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Executive Summary
The purpose of this assignment was to undertake an analysis of Zambrero operating in the
Food & Beverage Sector (F&B). Certain issues in the company were identified which were
evaluated in the light of various change management theories and were divided into two
aspects: internal and external factors. Once the problem and their causes were identified, a
change management plan based on the Organisational Development Process (OPD) model
was proposed. The major issues observed were lack of effective communication, lack of
training, manager’s bullying and rude behaviour towards employees, and lack of coordination
with employees. Findings of this study have various implications for the food & beverage sector,
especially considering quick-service restaurants. Analysing the various issues of Zambrero in
the light of various theoretical perspectives reveal the causes of such issues occurring. It was
found that managers are resistant to change as they are reluctant to give old habits and fear
losing control, however, the results of the change management procedure are contrary to this
belief. The change management process identified various interventions which can be
implemented at Zambrero for resolving the issues. These included the use of competency
frameworks, training based on the modular framework, monetary incentives and other
strategies for motivating the employees and managers, restructuring of the job roles and
design, and effective monitoring of the changes. Several recommendations for the employees,
the managers, and similar companies with the hope of preventing various issues from
occurring.
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Table of Contents
Executive Summary...................................................................................................................... i
1.0 Introduction............................................................................................................................ 1
3.1 Entry................................................................................................................................... 4
3.2 Start-up.............................................................................................................................. 5
3.6 Separation.......................................................................................................................... 7
4.0 Recommendations.................................................................................................................7
5.0 Conclusions........................................................................................................................... 8
References................................................................................................................................ 10
1.0 Introduction
Cummings & Worley (2015) highlights that change management is now a global phenomenon,
every organisation in this world has to adapt to its internal and external environment, and doing
so requires effective change management practices. The same is applicable for the tourism and
hospitality industry as this industry’s sector is highly dynamic and competitive due to which
operators in this industry are continuously innovating and changing their business process to
remain in the competition. With that being said, the purpose of this assignment is to undertake
an analysis of a company operating in the Food & Beverage Sector (F&B). Certain issues in the
company will be identified which will be evaluated in the light of various change management
theories and will be divided into two aspects: internal and external factors. Once the problem
and their causes have been identified, a change management plan based on the Organisational
Development Process (OPD) model will be proposed.
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2.0 Change Management Analysis
Internal factors are of significant importance in this regards. A number of theories can be utilised
to determine the internal causes resulting in the aggravation of such behavioural issues in
Zambrero. One of the major theories which explain the cause of these problems is the Theory X
and Theory Y by McGregor which was introduced in the 1960s. The approach adopted by the
managers of Zambrero can be explained using the perspective of Theory X. According to
Jenkins & Delbridge (2013), a pessimistic view of employees is taken by Theory X managers
while assuming that they dislike their work and are unmotivated. As a consequence, manages
to believe that negative reinforcements should be implemented in most circumstances to ensure
that employees complete their tasks. Various assumptions under this approach include,
employees need to be supervised at every step; they are to be forced and controlled to deliver
the work, they avoid responsibility and constant direction is required; and they dislike their work
(Jenkins & Delbridge, 2013). Truss et al. (1997) highlighted that the Theory X approach is
contemporarily known as “hard” approach to Human Resource Management (HRM) and the
ultimate goal is securing a competitive advantage for organisations have tight deadlines. In this
context, Barrows, Powers, & Reynolds (2012) highlighted the F&B sector in the hospitality
industry is characterised by tight deadlines as restaurants have to serve a significant amount of
people in a relatively shorter amount of time. However, despite this approach being in favour of
the organisation (at some times), it is not favoured in the contemporary business environment
due to significant employee issues including increased turnover, less employee management
and satisfaction (Jenkins & Delbridge, 2013).
The rude and bullying behaviour of the managers towards employees can also be explained
through various theories. For instance, Douglas & Martinko (2001) emphasised on the use of
attribution theory to explain bullying behaviour; the authors argue that managers who employ a
hostile attribution style towards their subordinates tend to see others as the cause of their
negative outcomes. Such managers believe that the low performance of their employees is the
cause of their negative performance, hence, they adopt a rude and bullying behaviour towards
them. Bandura (1983) used the Social Learning Theory to understand aggressive and behaviour
of people suggesting that individuals learn such behaviour as a result of various environmental
and personal factors. For instance, if managers observe that bullying behaviour or adopting a
rude attitude towards employees result in positive outcomes, in terms of productivity, they will
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continue to engage in such behaviours. O’Leary-Kelly, Griffin, & Glew (1996) termed this as
“incentive inducements” while further highlighting that if managers observe others engaging in
bullying they might start to bully others as their embarrassments regarding the process of
bullying will be decreased – the process of modelling. Brotheridge (2013) added that individuals
who observe others bullying people with specific characteristics they might start to bully the
people with the same characteristics. For instance, if one manager in Zambrero is bullying an
employee with low productivity than others, other managers might start to do the same with
people who have less productivity. This, therefore, explains why managers in Zambrero are
engaged in bullying and rude behaviour. However, in order to understand why these issues are
not being eliminated in the company from a change management perspective, other theories will
also have to be referenced.
