Holiday Inn Hotels Organizational Development

NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.

NB: All your data is kept safe from the public.

Introduction

The modern globalized society provides numerous opportunities for travelers and tourists to visit other countries and gain new experiences. The rapid development of new means of transport and the reduction in prices for travel stipulated the appearance of a new beneficial environment for the development of the international hospitality and tourism sector. Thus, during the last 25 years, the average number of international tourist arrivals have increased about one percent faster than the global GDP (Abudi, 2017). Additionally, in rapidly developing regions the number of tourists has continuously risen from 31% to 45% (“Annual Report”, 2016).

All these factors evidence the enhanced attractiveness of this sector for investors and global corporations that have their hotel chains or some other tourist services in different regions of the world. However, this also means the emergence of multiple challenges like the high level of rivalry, international terrorism, financial crises, etc. that should be faced to remain successful and preserve leading positions in the sector (Abudi, 2017). It could be a complex process as the organizational development and change demand specific resources and approaches. For this reason, the paper is devoted to the comprehensive investigation of the ways problematic issues could be solved with the help of efficient change management and using Holiday Inn hotels as the background for the research.

Background

The choice of the company is not accidental and is preconditioned by the organizations stable position in the international market. It was founded by Kemmons Wilson in 1952 as an attempt to create a hotel with a high quality of suggested services and consistent road accommodation during different road trips (“Annual Report,” 2016). Later on, some new hotels were opened and gave rise to one of the most recognizable trademarks. At the very first stages of its development, the company was focused on the provision of cheap and appropriate rooms for clients who traveled or had to stay in a particular city for several days (“Annual Report,” 2016).

In other words, Holiday Inn has always been concerned about tourism and significantly benefited from this sector. In the course of the development, the corporation experienced some significant reorganizations and became the part of InterContinental Hotels Group. Finally, in 2007 it had announced a radical relaunch of the brand with the central aim to enhance the quality of delivered services and rooms suggested to clients (“Annual Report”, 2016). That is why nowadays one can observe a renewed brand with diverse peculiarities and aspects of its functioning.

Problem and Causes

Nevertheless, despite numerous attempts to eliminate all critical issues and preserve its leading positions, Holiday Inn still faces some problems. For instance, InterContinental Hotel Group to which belongs to the analyzed company reports a fall in revenue in its annual results (“Annual Report”, 2016). This threatening statistics should be devoted much attention as it signalizes the emergence of negative processes in the sector.

Corporations reports also demonstrate the reduction in the number of clients who used Holiday Inn services in different countries (“Annual Report”, 2016). The problem could become a significant challenge to the organization as the further deterioration of the statistics, and the decrease in the number of sales will result in renunciation and provide the closest rivals with an opportunity to conquer the market. For this reason, the comprehensive investigation of the basic causes and the main factors that preconditioned the appearance of this problem along with the elaboration of the efficient change strategy become the central task for the company.

External Factors

Both external and internal factors precondition the appearance of negative tendencies in the work of the Holiday Inn. As we have already stated, the first external factor is the extremely high level of rivalry (Waddell, Creed, Cummings, & Worley, 2017). The enhanced attractiveness of the sphere stipulates the emergence of numerous rivals who work in the same segment. We could now observe the appearance of chains of hotels that are focused on the provision of services to numerous tourists who want to visit different regions in the world and gain new experiences. For this reason, Holiday Inn might lose its positions due to the efficient functioning of its closest rivals that also provide middle-class services to clients.

Second, the global financial crisis and instability of financial markets might also precondition the emergence of alterations in demand for services and its reduction (Harvard Business Review, Hotter, Kim, & Mauborgne, 2011). Finally, modern international relations are characterized by numerous conflicts and significant convergences in perspectives on disputable issues. It results in diverse sanctions and decreases in the number of tourists who are potential clients of Holiday Inn. These factors should be considered regarding the organizational change and improvement of the companys functioning.

