Holiday Inn: Change Management and Leadership Report - BUSS 700

This report provides a detailed analysis of change management within the context of Holiday Inn, a UK-based hotel brand. It begins by comparing Holiday Inn's strategies and operations with those of Whitbread Hotel, highlighting the impact of political and environmental changes. The report then identifies and assesses both internal and external drivers of change, such as financial management and resource availability, and their effects on leadership, individual, and team behaviors. It examines different types of organizational changes, including transformational and organizational-wide changes. Furthermore, the report explores various barriers to change and their influence on leadership decision-making, utilizing forcefield analysis to evaluate driving and resisting forces. Finally, it applies different leadership approaches to address change within an organizational context, evaluating their effectiveness through appropriate models and concluding with recommendations for effective change planning and impact analysis. The report provides a comprehensive overview of change management strategies, leadership styles, and their practical applications within the hospitality industry.

UNDERSTANDING
AND LEADING
CHANGE

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different organisational examples to show impact of change on organisational strategy and
operation.................................................................................................................................1
M1 Assess drivers of change in each example and type of organisational change they have
affected...................................................................................................................................5
TASK 2............................................................................................................................................5
P2 Different ways by which internal and external drivers of change impact leadership,
individual and team behaviours..............................................................................................5
P3 Evaluate ways to minimise negative impact of change on organisational behaviour.......7
M2 Apply different theories and model to critically evaluate organisational response to
change.....................................................................................................................................8
D1 Draw conclusions and recommendations with valid justifications for planning effectively
for change and applying change impact analysis...................................................................8
TASK 3............................................................................................................................................9
P4 Analyse different barriers for change and identify their influence on leadership decision
making....................................................................................................................................9
M3 Forcefield analysis to analyse driving and resisting forces and show their impact on
decision making....................................................................................................................10
D2 Critically evaluate the use of force field analysis in the context of meeting organisational
objectives..............................................................................................................................11
TASK 4..........................................................................................................................................11
P5 Apply different leadership approaches to deal with change in organisational context...11
M4 Evaluate extent to which leadership approaches can deliver organisational change with
appropriate models...............................................................................................................12

D3 Critically evaluate characteristics of leadership approaches and model of change
management..........................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES .............................................................................................................................14

INTRODUCTION
Change is defined as a procedure under which an organisation changes its strategies,
operational structure and methods, organisational culture or technology to carry out required
changes within a company. It can either be continuous or takes place for a specific time period.
Understanding and leading change means acknowledging the needs of change and carrying out
different activities and procedure to implement those changes in a desired manner. It is
associated with reviewing and modifications of structure especially management structures
(Alavi and Gill, 2017). This report is based on Holiday Inn which is a UK owned American hotel
brand operating at around 1200 geographical locations worldwide. Company was established in
1952 and headquartered in Denham, Buckinghamshire, UK. This report will cover different
organisational examples to show impact of change on organisational operation and strategy.
Different ways in which external and internal drivers of change will impact team, individual
behaviour and leadership within a company are mentioned. Measures to minimise impact of
change are discussed. Beside this, different barriers for change and their influence on decision
making is taken. At last, different leadership approaches are mentioned.
TASK 1
P1 Different organisational examples to show impact of change on organisational strategy and
operation
Organisational strategy is stated as a long term process to identify and adopt those actions
that will help an organisation in achieving its goals and visions desirably. It will define the
manner in which an organisation can evolve itself in order to gain competitive advantage in
marketplace by outpacing rival companies. Changes in organisational operation and strategy will
benefits Holiday Inn to adopt new strategic directions that will benefits them in gaining
superiority against competitive rivals. Changes carried out in strategies will help Holiday Inn in
satisfying the needs and desires of guests in a more appropriate manner that will results in
increased profitability. In order to understand change in strategies, different organisational
examples are taken and compared with one another (Anderson, 2016). In this regard, Holiday Inn
and Whitbread Hotel are compared with one another. In case of Holiday Inn, manager prefers to
make quick decisions so that measures according to market requirement can be chosen properly.
