Organisational Change Management Report: HRM09903 Le Chic Analysis

This report provides a comprehensive analysis of organizational change management at Le Chic restaurant. It begins with an introduction to the restaurant and its objectives, highlighting challenges related to efficiency and market survival. The report then delves into the internal and external drivers of change, employing PEST and SWOT analyses to identify key factors influencing the restaurant's operations. The nature of change facing Le Chic is examined using Nadler's typology, classifying it as transformational, and incremental. The report further explores employee reactions to proposed changes, discussing factors that contribute to resistance and the application of Kirkpatrick's theory to manage change effectively. Recommendations are provided for executing change, including effective communication, empathy, and employee participation, and the importance of training, technology adoption, and financial analysis are highlighted. The report concludes by emphasizing the benefits of these strategies, such as improved employee performance, coordination, and customer satisfaction, ultimately leading to organizational growth and profitability.

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Organizational Change Management

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Table of Contents
Introduction................................................................................................................................3
Organizational change management..........................................................................................3
Internal and External drivers of change..................................................................................3
Nature of Change facing Le Chic...........................................................................................4
Employees’ reaction to change...............................................................................................6
Recommendations to execute change using change model....................................................7
Conclusion..................................................................................................................................8
References................................................................................................................................10

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Introduction
Le Chic is a restaurant chain located in the center of the city on a busy street. Le Chic
restaurant is an attractive place for customers who like good food with quick services. The
management of restaurant excels in providing a standard menu that includes a wide variety of
dishes for affordable prices and has a capacity of 80 people that gives a feel of fast-food
restaurants to customers. At present, Le chic major focus is on reducing turnaround time and
maximizing efficiency in its services. The outcome of this objective is to focus on
consistency in providing customer services along with the achievement of daily sales targets
(Neves & Schyns,2018). In this changing environment, the restaurant is facing some
challenges in attaining its objectives such as poor performance, losses and struggling to grow
and survive in the market. In order to come out or to solve these issues, new manager John
decided to implement a new business strategy that includes an aggressive change strategy. In
this report, the proper analysis of a change strategy is done. The focus of the report is on
drivers that forces change, nature of change that Le Chic is facing and change management
theories in relation to the restaurant change.
Organizational change management
Internal and External drivers of change
Political Economic
Any changes by the government in food
policies and health regulation standards
directly affect the organization and according
to the company need to change its strategies.
Changes in the consumption pattern of
customers or situations of economic crisis
can impact on the economy and then because
of these factors organization needs to change
its strategies.
Social Technological
Social is related to customer engagement and
customer loyalty toward the restaurant. Any
change in customer perception and behavior
leads to changes in business strategy.
Technology advancement is one of the major
factors that drive change in the restaurant
industry.
Such as technology for payment and
accounting process in the restaurants.
Figure 1: PEST Analysis

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Source: (Kral & Kralova,2016)
Strength Weakness
 Quick customer services
 Wide range of dishes at affordable
prices
 Lack of coordination and
communication between staff
members
 Maximum waiting time
Opportunity Threat
 Growth of the fast-food industry
 Expansion to other areas such as bar,
proper dines out, etc.
 Increasing competition amongst
restaurants
 Changing trend and economic
condition
Figure 2: SWOT Analysis
Source: (Lee, Hallak & Sardeshmukh,2019)
The success of organizations depends on its external and internal environment. An
organization can survive and grow by identifying the changes taking place in the macro and
microenvironment than formulating business strategies accordingly. In context to Li Chic,
change drivers are identified using the PEST and SWOT analysis tool.
Nature of Change facing Le Chic
Le Chic being in order to survive and grow tried to change its business strategies. The
company adopted an aggressive change industry in which services of the bar and an upmarket
menu is given to customers. In order to improve efficiency in processes, the restaurant
decided to recruit new employees and they will get training from experienced employees. In
order to understand the nature of change that Le Chic is facing Nadler (1993) typology of
organizational change is used. In these, there are four types of change that are Tuning,
Adaptation, Reorientation, and Recreation. Le Chic nature of change is transformational
change; this change happens is a drastic change that leads to changing the whole processes in
the organization and positioning the same brand in the market in a complete different way
(Jones & Van,2016).
Le Chic restaurant transformed into a chain restaurant and under this strategy, John
the new manager wants to open multiple chains in different cities this is considered a

