The present working scenario has changed and it has become important for enterprise to remain updated with the market. Due to globalisation innovation in the business surroundings are taking place on regular basis which needs to be adopted in same manner so that competitive advantage can be maintained. There are both positive and negative changes that occur in environment and each one of them has their own impacts. It is required that administration understands the modifications on time so that planning for same can be made. It further assists in making the resources available which may be required while implementing the modifications. Hilton is a global chain in hospitality industry which is known for its quality of services and effective marketing strategies (Alkahtani, 2011). There is a close rivalry present in this industry and therefore continuous changes are made in this enterprise so that it can increase its scope and can maintain effective position in the hotel industry. The following report will discuss the different issues that come across while bringing alterations in business and other
P1 Compare different organisational examples where there has been an impact of change
Be it any kind of any business none of them can remain unaffected by the alterations that are made in business. There are sometimes big changes made and many times small depending upon the current need of an enterprise. As hospitality sector has various competitors it has to maintain developments on regular basis so that customer interest can be maintained. The manner in which it is implemented varies from business to business as the product and services they deal in vary from one another. Whenever a new way of doing work is implemented in business it affects the existing strategies of an enterprise like they need to be modified or needs to be changed entirely (Anderson and Anderson, 2010). This way it affects the continuity of operations too. In order to understand the impact of change a comparative study of two different sectors is done in which one is Tesco which belongs to a retail sector and other is Hilton which has an entirely different operation as it is a part of hospitality business. The impact of change on both these enterprise is discussed below:
It is a part of hospitality sector whose main product is giving accommodation and entertainment facilities to its customer. Changes are brought to provide more satisfaction to the customers so that they can get higher satisfaction after spending their money.
It is dealing in an entirely different range of products. Domestic products, clothing, and other retail items are found under same roof at competitive prices.
This organisation is known to be relying on cost leadership approaches. The offering of this organisation are provided at competing prices considering prices set by rivals.
Hilton International is known to charge premium pricing for its products and services. The reason being clients are charged with higher prices is that they are perceived of superior quality rather than rivals.
This organisation has marked its presence on the global level but largely present in the United Kingdom itself. The operations are carried out through 6900 stores worldwide.
Hilton hotels and resorts are present on the international level as well. These organisations possess a chain of hotels and are more than 570 hotels.
Tesco have been taking reliance of opting for numerous strategies which highlights lower prices which are being offered by the organisation. There are numerous discounting schemes offered by this organisation to enhance sales.
Hilton organisation is known to undertake variety of promotional tactics so that its business position could be attained. This organisation is known to undertake discounting schemes and membership programmes to retain their customers.
There are lots of changes are happen in technological sector that impacts the operations of organisation. For ex., New application allows the customer to access their room with the help of digital security. It seems to be positive impact upon an organisation.
Changes in retail sector re happen in vast manner. As emergence of online platform has huge impact over the sales of an organisation in the initial manner. Acceptance of this allows them to improve their sales and profitability
M1 Assess the different drivers for change
In an organisation immense changes take place due to the alteration in the external and internal surroundings. They have the capacity to affect the working capacity of an enterprise. It is important that planning is done accordingly in advance so that impact of change can be minimised (Bingham and Main, 2010). Human resource is one of the most important assets of an enterprise and gets maximum affected by the innovation which is made in the daily procedure. When a change is brought in the working style, polices or strategy it is referred as the internal change and is brought to raise the existing efficiency capacity of firm. On the other hand, when a change is made due to alteration in present political, economic, social or technological issue it is considered as an external change. Such are
D1 Draw conclusions and recommendations with valid justifications for planning effectively for change and applying change impact analysis
In order to understand the impact of change a comparative study of two different sectors is done in which one is Tesco which belongs to a retail sector and other is Hilton which has an entirely different operation as it is a part of hospitality business. This type of modification is necessary to be made as it is not a choice but necessary to maintain the position in market. It can be concluded that change is required for gaining higher success and growth for an organisation. Most of the time change is directly impact on employees because they are not adjust in changing situation or environment and does not perform work in good manner.
P2 Evaluate ways where internal and external drivers affect leadership, team and individual behaviour
In current time period, every company mainly concentrate on reaching with specific goals and targets for completing the tasks and work in effective manner. There should be better manpower who are doing effective perform and also help in achieving with organisation. Leaders are play an important role within business concern because they are mainly focus on providing accurate direction and path to their employees towards reaching with targets and goals in proper manner. Along with this, leader required to adopt various leadership styles for getting best outcome or results for doing effective working. Company managers and leaders are the main key people of an organisation and they are setting required targets and goals which help in getting appropriate profitability and productivity. In addition to this, leaders also help in motivating and encouraging their staff members so that they are try to doing particular task for getting accurate goals and objectives (Branson, 2010). For doing this, they are getting appropriate success and growth in better manner. Motivation and encouragement is the effective technique and method which assist in increasing the company profitability and productivity in the large market place.
