Roosevelt University

Management Theories & Practices in Hospitality Industry:

Managing Change

A Research Paper Submitted to:

Professor Gerald F. Bober

Manfred Steinfeld School of Hospitality and Tourism Management
Hospitality and Tourism Management (BSHTM)

By:

Manerly Salvatore
February 1, 2010

MANAGING CHANGE
 According to F. John Reh (2009), “Managing change means managing people's fear.

Change is natural and good, but people's reaction to change is unpredictable and irrational. It can

be managed if done right” (Management About.com Guide, para. 1). However, change is

possible and the need for change is increasing. Gruman (2008) states, “The only constant in

today’s corporate world is change” (p. 11). Therefore, change capability is necessary for the

organizations that will succeed in the future.

In the hospitality and tourism industry, change is essential and has overtaken the entire

industry. D’Orleans (2008) writes, “In hotel business, almost every property, brand or segment is

undergoing change, such as green hotels, gen X/Y hotels, bedding, condo-hotels, timeshares and

technology” (p. 26). In order to cope with the undergoing change in customers’ demands or

needs, many hotels even adopted new names and brands. According to Chiang (2007), “The re-

branding and repositioning trends highlighted the importance of change management process in

the hospitality industry” (p. 19).

Constant change is also happening in the food and beverage industry. Van der Does and

Caldeira (2005) states, “Our organizations in food service business are challenged by rapidly

changing customer preferences, increasingly competitive landscapes, technology shifts and

supply market fluctuations” (p. 18). Change is also an inevitable reality in the gaming and

wagering industry, Doocey (2008) specifies one of the many examples of change in the

international gaming industry, ”Table game management systems, once an esoteric technology

for most casinos, are slowly but surely becoming an indispensable service for the increasingly

wired gaming floor” (p. 34).

In tourism, change constantly challenges public sector planners and policy makers, but

also provides opportunities for the development and expansion of operators' businesses. Laws,
Faulkner and Moscardo (1998) report that growth in international tourism in the second half of

century is a reflection of a range of changes taking place in the global economy, social and

political environments. They further write, “Foremost among these changes is the widespread

and rapid economic growth that has made travel more feasible for an increasing number of the

world’s population and the improvements in transport and communication technology which

have made high-volume leisure or business travel possible to distant destinations”. (Laws,

Faulkner & Moscardo, 1998, p.2). In conclusion, “Without change there would be few

opportunities for the creativeness of successful entrepreneurs, while for tourists, the opportunity

to enjoy and experience a temporary change of place, culture or the pace of daily life is a prime

motive for travel” (Laws, Faulkner & Moscardo, 1998, p.1).

Heathfield (2009) then explains, “Change is not going away, however change is

manageable and organizations can do change well” (Management About.com Guide, para 2).

“Great leaders understand how to leverage the power of positive change to keep their companies

current, vibrant and relevant. Conversely, change-resistant organizations often stagnate, failing to

adapt their concepts or offerings until it is far to late” (Van der Does & Caldeira, 2005, p.18).

However, Langer (1998) acknowledges that, “Change can also be stressful and difficult to deal

with, although it is clear from research in psychology that the more people avoid change the less

they are able to cope with it (as cited in Van der Does & Caldeira, p. 18).

In order to achieve successful change, Heathfield (2009) further concludes ,”Successful

change management requires effective communication, full and active executive support,

employee involvement, organizational planning and analysis, and widespread perceived need for

the change” (para 3). Five successful change management by Heathfield seems to solve the

problem incurred by change in an organizations or companies, however many questions still

remained unanswered, such as how do you know that your organization or company needs to

change, then what needs to be change, how do you generate effective communication in a

organization, how do you gain full and active executive support and employee involvement, what

are the strategies in organizational planning and development in order to achieve the positive

outcomes. In order to address these questions and understand further, many researchers have

studied cases of change management successes and failures.

Based on his research, Gruman (2008) states, “You can manage change using two general

strategies — planned and emergent — and each is appropriate under certain circumstances” (p.

11). He further explains,

Leaders, however, tend to focus on the planned approach to change, which is

exemplified by the work of John Kotter. Famous for his eight-step methodology,
Kotter presents leaders with a blueprint for executing changes. Among his
recommendations are: establish a sense of urgency, form a powerful coalition and
create short-term wins. The leader’s role in the planned approach is to design,
control and monitor the changes to ensure successful execution. Kotter’s
methodology is valuable. It provides intelligent advice for leaders who, for
example, must implement clear directives given by senior leaders quickly and
faithfully. Under different conditions though, another approach to managing
change might be more appropriate”. The emergent approach is the conceptual
cousin of Henry Mintzberg’s seminal work on emergent processes in strategy
development. Essentially, Mintzberg’s theory is that leaders are forced to adapt
the business strategies they developed in corporate boardrooms to the ever-
changing realities of the marketplace. The emergent approach to change therefore
suggests that although you can plan certain elements of man- aging change, other
aspects, including many of the initially planned portions, must evolve. Drawing
on the science of complexity, managing change via the emergent approach is
suited to specific conditions. For example, it works when smaller changes that
support experimentation prove valuable; when opportunity exploitation is more
urgent than threat reduction; and when the prospective changes require a high
level of acceptance from those who are implementing them. The leader’s role in
this approach is less about controlling change from above than it is about enabling
change to rise up from below. (p.11)

