objective of both Pepsi and Coca cola
is to be market leader and enhance their productivity (Saha and et. al., 2013).
Step 2: Factors of change
This includes identifying those internal and external factors that will influence any
change introduced in an organization. Internal factors might includes about, outdated machinery,
low team morale etc. Externally includes change in demographic trends, uncertain environment
etc.
Step 3: Factors resistant to change
The factors that resists an organization to implement changes are of two types i.e. are
internal and external factors. Internal factors comprises existing organizational structure, fear of
unknown ,attitudes etc. whereas external factors includes government legislation etc.
Step 4: Assigning scores
This step is associated with assigning scores to the forces of change according to degree
of its impact on the plan in relation to their strength and weaknesses to influence the behaviour
of management of both organisation.
Step 5: Analyse and application
This step includes identifying risk attached with factors of change and to decide whether
to implement the change or not. It involves reviewing and strengthening supportive factors and
minimising opposing factors.
Different barriers of change and their influence on decision making
There are various barriers of change which has a negative influence on the decision
making power of an organization restricting it from implementing changes . These barriers not
only results in affecting growth and performance of the company but also hampers the relation of
organization with its employees and customers. It is thus of vital importance for a management
to identify and eliminate these barriers by adopting suitable strategies. Some of the most
common barriers and their influence are define below:
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 Government legislation: Government legislation is a type of external barrier which cant
be control by an organization. As rules and regulation varies from country to country it
restricts an organization not covered under government regulations (Tang, Lu and
Hallinger, 2014).
 Employee’s: Employees forms the cornerstone of Pepsi and Coca cola on which the
performance and success of these organization depends. Employees too sometimes
emerges as are biggest barrier for an organization to introduce any change as they are
stubborn and restrict any kind of behavioural change or procedure they are used to .
 Environment: Business works in a dynamic environment which is ever changing. There
are certain changes that are unfavourable for environment creating a threat on the security
Some changes are hostile in nature which may have an adverse effect on environment and
develops the issues of security. In such cases environment acts as barrier for a company
to adopt any change which might adverse effect on environment and society
 Lack of finance: Changes in organisational structure required huge amount of funds due
to which the management may find difficulties in raising funds from different sources
such as financial institutions, banks etc. For example,
 Lack of skilled staff: Changes in organisational structure required maximum efforts and
contribution from the employees. For this, the management required to invest more in
conduction of training and development programs so as to maximise the skills and
knowledge of their employees and contribute more towards organisational goals and
objectives.
 Lack of technology: It is also one of the barrier which restrict company to adopt changes
in their business structure. Using outdated or obsolete technology increases cost of
business operations and brings less output than expected. Therefore, it must required for
management to invest funds in adoption of advanced technologies which maximises the
perfo4rmacne and productivity of employees as well as organisations.
TASK 3
P5 Contribution of different leadership approaches regarding organisational change
Leadership is necessary for an organisation to achieve its ultimate goals and objectives. It
provide guidance and direction to the company so that it can perform their tasks with highest
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