Hilton is the multinational hotel sector which provides effective services and facilities to their customers in better manner. Also they are providing best services so this will help in attracting large number of guests towards their facilities. They are tried to make and create appropriate workforce and manpower for appointing effective leaders and managers in the firm. Company leaders are also adopting and using best suitable styles which are fit for specific situation and with the help of this people can manage and maintain all function of business in proper manner (Brown, 2012). Managers and leaders have basic role and duty to appoint those people who are capable for achieving desired company goals and objectives with the help of their skills and abilities. Hilton hotel always work for increasing their profitability and productivity for making new ideas and thoughts and also promote their services and facilities among customers. There are different factors which affect on leadership styles such as external and internal drivers that are described as follows:
Internal factors- Internal factors are associated with different environmental factors in the firm that includes company structure, people, rules and regulations, events, systems which can be control and managed by an organisation. Along with this, SWOT analysis help in understanding the major impacts which are as under:
Leaders are adopting and using some leadership by which they can manage and maintain people functions and activities in proper manner. They are motivating and encouraging employees for doing effective working performance within an organisation. Also they can help in achieving desired goals and targets.
In Hilton hotel, the main weak point is this they have poor coordination of work among employees and management teams. this will directly affect on business operations and its functions.
They need to gain opportunities which related to culture and this will assist in achieving potential goals and targets. This will help in creating company structure and maintaining coordination among workers.
The culture firm is very difficult to adopt and used by company employees because this will directly affect on their relation.
External factors - This will consist with different factors which occur outside of the firm and such can beyond the control by an organisation. It includes customers, rivals, technologies, political, economy which directly affect on firm operations (Carrington, Deppeler and Moss, 2010). There are certain external factors which are as follows:
Political factors- There are various government policies, taxation, rules and regulations which influence the business operations and function in effective manner. There are various modifications while government adopt new changes in the country.
Economical factors- It includes inflation, variation in economy rate, growth rate which change according to the environment so that company can easily developing and making strategies for the nation people.
Social factors- In this, customers taste and preferences are always change so firm have adopt new policies and strategies for fulfilling all needs and demand of their buyers in proper manner.
Technological factors- there are various changes which are associated with technologies so that firm need to adopt latest technique and methods which help them in enhancing their profitability and productivity in better manner.
P3 Evaluate measures which minimise the negative effect of changes
An organisation can try to reaching with best possible results and always get success for determining the effective techniques and methods in better manner. They are mainly concentrate on various measures which main motive is to reducing the negative factor while using changes in the firm (Doppelt, 2017). For measuring in company help in elimination mainly negative factors and also effectively run the business which make appropriate environment. Hilton hotel is the one of the most famous hotel which provides different effective services and facilities to their guests. There are certain measures which are discussed as under:
Training- it is the major key which help them in increasing their employee's skills and abilities so that they are able to gain desired goals and targets of the organisation. Leaders should manage and maintain their team members for performing well. these are such techniques and methods which can used by firm because this will assist in identify occurring issues and problem in the company.
Research and development - in an organisation, research and development will play an essential role for analysing and examine external market situation (Fagerström and Salmela, 2010). along with this, Hilton hotel also adopting this research and development method for measuring various factors such as current market trends, customers preferences, competitors planning, etc. this will help in analysing and examining the buyers taste and choice and also define the strong rivals which develop better strategies for attracting their customers.
Technologies- it is very essential factors which directly affect on measuring the changes as per the environmental situations and condition. An organisation can identifying and find new techniques and methods adopting and using manufacturing services and goods in better manner. Hilton mainly considers the new techniques and creative technologies according to the needs and requirements so that customers can satisfy.
Managing relationship among staff members- it is best and effective method which helps in making strong relationship with their customers. Company can improve their business operation and functions within an organisation. Company managers of Hilton hotel make sure regarding making strong relationship and create peace system for managing manpower.
Lewin's Change Management Model:
This model is developed by Psychologist Kurt Lewin in 1950s. According to this model, organisation employees have to accept changes for company betterment. The description of this model is described as under:
Unfreeze stage – It is the first stage of transition which is one of the most critical stage in whole procedure of change management. In this, staff members will understand and evaluate that firm is going to make proper changes and alterations in working and they have to accept this.