In context of Whitbread hotel, manager of organisation pays attention towards strategies of other
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hotels before adopting a strategy or measure so that better outcomes can be attained. Below is
mentioned a comparison chart in this regard:
Holiday Inn Whitbread hotel
Political
change
Due to Brexit, UK is facing a big
political event. Exiting form
European Union has impacted the
political stability of country in a
considerable manner. Due to this,
regulations and policies of UK
government have also changed and
new policies has been formulated.
Due to these changes, working of
Holiday Inn is also get impacted as
policies and norms for hospitality
sector has changed. In this regard,
there are different changes that are
adopted by Holiday Inn in its
strategy and operations.
Strategies: Due to economic
downfall, people are not in favour of
oversee trips. In this regard,
company has improved the services
offered in local properties. So that
high bookings can be acquired.
Management of hotel also adopts
staff lay-offs, this will help them in
reducing their costs when expenses
are very high, but it is a short term
measure. Another strategy, adopted
by hotel is discounts on weekends
Impact of Brexit is visible in hospitality
sector, especially on hotels and
restaurants. Due to this, political
instability has taken place that resulted
in shortage of disposable income of
UK's citizen. These political driver of
change have impacted the
organisational strategy and operation of
Whitbread in considerable manner. In
this context, company has carried out
some modifications in their strategies
and business operations.
Strategies: Hotel has adopted the
strategy to enhance customer experience
by offering them service as per their
requirements rather than specifying
them what services hotel is going to
provide. Another adopted strategy is
that hotel provide discounts and
complementary services to its loyal
customers. Due to this, more and more
customers will prefer their services and
revenues can be maintained.
Operations: Hotel management has
increased its social and digital media
presence, due to which offers, discounts
and services given by hotel are
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and special days will benefits them
in increasing their booking and
reservations
Operation: Due to these political
changes, other rival companies are
also giving tough competition, in
this regard it is essential for hotel
management to change their
operations in accordance with the
requirements and changing situation.
Implementing modern and advanced
technology by changing old
machines and software with updated
version will helps in satisfying the
needs of customers more desirably.
Other than that, company also
adopts Just in time operational
management so that wastage of
resources and material can be
reduced and optimal utilisation of
resources according to the needs of
customers can be performed
(Chatalalsingh and Reeves, 2014).
acknowledged by large number of
customers in limited time period. This
will benefits in stabilising their
bookings. Hotel management has also
adopted lean operational management.
It will resolve the issue of high
inventory as resources will be ordered
according to demand only. Due to this,
operational cost will be reduced and
more expenses can be carried out in
satisfying the need of customers.
Environment
change
As people are getting more
concerned towards the protection of
environment and other
environmental resources, UK
government has formulated different
polices and procedure in order to
protect environment form different
business activities and operations.
Management in Whitbread hotel
believes that in order to achieve desired
outcomes, an organisation is required to
sustain strong presence in local market.
In this regard, company is required to
adopt and implement those policies
which are in favour of environment. If
company will not follow these policies,
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Due to this, Holiday Inn has
formulated some change in its
strategies and operation.
Strategies: To protect environment
from harmful business activities
company has adopted strategies such
as inventory control, improvement
in purchasing systems and service
standards. This will help in usage of
resources in a renewable manner.
Because of the strategies, employees
in hotel prefers to gather limited
inventory in their stores and
warehouses so that optimal use of
natural and resources can be
achieved. Company has also
participated in environmental
initiatives like Keep Britain Tidy’s
month-long spring-clean initiative.
Operations: As this change, posses a
considerable impact on the revenues
and profitability of company. To
reduce harmful environmetal issues,
management, trustees, managers and
workforce in Holiday Inn has
actively taken part in different
environmental initiatives by
adopting sustainable businesses
processes.
then customers will change their
preference towards other companies that
will believe in sustainability.
Strategies: To attain positive outcomes,
Whitbread has adopted some change in
strategies. Company introduces new
services for customers which will be
environment friendly such as cashless
payment, electric and hybrid cars for
transportation services. These measures
are not impacting environment and
health of customers in any manner. As
people are more concerned about
environmental issues, these strategies
will help in enhancing their revenues
and sales considerably.
Operations: Hotel is going to providing
garden furniture and other facilities to
their customers as complementary
service so that parks under hotel
property will not face any kind of
damage.
