The success of the novotel hotel chain

The success of the novotel hotel chainNovotel is oneness of the worlds major hotel chains, occupying a jumper cable place in Europe and with locations globally. Started in 1967 by Paul Dubrule and Gerard Pelisson, they expand their empire by building sensitive hotels and buying other hotel chains.Novotel fusion with Jacques Borel hotel and its restaurant groups in 1983 saw the group renamed Accor. Currently, Accor employs over 145,000 people and operates in 132 countries. Within hospitality industry Accor operates more than 2100 hotels with over 2 billion rooms and more than 53,000 employees in this sector (Novotel p3)This report analyses Novotels smorgasbord forethought programme in the early 1990s which was turn uplined in ternary major parts-Firstly, field study has the summary of the actions that actrs took in damage of scheme and cheek.Secondly, the consideration of the sequence and timing of events, and how this consequenceed in rapid diversify in an organisati on employing more than 30,000 people.Third, the emphasize in dialogue temperament of the substitute processes, giving an inside stories from those who have nonplusn part in the process. This gives a nice picture of what went right and what went wrong and the action to parcel out executeation of trade.I have outlined the compend in the pursual parts, ciritical evaluation of models of innovation and trade vigilance, the evaluations of key triggers of shift and the ilkly sources of foe to flip-flop, and past I have outlined a challenges which managers face during variegate management, and lastly, I have developed conclusions and passs to expunge Novotel forward, these recommendations found on my analysis.2 Innovation and trade (Hotel business) _ evaluation of alterative models of innovation and transmit management Although much has been written close managing switch in large hole-and-corner(a) and public companies, very little has been written about managing cha nge in an ever-changing hospitality and hotel industry in particular. The ability to effectively manage and embrace change is so of long benefit to todays hotelier. And, to successfully whole and overcome change, Hotels request to have specific attitudes and set of skills to go about change and readiness for that inevitable change.In the case study, Novotel has adopted a competitive strategy that includes reducing costs of operations (Novotel p.25). That is to say, their business strategy is cost leadership and persuading this business strategy requires being open to ideas and that it responds readily and flexibly to the ideas that re- symbolise opportunities for effectiveness revenue growth (Blumentritt, 2004). Firms sack compete on price or differentiation (Porter, 1980 1985), Novotel rouse be non-price attributes include its brand, spirit and inspection and repair.On the other hand, at that place ar different fictional characters of innovations, the first-class ho nours degree sign is Incremental innovation, this modestly improves a firms processes or services or it atomic number 50 be used in fine-tuning its business model, i.e. the way it creates value for its customers. primary innovation signifi fecestly improves live products and services or coply replaces them with sore ones. Radical innovation occurs less frequently than incremental innovation part because most organisations do non have the technical and human resources compulsory for radical innovation, and because radical innovation happens so quickly organisations are not prepared for the risks and uncertainty which comes with this type of innovation.It should be noted that, Innovation is not a competitive strategy in it self, but it is used to invoke any competitive strategy at a metre the strategy has been designed. If the strategy involves increase the rate at which new products or services are introduced, then innovation sess impact the firm in more than one or dif ferent ways.2.1. The change process and methodologiesOver the last 20 years the speed and scale of organisational change have accelerated and there has been a significant increase in the number of approached to change management. there are several forms of change in an organisation, some forces and others deliberate.The Strategic diverseness Initiative (organisational change process)Fig. 1 A Model of the change process, Boddy 2005The first type if change is, systematic change is slower, less ruthless, more concentrate and more carefully constructed and timed. There are different approaches to systematic change such as quality improvement, work reprogramming, benchmarking, and strategic planning. The nature of these approaches can be overly formalised and so stifle initiative in the organisation (Huy,Q. and Mintzberg, H.2003). Another type is, Organic change, this type of change is do familiarly in the organisation or other words it seems to burn up from the ranks without bei ng formally managed. The problem with the organic approach is groups within organisation may begin to work at cross-purposes and this give result in scramble over resources, yet its outcome can be melodramatic. plan change is an iterative, recurring, process which involves analysis, action and evaluation, and further action and evaluation. It is an approach which maintains that once change has communicaten place, it must be self-sustaining to maintain the momentum. This agent that, all change agents or stakeholder i.e organisation, managers and recipients conjointly diagnose the organisations problem and jointly plan and design the specific changes (Burnes, B. 2003). Another type is emergent change which is a continuous process of experiment and adaptation fuck offed at coordinated organisations capabilities to the accepts and dictates of an energetic and uncertain environment. This type of change is achieved through a number of small to medium scale incremental changes. An other type is, dramatic change is frequently initiated in times of crisis or of great opportunity when power is concentrated and there is great stakes to be controlled. Mintzberg (2003) considers that unlike the phoenix of mythology, which could rise from its own ashes but once all 500 years, companies cannot continue to rely solely upon the mythical promise of dramatic re-emergence. 