Organizational Development and Change at Hyatt Hotels: A Case Study

This case study delves into the organizational development and change management strategies employed by Hyatt Hotels. It begins with an executive summary highlighting the need for innovation and effective communication within the company. The report analyzes Hyatt's internal and external environments, utilizing SWOT and PESTLE analyses to assess strengths, weaknesses, opportunities, and threats. It examines the current and future state of the organization, considering environmental factors. The case study explores the implementation of change, including model determination and the identification of potential resistance sources. Recommendations are provided to facilitate successful change management, focusing on best practices and sustainability for future growth and expansion. The study emphasizes the importance of adapting to a competitive business world through strategic change management within the hospitality sector.

Running Head: CASE STUDY 0
Organizational Development and Change Management
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CASE STUDY 1
Executive Summary
The aim of this report is to analyse changes needed in organisations requiring
innovation, creativity and improvisation for further organisational development. This also
requires discussion of both internal and external environment of the company to make sure
about its current and future state before proposing the change. From the analysis, it finds that
change requires cooperation and effective communication between the management and
employees for making it successful. It is also evaluated that at the time of implementing
change, company face several challenges which require determining model to plan the
change. It is essential to know the possible sources of resistance within the change before
considering the environmental factors triggering change. Lastly, the company needs to
establish best practices and sustainability to achieve growth and expansion and successful
change in future.

CASE STUDY 2
Contents
1.0 Introduction.....................................................................................................................3
1.1 Background of the company........................................................................................3
1.2 Aims and Scope...........................................................................................................4
2.0 In-depth Analysis............................................................................................................4
2.1 Organisation’s Environment........................................................................................4
2.2 Current and future state...............................................................................................6
3.0 Implementing the change................................................................................................7
3.1 Model Determination...................................................................................................8
3.2 Resistance sources determination................................................................................9
4.0 Recommendations.........................................................................................................10
5.0 Conclusion.....................................................................................................................10
References................................................................................................................................12

CASE STUDY 3
1.0 Introduction
In today’s competitive business world, every organisation looks after the
organisational development and change management as an important thing to understand for
concluding the idea broadly. Change management is defined as a structure approach used for
transitioning organisation, individuals, and teams from today’s position to desired position in
future. There are situations applied as growing organisations, downsizing, or even new
technology additionally. In business environment, organisational process aims at helping in
accepting, committing to and embracing changes for making employees understand in recent
times to achieve benefits (Lozano, Nummert, & Ceulemans, 2016). Moreover, change
impacts the overall organisation and its system along with individuals who are part of it. It is
essential to manage change with the impacting affecting the process towards the individual’s
behaviour and working through new ways while supporting the change being a wider field.
Furthermore, it is crucial to maintain the performance of companies that requires body of
practice and knowledge to enhance along with individual development as well (Fadriga,
2016). To simplify, change management is one of the approaches in organizational
development for making improvements based on its culture while applying behavioural
science research and theory in terms of technology with increasing effectiveness and well-
being of organisations and individual.
1.1 Background of the company
In business environment, it is complex to manage change within the hospitality sector
after globalization along with maintaining the performance for organisational development
through process and innovation adaption to make improvements. Basically, the challenges
company face during change process is ritual, communication, and cultural barriers within the
workplace. In Australia, numerous Hyatt Hotels are present where in Sydney and Melbourne,
it is referred as “Park Hyatt”. In hospitality industry, it is the American multinational
company franchising and managing business and luxury hotels, vacation properties, and
resorts across the globe (Dang, 2016). The company is committed to providing care for
individuals for providing their best to them and growing continuously without losing its
importance. It is a place where employees are friendly to each other within the workplace
while building a family by providing people or guests care. In business, Hyatt focuses on the
care for providing different but better guest experience which makes it one of the best brands