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M1 Assess drivers of change in each example and type of organisational change they have
affected
In general, there are two drivers of changes which possess a considerable impact on the
working of an organisation. These are internal and external drivers of change. Internal drivers
involves different policies related with contract law, employee law and other organisational
aspects like culture, working behaviour etc. In case of external drivers, currency fluctuation,
changing interest and inflation rates, technology, society norms and political aspects are
involved.
Types of organisational changes
Transformational change: In these type of change, organisation implement those strategy
which are in favour of new change and company. In case of Holiday Inn, management can
terminate extra staff members so that new strategies will be implemented without facing any
kind of financial shortage.
Organisational wide change: In this change, organisation carry out changes in its internal
processes on a large scale according to the requirements. This will helps in adoption of beneficial
strategies and policies which will helps in achievement of organisational goals and targets.
TASK 2
P2 Different ways by which internal and external drivers of change impact leadership, individual
and team behaviours
There are various external and internal drivers of change which can impacts the
leadership, team behaviour and individual behaviour in a considerable manner, in case of holiday
Inn, various internal and external drivers are defined below:
Internal drivers:
 Financial management: In order to perform business activities in a proper manner,
sufficient amount of funds and capital is needed. Any kind of shortage can disrupt the
working of employees either as a team or individuals. This is because without money, it
is not possible to operate businesses. If finances of company are well maintained then
leadership can be performed desirably as leader will be able to implement required
strategies properly (Doppelt, 2017).
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 Resources: There are different resources that impacts the leadership, individual and team
behaviour within a company. If there are sufficient human, financial and other resources
then all the work can be accomplished in a proper and desired manner by employees as a
team and individual. If there will be shortage of resources then employees as a team or
solo will face difficulty in performing work. This will also impacts leadership as leader
will not be able to direct workforce regarding work without resources.
 Culture: It include value, belief, faith which is followed by individuals at workplace.
Improper working culture at Holiday Inn will reduce the motivation level of workers as
an individual or a team to perform business activities in desired manner. Also, if
organisational culture will be bad, then leader became unable to manage employees in a
proper manner that will leads to reduction in organisational productivity and profitability
in considerable manner.
External drivers:
 Political: Changes in political aspects will effect funds and resources of an organisation.
Holiday Inn is needed to follow various rules and regulations which are created by
government. If these laws and policies will be avoided then company will have to pay
taxes and fines which will reduces image of company. This will decrease team and
individual performance of workers that leads to reduction in profit margins.
 Economical: These are aspects that includes inflation rate, customer behaviour, interest
rate etc. which can effect leadership, team and individual behaviour. Working capability
of team & individual is reduced in condition where purchasing power of customers is
increased. Due to these changes in economical situations, Holiday Inn can cut its cost of
hiring new working staff (Fyke and Buzzanell, 2013).
 Social: These factors influence the requirements and needs of products within
marketplace. As demands of hospitality services changes on a fast pace, it is essential for
leader to have effective leadership in accordance with requirements of marketplace. This
will benefit Holiday Inn in achieving competitive advantage that will improve individual
and team behaviour along with organisational productivity.
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P3 Evaluate ways to minimise negative impact of change on organisational behaviour
To reduce the negative impact of change on the working and business performance of the
firm, there are different ways which can be adopted by the manager in Holiday Inn. Some of
them are defined below:
 Involvement of employees in change process- If workforce of Holiday Inn will be
involved in the changing process then this will enhance their engagement within
organisation. Due to which they will be able to adapt changes in a more confident and
positive manner. This will benefit in sustaining a strong relation between employers and
employees that will results in reduce impact of organisational change.
 Expansion of communication channels- If manager in Holiday Inn wants to adopt
organisational change in a desired manner, it is important for hotel management to
enhance their interaction. This will benefit in implementation of change in a proper way
as employers and employees can discuss the barriers in proper manner that takes place
due to organisational change.
 Appropriate training to workforce: This is the best way by which negative impact of
organisational change can be reduced in a desired manner. If employees will be given
training sessions according to the modifications and changes carried out in organisation.
They will be able to adapt these changes in a desired means (Hallinger and Bryant,
2013).
