Management Of Innovation And Change Commerce Essay

Novotel is one of the universes major hotel ironss, busying a prima topographic point in Europe and with locations globally. Started in 1967 by Paul Dubrule and Gerard Pelisson, they expanded their imperium by constructing new hotels and purchasing other hotel ironss.

Novotel amalgamation with Jacques Borel hotel and its eating house groups in 1983 saw the group renamed Accor. Currently, Accor employs over 145,000 people and operates in 132 states. Within cordial reception industry Accor operates more than 2100 hotels with over 2 million suites and more than 53,000 employees in this sector ( Novotel: p3 )

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This study analyses Novotel ‘s alteration direction programme in the early 1990s which was outlined in three major parts: –

First, instance survey has the sum-up of the actions that directors took in footings of scheme and administration.

Second, the consideration of the sequence and timing of events, and how this resulted in rapid transmutation in an administration using more than 30,000 people.

Third, the emphasize in dialogue nature of the alteration processes, giving an inside narratives from those who have taken portion in the procedure. This gives a nice image of what went right and what went incorrect and the action to pull off execution of alteration.

I have outlined the analysis in the undermentioned parts, ciritical rating of theoretical accounts of invention and alteration direction, the ratings of cardinal triggers of alteration and the likely beginnings of opposition to alter, and so I have outlined a challenges which directors face during alteration direction, and in conclusion, I have developed decisions and recommendations to travel Novotel frontward, these recommendations based on my analysis.

2 Innovation and Change ( Hotel concern )

[ rating of curative theoretical accounts of invention and alteration direction ]

Although much has been written about pull offing alteration in big private and public companies, really small has been written about pull offing alteration in an ever-changing cordial reception and hotel industry in peculiar. The ability to efficaciously pull off and encompass alteration is so of great benefit to today ‘s hotelkeeper. And, to successfully integral and overcome alteration, Hotels need to hold specific attitudes and set of accomplishments to travel about alteration and planning for that inevitable alteration.

In the instance survey, Novotel has adopted a competitory scheme that includes cut downing costs of operations ( Novotel: p.25 ) . That is to state, their concern scheme is cost leading and carrying this concern scheme requires being unfastened to thoughts and that it responds rapidly and flexibly to the thoughts that re-present chances for possible gross growing ( Blumentritt, 2004 ) . Firms can vie on monetary value or distinction ( Porter, 1980 ; 1985 ) , Novotel can be non-price properties include its trade name, repute and service.

On the other manus, there are different types of inventions, the first type is Incremental invention, this modestly improves a house ‘s procedures or services or it can be used in fine-tuning its concern theoretical account, i.e. the manner it creates value for its clients. Extremist invention significantly improves bing merchandises and services or wholly replaces them with new 1s. Extremist invention occurs less often than incremental invention partially because most administrations do non hold the proficient and human resources required for extremist invention, and because extremist invention happens so rapidly administrations are non prepared for the hazards and uncertainness which comes with this type of invention.

It should be noted that, Innovation is non a competitory scheme in itself, but it is used to heighten any competitory scheme once the scheme has been designed. If the scheme involves increasing the rate at which new merchandises or services are introduced, so invention can impact the house in more than one or different ways.

2.1. The alteration procedure and methodological analysiss

Over the last 20 old ages the velocity and graduated table of organizational alteration have accelerated and there has been a important addition in the figure of approached to alter direction. There are several signifiers of alteration in an administration, some forces and others deliberate.

The Strategic Change Initiative ( organizational alteration procedure )