Change stage – In this, employees are moving from old to new direction for gaining better learning and make improvement themselves. It is very complex for employees is to accept new structure of management but company manager help them in clearing their doubts and provide them right direction to done proper work.
Refreeze stage – In this last stage, changes has been implemented and staff member should carry out these things. It is required for respective firm is to advise their employees for make proper guidance, arrangement, monitor, evaluation and adjustment. It can be done as per the updated and new technology which assist in gaining appropriate results or outcomes.
M2 Change management model
Hilton hotel are adopting Lewis change management model for using different changes in an organisation which includes unfreeze, change and refreeze. it is first stage which change the manpower and them developing and making required modification. The model help organisation in developing and making employees for accept such changes. With this model, company can make changes and alterations in business structure and operations effectively. Also they are
P4 Various barriers for change and how they impact leadership decision making
Changes and alteration should be necessary in each company and it is very essential to determining the various changes factors so that company can survive in the competitive world. Along with this, changes are always carrying out various types of issues and problems within an enterprise (Fullan, 2014). This can be said that changes is something where firm venture which bring out effectiveness and comprehensive environment at work place. its is responsible for making and creating disputes and conflicts while running smooth functioning of the business. Hilton accept changes for determining the motivational methods and techniques so that it is essential for conducting training and development program for increasing their staff members and this will help in enhancing company profitability and productivity in effective manner.
There are certain issues and barriers which directly affect on leadership decision making that are as follows:
Lack of effective communication- it is the fact that issues and problems are occurs within an organisation so there can be any reason behind it which can directly affect on business operations and functions. It is necessary for communicating to their staff employees and provides effective data and information which make decision. Company manager have develop and make while adopting and using new changes so that it is simple or easy for any kind of situation in an organisation.
Lack of participation of employees- if an organisation does not involves to their staff members then this will became major issues and barriers for company. Thus, they have responsibility to allow their staff members while making effective decision for taking accurate decisions in proper manner. This will make and create for accepting necessary changes because their employees are not ready for accept such kind of modification in the firm.
Organisational cultural planning- this is very essential for each company which directly affect on business operations and functions and also make positive working environment so this will help in achieving required goals and objectives (Hallinger and Heck, 2011). This is another responsibility to create and make barriers while running smooth of business functions and activities.
M3 Force field analysis
There are certain ways in which different issues and barriers in correct manner through Force field that are various stages which are as follows:
- Proposal for change- it is that main reason behind issues which can alternate culture and environment so that it will create major issues and barriers for staff members for understanding the system of modification in the company.
- Recognising forces for changes- it is next step which Hilton hotel try to recognise and identify major forces which can make changes in the firm.
- Identifying factors against changes- it is one of the most essential factor where company will define that firm does not involve their workers while making decision of the organisation and make corrective actions.
- Assigning scores- Company management mainly concentrate on changes acceptance for developing effective relation with their customers as well as employees.
- Analyse and apply- it is the last phase where positive and good environment need for smoothly running the business operation of the firm.
The driving forces of change consist of systemic forces and individual/ group speculations are the important forces and outdated machinery and declining team morale and need to increase profitability are important factors in driving change. On other hand restraining forces of change consist of fear, lack of training and lack of incentives are the important attributes that restrict in organisational goals and objectives. Factors in driving change give motivation to workers to give their best in organisational goals and objectives in effective manner.
It is common tool and method which help in analysing factors that is found in complex situations. It shows the problems in terms of different factors or pressure which support the status and this type of pressure help in change in desired direction. Hilton hotel use force field analysis which assist in reach with potential organisational goals and targets effectively. This can be used for analysing those areas which required proper changes and alterations.
P5 Apply various leadership approaches for dealing with changes within an enterprise
Leadership is determining as those ability and capability which influence people behaviour and doing work for achieving desired goals and objectives. it is required for company to have better leadership skills which help in set appropriate targets and goals that can be achieved in better manner (Malenfant, 2010). Along with this, leader has ability to inspire and motivate their employees for completing such tasks or work in given time period.
Hilton hotel also consider various approaches and leadership style for influencing the person behaviour so that each and every employee will try to accept such changes and also adopt new innovation, ideas, various modern techniques and methods at market place. there are different leadership approaches which has been adopted by Hilton that are described as under:
- Autocratic style- leaders are adopting autocratic style for getting complete whole task or work from staff members and they are providing accurate guidance for assign work to them. In Hilton hotel, leaders can adopt this leadership style through which their employees are perform work or task in order to gain accurate outcomes.