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transformational change. Further, the recruitment of new employees, providing them training
by experience employees are some incremental changes that take place in a restaurant,
incremental changes are small changes that support a bigger transformation. Implementation
of new technology such as information system to connect with suppliers is termed as
proactive change (Erne, 2016). In accordance with Nadler (1993), reorientation change
includes changing the organization from the present state to a desired future state by changing
the entire processes in the organization. Le Chic is doing the same as the restaurant changes
its processes in order to bring efficiency in its operations. Further, transformational change
takes place when the organization making radical changes in its business model. Le Chic
changes its strategies and formulating strategies for a chain of restaurants that require a broad
way of doing business (Cameron & Green,2019).
Other transformational changes that Le Chic focusing on are the setting up of new
restaurants require effective communication as this helps in reducing problems related to lack
of coordination amongst staff members. Further, communication helps in building a strong
relationship with staff this bring efficiency in the operations Source: (Pasmore,2017) Other
changes that Le Chic can focus on is proactive reorientation strategy change to bring
improvement in the processes and services of restaurants. Le Chic can use Point of Sale
software as it is not possible to control all the operations of a long chain restaurant. Further,
central kitchen management and tracking should be done to ensure consistency in all its
outlets. The restaurant chain should focus on bringing change in its physical environment as
this helps in attracting more customers with that use of technology in its processes and
operations make it easier for Le Chic to expand their business.
Employees’ reaction to change
There are many factors that impact employees and lead resistance by them. It is
normal that employees resist change as in the process of organizational change employees
will involve moving from the status quo to that of unknown conditions (Ford, Ford &
Mcnamara, 2002). The staffs in the restaurant are not able to understand the nature and need
for change (Grama & Toderciu,2016). The factors that can lead to the reaction by employees
on change are communication, involvement in decision making and cognition & emotion.
Most of the change management process fails due to the underestimation of the impact of
emotion & cognitive factors in connection to change (Reio, Rocco & Chang, 2017).

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According to Kirkpatrick’s theory of change management, there are three elements
that help in managing change effectively. These elements are communication, empathy, and
participation as these helps in motivating employees to accept change. The following steps as
given by Kirkpatrick’s helps in managing change in the organization that are;
 Understanding the need for change or aspiration for change
 Framing change-related strategy
 Getting possible feedbacks
 Creation of result
 Planning according to changes required
 Implementing change strategies
Different people have different reactions to change, some take change negatively and the
outcome of this is high resistance. On the other side, some take change as a positive thing and
take benefit from it by involving or participating in the change process. Further, some are
neutral about change as they don’t get affected. In order to manage change in an organization
effectively, Kirkpatrick’s provided three elements of changes that are empathy, participation,
and communication. Le Chic can use these elements to reduce the resistance of change
(Kirkpatrick,2009).
Job Category Short Term Mid Term Long Term
Waiter - ++ +++
Kitchen Staff - -- +
Supervisor - ++ +++
Manager + ++ +++
Not everyone has the same coping and acceptance cycle rather each job category has a
different time to accept the change. Such as in Le Chic waiter and staff issues were the
problem and they take more time to accept change. Waiter coping time starts at the mid-
stage. This can be better understood with Carnell’s coping cycle. This cycle has five stages
that dictate the human response to change and the reaction of the individual to change
(Carnall,2018). Such as Le Chic waiters at start denied the change that is the first stage and
then later accepts the change.