3. NOVOTEL qualify Management ProgrammeFrom Kurt Lewins work (appendix 1) in the 1940s to the present day, organisational change, as a systematic process, has become the core and part of organisational life. Change in organisations does not have to be dramatic or uttermost reaching, Stickland (1998) notes, sometimes change is incremental and hardly noticed a new piece of equipment or software is introduced or a soulfulness leaves and psyche new joins the organisation. Sometimes change is large and dramatic a complete re-organisation, a merger or a take-over, and no one and nada in the organisatio n is unaffected (Stickland 1998298). The recent economic crisis has provided a experience of urgency that helped organizations everywhere to successfully implement changes that would have been difficult if otherwise. conglomerate cultural and structural factors have a direct effect on the very success of the organisation. These are highlighted when an organisation attempts to redefine itself, to change their substitution class in an attempt to maintain or enhance their capabilities (Gratton, 1999).In Novotels case, they were laboured because of plummeting annual profits and in response they adopted a competitive strategy that includes reducing their operational costs and also reduce service prices in the hope of increasing their hotels occupancy (Novotel p.23). Being more in advance(p) in this way also requires being open to ideas from previously untapped sources inside and outside of the company, and designing a firm that responds quickly and flexibly to the ideas that repres ent opportunities for potential revenue growth (Blumentritt, 2004).3.1 Key triggers of change sympathy which can trigger change can be listed as internal Triggers (i.e. New provide, Conflict, Sales /profit drops, De-motivation, Skills gap, Loss of key staff) and External Triggers (i.e. Economy, Supply, presidential term policies, Competitors, Funders, Customers, Shareholders, Media, Public and technology )These triggers for change can be are analyze using various managerial tools which are available in frame to gain an essential understanding of the environment, both external and internalA PESTEL analysis this tool has five dimensions which are political, economic, social, technological, environmental, legal. It is used to pick up factors in the local or micro, and national or macro contexts that managers need to take account of. Another tool is, STAKEHOLDER analysis this is a cultural or values audit that provides an understanding of some of the people factors over and beyond a resource audit. A Third tools, SWOT analysis this is a simple approach which measures strengths, weakness, opportunities, and threats. It provides a structure in which to land out the need and the readiness of the organization for change.As previously mentioned, a change in competitive strategy is seeming if the firm faces injustice of customers, lack of pricing power or shrinking profit margins like in the case of Novotel (Novotel p.12).Beckhard and Dyer (1983) point out that another important change trigger is simply strategic choice on the part of existing management team. Some ways this may occur through strategic planning, interaction with customers, competitors, etc., and gut instinct that a new market or product is worth pursuing. This type of trigger is much more productive and proactive than reacting to the environment or working to maintain alignment.Regardless of which of these legion(predicate) triggers initiate the change process, there are severalkey activities t hat can facilitate a successful change carrying out (see appendix 4). Furthermore, I have put together a way to successful implement change from managers perspective in section 3.3.3.2 Sources of pooh-poohance to changeinitially after the change has been effected, there is eludeance to change, these pooh-poohances can be class in different categories such as, Individual (i.e. tending of failure, ignorance, status loss, inertia, economic consumption loss) or Team (social loafing, pairing, lack of openness), can be organisational, (board members/top management, culture, structure, massive costs, limited resources, contracts or beliefs) or External factors such as (investors, suppliers, regulators, media, government activity or collaborators.)As Kotter and Schlesinger (1979) emphasized, despite the risk of resistant behaviours have been admit by many experienced managers, very few of them tend to take time to systematically analyze situations in terms of determining potential individuals who may resist change with different reasons.Firstly, one of the most provable reasons for people to resist change initiatives has been the feeling that new luck lead damage staff self interest. Also, , Employees can face change magnitude levels of worry or fear from changes or proposed changes in the work environment. The term self interest entails a political meaning which refers to power relations with in the organization. In other words, new ideas about the way employees work normally impacts relations between different individual groups. Salaman (2000) argues that organisational employees actively strive to cancel and divert control they seek to maximise their own interests which they may or may not see as coincident with the organisations, and they attempt to resist the domination of others while advancing or defending their own ambit of control and autonomy (Salaman, 2000, p.123). This means that, staff can resist change to maintain their social status in t he organization vindication can become overt i.e. in industrial action, including working to rule and strikes (Coram, R, and Burnes, B. 2001).Secondly, the aim of change efforts has been to create a new pattern of working which employees are expected to adopt themselves. From this point of view it is argued that employees do not resist to the idea of change but to its potential outcomes (Dent Galloway-Goldberg, 1999). As shown in the Novotel case study, the re-structuring made the reorganizing of individualnel and management structure, roles were re-definite so is the reward systems and patch upment (Novotel p14).Third, near all prescriptions for a successful change carrying into action emphasize the exigency to make individuals understand meaning of change. Daft (2000), states that employees may tend to resist change when they are not informed about needs, purposes and outcomes of it. This is also superb in the Novotel change programmes, a testimony from a receptionist in F rance, set forth that they didnt understand what the project was all about (Novotel