CASE STUDY 4
in hospitality. Hyatt focuses on visionary hospitality leadership and innovation taking along
their employees and guests altogether (Seymen, 2017).
1.2 Aims and Scope
In this report, the case will be analysed of an organisation in the hospitality industry
aiming at change management and its organisational management based on both internal and
external environment along with the change proposed by the company. The discussion will
cover the in-depth analysis with the company’s current and future state for implementing
change through possible resistance sources and model determination. The recommendations
will be given based on analysis and change taken place from the perspective of the company
for employees, managers, and similar companies.
2.0 In-depth Analysis
In business along with increase in changing and competitive world, it is essential for
Hyatt Hotel to analyse in-depth which consists of examination and breakdown of key
business segments within a model. Hyatt is a hospitality company globally owns, manages,
develops and franchises hotels, residential properties and resorts along with operation various
brands in and outside Australia. In terms of organisational development and managing
change process, it is essential to analyse the company’s environment both internally and
externally (Investors, 2018).
2.1 Organisation’s Environment
SWOT ANALYSIS
SWOT Analysis tool provide information about the company’s internal environment
used by Hyatt Hotels in its current business strategic planning.
Strengths
 Hyatt presents its properties in
strategic locations
 The company has a strong brand
recognition and strong brand
portfolio
 Hyatt is focuses towards its
people which creates an extreme
Weaknesses
 Hyatt face the issue to due to its
limited market share
 The company presents very low
differentiation of its brand
 Also, Hyatt is majorly dependent
on the US markets more than any
other particular country such as

CASE STUDY 5
base of loyal customers
 It shows a diverse exposure to its
franchising, development,
management, and ownership of
hotel
Australia
Opportunities
 Hyatt has the opportunity through
its membership plans along with
having asset light model of
business
 The brand has an emerging hotel
market along with considering the
health-conscious consumer
emergence
Threats
 Here, the threat to Hyatt is its
intense competition with other
rivals such as Hilton, Marriott,
Wyndham and others
 There is a presence of long-term
risk to the company from non-
traditional options of lodging
 Hyatt need to face the challenges
based on adverse geo-political and
terrorism conditions
Source: (Hayder Arif & Hossin, 2016).
PESTLE ANALYSIS
In market, it is essential to know the effect of the company’s decision possible
through using tool PESTLE Analysis for understanding the indirect impact of the
environment in an organisation as well.
Political
 Hyatt Hotels face the issue of
implementing higher tax in and
outside Australia
 There is an impact of Brexit on the
company
 Also, Hyatt has a threat from
terrorism as well
Economical
 In the emerging market, Hyatt face
the economic growth
 Considering the US travel market,
Hyatt has a strong growth more than
it is in Australia
 In hospitality sector, the company
face a threat of unstable economic
growth as well
Social
 Hyatt sometimes face the shift in
Technological
 Hyatt works with innovation and this

CASE STUDY 6
consumer preferences due to
competitors providing better
quality services
 More than Australian millennial,
the US millennial are likely to
spend and take at large on
vacations
 There is a presence of spending
shift from products to experiences
made the occurrence of effortless
price comparison
 There are some online reviews and
campaigns by and for customers
 Hyatt uses IoT (Internet of Things) in
entering hotels for better and flexible
guest experience
Legal
 Hyatt have some cyber security
concerns, not only in Australia but
across the globe as well
Environmental
 The environmental impact faced by
the company were adverse due to the
effects of bad weather and climate
change
 In hospitality industry, Hyatt Hotels
are on the rise of sustainability
Source: (Hayder Arif & Hossin, 2016).
2.2 Current and future state
Hyatt Hotels Corporation uses business strategy for driving sustainable growth in
long-term and focus on creating value for guests, shareholders, and employees. It consists of
maximizing the company’s core business, integrating new growth platforms, and optimizing
capital deployment to maintain its current state. Furthermore, Hyatt focuses on cultivating the
best workforce along with evolving the culture, requires driving customer and guest
personalization, to move towards operating with excellence, and step ahead while growing
with intent (Investors Relations, 2016). It increases the company’s market presence, expands
its selecting service presence, increases the focus on franchising, utilizing the asset and
capital based for targeted growth, pursue strategic alliances and acquisitions, and lastly,
extends the offerings of health and wellness.
Considering environmental factors while making changes impacts the actual
outcomes, achievements or performance which differs materially from expectations in current
state that consists of pace and the rate of economic recovery following economic downturns,
spending levels in leisure and business segments along with consumer confidence. Also,