PCDA is a model that can be used by management in Holiday Inn to reduce negative
influence of organisational changes on their business operations. In this regard, model is defined
below:
PCDA model: It is abbreviated as planning, do, check and act. This model covers these
aspects which helps in analysing different issues that are related with change. It will help in
carrying out improvements in working productivity of Holiday Inn by helping in taking timely
and appropriate decisions.
Planning: This is the first step, at this level, manager in Holiday Inn will determine
problem and issues. According to which required changes are carried out assists in sustaining an
organised and systematic structure during workplace.
Do: Here, manager of in Holiday Inn will develop and adopt the required solutions that
help in managing the impact of change in a proper manner.
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Check: At this step, the manager is needed to confirm actual result so that they can be
compared with expected outcomes.
Act: It is last step in which different solutions and ideas are introduced so that issues and
problems can be sorted in a systematic manner.
M2 Apply different theories and model to critically evaluate organisational response to change
Organisational response for change can be understood by the implementation of system
theory. This is an impactful theory that can be implemented by Holiday Inn so that impact of
change can be reduced by appropriate means. This theory will assists Holiday Inn in resolving
problems that are faced by workforce while perusing business operation. According to this
model, Holiday Inn is required to relay on different organisational and governmental policies that
will helps in implementing changes desirably. Also, it will emphasize on resolving issue of
workforce in a sincere manner (Hallinger, 2011). But disadvantage associated with this theory is
that, it will emphasize only on those aspects that stabilizes system. Beside it, this theory will
supports only steady and slow changes not radical changes.
D1 Draw conclusions and recommendations with valid justifications for planning effectively for
change and applying change impact analysis
From above carried out aspects, it has been concluded that two drivers of change i.e.
internal and external drivers posses a considerable impact on the working of Holiday Inn
Internal drivers will assist the hotel in managing their finances, funds and resources that will
results in achievement of high profitability. External factors like political, technological, social
and economical will benefits the organisation in understanding extrinsic business environment in
detailed way. These drivers will benefits hotel in managing its materials, man power which will
results in enhanced market shares.
Some recommendations are stated below:
 Before adopting a change, hotel is needed to analyse its requirements by discussing with
workforce. By this workforce will feel more engaged and became able to perform their
best performance.
 Manager of Holiday Inn is needed to predict before and after impact of change on the
organisation and workforce so that required modifications can be carried out properly
(Latham, 2013).
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TASK 3
P4 Analyse different barriers for change and identify their influence on leadership decision
making
Barriers for change are specified as those constraints that takes place while implementing
changing process. These barriers and problems can impact decision making and working of
companies in a specific manner. In case of Holiday Inn, these issues are mentioned beneath:
Poor employee participation: Implementing changes in a proper manner is not possible
without active and confident participation of employees. Without proper engagement, it is
difficult for manager in Holiday Inn to implement modifications and changes. If workforce will
not give their active participation, it will result in their reduced interest that can also leads
towards employee turnover. If Holiday Inn will provide all required and necessary information to
the workforce, it will help them in adopting changes in a more proper manner. If workforce of
hotel will be treated as asset only then they will be able to obey the decisions taken by manager
or management in a positive manner.
Rules and regulations of government: Various policies and regulations that are created
by government can acts as barrier while adopting organisational change. These barrier decreases
the profitability and working productivity of firm in a desired manner. In order to achieve
expected results due to organisational changes, hotel is needed to follow regulations that are
formulated by national government. Considering these policies will assist Holiday Inn in gaining
large market (Latham, 2013). Due to this barrier, decision making procedure of hotel will also
get impacted as they will be required to change policies and strategies if government will carry
out any improvements.
Improper training and development: It can also be a big barrier while implementing
organisational changes. If employees in Holiday Inn are not capable to understand about change
and its related aspects, then they will face difficulty in adopting them. This will also decrease
organisational productivity. It is vital for manager in hotel to give required training to the
workforce. In this way it will became easy for management to implement changes and
employees to adopt these changes If workforce will be known about changes, it will become easy
for them to accept decisions which is taken by the employers.
Lack of communication: It is the biggest barrier that can hinder the organisational
change. If communication and interaction between employers and employees will not be
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