Fig. 1 – A Model of the alteration procedure, Boddy 2005

The first type if alteration is, systematic alteration is slower, less ruthless, more focussed and more carefully constructed and timed.A There are different attacks to systematic alteration such as: – quality betterment, work reprogramming, benchmarking, and strategic planning. The nature of these attacks can be excessively formalised and so stifle enterprise in the administration ( Huy, Q. and Mintzberg, H.2003 ) . Another type is, Organic alteration, this type of alteration is done internally in the administration or other words it seems to go up from the ranks without being officially managed. The job with the organic attack is groups within administration may get down to work at cross-purposes and this will ensue in scuffle over resources, yet its result can be dramatic. Planned alteration is an iterative, repeating, procedure which involves analysis, action and rating, and farther action and rating. It is an attack which maintains that one time alteration has taken topographic point, it must be self-sufficient to keep the impulse. This means that, all alteration agents or stakeholder i.e administration, directors and receivers jointly diagnose the administration ‘s job and jointly program and design the specific alterations ( Burnes, B. 2003 ) . Another type is emergent alteration which is a uninterrupted procedure of experiment and version aimed at fiting administration ‘s capablenesss to the demands and dictates of an energetic and unsure environment. This type of alteration is achieved through a figure of little to medium scale incremental alterations. Another type is, dramatic alteration is often initiated in times of crisis or of great chance when power is concentrated and there is great bets to be controlled. Mintzberg ( 2003 ) argues that “ unlike the Phoenix of mythology, which could lift from its ain ashes but one time every 500 old ages, companies can non go on to trust entirely upon the fabulous promise of dramatic re-emergence ” .A

3. NOVOTEL: Change Management Programme

From Kurt Lewin ‘s work ( appendix 1 ) in the 1940s to the present twenty-four hours, organizational alteration, as a systematic procedure, has become the nucleus and portion of organizational life.A

Change in administrations does non hold to be dramatic or far making, Stickland ( 1998 ) notes, “ sometimes alteration is incremental and barely noticed: a new piece of equipment or package is introduced or a individual leaves and person new joins the administration. Sometimes alteration is big and dramatic: a complete re-organisation, a amalgamation or a take-over, and no 1 and nil in the administration is unaffected ” ( Stickland 1998:298 ) . The recent economic crisis has provided a sense of urgency that helped organisations everyplace to successfully implement alterations that would hold been hard if otherwise. Assorted cultural and structural factors have a direct consequence on the really success of the organisation.A These are highlighted when an administration efforts to redefine itself, to alter their image in an effort to keep or heighten their capablenesss ( Gratton, 1999 ) .

In Novotel ‘s instance, they were forced because of plumping one-year net incomes and in response they adopted a competitory scheme that includes cut downing their operational costs and besides cut down service monetary values in the hope of increasing their hotels tenancy ( Novotel: p.23 ) . Bing more advanced in this manner besides requires being unfastened to thoughts from antecedently untapped beginnings inside and outside of the company, and planing a house that responds rapidly and flexibly to the thoughts that represent chances for possible gross growing ( Blumentritt, 2004 ) .

3.1 Key triggers of alteration

Reason which can trip alter can be listed as internal Triggers ( i.e. New staff, Conflict, Gross saless /profit beads, De-motivation, Skills spread, Loss of cardinal staff ) and External Triggers ( i.e. Economy, Supply, Government policies, Rivals, Funders, Customers, Shareholders, Media, Public and engineering )

These triggers for alteration can be are analyzed utilizing assorted managerial tools which are available in order to derive an indispensable apprehension of the environment, both external and internal:

A PESTEL analysis: A this tool has five dimensions which are political, economic, societal, technological, environmental, legal. It is used to pick up factors in the local or micro, and national or macro contexts that directors need to take history of.A A Another tool is, STAKEHOLDER analysis this is a cultural or values audit that provides an apprehension of some of the people factors over and beyond a resource audit.A A Third tools, SWOT analysis this is a simple attack which measures strengths, failing, chances, and menaces. It provides a construction in which to put out the demand and the preparedness of the organisation for alteration.

As antecedently mentioned, a alteration in competitory scheme is likely if the house faces loss of clients, deficiency of pricing power or shrinkage net income borders like in the instance of Novotel ( Novotel: p.12 ) .

Beckhard and Dyer ( 1983 ) point out that another of import alteration trigger is merely strategic pick on the portion of bing direction squad. Some ways this may happen through strategic planning, interaction with clients, rivals, etc. , and gut inherent aptitude that a new market or merchandise is deserving prosecuting. This type of trigger is much more productive and proactive than responding to the environment or working to keep alliance.

