Analysis of Managing Organisational Change: HP Chain Report

This report provides a comprehensive analysis of the organisational change experienced by HP Chain, an American hotel chain, following its acquisition of the Ferns, a New Zealand-based hotel chain. The report identifies key issues such as cultural differences between American and New Zealand workforces, leading to miscommunication, lack of employee support, and conflict. It delves into the importance of organisational culture and development, highlighting the need for effective change management strategies. The report then outlines a detailed change management action plan, including the application of Kurt Lewin's change model, and emphasizes the importance of transparent communication, employee involvement, and training. Additionally, the report examines the impact of organisational structure on the change process, providing a comparative analysis of different organisational models. The report concludes by stressing the significance of effective change management for the growth and success of HP Chain in the market.

Running Head: MANAGING ORGANISATION CHANGE: HP CHAIN
Managing Organisation Change: HP Chain
Name of the Student:
Name of the University:
Author Note:

1MANAGING ORGANISATION CHANGE: HP CHAIN
Executive Summary
The report focuses on the managing organisational change of the HP Chain. The report deals
with the organizational issues as well as change management action plan. The study provides
a clear idea of regarding the organisation structure. Lastly, the report focuses on the
conclusion part which explains why it is important for the growth of the organisation.

2MANAGING ORGANISATION CHANGE: HP CHAIN
Table of Contents
Introduction................................................................................................................................3
Issues Organisational Culture....................................................................................................4
Change Management Action Plan..............................................................................................5
Organisational Structure.............................................................................................................9
Conclusion................................................................................................................................14
References................................................................................................................................15

3MANAGING ORGANISATION CHANGE: HP CHAIN
Introduction
The change in the organisation takes place when the company enables a transition
process from the current state to the desired future state. Then it is considered to be the
organisational change that is taking place in an organisation (Moxen & Strachan, 2017). In
the process, the company need to take up plans as well as implement it effectively so that the
employees are unable to resist the change that is taking place in the process, along with that
cost to the company can be minimised in the process (Pollack & Pollack, 2015). The
organisational change that is taking place should be effective so that it can enable the
company to maximise the profit that they are earning in the market.
The report will mainly deal with an American hotel “HP Chain” who are taking over
the Ferns, which is a family-owned chain in New Zealand. The company possess vast
properties consisting of three, four and five-star luxury properties. Ferns are operating in this
industry for almost 20 years, and they are renowned for their quality product as well as
customer service and value for money. The CEO of the Ferns had retired just four years
before, and the chain has been passed to his two sons who possess different vision and goals
for the company, which impacted in the confidence of the brand and the company suffer a
huge loss. These left with no other option for the Ferns to sale their company.
HP Chain top executive soon sell all the three-star and four-star properties to capture
the Ferns and keeping all the five-star properties so that they can create a luxurious product
by keeping the uniqueness and feel of New Zealand. Therefore, there is a cultural difference
in the workforce of the Ferns as well as HP Chain is an American company, and on the
contrary, Ferns are New Zealand based company. These difference is troubling the company,
and this report will provide a clear idea regarding the problem and solution to the problem.

4MANAGING ORGANISATION CHANGE: HP CHAIN
Issues Organisational Culture
Company culture is considered to be the personality of the company. It is the culture
in which the employees of the company are working in which include the variety of elements
which need to be considered, and they are namely, work environment, culture, expectations,
ethics, value and company mission (Walker & Soule, 2017). E.g. in some of the companies
there are team culture with the employees while in other, there are traditional or formal ways
of management style. These state the culture of the company in which the employees are
working, and that varies from company to company (McGregor & Doshi, 2015).
As the American implemented changes in the policies in HP Chain but the front line
along with the supervisor and middle management of the current workforce were not
concerned in the process. These created a miscommunication among the employees of the
company, and there is a workforce as well as a cultural difference which is there in New
Zealand as well as America. These are the main reason the employee in the Ferns feel that
they are not supported by the HP Chain, who recently owned the property. These led to the
miscommunication as well as the conflict between the staff and the management of the Ferns
and HP Chain.
Organisational development is considered to be the application of behavioural science
to improve the organisation’s health along with the effectiveness. The company use their
ability to cope up with the change that is taking place within an organisation (Cook, 2015).
Organisational development helps in cope up with the environmental change along with that
improves internal relationships and increase problem-solving capabilities. These enable the
organisation to understand that during the acquisition process, the two company merge so
there might be a cultural difference along with the values, beliefs and practice (Koenig,