The lack of effective communication in the organisation can be explained through the Cognitive
Dissonance Theory which is increasingly used in communication and management research in
organisations (Hinojosa et al. 2016). This theory has two hypotheses which can be related to
the situation of managers in Zambrero. The 1 st hypothesis argues that individuals who
experience psychological discomfort due to certain cognitive conflicts will try to reduce them for
the achievement of inner harmony or consonance. The 2 nd hypothesis argues that people
experiencing dissonance will attempt to avoid it in the future though ignoring various challenging
situations or limitation information only to those aspects which are in synchronization to their
beliefs (Telci, Maden, & Kantur, 2011). Managers in Zambrero might believe that if they
communicate with the employees they will raise various issues in the management that they are
not willing to hear, or in theoretical terms will create dissonance to their cognitive beliefs. They
believe that what they are doing and the style of it is “perfect” and hearing complaints from the
employees will result in the distraction of inner harmony. Managers in Zambrero are not willing
to change their behaviour and theories of resistance to change explain that resistance is a
common phenomenon in such circumstances (Orgen, 2003). Giangreco & Peccei (2005)
highlights that managers believe that if the change occurs, they will lose control and are
reluctant to give their old habits. Managers are in control of the employees and they are not
willing to lose this control or the power they have over their subordinates (Jaramillo et al. 2012).
Though most of the issues identified within the company are related to internal and behavioural
aspects of the managers, the lack of adequate training in the organisation can be explained
through certain external factors. Previous studies have established that various factors have the
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tendency of affecting training and development in organisations (for instance, Alexander,
Edwards, & Smart, 1994). However, contemporary studies on this aspect are lacking in the
literature. A report published by the Australian National Training Authority (Ridoutt et al. 2002)
has highlighted certain external factors which can influence training and development in any
particular organisation. Certain Zambrero employees have complained about the quality of the
training, they argue that the training provided is not effective and according to Ridoutt et al.
(2002), the quality of training in Australian organisations is inversely proportioned to the
involuntary labour turnover. As per the research of Davidson, Timo, & Wang (2010), labour
turnover, both voluntary and involuntary, in the Australian hospitality and tourism industry is
significantly higher due to the nature of this industry. The lack of training and its inadequacy in
Zambrero can also be explained by the level of competitiveness. Tsai, Song, & Wong (2010)
highlighted that competitiveness is one of the core issues in this industry with its level remaining
significantly high across operators globally. In this context, Ridoutt et al. (2002) highlighted that
organisations with the high level of competitiveness, including Zambrero, often reduce the
budget allocated to training, hence, this results in either the lack of training or its inadequacy.
These are the major external factors which contribute towards the lack of training – a major
issue identified in Zambrero.
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3.1 Entry
In this stage, the OD agent approaches the organisation and assess their readiness to change
and agree on the conditions on which the change will occur (McLean, 2006). Readiness to
change can be measured through a systematic scale developed by Holt et al. (2007). It is
predicted that the leaders of Zambrero will experience resistance to change from managers and
for this, they have to engage with the managers to explain to them the benefits of change
(Madsen, Miller, & John, 2005). If the leaders still face resistance to change from managers,
they might have to conduct redundancies as was done in the case of New Zealand Post for
achieving successful planned change (Arrowsmith, 2010).
3.2 Start-up
In this phase, the OD agent forms a team with individuals and basic infrastructure is formed for
the planned change (McLean, 2006). Cummings & Worley (2015) highlighted that the OD agent
might form teams with the internal employees of the organisations; those who are willing to
engage in the change process or those with high-performance and a willingness to change. In
the case of Zambrero, the OD agent can team up with employees and certain managers who
are willing to resolve these issues.
Both the OD consultant and the client work together in this phase for determining the culture of
the organisation along with its strengths and weaknesses. This is the stage of problem
identification and once the issues are identified, the information obtained is provided to the
employees for motivating them to support the change management process (McLean, 2006).
This is the most crucial stage as the performance of change management is determined through
this stage; if irrelevant issues are diagnosed the change management process will not result in
the intended change of organisational culture (Cummings & Worley, 2015). Southall (2004)
highlighted that an OD agent can utilise various methods and tools for the identification of
issues, these include conducting interviews, focus group and surveys with both the managers
and frontline employees of Zambrero. Since the issues in Zambrero are already obtained, the
interviews and surveys might indicate issues in the modelling of appropriate behaviour,
ineffective communication, lack of skills and expertise due to inadequate training, and lack of
coordination among managers and employees.
