Organisational Change Management Report: Le Chic Restaurant Analysis

This report delves into the organizational change management at Le Chic Restaurant. It begins with an executive summary, followed by an introduction to the restaurant's context and objectives. The report then explores the internal and external drivers for change, utilizing PEST and SWOT analyses to identify key factors influencing the business. It examines the nature of change facing Le Chic, including the transition to a chain restaurant model, and applies the Congruence Model of Nadler and Tushman to understand the organizational dynamics. The report also discusses employee reactions to change, considering factors like emotion, cognition, and communication, and references Kirkpatrick’s elements of change. Finally, it outlines recommendations for successful change implementation, emphasizing the importance of communication, training, and proactive strategies. The report concludes by summarizing the key findings and implications for Le Chic Restaurant's future.

Running head: ORGANISATIONAL CHANGE MANAGEMENT
Organisational Change Management
Name of the student
Name of the University
Author note

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Executive Summary
The main purpose of this report is to discuss about the internal and external drivers for
change of the Le Chic Restaurant. It analyses the nature of change facing Le Chic restaurant
and the possible reactions of the employees to change. It elucidates on the different ways with
the help of which the change can be tackled in the organisation. It also discusses about the
recommendations that the management can implement in order to successfully handle change
taking place within the organisation.

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Table of Contents
Introduction................................................................................................................................3
Internal and External drivers for change....................................................................................3
Organisational Change in Le Chic Restaurant...........................................................................6
Employee Reactions to Change.................................................................................................9
Execution of proposed change and proper implementation.....................................................12
Conclusion:..............................................................................................................................14
References:...............................................................................................................................15

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Introduction
Le Chic is a restaurant that is located in a busy street within a major city. It is known
for its commitment to good food along with that of quick service. The standard menu of the
restaurant that includes a lot of delicious dishes attracts a large number of people. The major
objective of the management is to maximise the efficiency and reduce the turnaround times.
The outcome in relation to the objective focuses on consistency in relation to the customer
service along with that of daily sales target (Scheidegger et al., 2015). The economic crisis
along with that of competition has led to considerable losses and a new business strategy has
been devised by that of the new manager called John to bring the company out of the crisis. It
is being turned into a chain restaurant and will have an upmarket menu and a new bar area.
New employees will be recruited and the experienced employees will give training to the new
employees. This report focuses on the nature of change facing Le Chic Restaurant and
analyse theories in relation to the restaurantal change.
Internal and External drivers for change
Pest Analysis:
Political Economic
Health regulations implemented by the
government will bring about changes in the
organization.
Joint promotional alliances and partnership with
cinema along with local bowling alleys.
Social Technology
Sponsoring community projects will help in
building the brand image of the restaurant.
Multimedia website helps in accessing menus,
making reservations and giving feedback.
Figure: PEST Analysis of Le Chic Restaurant

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Source: (Bilz & Nadler, 2013).
Political- The health regulations in relation to the food industry has tightened in the last few
years and there is increasing pressure from the government along with that of the health
experts to maintain hygiene in relation to the food items.
Economic- Joint promotional alliances with potential partners will be able to increase the
business in relation to Le Chic Restaurant. The partners will operate in the same area as that
of the business and partnership with cinema and local bowling alleys will increase the
opportunity of the restaurant (Kuo et al., 2016).
Social- Sponsoring community projects has demonstrated the social responsibility in relation
to the business. It will help in developing a strong brand image and reinforce employee
engagement along with that of customer loyalty.
Technology- New information system has helped in the linking of Le Chic with the suppliers
and standardized the process of payment along with that of accounting process across the
restaurants. A multimedia website has enabled the customers to access menus and make
reservations. Customers also get the opportunity for downloading discount vouchers and give
feedback.
SWOT Analysis of Le Chic Restaurant
Strength Weakness
Quick service and wide range of delicious dishes. Customer service not adequate and lack of
communication between waiting and kitchen

