HOSPITALITY CASE STUDY: PALM RIVIERA

Introduction

In the hospitality sector, the visitor has association is perhaps the main one. Moreover, hospitality requires a lodging to approach its visitors with deference and give them what they want, for example, a vacationer to take them about town, transportation, and different administrations. Hospitality is an industry that caters to people who travel and need a place to rest their heads for a few hours (Ali and Anwar, 2021). Hotels, resorts, inns, hostels, and many other lodging options are now available to consumers around the world. Because the consumer is the one who pays the hotel, the hospitality business places a high priority on providing excellent service. One might expect a varying level of service depending on the sort of hotel they are staying at. If the consumer had a positive experience at the hotel, they will be more likely to return. In addition, it will help the companys performance in the hotel market (Law, 2020). Guests will also be able to use the facilities of the hotel industry. The majority of the companys clients just need a place to sleep and eat, but a small percentage of them seek the use of the facilities. A hospitality firm may provide a discount to entice a consumer to visit their establishment, or they may just present their facilities to the customer. This means that the hotel will provide a positive guest experience while also increasing its bottom line.

Task 1: Recommended model of change

The McKinsey 7S Model

With the decrease in profitability and increase in operational cost the owners have to change the General Manager. The study made by the company states that previous GMs also failed to develop the proper strategy to uplift the profitability of the company and also the clients want profitable schemes (Cox et al., 2018). The new management team and GM agree to bring change to the present strategy. So, based on the McKinsey 7S Model can be used to bring the change in the strategy of the company to increase profitability. The model consists of seven stages which can be divided into two parts. Two parts are the Hard element and the Soft element. In the Hard element part, the stages that are included consist of Strategy, Structure, and Systems (Razmi et al., 2020). In the Soft element part, the stages that are included are Shared Values, Skills, Style, and Staff. For directors, the 7s model from McKinsey fills in as an essential structure for estimating execution. There are seven significant variables identified by the McKinsey 7s model that need to be focused and aligned in a company in order to successfully manage change processes and to regularly improve performance.

Hard Elements

Strategy

Palm Rivieras strategic orientation and entire company plan must be properly conveyed to all specialists and partners. This will help the organization in dealing with its exhibition, coordinating its tasks, and creating different techniques in accordance with the business essential goals. In addition, resort chain activities are made more visible, and the duties and actions of the organisation are aligned, thanks to the creation and communication of the business plan.

Palm Rivieras strategic direction also helps the organisation steer representative, staff, and partner conduct toward the fulfilment and achievement of targets. With regards to the organizations long and momentary plans, SMART Objectives ought to be created (Channon and Caldart, 2015). The organizations business technique helps work force in pursuing strategic and conduct choices that advance the accomplishment of the organizations objectives and goals.

Palm Rivieras strategy must constantly take shifting customer patterns and needs, as well as creating shopper market examples and utilization conduct, into account. This is a basic component. As part of the hotel chains strategic plan, this will help the firm to stay competitive and relevant to its target customer groups, and it will also assist the company to detect market gaps.

Palm Rivieras approach must be able to change and evolve. As part of Palm Rivieras longterm planning, this is a key consideration. In the face of rapidly changing consumer markets, a companys ability to develop is hampered by a strategy that is too rigid. Because of its versatility and scalability, the hotel industry is not only able to respond swiftly to shifting customer preferences throughout the world, but it is also able to customise its offerings to meet certain markets and cultures (Makhonge, 2017). In addition, the corporation will be able to anticipate changes in the consumer market and develop strategic modifications to satisfy the markets needs ahead of time.

Structure

The many divisions of Palm Riviera must work together seamlessly. Interdepartment teams must be formed for projects and activities that need the knowledge of different departments. An efficient and wellorganized organisation requires a high degree of cooperation across several sections (Arvand and Baroto, 2016). Systematic implementation and monitoring of crossdepartmental cooperation are essential for the efficient running of Palm Rivieras business and the achievement of its objectives. An organizations ability to learn and grow depends on its ability to have a flatter organisational structure backed by progressive organisations. Representatives feel more great and certain, and they have more admittance to data when there are less levels of the board among them and the upper administration and authority. Palm Rivieras workers will be more committed to the company because of the flat structure, which allows for faster decisionmaking.

Palm Riviera has to promote collaboration and teamoriented initiatives to ensure success. The organisation must give specific duties and tasks to each employee who is responsible for a certain job. It is assumed that each and every one of Palm Rivieras employees is a team player who enjoys interacting with and learning from their coworkers. The teams at Palm Riviera must be supportive of each other furthermore, cooperate in a state of harmony to accomplish the bigger group targets and objectives under the Hotel Industryplanned system and values, which are outlined below. Palm Riviera must devise a complex system to ensure effective communication among its workers and at various levels of management. The communication systems at Palm Riviera should improve the overall structure of the company. To guarantee that no organisational activities or goals are jeopardised by misconceptions or a lack of communication, systematic, specified, and structured communication must be in place.

Systems

As a result of the regulations, Palm Riviera must keep an eye on its systems. This persistent and proceeding with execution checking is fundamental for the organizations prosperity. Perception and casual visits ought to be the essential strategies for gettogether this data. On a regular basis, informal feedback will be provided to workers and department managers (Mwangi, 2017). If the projects and assigned duties need it, formal performance evaluations will also be done semiannually or quarterly. Formal measures are taken by managers and supervisors to guarantee the detection of performance gaps and the development of potential solutions.