CASE STUDY 7
other factors are declines in average daily and occupancy rate considering relationships with
third-party hospitality venture partners, owners and franchisees, and the company’s financial
condition (Hyatt, 2014). There can be the inability possibility of development partners as well
for accessing necessary capital for funding in current operations or implementing plans or
changes for growth. The risks are associated with the potential dispositions and acquisitions
along with introducing the new concepts of brand and changes in the industry’s competitive
environment also include an outcome of the operating markets and industry consolidation.
Lastly, there is volatility in general of the capital markets and the company’s ability of
accessing such markets in and outside Australia along with other risks as well in future. The
reflection of actual outcomes, future events or new information are undertaken by Hyatt
based on the forward-looking statements consisting changes in affecting factors or
assumptions beside the required extent by applicable law across the globe including Australia
as well (Hyatt Centric, 2017). Hence, the current and future state of Hyatt is based on the
impact of environmental factors on the company while making or implementing changes to
move forward with increase growth and success for long-term. It is essential to understand
for managing change and development of the company along with key stakeholders such as
employees, customers or guests, and shareholders playing an important role while taking
interest in an organisation.
3.0 Implementing the change
In modern organisations, there is an increase in rapid change consistently that can be
small or at large where employees face problem at the time of change establishment. It is due
to resulting change impacting their status quo while following procedures where some
changes results in resistance strongly which causes problems additionally for management.
There are changes usual while accepting and worth improvements by planning and having
good communication at the time of implementation where employees manages the impact on
its process (Singh & Williams, 2019). Hyatt is specific about making its change while
transforming businesses and cultures of the company possible by the creation of customizing
change management strategies for making organisational development. Hyatt Hotels were
required to change its working culture to make it suitable for individuals and tourists or
guests, the local environment in Australia. This is a challenge for them as they are known for
its assertion and competitiveness when compared with other country’s culture; also, there are
many other changes made by Hyatt for further development and fulfilling guest expectations

CASE STUDY 8
(Solomon, 2015). The company needed an opportunity to implement change while
determining model(s) for planning change along with determining the possible sources of
resistance.
3.1 Model Determination
Hyatt decided to make changes including new commercial services portfolio
formation at the level of executive committee for reconfiguring along with combining
customer and guest engagement functions under the position of new chief commercial officer
at Hyatt. This change was made for streamlining and enabling better while maximising core
business of hotel and expansion continuously into new business lines. In the organisation,
changes will help in focusing, coordinating and prioritizing its activities better along with
driving guest and customer engagement (Mest, 2018). Hyatt is making changes for its better
position with continuous growth while focusing on high-end guests and customers providing
better experience. Another aspect of implementing change is transformation in the company’s
culture as discussed above within the perspective of Hyatt’s CEO having a history and
diverse hotel portfolio.
Hyatt believes in innovation and creativity while promoting new concepts and ideas
along with handling changes among employees. The hotel operates with various Standard
Operating Procedures while performing and planning task among little scope for change. The
company started to use concepts of human-centred innovation for creating change for
transforming entire culture while focusing on better guest experience with the support of
Hyatt’s employees (Bowman & Lute, 2014). The steps are followed by the company to plan
change which is mainly through innovation while managing it. The change implemented by
Hyatt is based on determining the Kurt Lewin change management model used for planning
by the company. Change is made for the purpose of maintaining incorporate certainties and
stability in an organisation. Kurt Lewin’s three-step model considered while planning change
and for organisational development through management culture consists of unfreezing,
movement and refreezing. Unfreezing helped Hyatt in reducing the forces by making
employees understand the need for change to generate better outcomes. Second step of
moving defines the shift in behaviour of the company involving other parties or guests while
making a change (Chiang, 2010). Lastly, refreezing helps in maintaining the company’s
stability based on its current and future state of equilibrium which is not possible without
supporting mechanisms based on driving forces such as new technology, new workforce and