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Figure 1: Carnall’s Coping Cycle
Source: (Carnall, 2018)
Recommendations to execute change using change model
Le Chic’s employees were apprehensive of the changes taking place in the organization.
Emotions of employees range from fear to anger in relation to changing policies and rules in
the restaurant. In order to manage these emotions of employees, it is important to
communicate with employees regarding changes that are taking place in the organization.
After communication, another main element of Kirkpatrick’s change model is empathy.
Empathy can help in understanding the situation of employees during the change process. It
is the ability to” walk in the shoes of others” and understanding other people's perspectives.
Empathy gives a clue and connection between communication and participation. The last step

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for effectively managing change is participation. Participation of employees in decision
making ensures reducing the resistance and motivating the employees to accept the changes.
Le Chic restaurant employees should participate in the guidance of the leader. A leader
should focus on clarifying and justifying the employees about the need for change and
motivate them to share ideas that help in to solve the issues that the restaurant is facing
(Cinite & Duxbury,2018). With the active participation of Le Chic employees in decision
making, accepting change and changing the status quo becomes easy.
Le Chic restaurant can manage change effectively by conducting training programs,
motivating employees to learn new technologies, and influencing them to accept the change
for their personal growth and for organization growth. Further, a restaurant leader should
develop a psychological contract between employers and employees this helps in clarifying
the expectation that the organization has with its employees regarding working standards.
Change can be effectively managed in the restaurant through communication with employees,
conducting training and motivation sessions, influence the employees to take participate and
understanding the reactions and emotions of employees. For restaurants or the hospitality
industry, people are important considerations so Le Chic should focus on training, hiring and
recruiting talented staff (Burke, 2017). The employees have the capability to understand and
work according to strategic direction. The staff members are such that they will be able to
gain knowledge and provide great service.
The restaurant while focusing on people should also focus on its processes related to
financial analysis as focus on small financial details in restaurants helps in improving
operational efficiency and getting larger returns. The key metrics that are related to inventory,
sales and marketing should be analyzed in a timely manner and all the technology updation
should be done according to trend. The PoS system will be used in order to track and analyze
transactions of chain restaurants. Inventory system helps in keeping an eye on raw material,
purchased and used in different outlets and leads to cutting variable cost. Proper management
of direct cost proves to be beneficial in operating the restaurant chains (Stouten, Rousseau &
De Cremer, 2018).
All the changes should be proposed keeping in mind the objectives and aim of the
organization. Such as recruitment of employees should be done considering the changes that
are taking place in the restaurant. New employee training and induction help in
communicating the leader the purpose and direction in which they have to work. For

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improving operational performance, a weekly target meeting should be done. For the
expansion of restaurants across different locations, joint promotional alliances can help and
strengthen the organization (Vantrappen & Wirtz,2018). After all these strategies and
planning transformation processes of Le Chic restaurant can bring effective and beneficial
output in terms of improving employee performance, proper coordination between staff
members and high customer satisfaction because of improved services. The strategies that are
formulated help Le chic to enable the organization to earn profits and help in growth and
expansion through increased turnover of the company.
Conclusion
It is concluded that organizational change management is a process of managing and
implementing change in the organization so that maximum benefits can be attained. In the
case of Le Chic restaurant, the organization needs to change its structure and processes
because of various key issues that the restaurant is facing that are lack of coordination
between kitchen staff and waiters, the long waiting time for customers, and inefficient
business processes. Due to all these issues the restaurant needs to focus on changing its
strategies and processes. The changes that are recommended and to be made by the restaurant
are the recruitment of skilled staff, focus on bringing technology in processes and attention to
its financial detail. In order to do so the leader's face, many challenges related to the
resistance of change by employees in order to manage these changes Kirkpatrick’s theory of
change management is explained and used with that congruence model is used for
understanding output, transformation process and the final outcome of change. Further, these
changes mainly focus on joint promotion alliances and social responsibility helps in building
a strong brand image, higher return on investment, high employee engagement and more
loyal customers.

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References
Burke, W. W. (2017). Organization change: Theory and practice. Sage Publications.
Cameron, E., & Green, M. (2019). Making sense of change management: A complete guide to
the models, tools, and techniques of organizational change. Kogan Page Publishers.
Carnall, C. (2018). Managing change. Routledge.
Cinite, I., & Duxbury, L. E. (2018). Measuring the Behavioral Properties of Commitment and
Resistance to Organizational Change. The Journal of Applied Behavioral
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Erne, R. (2016). Change Management Revised. In Organizational Change Management
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cynicism. Studies in Business and Economics, 11(3), 47-54.
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examination of the moderating impact of time. The Journal of Applied Behavioral
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Neves, P., & Schyns, B. (2018). With the bad comes what change? The interplay between
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