The conclusions of Gruman emphasizes how important the leader’s role in the success of

change management. Research conducted by the Elliot Leadership Institute agrees by stating,
“The ability to manage change, to be a change agent, is one of the 10 dimensions of executive

leadership identified as most critical to success in hospitality industry” (as Van der Does &

Caldeira, 2005, p. 18).

D’Orleans (2008) claims that managing and creating is a skill. “The real challenge is not

just to come up with a brilliant idea—it's to implement it” (D’Orleans, 2008, para 2). Heathfield

(2009) supports this statement and further explains,

Implementing change in an organizational environment that is already employee-

oriented, with a high level of trust, is a huge plus. Understanding and responding
to the range of human emotions during times of intense change, is also cited as
critical. All of this may sound straightforward, but individual, such as leader or
manager suggestions about how to do each of these successfully are priceless.
(para 4)

In addition, John Reh (2009) writes, “Manager’s job as a leader is to address their

resistance from both ends to help them reduce it to a minimal, manageable level” (para 4).

Leaders need to overcome the resistance by defining the change and by getting mutual

understanding. “Definition is a two-way street. In addition to defining the problem, leaders need

to get the employees to define the reasons behind their resistance” (John Reh, 2009, para 10).

“Understanding is also a two-way street. leaders want people to understand what is changing and

why. Leaders also need to understand their reluctance” (John Reh, 2009, para 11).

“Kotter’s model stresses the importance of employees in an organization, hence the need

for management to value employees” (Chiang 2007, p.31). Therefore, leaders need to focus on

opening and maintaining clear channels of communication with their employees so they

understand what is coming and what it means to them. They will appreciate it and will be more

productive both before and after the change. “Overall, the employees’ adaptation to the new

company culture were dependent on the preparation done by management” (Chiang, 2007, p.

31).
 Furthermore, Chiang (2007) explains, “A lack of assessment of the change process could

be fatal“ (p. 31). Therefore, it is also suggested by many researchers that organizations or

companies to undertake steps to review their operations and satisfaction level of its employees

and customers regularly with regards to the change. This is to ensure that necessary action be

taken promptly.

At the end, Gruman (2008) concludes, “As with most leadership and management

challenges, rigid prescriptions for action often fail to account for situational contingencies.

Managing change is no different. Insightful leaders know the planned approach is but one

option” (p. 11).

References

D'Orleans, J. (2008, June 2). Implementing, managing change is everyone's job. Hotel & Motel
Management, p. 26. Retrieved from Hospitality & Tourism Complete database.

Doocey, P., Holtmann, A., & Bulavsky, J. (2008). Managing Change. International Gaming &
Wagering, 29(5), 34-35. Retrieved from Hospitality & Tourism Complete database.

Food Service Director Magazine (June 15, 2007). Managing Change for Success. Food Service
Director, 20(6), 12. Retrieved from Hospitality & Tourism Complete database.
Gruman, J. (2008). Options for Change. Hotelier, 20(6), 11. Retrieved from Hospitality &
Tourism Complete database.

Heathfield, S. M. (2009). Change, Change, Change: Change Management Lessons From the
Field. Introductions - Changes Experienced, Management About.com Guide. Retrieved
Jan 29, 2010 from
http://humanresources.about.com/od/changemanagement/a/change_lessons.html

Laws, E., Faulkner, B., & Moscardo, G. (1998). Embracing and Managing Change in
Tourism[serial online], 1-10. Retrieved from Hospitality & Tourism Complete database.

Leong Choon, C. (2007). Managing Change of Hotel Brand Name: Managerial Roles and
Employees' Concerns. Asia Pacific Journal of Tourism Research, 12(1), 19-32.
doi:10.1080/10941660601035894.

Reh, F. J. (2009). Managing Change: Managing People’s Fear. Management About.com Guide.
Retrieved Jan 29, 2010 from
http://management.about.com/cs/people/a/MngChng092302.html

Van der Does, L., & Caldeira, S. (2005). Managing change a constant necessity in food service.
Nation's Restaurant News, 39(33), 18. Retrieved from Hospitality & Tourism Complete
database.