5MANAGING ORGANISATION CHANGE: HP CHAIN
2017). Organisational development enables the organisation to smooth the integration
between the firms.
On the other hand, the companies those are merging are going through the period of
decline, which causes a variety of problem within the organisation and they are mainly lack
of trust as well as lack of innovation, high turnover and high level of stress along with the
conflict (Caiazza & Volpe, 2015). Organisational development enables the company to
revitalise by managing conflicts, facilitate the communication process and to foster
commitment within the company. Lastly, conflict might arise anytime within the
organisation, which is also being managed by organisational development (Powelson, 2015).
HP Chain was unable to take up the organisational development, which is the main
reason for the conflict that arises within the workplace as there is a cultural difference along
with the workplace environment in both the companies. The new management was reluctant
to inform the employees of the Ferns regarding the change in policy, and that is the reason
why the HP Chain requires organisational development in their business structure.
The HP Chain was reluctant to take advice from the employees of the Ferns, and that
is the main reason for the conflict that took place in the company. There was a
miscommunication which is the reason the staff did not show pride in their work; they lack
motivation as well as in teamwork. As per the case study, HP Chain is willing to implement
the bi-cultural partnership which is based on the partnership and participation by changing
the “us versus them” culture which is there in the company so, that they can execute the
vision of luxury hotel in the market. These will automatically enable the company to grow in
the market and to eliminate the conflict that is there within the employees of the HP Chain
and Ferns, which is essential for the growth of the organisation.

6MANAGING ORGANISATION CHANGE: HP CHAIN
Change Management Action Plan
Change management is the approach that is being used by the company to shift from
one environment to the others. These enable the company to go through the reassignment of
resources, budget allocations, as well as business processes along with the other aspects that
will alter the company or the organisation (Larsen & Eskerod, 2015). There are few
principles which can be used by the company so that they can solve the conflict or
miscommunication that have to arise in the business environment. The principles are as
follows: diagnosing the problem; lead with the culture; start at the top; involve every layer;
coalition building along with that provide clear instructions; transparent communication;
training; question and answer; formal and informal solution; accountability; appreciation and
ongoing support. Along with that evaluation; assessment and utilise technology (Geisler &
Wickramasinghe, 2015).
HP Chain has taken up almost all the principles but they lack in some of the essential
principles which are important for the company to grow in the market and to become
successful in the process and they are transparent communication as well as training, lead
with the culture, provide clear instructions and formal and informal solution, which is main
reason for the miscommunication and the conflict that have arisen in the process.
HP Chain could have taken the effective communication process which would have
helped them to know the problem that the employees are facing in the process. The company
could have taken the advice or view of the employees before introducing the change in the
company. Communication is important for the company to grow in the market and to become
successful in the process. The company need to look after the interest as well as the cultural
differences that prevail in the organisation. Therefore, the company needs to motivate the
employees and also should look after the interest of the employees to grow in the market.

7MANAGING ORGANISATION CHANGE: HP CHAIN
As per the Kurt Lewin’s change management model, the change model consists of
three stages in the change and that are unfreezing, changing and refreezing. In the unfreezing
process, the organisation plan the change that can be adopted by the company (Cummings,
Bridgman & Brown, 2016). In the next stage, the change is happening in the organisation.
Lastly, in the refreezing stage, the change has been reinforcing by the company which is the
refreezing stage in the model (Hussain et al., 2018).
Specific Action Reasoning Timeframe Expected Outcome
Informing the
employees
 To provide
knowledge
regarding the
change.
 With the help
of different
communicatio
n medium and
meetings
2-3 days  To know the
view of the
employees
regarding the
change.
 To maintain
co-ordination
in the
company.
Implementing the
change
 To know about
the
effectiveness
of the change
 By
communicatin
g with the
employee as
well as the
1 week  The
employee
will
understand
the need for
the change
 The
employee
will accept

8MANAGING ORGANISATION CHANGE: HP CHAIN
managers of
the company
the change
Monitoring the
change
 To know the
success rate of
the change
 Should be
monitor by the
high officials
3-4 weeks  The positive
result will be
gathered in
the process
 The
employee
implementing
the change in
their work
Evaluating the
change
 To know
whether the
change is
successful or
not
 Should be
done by the
company CEO
2-3 days  The
employees
accept the
change with
positivity
 The
employees
are happy
with the
change
Fig. 1: Action Plan
(Source: Created by Author)