- Democratic leadership style- it is very effective method for developing and making business and also this will lead the various changes and modifications. Along with this, leaders are providing accurate feasibility and allow staff members for taking part for achieving set targets and goals. Leaders of Hilton hotel can use this leadership style by which they can guide their staff members to lead towards gaining high income and revenue effectively.
- Laissez faire- in this leadership style, there is always absence of direct supervisor and they are giving freedom to their employees while doing work. it is that leadership which is not best appropriate for environment of business because this will require more direction and instructions (Parsons and Cornett, 2011).
- Transformational- It can be referred as it is one of the most important approaches while doing necessary changes. The method and technique of communication which help in achieving desired goals and targets in proper manner.
- Transactional- A transactional leader mainly concentration on method such as rewards and punishment and using best suitable environment. Employees of firm will provide effective services for achieving set targets for an organisation. Along with this, leaders evaluate and measure the performance of staff members for taking corrective actions.
Lewin’s change management:
Kurt Lewin developed a change model which includes unfreezing, changing and refreezing. The model presents simple and practical model in order to understand change procedure. The process of change entail develop and create perceptions which are required for change. These are described as under:
- Unfreezing – It is very popular where an individual naturally resist changes as they are prefer strategies and procedures that they know to overcome. In this, leader must be motivated and encouraged to analyse current process with critical eye and it is possible to produce appropriate results.
- Changing – In an organisation, once an individual accept the current process that can be improved and there are some potential solutions to the respective issue. It is the next step is to implement changes. This process may be complicated and chaotic and cost can be incurred so it is essential for maintaining morale and confidence.
- Refreezing – It is the final stage which is most crucial in the whole procedure as often changes will describe in small amount of time before switching back their original state. It is important that change is properly reinforced and sustained.
Kotters Change model:
The 8 steps in the process of change which are described as follows:
- Create Urgency – The idea of change being necessary for success of an organisation can be very powerful and they are develop environment where an individual should aware about current issues and problems.
- Develop a powerful Coalition – It is very hard to lead the whole change procedure and it is essential to build and create coalition which help other people in direct manner. The coalition should be based on skills and knowledge.
- Create a vision for change – A change initiative is likely to be complicated and it can often is to understand in specific for staff members at lower end of the hierarchy. For this reason, developing a vision which is easy to understand and encapsulates the whole aim which is useful to generate income.
- Communicate the vision – It is required for form is to develop vision which is not enough to generate support, then they required to communicate throughout the organisation. It is excellent opportunity which is used to build coalition as between they are likely to have networks in every areas of business.
- Remove obstacles – It is that step which is essential for developing and building strength of change initiatives but it is required to look for what is likely to eliminate its success and growth level.
- Create short term wins – Change procedure often take a while to reap any award and reward and it can support to fall if an individual think their efforts has been wasted.
- Build on the change – There are various change process fail as complacency creeps which can lead towards the end and project are not finished carefully.
- Anchor the changes in corporate culture – This is simply changing the habits and procedures of employees which is not always enough to instil a culture change across the organisation. The changes should become part of the core of firm which has directly affected.
M4 Evaluate extent where leadership approaches can deliver changes
For evaluating the variety of changes and alteration of leadership styles which can help in identify so that they are suitable for significant extent in managing and leading changes within an organisation. It can be said that they tend to make and effect on their workers behaviour and inspire them towards doing effective task or work in better manner (Salmela, Eriksson and Fagerström, 2012). There are various number of styles provide opportunities to select appropriate leadership approach for the right manner.
D3 Critically evaluate the effectiveness of leadership approaches and models of change management
Leadership approach required for company in order to reach with desired goals and target in better manner. It is effectively used in the firm so they can easily provide right direction to their employees within an organisation. There are various models of change management used by Hilton in order to gain desired goals and objectives. Lewin's model is helpful for company because this can be used for make proper changes in different structure of an organisation.
As per the above assignment, it has been concluded that environment in which business exist is full of changes which gives impact on policies and strategies of company. Along with this, it includes several external and internal drivers which give huge impact on day to day operation of enterprise. Thus, firm have to focus on adopting proper tools and techniques so that they can survive in these modifications as well make better strategies for accomplishing goals and objectives. Due to globalisation innovation in the business surroundings are taking place on regular basis which needs to be adopted in same manner so that competitive advantage can be maintained. Changes and alteration should be necessary in each company and it is very essential to determining the various changes factors so that company can survive in the competitive world.
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