Internal Factors

As for the internal factors that stipulate the emergence of the outlined problem, these should also be considered by the basic aspects of the organizational development (OD) internal focus is critical for change and improvement. Therefore, at the moment, the company uses the strategy suggested by InterContinental Hotels Group. It means attempts to preserve the existing position by introducing numerous rewards and encouragements for traditional clients who have already used the brands services (Kotter, 2012). At the same time, the current strategy demonstrates its poor efficiency in struggling against the closest rivals and attracting new customers.

Additionally, Holiday Inns focus on the middle-segment of the market might also be doubted as today we could observe the tendency toward the increase in the level of demands to the suggested services and their quality. Moreover, the latest reports evidence the extremely high turnover rates (“Annual Report”, 2016). This preconditions the low efficiency and competence of workers and their inability to establish contact with the top management. It might also occur due to the strict hierarchy and the abuse of power that is observed in some Holiday Inn structures. In such a way, there are also diverse internal factors that might precondition the deterioration of the current performance and statistics.

Change Process

Nevertheless, the existence of this problem signalizes the necessity to initiate a particular change process to guarantee the preservation of the companys leading positions and their future development. This activity will be shaped by globalization, information technology, and managerial innovations needed to stimulate positive outcomes and ensure that the successful transformation will be accomplished (Barends, Janssen, Have, & Have 2013).

First, Holiday Inn could be classified as a learning organization that demonstrates the ability to change and improves continuously. It is proven by its numerous alterations in the course of its development and innovations that are introduced at different periods of its functioning. Moreover, its ability to learn helps the organization to move beyond using the knowledge it accumulates during its existence (Vukotich, 2011). It means that the use of all information accumulated during the companys functioning and its implementation to the current situation might help to resolve existing problems by understanding the peculiarities of customers behavior and their preferences regarding the choice of hotels and services provided by them.

Model of Change

Analyzing the current case, it is critical to apply the efficient and relevant models of change to attain positive results and eliminate the reduction of clients and decrease in the level of incomes. This task could be accomplished using Lewins change model that presupposes three essential phases which are unfreezing, movement, and refreezing (Cummings, Bridgman, & Brown, 2015). This should be applied to the company. At the moment, its current state is characterized by the reduction in incomes and the appearance of problematic issues. Using the ODs perspective we could assume that the future state should demonstrate significant growth in revenues, the emergence of new customers, and a decrease in turnover rates (Starr, 2017).

In this regard, it is critical to enter into the transition state to solve problems, adapt new experiences, and influence future alterations. From Lewins perspective, it could be determined as the unfreezing and movement phases (Cameron & Green, 2015). At this very moment, companies have to suggest efficient interventions to guarantee enhanced results and achieve all planned goals.

Change Agent

Therefore, the initiation of the change process also means that the company needs a change agent responsible for the creation of a particular course and strategy to introduce all planned interventions and guarantee the final success of this venture. This specialist should posse outstanding skills in diagnostic, expertise, problem-solving experiences, empathy, and objectivity (Davidson, 2015). These skills are crucial for the change agent.

Additionally, Holiday Inn should use the model that presupposes an internal change agent who has an advantageous position because of the improved knowledge of the organization, its dynamics, culture, and practices that are efficient at the moment (Hiatt & Creasey, 2012). Moreover, the internal change agent will have access to all information about the companys current status, its financial reports, and direct observations about its evolution. Finally, a person from the company will cause a lower level of stress among workers, and they will be able to trust him/her. For this reason, the use of the internal change agent might be recommended for the given case.

Intervention

Thus, the change process should affect the most important aspects of the companys functioning. First, Holiday Inn should be ready to encourage new clients to use their services by introducing new policies and more beneficial conditions. At the same time, it is critical to reducing staff turnover by using motivational practices and improving cooperation between managers. Additionally, the solution to the problem might include a reconsideration of the functioning of managers who use traditional approaches to work with people and guarantee their satisfaction (Hiatt & Creasey, 2012). At the same time, the use of diverse financial models to attract new clients might also be needed.