CASE STUDY 9
changing markets of hospitality industry, and restraining forces such as organisational
disinterest, failure fear and no invention of pattern within the company to avoid imbalance
(Pop, 2018). It is possible by reducing the restraints and increasing the drivers to attain
planned change successfully. Also, Hyatt used the idea of Kotter’s eight-stage model for the
establishment of change when there is any urgency or the company requires developing a
strategy and vision, to create the guiding alliance, and communication based on the change
vision. This model empowers the wide-based action while generating wins of short-term
along with gains consolidation and more change production along with anchoring new
approaches within the organisational culture. Thus, change models are helpful for the
company in management and organizational development with effective outcomes.
3.2 Resistance sources determination
While implementing change, there is an existence of both individual and
organisational sources of resistance which is impacted by the differences in personal
background, perception, personality-related differences or needs. There is a necessity of
understanding such factors triggering the change which refrains individuals from change
endorsement or need of employees support extension and cooperation towards initiatives
taken by the company for making change (Hyatt & Berente, 2017). It is essential for the
company to have support from the individuals or teams due to generating effective solution
while smooth change implementation and in a trouble free manner. There is a possibility of
individuals posing resistance towards change because of factors such as habits, lack of
tolerance or acceptability for the change, fear of negative impact on the income or
economically, fear of losing something valuable genuinely, fear of unknown and unseen
future, selective information processing, and a rigid belief (Jorge, 2013). On the other hand,
there are some organizational factors as well which can result in resistance to change such as
structural limitations or rigidities, lack of clarity in understanding ground realities, disinterest
from the groups, and threats possibility to resources, power or expertise.
Thus, this is a basic point of heavy resistance involvement while making change but
making effective communication at every step and consultation, there can be presence of
surety to have desirable results along with possible resistances or barriers breakage towards a
change. Hyatt required being strongly committed and involved while attaining a successful
change after all this discussed factors with the help of management focusing on an integrated
approach, open and effective communication internally, a stable and strong leadership, and

CASE STUDY 10
spreading awareness about the realties to employee with the need of making ultimate change
(Norboutaevich, 2019). Lastly, no matter what, it is important for the company to have
employee involvement and participation while making change with proper planning,
coordination and completion with all key stakeholders of Hyatt Hotels playing decisive role
at the time of determining success of change and implementing strategic decisions.
4.0 Recommendations
Hyatt Hotels in or outside Australia focuses on giving best to its guests and customers
for maintaining global performance and progress along with the support of staff across the
globe. The recommendations that describes the profitability and success is possible through
making Hyatt sustainable through better corporate social responsibility practices and guests
better experiences along with training and encouraging the workforce to achieve “green
labels” and changes made for future organisational development through the help of
management. The recommendations are described by the company’s perspective for
managers, employees and similar companies with the contact of Hyatt (Hightower, East, &
Hunt, 2019). The culture of hotel is one of its strengths against the rivals such as Hilton and
Marriott after implementing change through innovation and creativity as committed. It is
essential for the company to review performance of employees to have better development by
using best practice due to its commitment and achieving the desirable outcomes. This also
enhances the opportunity between the management and employees while having powerful
ways to improve communication for successful change. Lastly, it is essential for Hyatt to
maintain its stability along with its partners in brand. The resistance to manage and smooth
the change by Hyatt while implementation is possible by requiring overcoming the opposition
along with engaging employees effectively, implementing changes in different stages and
communicating it effectively at every stage (Paycor, 2019).
5.0 Conclusion
Based on the above analysis, it is for sure that Hyatt is one of the largest hotels within
the hospitality industry maintaining its competitiveness and position in the markets of
Australia and universally. Hyatt is based universally dealing with different cultures and
factors that needed to be faced by the company. It was essential for the company to analyse
its internal and external environment before proposing the change based on Hyatt’s
commitment to provide best guest experience and the current and future state for managing

CASE STUDY 11
change and organizational development. While implementing change, planning is necessary
which requires determining model along with knowing and understanding the possible
sources of resistance before considering environmental factors triggering such change. There
is a need for Hyatt to establish best practices and maintaining the culture and position within
the hospitality industry to enhance opportunities and improve change for further
organisational development and the criteria of successful change management.