Regardless of which of these many triggers initiate the alteration procedure, there are several

cardinal activities that can ease a successful alteration execution ( see appendix 4 ) . Furthermore, I have put together a manner to successful implement alteration from directors perspective in subdivision 3.3.

3.2 Beginnings of opposition to alter

Initially after the alteration has been effected, there is opposition to alter, these oppositions can be grouped in different classs such as, Individual ( i.e. fright of failure, ignorance, position loss, inactiveness, function loss ) or Team ( societal idleness, coupling, deficiency of openness ) , can be organizational, ( board members/top direction, civilization, construction, immense costs, limited resources, contracts or beliefs ) or External factors such as ( investors, providers, regulators, media, political relations or confederates. )

As Kotter and Schlesinger ( 1979 ) emphasized, despite the hazard of immune behaviors have been acknowledged by many experient directors, really few of them tend to take clip to consistently analyze state of affairss in footings of finding possible persons who may defy alteration with different grounds.

First, one of the most obvious grounds for people to defy alteration enterprises has been the feeling that new fortunes will damage staff self involvement. Besides, , Employees can confront increased degrees of anxiousness or fright from alterations or proposed alterations in the work environment. The term ego involvement entails a political significance which refers to power dealingss with in the organisation. In other words, new thoughts about the manner employees work normally impacts dealingss between different single groups. Salaman ( 2000 ) argues that “ organizational employees actively strive to avoid and deviate control ; they seek to maximize their ain involvements which they may or may non see as coincident with the administration ‘s, and they attempt to defy the domination of others while progressing or supporting their ain country of control and liberty ” ( Salaman, 2000, p.123 ) . This means that, staff can defy alteration to keep their societal position in the organisation Resistance can go open i.e. in industrial action, including working to govern and work stoppages ( Coram, R, and Burnes, B. 2001 ) .

Second, the purpose of alteration attempts has been to make a new form of working which

employees are expected to follow themselves. From this point of position it is argued that employees do non defy to the thought of alteration but to its possible results ( Dent & A ; Galloway-Goldberg, 1999 ) . As shown in the Novotel instance survey, the re-structuring made the reorganizing of forces and direction construction, functions were re-definite so is the reward systems and payment ( Novotel: p14 ) .

Third, about all prescriptions for a successful alteration execution stress the necessity to do persons understand significance of alteration. Daft ( 2000 ) , states that employees may be given to defy alteration when they are non informed about demands, intents and results of it. This is besides graphic in the Novotel alteration programmes, a testimony from a receptionist in France, described that “ they did n’t understand what the undertaking was all about ” ( Novotel: p.21 ) In add-on to inadequate cognition about alteration, if employees are leery about existent purposes of alteration instigators, there is a high possibility of opposition.

Fourth, alteration programs aim to travel an organisation from their bing place to ideal one and as Stapley ( 1996 ) states this passage period is sort of a journey that contains a batch of uncertainnesss. Curtis and White ( 2002 ) specify uncertainness as aˆ•lack of information about future events ” ( Curtis & A ; White, 2002, p.17 ) . When people lose their personal control, it becomes hard to do rational determinations which would bring forth desirable results. As a consequence, person who experiences loss of control is likely to defy alteration because of apprehensiveness brought by uncertainnesss about alteration ( Novotel: p. 18 ) . Kotter and Schlesinger ( 1979 ) argue that difference in information that groups work frequently leads to differences in analyses, which in bend can take to resistance ( p.108 ) .

Fig 2. Model for Pull offing Change

3.3. Directors Role: Overcoming Challenges

In order to get the better of alteration, directors face challenges when implementing schemes. The cardinal component in implementing alteration or alteration direction procedure is communicating. Having set uping communicating attack towards employees.

Furthermore, employees ‘ attitude, perceptual experience of directors ‘ actions, employees ‘ motive and uninterrupted betterment of the working environment can be other elements a director responsible for alteration should take.