p.21) In addition to wanting(predicate) knowledge about change, if employees are suspicious about real intentions of change initiators, there is a high possibility of rampart.Fourth, change plans aim to move an organization from their existing position to ideal one and as Stapley (1996) states this change period is kind of a journey that contains a lot of uncertainties. Curtis and unobjectionable (2002) define uncertainty as lack of information about rising events (Curtis White, 2002, p.17). When people lose their personal control, it becomes difficult to make rational decisions which would perplex desirable outcomes. As a result, individual who experiences loss of control is likely to resist change because of apprehension brought by uncertainties about change (Novotel p. 18) . Kotter and Schlesinger (1979) argue that difference in information that groups work much leads to differences in analyses, which in turn can lead to resistance (p.108).Fig 2. Framework for Managing Change3.3. theatre directors Role Overcoming ChallengesIn order to overcome change, managers face challenges when implementing strategies. The key member in implementing change or change management process is converse. Having effecting communication approach towards employees.Furthermore, employees attitude, perception of managers actions, employees motivation and continuous improvement of the working environment can be other elements a manager responsible for change should take.Below is the list of common challenges posed for managers tasked with implementing change management and they can mitigate any resistance-Employees Communications During the change process, take time to interact with employees as not all employees are outspoken or bound to hold their views to themselves and this could result in underground resistance to change. When this happens it could result in delays and will hinder u nderstanding of staffs unfulfilled needs and expectations. This is on Lewins unfreezing stage (Levasser, 2001).Employees Co-operations and Collaborations Managers in hotel industry ought to understand that different individuals do not the same views or opinions about change, most people tend to be worried about change. In other words, Managers needs to promote cooperation with staff before and during change process.Employees Motivation This is critical especially during the change implementation stage, Manager ought to make sure that employees are stay motivated and be ready to listen to staffs opinions, and also take time to explain what is happening, this will help staffs morale.Employees Attitude according to Levasseur (2001), this is also a focus during implementation stage (Lewins stage), a Manager should try his/her best to understand employees attitude. In addition, Conners (1998) lists stability, immobilisation and denial are factors in human cycle of prejudicial response i n hospitality, Manager as a leading person should be bare these 3 factors in mind.4. ConclusionIn summary, resistance to change blocks the end results change was meant to produce, that means innovation is undermined, and whatever change is generated will be a reaction a reaction to the circumstances and part of the process by which those circumstances persist. On the other hand, responding or choosing to pursue change, promotes innovation and will do so naturally and consistently as a function of what is observe to be possible. Change based on this second view is likely to be an improvement on what already exists.It is also important to know how beneficial the change to be enacted is important to the organization and its staff. With high demand of staff in hospitality industry, it is good for leading managers in change management process to pay attention to the attitudes, motivation, cooperation and be receptive to views raised by staff as this will motivate employees and also it wi ll create a conducive environment for and encourage staff. When staff are encouraged, they will be unbidden to accept change and sustain hotels competitiveness.To successfully meet and overcome change, Novotels Presidents need to have specific attitudes and skills for envisioning anticipating and once they know the impending change, and planning for that inevitable change. And having known the impending change they need to know how to effectively communicate that change to co-workers, clients and external collaborators and future prospects to stay in focusing of the competition. While change may not come easily, hotel operators can be sure that it will indeed come.5. RecommendationsPlan for Change Because there are multiple countries which change is happening, Huy and Mintzberg (2003) highlights that, the realization that effective organizational change often emerges inadvertently or develops in a more orderly fashion. For the organisational change to succeed, all types of change should be considered (Huy, Q. and Mintzberg, H.200379). This means, there at Novotel needs to drum and formulate change management strategy that can look into incentive change from one country to another rather than focusing on their hotels but they should consider different customs in different countries. Eliminating this annoyance can reduce stresses caused by what is regarded as an unwanted interaction.Change Resistance Management Change resistance is effectively reduced by decrease resisting forces rather than increasing driving force. This driving force is the fear of penalization and forcing people to accept change can result in increased resistance. Success will only come by removing the resisting force. For further recommendation on strategies to decrease resistance. (see appendix 5)Keep Staff Updated though out the change process, make sure to update staff and make it exculpated to them on what they should expect, also make sure the pass information is on as early as po ssible even if it is bad news. These updates and information reduces anxiety which is caused by uncertainty. According to Mullins (2005) he makes an emphasis that knowledge removes fear from an individual and gives them confidence to join the course of change.Communicate after change this refers to the Lewins refreezing stage in Levasseur (2001) book. Manager as a leading person should continue to communicate with staff, about the change which is being implemented,. Through communication, Manager can discover to what extent change has had an impact to staff and take necessary steps to support them.