MANAGEMENT OF CHANGE

MANAGEMENT OF CHANGE



MANAGEMENT OF CHANGE

Background to the case

This case revolves around the recent acquisition of a chain of hotels previously known as The Excelsior Hotel Group (EHG). In January 2008 the chain was bought by a Russian millionaire, Mishki Opalov. Mr Opalov wants to re-establish the Excelsior name but bring it up to date and provide a modern but extravagant hotel where the rich and famous will want to be seen. The hotel in Paris will be chic, provide fabulous facilities to its guests and provide a service to rival the most expensive hotels in the world. It is expected that the refurbishment of Le Excellence will cost in the region of 100,000,000 Euros and take 18 months to complete. The refurbishment of the hotel is on schedule and Mr Opalov has recruited a new hotel manager, Christian Le Bourg, from one of the world's most prestigious hotels (The Ritz in London) to take charge of the refurbishments. Le Bourg is facing several issues, mainly the recruitment of the new staff, under performance of employees, low employee motivation and others. It is clear to Christian that there are major gaps in service quality, training provision, achieving the right organisational culture in the hotel and a lack of understanding of what he wants to achieve. Christian has to make a decision to quickly change the way things are going. It seems that the department managers are under a great deal of strain, as are the rest of the staff. This paper in this connection, will serve as a change management and implementation strategy for Christian so that he can effectively implement the change in order to meet the deadline of the project, while maintaining the expectations of Mr. Opalov.

Concept of Organisational Culture

Organisational culture is the set of habits, beliefs, values and traditions, social interactions and relationships typical of each organisation. Represents the way we are accustomed to doing things. Similarly, every organisation has its own. "Organisational culture" is the way of life that each organisation develops itself in its members. The organisational culture is not static, but undergoes changes with the passage of time, depending on the internal and external conditions. Some organisations manage to constantly renew its culture while maintaining their integrity and personality, while others remain with their culture patterns tied to outdated and outmoded (Beer, Nohria, 2000).

Organisational Climate

Organisational climate emphasizes on the fact, which constitutes the internal environment of an organisation and its particular psychological atmosphere. The organisational climate is closely linked to morality and to the satisfaction of human needs of its members. The weather can be healthy or unhealthy, warm or cold, negative or positive, satisfactory or unsatisfactory, depending on how participants feel about the organisation. Some individuals are more or less sensitive than others regarding the aspects of climate, plus a feature that seems to be positive for a member of an organisation can be perceived as negative or unsatisfactory for others (Beer, Nohria, ...