Change Management

Change Management

Introduction

Change management is a generic process applicable to all kinds of organizations, which uses knowledge and skills to bring about substantial organizational change to improve effectiveness and efficiency. Change may be required due to an outdated organizational structure, poor responsiveness to clients, technological change, a merger, or an inappropriate organizational culture. In most cases, a combination of several factors is involved. While change now concerns most managers, it is only in the last decade that change management has become a distinct subfield of general management, joining project management, operations management, and services management. It now has its own research and theoretical literature, professional bodies, and record of successes and failures.

Change management proceeds on the basis of a set of assumptions about “how organizations work and what might make them work better. The structural frame highlights goals, organizational structure, and formal roles and relationships. The human resource frame accesses individuals and groups in organizations and the interrelationships between them. 

Economic Recession and Unemployment

For decades, the U.S. has had the largest economy in the world. But even the strongest economies struggle sometimes. Throughout its 232-year history, the country has endured several recessions--periods of economic contraction and declines in business activity. Some of these economic downturns have been mild, lasting as little as three months. Others have been severe, lasting for years and resulting in widespread unemployment, bankruptcies and even social unrest.

As of early 2008, the U.S. finds its economy sluggish. Business growth has slowed to a near standstill, consumer confidence is deteriorating, the U.S. dollar is as weak as it has been in 17 years and the country is losing jobs. Many economists say the combination of these factors makes it clear that a recession has already begun. Others (including top government policymakers and the administration of President Bush (R)) insist that the economy is relatively stable and will avoid a recession. It is therefore no surprise that debate over the recession issue has split along party lines. Other reasons why recessions are significant include their impacts on unemployment levels, business investment and consumers' overall quality of life.

In relation to hard or soft systems approaches to change, hard systems models emphasize the detailed diagnosis of the change situation, generation, and selection of options and the planned implementation of the change. Although this approach is useful for clearly defined changes such as implementing a new computer system, it is less helpful when hospitality managers are confronted with more complex changes, especially changes where staff behaviors, attitudes, and values need to be addressed. These approaches stress the importance of participation and communication during the change process. However, Fullan (2001) pointed out that it is not always possible or advisable to involve staff and that the selection of the correct strategy for change management is contingent on the nature of the change itself.

While the low jobless rate has been good news for job seekers, many labor market analysts are concerned that tomorrow's workers will not possess the skills they need to qualify for the kinds of jobs being created in ...