The problem of the high turnover rates and poor communication between workers could be solved with the help of structure interventions affecting work design and explored communication practices. The application of human resource intervention might help to eliminate the problem and guarantee the use of the enhanced communicational patterns between all individuals. Thus, the motivational approach could also be efficient in solving the existing problem.

Workers of a particular department or the whole organization should be shown the importance of enriching their work efficiency through close cooperation with all managers and team members. At the same time, regarding the peculiarities of the motivational approach, employees should be provided with greater autonomy and responsibility to demonstrate the high level of trust and their importance for the company. It will help to decrease staff turnover rates and motivate people to work harder. The use of this approach should be supported by redesigning jobs and creation workplaces with high levels of meaning to satisfy workers need for self-development and professional growth. In such a way, the application of this intervention might help to improve the situation in the sphere.

Resistance to Change

These changes will affect all aspects of the company starting from common managers and ending with its officials. That is why the scale of these alterations might result in the rise of resistance to change and the appearance of undesired behaviors in employees who do not understand the need for the outlined processes and act in ways that slow down their use in practice.

In general, resistance to change is one of the critical elements of any change process. In the majority of cases, several fundamental causes stipulate the emergence of resisting behaviors in workers. These might be the fear of losing control, lack of psychological resilience, uncertainty, inconvenience, prolonged periods of adaptation, and economic factors (Bersin, 2012). In such a way, a significant part of employees involved in essential activities might deteriorate the results of the change process if they do not have the needed level of understanding or try to protect their current status.

For this reason, one of the central tasks of a manager responsible for change and OD practitioners is the choice of an appropriate strategy to guarantee that all individuals are ready to participate in the change process. First, a change manager should demonstrate empathy and support to all workers who will be affected by the reconsideration of the companys functioning. A new financial model might mean the introduction of new rewarding practices. That is why clear and effective communication about the change in groups should be established to explain all peculiarities of the new environment and build trust among all members of the collective. Additionally, resistance could be eliminated by encouraging and rewarding new behaviors and creating the new culture needed to facilitate change and attain enhanced results.

Environment

Another aspect of the outlined problem and change process associated with it is the necessity to create a specific learning environment in which all workers will be able to learn and acquire the needed experiences (Bersin, 2012). The improvement of the Holiday Inns functioning means a new approach to working with clients and finances. For this reason, employees should learn how to act regarding this very environment.

It could be achieved with the help of the change agent who will perform the role of a leader who demonstrates all the needed aspects. Moreover, as far as we have already classified Holiday Inn as a learning organization, it has specific aspects like a supportive learning environment and improved mutual understanding between all its members, In such a way, possessing the knowledge about the current companys performance and being able to apply them to the real-life conditions, all workers will be able to improve their performance by correctly realizing how they should act in the new environment.

Areas of Change

Nevertheless, the functioning of the company significantly depends on the success of the change process and the creation of significant competitive advantage. In other words, the alteration in work with clients and shift of priorities from middle-class to other spheres of the market become central components of the organizations future rise and preservation of its leading positions. Additionally, the ability to overcome rivals is one of the desired outcomes of the change process that could be achieved through the decrease in staff turnover (Davidson, 2015).

In such a way, the focus of these very alterations is one creation of a potent tool to achieve goals and remain competitive. At the same time, it is critical to improving the whole system and all aspects of its functioning in the context of the existing micro-environment and market peculiarities (Dey, 2017). In such a way, all workers should be explained aspects of the process and guaranteed that they will have stable positions in the new environment and they will not suffer from the introduction of new methods to manage the company.

Thus, all these actions should be accomplished during the movement phase regarding Lewins model. During this very stage, significant shifts in new behaviors, values, and attitudes should be achieved. It is critical to ensure that all outlined alterations are attained during this very phase which is introduced with the central aim to unfreeze all important processes and guarantee the efficient reconsideration of existing approaches (Davidson, 2015).