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3.4 Action Plan & Implementation
After the diagnosis of issues, this is the most important process in the change management
model as it is the point where the OD agent determined best practices within the industry to be
implemented in the organisation. Since the problems are identified, the OD agent utilises his
previous experience, and evidence-based research identifies interventions which when
implemented will result in the elimination or mitigation of the identified issues (Waddell et al.
2017; McLean, 2006). Considering Zambrero, the OD agent will have to identify various best
practices which when implemented will resolve the identified issues. Emphasis will be placed on
four major factors: ability, motivation, opportunity, and direction. Considering the 1st aspect of
“ability”, individual development plans for both the employees and the managers. Since
managers are in a leadership position at Zambrero, the Lominger Competency Framework will
be used for the development of leadership and technical skills. The use of Lominger framework
is highly recommended in the literature for leaders as evaluating the leadership of oneself
results in the identification of new opportunities, aspiration, and abilities (Jantti & Greenhalgh,
2012). Attempts will be made to encourage a team and customer-focused mindset in both the
employees and the managers. A Modular Training Framework (MTF) will be implemented for
the delivery of the aforementioned elements involving 70% on-job structured training, 20%
coaching, and 10% from formal training resources including written material and workshops
(Martin, Kolomitro, & Lam, 2013).
Considering the 2nd aspect of “motivation”, a new recruitment strategy will be implemented for
hiring high-performing employees and managers while also re-motivating the existing
managers. Lam, Baum, & Pine (2001) highlighted various strategies for motivating employees;
the 1st one rewarding, also termed as Theory M (Weaver, 1998). For instance, managers should
be allowed to enjoy the success of the business if certain goals have been achieved through
profit sharing. This assist in the development of a sense of business ownership in employees
and is found to be effective in restaurant managers (Lam et al. 2001). Further, the job should be
made more challenging and interesting, managers should be given greater authority to operate
the restaurant (Lam et al. 2001). This is associated with the 3 rd element of “opportunity”;
structures and roles should be redefined so that the time of managers can be freed for
leadership activities. For instance, a new support role can be introduced which will work with the
employees while the managers can practice their leadership abilities (Arrowsmith, 2010). For
the final aspect of “direction”, clear measures and expectations should be given to the
employees through performance measures, job description, and performance management.
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3.5 Evaluation & Adaptation
Southall (2004) highlighted that once the action plan has been implemented, it should be
evaluated for its effectiveness and then institutionalized (adopted in all the departments,
branches and areas of the organisation). OD agent should observe the actual practice of all the
employees, specifical managers in Zambrero, review evidence including development plans,
meeting minutes, and performance planning documents of individuals, and should conduct the
interview with employees of all levels. In the case of Zambrero, the aspects to which the OD
agent should place significant emphasis include planning (actions plans and goal-setting); HR
focus (succession and induction planning, training and development, employee engagement,
recruitment, job design, and performance management; leadership (team meetings and
communication); process management (risk frameworks and control of the management); and
customer focus (use of customer data and communication with them) (McLean, 2006; Waddell
et al. 2017).
3.6 Separation
This is the last phase where the OD agent simply detaches themselves from the change
management process and the organisation if the OD agent was hired externally. However,
before separation, the OD agent should prepare a review framework for the organisation
through which the performance of the employees will be measured on a yearly basis (or as
required) (McLean, 2006).
4.0 Recommendations
Based on the identification of the issues, the analysis of the internal and external factors, and
the change management process, various recommendations are made for the employees, and
managers of Zambrero and for the management of similar companies.
1. All the employees should engage in assessing their performance through competency
frameworks while preparing individual development plans.
2. Employees should focus on teamwork during regular day-to-day work environment and
must participate in all the training sessions.
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3. Employees should engage in effective communication with the customers, their
colleagues and their managers (most important) to ensure that no misunderstandings
are developed. If an issue exists, the employee should contact with the newly developed
role of support worker which will communicate the issue with the frontline manager.
1. Management of QSRs in Australia should understand that the hospitality and tourism
industry is highly competitive with tight deadlines, therefore, incentive inducements are
highly critical in maintaining the turnover rate and the motivation of employees.
2. QSRs should implement appraisal systems which attempt to provide the managers with
a sense of business ownership through sharing profits with them if a certain sales
volume has been received.
3. Open communication, high-quality training, coordination should be encouraged through
best practices so to ensure that problems similar to Zambrero are prevented from
occurring.
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5.0 Conclusions
Findings of this study have various implications for the food & beverage sector, especially
considering quick-service restaurants. Analysing the various issues of Zambrero in the light of
various theoretical perspectives reveal the causes of such issues occurring. It was found that
managers are resistant to change as they are reluctant to give old habits and fear losing control,
however, the results of the change management procedure are contrary to this belief. The
change management process identified various interventions which can be implemented at
Zambrero for resolving the issues. These included, the use of competency frameworks, training
based on the modular framework, monetary incentives and other strategies for motivating the
employees and managers, restructuring of the job roles and design, and effective monitoring of
the changes.
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