Management of Innovation and Change Study of Novotel Essay Example

change management models, the evaluation of key triggers for change, and the likely sources of resistance to change. Additionally, the text discusses the challenges faced by managers during change management. Finally, the text concludes with recommendations and conclusions based on the analysis conducted.

Innovation and Change

Despite the extensive literature on managing change in large private and public companies, there is a lack of information regarding change management in the constantly evolving hospitality and hotel industry.

The hotelkeeper of today greatly benefits from the ability to effectively manage and embrace change. To successfully incorporate and overcome change, hotels must possess specific attitudes and skill sets for navigating change and planning for its inevitability. In the case study, Novotel has implemented a competitive strategy aimed at reducing operational costs (Novotel: p.25). In other words, their business strategy focuses on cost leadership, which necessitates being open to new ideas and being able to quickly and flexibly respond to ideas that present opportunities for potential revenue growth (Blumentritt, 2004).

Firms can compete on price or differentiation (Porter, 1980; 1985), with Novotel emphasizing non-price attributes such as its brand, reputation, and service. Additionally, there are different types of innovation. Incremental innovation refers to slight improvements in a company's processes or services, or adjustments to its business model to enhance value for customers. On the other hand, radical innovation entails significant improvements to existing products and services, or the complete replacement of them with new ones. Radical innovation is less frequent than incremental innovation due to resource limitations and the risks and uncertainty associated with it. Notably, innovation is not a competitive strategy on its own, but it serves to enhance any competitive strategy

that is already in place.

If the scheme involves increasing the rate at which new merchandises or services are introduced, then invention can impact the house in multiple ways. The alteration procedure and methodological analysiss have seen an increase in velocity and scale over the past 20 years, with a significant rise in different approaches to alter direction. Alteration in an administration can be systematic or deliberate, with systematic alteration being slower, more focused, and carefully planned. There are various approaches to systematic alteration including quality improvement, work reprogramming, benchmarking, and strategic planning. However, these approaches can sometimes be too formalized and hinder innovation in the administration ( Huy, Q.

According to Mintzberg (2003), there are different types of organizational change. One type is Organic change, where the change happens internally within the administration, seemingly arising from lower ranks without official management. The issue with this approach is that different groups within the administration may start working at cross-purposes, resulting in conflicts over resources. However, the outcome of this type of change can be significant. On the other hand, Planned change is a repetitive process that involves analysis, action, evaluation, and further action and evaluation. This approach suggests that once a change has occurred, it should be self-sufficient in maintaining momentum.

This means that, all alteration agents or stakeholder (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 small to medium-scale incremental alterations. Another type is dramatic alteration which is often initiated in times of crisis or great chance when power is concentrated and there are great stakes to be controlled. Mintzberg (2003) argues that "unlike the Phoenix of mythology, which could rise from its own ashes but once every 500 years, companies cannot continue to rely solely upon the fabulous promise of dramatic re-emergence."

Change Management Programme

From Kurt Lewin's work (appendix 1) in the 1940s to the present day, organizational change, as a systematic process, has become the core and part of organizational life. A change in administrations does not have to be dramatic or far-reaching. Stickland (1998) notes, "sometimes change is incremental and barely noticed: a new piece of equipment or software is introduced or a person leaves and someone new joins the administration."

Sometimes, changes in organizations can be significant and drastic, such as complete reorganizations, mergers, or takeovers. These changes affect everyone in the administration, as noted by Stickland (1998:298). The recent economic crisis has created an urgent need for organizations everywhere to successfully implement changes that would have otherwise been difficult. Various cultural and structural factors directly impact the success of the organization, especially when attempting to redefine itself or change its image to maintain or enhance its capabilities (Gratton, 1999). This is evident in the case of Novotel, where they were compelled to adopt a competitive strategy due to declining annual profits. As part of this strategy, they reduced operational costs and lowered service prices in hopes of improving hotel occupancy (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 ) .

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 offers a framework to express the demand and willingness of the organization for change. As mentioned before, a change in competitive strategy is likely to occur if the company experiences loss of customers, lack of pricing power, or decreased profit margins as seen in the case of Novotel (Novotel: p.12). Beckhard and Dyer (1983) emphasize that another significant catalyst for change is a strategic decision made by the existing management team. This can

be achieved through strategic planning, engagement with customers, competitors, 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 ).

Beginnings of opposition to alter

Initially after the alteration has been effected, there is resistance to alter, these oppositions can be grouped in different categories such as, Individual ( i.e. fear of failure, ignorance, position loss, inactiveness, role loss ) or Team ( societal idleness, coupling, lack of openness ) , can be organizational, ( board members/top management, culture, structure, immense costs, limited resources, contracts or beliefs ) or External factors such as ( investors, suppliers, regulators, media, politics or partners.

According to Kotter and Schlesinger (1979), many experienced directors acknowledge the hazard of immune behaviors but few take the time to consistently analyze situations to determine individuals who may resist change. One obvious reason for resistance is the belief that new circumstances will harm staff self-interest. Additionally, employees may experience more anxiety or fear when faced with changes or proposed changes in the work environment. The term self-interest has a political connotation, relating to power relations within the organization.

According to Salaman (2000), when employees have new ideas about how they should work, it can affect relationships between different groups within an organization. Salaman argues that employees actively try to avoid control and seek to maximize their own interests, even if

they may or may not align with the organization's interests. They also resist domination from others while advancing their own control and freedom. This resistance can manifest in various ways, such as open resistance through industrial action like strikes, as noted by Coram and Burnes in 2001.