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staff.
Opportunity Threats
Fast food feel and it is being developed into a
chain restaurant.
Competition has increased with the opening of a
pub along with two new restaurants in the
vicinity.
Figure: SWOT Analysis of Le Chic Restaurant
Source: (Hall & Ko, 2014)
Strength-Le Chic Restaurant gives the facility of quick service along with supplying
delicious food. It offers a good range of delicious dishes that is inclusive of starters, main
courses and desserts.
Weakness- It has only 35 employees which is too small for that of a restaurant and 50 % of
the employees are working on the permanent basis. New employees will be recruited that will
require considerable capital outlay and can leave the company bankrupt. The customer
service is not up to the mark and lack of coordination between that of waiting and kitchen
staff is leading to a lot of problems. Customers have to wait a long time in the queue to get
their favourite item (Lu, 2016).
Opportunities- It has a fast food feel that attracts a lot of customers. It being turned into a
chain restaurant will grow more popular and draw the attention of a large number of people.
Threats-Competition has greatly increased with the opening of a new pub along with that of
two new restaurants in the vicinity causing the company to suffer from significant losses. The
customer service is not that good which compels the customers to wait for a long duration of
time and some of the customers wander off to nearby restaurants as they get plenty of options

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in the city. The profit margins have grown thin and losses were registered in the balance sheet
of the restaurant.
The success of an organization is dependent on its internal and external environment.
An organisation can grow by adopting certain strategies that can help in manipulating these
factors. Macro environment consists of external forces which an organisation cannot control
directly. The PEST analysis helps in identifying the external forces that affect an
organisation. Micro environment are the internal factors that an organisation can control. The
SWOT analysis helps in bringing out the internal factors that has influence on the
performance of the organization. The PEST Analysis along with that of the SWOT analysis
helps in revealing important aspects of the business and will help in devising a path that
would help in overcoming the barriers and lead to considerable profit of the restaurant.
Organisational Change in Le Chic Restaurant
Le Chic is being turned into a chain restaurant that will require an overhaul of the
entire organizational system. It is offering an upmarket menu and giving the facility of a new
bar area. New employees are being recruited who will need training and the experienced
employees can provide extensive help in this regard by providing them with relevant
information and relate experiences (that they have faced) that would be of immense help to
the new employees.
The Congruence Model was developed by David A. Nadler and Michael L. Tushman.
This theory is of great help in understanding the nature of business and in making it more
effective. The four main components in relation to the Nadler Theory is individual, task,
formal along with that of informal processes. It is found that the restaurant’s problem arise
when these components do not match. Change in relation to one component can affect the
other components on account of the personal along with process linkage that exist within the

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organization (Harris, 2015). The Theory of Nadler lays great stress on the process of
transformation between that of input and output. It lays stress on the organizational culture
along with strategic decisions that can help in meeting the future challenges.
Figure: Congruence Model of Nadler and Tushman
Source: (Kuznetsova et al., 2017).
Transformational Change occurs in relation to what one thinks in relation to what is
happening. It involves changes in the mental process that can help in improving the
performance. Le Chic Restaurant being turned into a chain restaurant and setting up of new
restaurants in different cities highlight the business strategy and mindset of John, the new
manager who wants to augment the performance of the employees in the organization.
Incremental change revolves around introducing small changes instead of a drastic change.
Recruiting new employees and providing them with induction training act as the incremental

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changes in the organization. Proactive change refers to the changes that are brought about in
the organization because they are desirable (Silveira Chaves et al., 2014). New information
system being developed that links Le Chic with that of the suppliers is indicative of the pro-
active changes within the organization. Reactive change on the other hand refers to the
changes that are initiated in the organization by virtue of external forces. Joint promotional
alliances with potential partners will strengthen the organization and help in the expansion of
their business.
Setting up of new restaurants will involve extensive communication and maintaining
effective communication can help in reducing the problems. It is extremely necessary in this
case to recruit the right kind of staff who has to mirror the ideals of the owner. The core
principle in relation to Le Chic Restaurant has to be communicated from the outset to the
staffs so that work is carried out effectively. Communication between the store is of crucial
importance for this kind of chain restaurant (de Araújo, Gonçalves & Matias, 2014). The
management should follow up on every trivial incident so that the problems are sorted at the
beginning and do not lead to further complications. Great staff, on the other hand, can lead to
best advertisement for the brand and contribute greatly for the organization. Proper training
should be meted out to the employees so that they can perform their job effectively and it will
help the employees to grow within the organization. A positive organizational culture can
thus help in minimizing problems within the organization and lead to profit for the company
(Volkema & Kapoutsis, 2016).
Pro-active reorientation strategy change can be brought about in the restaurant to bring
improvements in the organization. A robust central management is of great importance in the
case of a long chain restaurant. It is not possible to oversee all the operations so Point of Sale
(POS) software can help in monitoring the operations. Central Kitchen Management is
important for this kind of long chain restaurant as there are many outlets and consistency has