9MANAGING ORGANISATION CHANGE: HP CHAIN
The company need to take up the SMART analysis to know whether the plan that has
been taken up by them are successful or not and that is as follows:
 Specific: HP Chain needs to provide a specific idea to the employees regarding
the change that the company is willing to take so that they can know the
employees view regarding the change. These will enable them to grow in the
market.
 Measurable: HP Chain needs to measure the consequences of the change that is
going to take place in the business model which is very much essential for the
company.
 Attainable: The company need to evaluate whether the change that they are going
to take is attainable or not. The company needs to look after this factor so that
they can grow in the market. The change can be attainable if proper
communication is maintained in the process.
 Relevance: HP Chain needs to see if the change is relevant for the growth of the
company and to attain the vision that they intended to achieve in the process.
These will help them to measure the damage that can be caused in the process.
 Timeframe: The change need to be in a timeframe so that they can adopt the
change on time or else there is no need to make the change in the process.
Organisational Structure
Organisational structure is considered to be the system that enables the organisation to
outline activities which will assist them in achieving the target that they intend to achieve in
the process. The activities mainly include rule, roles and responsibilities. It also determines
the flow of the information within the level of the organisation.

10MANAGING ORGANISATION CHANGE: HP CHAIN
Name of the
model
Summary with
example
Advantage Disadvantage
Centralisation These is
considered to be
the process in
which activities
such as
planning,
framing,
decision making
are concentrated
in one
geographical
area.
E.g., the
strategy that has
been included in
HP Chain
mainly focus on
the American
location and not
the New
Zealand
company.
 Responsibilities
and duties are
well defined
 Decision
making is
direct and clear
 Encompassing
interest
 The decision may
be misunderstood
 Imbalance in
attention and
support
 Delay of work
information
 Discrepancies in
economy
Decentralisation These are  Motivate  Difficult to

11MANAGING ORGANISATION CHANGE: HP CHAIN
considered to be
the process in
which activities
such as
planning,
framing,
decision making
are not
concentrated in
one
geographical
area, but equally
distributed.
E.g., if the
company have
looked after the
interest of the
New Zealand
company.
subordinates
 Growth and
diversity
 Quick decision
making
 Efficient
communication
 Ease of
expansion
 The satisfaction
of human needs
coordinate
 External factors
 Narrow product
line
 Expensive
Functional In this
organisational
structure, the
people are group
based on their
specific
 Grouped by
their
knowledge and
skills
 Roles and
responsibility
 Employee feel
bore to
monotonous
 Highly skilled
employees cost
more

12MANAGING ORGANISATION CHANGE: HP CHAIN
specialisation.
The functional
manager
supervises them.
E.g., the big
companies are
functionally
based on the
process as there
are departments
in them.
are fixed
 Employees feel
secure
 Communication is
weak
Divisional Divisional
structure is a
type of
organisational
structure that
functions in a
department.
E.g., finance,
IT, marketing
department
 Greater
operational
efficiency
 Shared skills
and knowledge
 Operate
independently
 Communication is
missing
 The decrease in
potential,
flexibility and
innovation
Matrix In this type of
organisational
structure,
reporting
 Information
exchange
 Increase
motivation
 Internal
complexity
 Expensive to
maintain

13MANAGING ORGANISATION CHANGE: HP CHAIN
relationship is
framed in a grid
or matrix or in
the traditional
way.
E.g., a
multinational
electronics
company
Contemporary
team
In this type of
organisational
structure, the
traditional
model of
business
structure are
removed to
teams
E.g., matrix,
team and
network design
 Better
communication
 Resolve time is
quicker
 Flexibility and
empowered
workforce
 Conflict
 Not a team player
 Underperformance
Virtual structure In this type of
organisation,
resources are
shared
 Cost-saving
 Leverage to
global talent
 Increase in
 Cost of
technology
 Lack of trust
 Social isolation

14MANAGING ORGANISATION CHANGE: HP CHAIN
effectively but
virtually
E.g., Siemens,
Vitro
productivity
Fig. 2: Organisation Structure
(Source: Created by Author)
HP Chain should take up decentralisation structure as that will enable them to focus
on the employees of both the company, which will help them to grow in the market and to
achieve the target what they intend to achieve in the process. These model will enable the
company to provide importance to the employees in the Ferns as their workplace culture are
different than that of the HP Chain. Therefore, the company can adopt this strategy in the
business model to grow in the market.
Conclusion
In the end, it can be concluded that the company need to change the strategy that they
are using in the process. The company need to take up the decentralization process so that
they can maintain stability in the company. Therefore, it can be said that the company have
not taken any strategy to grow in the market and to achieve success in the process.

15MANAGING ORGANISATION CHANGE: HP CHAIN
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