Secondly, the aim of attempts to alter has been to establish a new way of working that employees are expected to adhere to. From this perspective, it is argued that employees do not resist the idea of change but rather its potential consequences (Dent; A; Galloway-Goldberg, 1999). As demonstrated in the Novotel case study, the restructuring involved the reorganization of personnel and management structure, redefining roles as well as the systems for rewards and payment (Novotel: p14). Thirdly, nearly all recommendations for a successful implementation of change emphasize the importance of ensuring individuals understand the significance of the change. Daft (2000) suggests that employees may be inclined to resist change if they are not properly informed about its requirements, intentions, and outcomes.

In addition to graphic evidence from a receptionist in France, it was noted that there was a lack of understanding about the purpose of the Novotel alteration programmes (Novotel: p.21). This lack of knowledge about the goals of the change, combined with any skepticism employees may have towards the initiators of the change, increases the likelihood of resistance. Alteration programs aim to move an organization from its current state to an ideal one, and this transition period is filled with uncertainties (Stapley, 1996). Uncertainty is defined as a "lack of information about future events" (Curtis & White, 2002, p.17). When individuals feel that they have lost control, it

becomes challenging for them to make rational decisions that lead to favorable outcomes. Consequently, individuals who feel a loss of control are more likely to resist change due to apprehension caused by uncertainties about the alteration (Novotel: p.).

18 ) . According to Kotter and Schlesinger ( 1979 ), differences in information within groups often lead to differences in analyses, which can result in resistance ( p.108 ).

Role of Directors: Overcoming Challenges

Directors face specific challenges when implementing change management strategies. When a decision to implement organizational change is made, directors responsible for its success should pay attention to their communication approach with employees, employees' attitude and perception of directors' actions, employees' motivation, and continuous improvement of the working environment. The following is a list of common challenges for directors assigned with implementing change management, along with ways to mitigate any resistance: - Gain the value of effective employees' cooperation and collaboration, motivation in the workplace.

Directors of a hotel should realize that individuals have diverse opinions when it comes to making changes. Additionally, not all employees feel comfortable expressing their thoughts openly to their directors. Hence, it is crucial for the directors to take the initiative to engage with the employees and keep them updated about any modifications within the organization. Through effective communication and actively listening to their employees, directors can comprehend their unspoken needs and any resistance they may have towards change.

During the unfreezing phase of Lewin's model (Levasseur, 2001), it is important to improve communication between directors and employees. In the execution phase of organizational change, directors should understand employees' attitudes and also consider Conner's (1998) stages of

negative response in the hospitality industry: stability, immobilization, and denial. A leading director should guide employees through the change process, recognize the importance of employee motivation to embrace change, and be open to new ideas from employees. Listening to and explaining to employees is essential in convincing them of the expected benefits of the introduced change. In conclusion, resistance to change hinders the desired results of change and undermines innovation. Any change that occurs will be a reaction to circumstances and part of the ongoing process.

On the other hand, embracing and responding to change fosters innovation and will naturally and consistently lead to improvements upon what already exists. Prior to the implementation of organizational change, it is crucial for managers to conduct a thorough analysis of its impact on Novotel's performance and employees. Considering the labor-intensive nature of the hospitality industry, Novotel managers should take into account the various effects that will be imposed on employees. In particular, they should prioritize employee motivation and create an environment that encourages acceptance of and support for change in order to enhance the hotel's competitiveness. To successfully navigate and overcome change, Novotel's Presidents must possess specific attitudes and skills for foreseeing, anticipating, and planning for the inevitable transformations that lie ahead.

And keeping in mind the impending change, it is important for hotel operators to know how to effectively communicate that change to colleagues, clients, external partners, and future opportunities in order to stay ahead of the competition. While change may not be easy, it is certain that it will happen.

Recommendations

It is crucial to notify staff as soon and as clearly as possible, even when delivering bad news,

because information helps reduce stress and anxiety caused by uncertainty. Although the accuracy of information spread by informal groups within the organization may be questionable, it is still essential to provide knowledge to individuals to remove fear and give them the confidence to embrace change (Mullins, L.).

In 2005, although the success rate of forcing alteration is not very high, for Novotel to move forward, they need to adjust their management approach. Instead of implementing change across all hotels, they should consider inducing change from one country to another. The hotels that were performing well faced issues due to unwanted interaction. Huy and Mintzberg (2003) support this idea by stating that "effective organizational change often emerges unintentionally or develops in a more orderly manner." For organizational change to succeed, all types of change should be taken into account (Huy, Q.).

According to Mintzberg (2003:79), once the change is implemented, which corresponds to Lewin's refreezing stage (Levasseur, 2001), a manager should continue to communicate with employees regarding the implemented change. This will encourage open sharing of ideas and information among all parties. Through attentiveness, managers can observe the impact of change on employees and take immediate actions to support them.

It is important for Novotel General Managers to be aware that when it comes to organizational change, it is easier to reduce resistance rather than increase motivation. Coercing people to accept change out of fear may actually lead to more opposition. In order to achieve success, it is necessary to address the resisting forces. There are several strategies that can be employed to decrease resistance to change within any organization.

From now on, Novotel can take advantage of these schemes.