Below is the list of common challenges posed for directors tasked with implementing alteration direction and they can extenuate any opposition: –

Employees Communicationss: During the alteration procedure, take clip to interact with employees as non all employees are vocal or edge to keep their positions to themselves and this could ensue in ‘underground ‘ opposition to alter. When this happens it could ensue in holds and will impede apprehension of staff ‘s unrealized demands and outlooks. This is on Lewin ‘s unfreezing phase ( Levasser, 2001 ) .

Employees Co-operations and Collaborations: Directors in hotel industry ought to understand that different persons do non the same positions or sentiments about alteration, most people tend to be worried about alteration. In other words, Directors demands to advance cooperation with staff before and during alteration procedure.

Employees Motivation: This is critical particularly during the alteration execution phase, Manager ought to do certain that employees are stay motivated and be ready to listen to staff ‘s sentiments, and besides take clip to explicate what is go oning, this will assist staff ‘s morale.

Employees Attitude: harmonizing to Levasseur ( 2001 ) , this is besides a focal point during execution phase ( Lewin ‘s phase ) , a Manager should seek his/her best to understand employees attitude. In add-on, Conner ‘s ( 1998 ) lists stableness, immobilization and denial are factors in human rhythm of negative response in cordial reception, Manager as a taking individual should be au naturel these 3 factors in head.

4. Decision:

In drumhead, opposition to alter blocks the terminal consequences alteration was meant to bring forth, that means invention is undermined, and whatever alteration is generated will be a reaction a reaction to the fortunes and portion of the procedure by which those fortunes persist. On the other manus, reacting or taking to prosecute alteration, promotes invention and will make so of course and systematically as a map of what is observe to be possible. Change based on this 2nd position is likely to be an betterment on what already exists.

It is besides of import to cognize how good the alteration to be enacted is of import to the organisation and its staff. With high demand of staff in cordial reception industry, it is good for taking directors in alteration direction procedure to pay attending to the attitudes, motive, cooperation and be receptive to positions raised by staff as this will actuate employees and besides it will make a contributing environment for and promote staff. When staff are encouraged, they will be willing to accept alteration and prolong hotel ‘s fight.

To successfully run into and get the better of alteration, Novotel ‘s Presidents need to hold specific attitudes and accomplishments for visualizing ; expecting and one time they know the at hand alteration, and be aftering for that inevitable alteration. And holding known the impending alteration they need to cognize how to efficaciously pass on that alteration to colleagues, clients and external confederates and future chances to remain in charge of the competition. While alteration may non come easy, hotel operators can be certain that it will so come.

5. Recommendations

It is of import to update staff as early and clearly as possible, even when bad intelligence is involved because information reduces emphasis and anxiousness which is caused by uncertainness.

The informal groups within the administration will finally distribute information, although the truth of it is questionable. Knowledge removes fear from an person, and gives them the assurance to fall in the class of alteration ( Mullins, L. 2005 ) .A

Although the success rate of this forced alteration is non really high. For Novotel traveling frontward at that place has to set an administration, Management can look into bring oning alteration from one state to another alternatively of turn overing out alteration throughout all the hotel. One of the jobs experienced by the hotels which were making good was caused by ‘unwanted ‘ interaction. HuyA and Mintzberg ( 2003 ) supports this impression by reasoning that “ the realisation that effectual organisational alteration frequently emerges unwittingly or develops in a more orderly manner ” A For the organizational alteration to win, all types of alteration should be considered ( Huy, Q. and Mintzberg, H.2003:79 ) .

Equally shortly as the alteration is implemented, which is the refreezing Lewin ‘s phase ( Levasseur, 2001 ) a director should go on to pass on with employees about the alteration implemented. This will advance an unfastened exchange of thoughts and information among all parties. By being attentive, directors can detect to what extent alteration has affected employees and take the necessary actions instantly to back up them. For illustration, Novotel General Managers should be cognizant that although organisational alteration is more easy accepted by diminishing defying forces instead than by increasing the drive forces. This driving force is the fright of penalty and coercing people to accept alteration can ensue in increased opposition. Success will merely come by taking the defying force.

There are figure of schemes which can be used to diminish the resisting forces to alter in any organisation. Novotel can utilize these schemes from thing point frontward. ( see appendix 5 )


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