At the same time, it is extremely important to achieve the highest efficiency among workers at that period as they should contribute to the enhanced outcomes. Moreover, during this very phase, numerous problems related to the acceptance and implementation of new practices might appear. For instance, the use of the new approach in communicating with employees demands additional training among the members of the staff to precondition the acceptable level of their skills. However, all these problems should be eliminated during the given stage.

Recommendations

In such a way, the suggested approach and intervention demands specific actions from all employees. In such a way, the following recommendations should be given. First, top managers of the company should ensure that problems in communication and hierarchy will be eliminated by introducing more tolerant and efficient collaborative practices and behaviors. Second, regarding the motivational approach, workers should be provided with perspectives for their development to remain interested in their high efficiency and top performance (Straatmann, Kohnke, Hattrup, & Mueller, 2016).

It is critical for the companys management to use models described above and inform all workers about the necessity of change. It is an essential element of any change process as it guarantees positive outcomes and decreases resistant behaviors in employees. At the same time, all individuals who work in Holiday Inn should be recommended to involve in the change process to guarantee their enhanced positions of professional growth. The radical character of these alterations will affect them; however, it is critical to ensure that workers will feel protected and benefit from the introduction of new practices that will help the company to evolve and become even more prosperous.

Conclusion

Altogether, change management is a complex problem that demands an enhanced understanding of the current situation and the causes of the issues that affect the functioning of the company and result in the significant deterioration of its performance. Several efficient interventions are recommended as an appropriate way to attain success and eliminate the problem preventing an organization from its further rise. Thus, it demands an experienced change agent and cooperation between all workers of the company with the primary aim to achieve the current goal and minimize the negative impact of problematic factors.

References

Abudi, G. (2017). Implementing positive organizational change: A strategic project management approach. New York, NY: J. Ross Publishing.

Annual Report. (2016). Web.

Barends, E., Janssen, B., Have, J., & Have, S. (2013). Difficult but doable: Increasing the internal validity of organizational change management studies. The Journal of Applied Behavioral Science, 50(1), 50-54. Web.

Bersin, J. (2012). Five keys to building a learning organization. Forbes. Web.

Cameron, E., & Green, M. (2015). Making sense of change management: A complete guide to the models, tools and techniques of organizational change. Philadelphia, PA: Kogan Page.

Cummings, S., Bridgman, T., & Brown, K. (2015). Unfreezing change as three steps: Rethinking Kurt Lewin’s legacy for change management. Human Relations, 69(1), 33-60. Web.

Davidson, J. (2015). What’s all the buzz about change management? Healthcare Management Forum, 28(3), 118-120. Web.

Dey, A. (2017). Change management drivers: Entrepreneurship and knowledge management. South Asian Journal of Business and Management Cases, 6(1), vii-ix. Web.

Harvard Business Review, Hotter, J., Kim, C., & Mauborgne, R. (2011). HBR’s 10 must reads on change management (including featured article “Leading Change,” by John P. Kotter). New York, NY: Harvard Business Review Press.

Hiatt, J., & Creasey, T. (2012). Change management: The people side of change. Loveland, CO: Prosci Learning Center Publications.

Kotter, J. (2012). Leading change, with a new preface by the author hardcover. New York, NY: Harvard Business Review Press.

Straatmann, T., Kohnke, O., Hattrup, K., & Mueller, K. (2016). Assessing employees’ reactions to organizational change: An integrative framework of change-specific and psychological factors. The Journal of Applied Behavioral Science, 52(3), 265-295. Web.

Starr, J. (2017). Leadership. Organizing for adaptive change management. Phi Delta Kappan, 98(8), 70-71. Web.

Vukotich, G. (2011). Ten steps to successful change management. Alexandria, VA: Association for Talent Development.

Waddell, D., Creed, A., Cummings, T., & Worley, C. (2017). Organisational change: development and transformation, Asia Pacific. South Melbourne: Cengage.

Click Here To Order Now!