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to be maintained in relation to the different outlets (Pagaryan, 2017). Track has to be
maintained in relation to the inventory needs and consistency of recipe can help in ensuring
the success of the restaurant. POS can provide a solution in reducing complexities for the
long chain restaurant.
A physical environment that is well-designed is necessary for any successful operation.
Restaurants can make use of technology in their operations and make use of social media to
expand their business. True loyalty springs from effective service which includes attention to
detail along with that of appropriate service. Franchises will help in ensuring the success of
the brand. A critical goal in relation to a restaurant is to serve the correct target and this can
be achieved by analyzing the value that a customer has to the brand (Cho, Bonn & Kang,
2016). The distance between that of head quarters and sales outlet has an effect on the
performance of the restaurant. It is found that the revenues are weaker for that of the distant
units and they were not long-lived.
Employee Reactions to Change
The reactions of the employees to change are on account of a number of factors. It is a
reasonable fact that the employees will react as the process in relation to organisational
change will involve moving from that of the known to that of the unknown. They cannot
understand the nature of change occurring in the restaurants that causes them to react. The
three factors that influence the reaction of the employees to that of change is emotion and
cognition, communication and participation in decision-making (Kang & Lee, 2015). Many
organisational change effort fail because of underestimation of cognitive affective nature in
relation to change.
Kirkpatrick’s 3 elements of change is in relation to empathy, participation along with that of
communication. They can provide help to a great extent in the effective management of

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change. Kirkpatrick puts forth an organized model that can help in managing change.
According to Kirkpatrick, the following steps can assist in managing change along the proper
lines:
 Shaping the requirements in relation to change
 Formulation of a new strategy
 Investigating in possible feedback
 Creating a result
 Making plan in relation to the changes
 Execution of the change
The employees of Le Chic restaurant were apprehensive of the changes taking place in
the restaurant. Their emotions ranged from that of anger, fear to suspicion in relation to the
new rules and policies introduced in the restaurant. The changes taking place in the
organization should be communicated to the employees and there should be jusitification for
the changes taking place. Expectations should be shared along with the benchmarks.
The employees of Le Chic Restaurant should be communicated the essential fact that
change is necessary and it will benefit them on the whole. They should be made known that
the change will result in their profit and contribute to their overall well-being. An important
element of Kilpatrick is in relation to empathy and it can help in making the employees adjust
to the changes brought about in the organization (Lee, Back & Chan, 2015). The reactions
differ from that of one person to that of another. It is indicative of the ability to be able to
walk in the shoes of other people and feel what other people are going through so that the
reactions from the management look humane. Managers would be able to achieve their goals
with the full support of the team.

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The personal files of the employees of Le Chic Restaurant should be glossed through so that
the managers can know about the employees. The employers should know the person on
individual basis so that they feel empathetic towards the person. Empathy provides clues for
communication along with that of participation (Jung et al., 2015). The next step in relation
to managing change is that of participation. Participation helps in reducing the resistance and
motivating the people to make changes in the workplace. Instructional meetings will help in
ensuring participation. The learners or the employees of Le Chic Restaurant should
participate under the guidance of that of the leader. The leaders should contribute the idea
that lies behind the decision of brining about the organizational change. There should be
discussion that can help in reducing the confusion and the leaders can set forward the need
for bringing about change within the restaurant (Bilz & Nadler, 2013). The leaders can set
forth questions and the employees can answer their leader. The employees of Le Chic
Restaurant should actively participate that will help in accepting the change if they are
involved. It will help them in meeting a goal and responding properly to a new situation.
Communication is another important aspect that can help in managing change in an
organization. Change management is a two-way method and the right amount of
communication between the people in the top management and the people working at the
lower level can help in reducing conflict within an organization. Effective communication
will help in building a better relationship between the staffs of an organization (Tsai & Liao,
2017). It will bring about productivity in the organization and provide growth for the
restaurant. Systematic communication between the employees of an organization is an
important phase and helps in creating support.
To help the change agents to identify the acceptance of the employee it is significant to
operationalize the definitions in relation to reactions to change. Resistance is inclusive of a
multidimensional attitude in regard to change that is composed of the affective, cognitive and