Additionally, Palm Riviera must implement unique procedures and techniques to make certain that all divisions and frameworks inside the organization are in a state of harmony and cooperating to accomplish the associations general objectives and goals in harmony. As long as all systems are developed and operating in accordance with the wider corporate vision and plan, this may be made achievable. In addition, Palm Rivieras key initiative should ensure that assets are given to all frameworks and lay out specific objectives to achieve equivalent business targets at each given time.

Soft Elements

Shared Values

Palm Riviera must cultivate a work environment that fosters a diverse workforce. Companies with a global footprint and manufacturing facilities located in several countries must ensure that their corporate cultures promote equality and inclusion and that they have internal procedures in place to minimise instances of discrimination (Afsar et al., 2018). As a result, Palm Rivieras corporate culture must inspire innovation and creativity by enabling employees the opportunity to develop and foster their callings and characters. At long last, Palm Rivieras corporate culture incorporates a strong supervisory group that endeavours to further develop representative inspiration and work satisfaction by making the company more visible and approachable.

Style

The participatory leadership style is especially effective in achieving the associations business goals and vision. Workers have areas of strength for an of having a place with the organization and are urged to contribute their thoughts and suppositions. By using participatory leadership, hotel industry executives are able to recognise and resolve problems inside the business as quickly as feasible. Leaders in the hotel industry use an opendoor policy (Awino et al., 2017). The Palm Rivieras General Manager will actually want to connect with and remember his staff for dynamic cycles and the board decisions in the event that he takes on a participatory initiative style. The General Manager will actually want to regularly speak with the specialists and different administration gatherings to identify any potential debates and contribution on essential procedures and tasks. Palm Rivieras participatory management style fosters more engagement and ownership among the companys many stakeholders as well as among its workers.

Staff

Palm Riviera must employ a significant number of people across the world. Depending on the urgency and the degree of competence necessary, employees for various job types and positions must be acquired internally and outside. As a result of this, it can be concluded that personnel in the hotel industry possess the necessary skills for the duties and responsibilities assigned to them. The companys principles and mission must be explained to all personnel via inhouse training (Kumar, 2019). Outside and inhouse preparing is proposed to assist workers with working on their abilities. All roles and positions in Hotel Industry are intended to support the companys business objectives, and hence employee skill levels are adequate to meet the companys objectives.

Skills

As a result, Palm Riviera must have a clearly defined set of job responsibilities, as well as the ability to recruit and educate personnel properly. In order for Palm Riviera to be successful, all of its employment criteria must be satisfied, and workers must be able to execute their obligations in accordance with the organizations qualities and culture, as well as its marketable strategy. Palm Riviera should have a profoundly gifted and fit group. It is fundamental that all specialists be employed based on their capacities and benefits. Palm Riviera puts a high worth on drawing in and fostering the top ability in the business. Employees are one of the companys main competitive advantages. Competitors in the hotel industry cannot copy staff skills or training since they are tailored to the individual job functions and needs of workers (Njeru and Kariuki, 2019). For the Palm Riviera, this will generate a distinct and indispensable advantage.

Task 2: Major resistance from employees

Major resistance faced from employees due to the recommended McKinsey 7s model

Based on the above recommended model of change that is The McKinsey 7s model there are many roadblocks to face while bringing change to the organisation. As with the new change it is bound to have resistance from the employees. There are many factors that creates the resistance which are as follows.

Lack of participation from middle managers

The middle managers are against the change plan that is proposed and are not on board. They do not seem to be interested in learning about the new path. They are sceptics or opponents in oneonone encounters. For the last ten to twelve years, they had worked their way up from staff to manager in the firm. Many of them, as the HRD has found, have very poor levels of administrative and leadership abilities (Amarantou et al., 2018). Many of them lack the capacity to think on their own and make their own decisions, and they lack the ability to influence their employees. Some of them may not be able to handle the additional responsibilities they may face in the future.

Improper communication

A lack of people understanding and communication skills is evident among the companys executives, including the CEO. They do not realise how much opposition the people will put up. There is a knowledge gap among the Middle Managers that they are failing to notice. As a result, the communication strategy and human components of change management are not given much consideration.

Poor morale

The resort as a whole is already suffering from poor morale. The projected adjustments would need a greater workload for employees, yet their pay would either decline or remain the same. This is likely to further erode their sense of purpose and ability to produce.

Lack of trust

Reluctance to change may be fuelled by mistrust of management or the firm as a whole. There may be a correlation between a low level of confidence in management and a higher rate of employee turnover. Employees that are opposed to a companywide reform program are generally reacting more to the person in charge, such as the CEO, or to the management team as a whole. Because Palm Rivieras CEO has not yet gained the confidence of the companys workers, this has occurred. Employees mistrust of the CEO may have developed as a consequence of bad experiences in the past. People have lost faith in Palm Riviera as a whole because they believe the company does not live up to its promises, changes too often, and does not make workers feel appreciated.

Recommendations to overcome resistance based on Scott and Jaffe’s resistance cycle

In order to mitigate the resistance from employees the CEO can follow Scott and Jaffe’s resistance cycle model.

Denial

It comes from a lack of knowledge. They do this because they dont think it will have much of an effect on them. When people are involved in the change process and given knowledge about it and their perspectives monitored, denial may be overcome (Sacerdote, 2014). To avoid resistance to change due to a lack of understanding, it is essential to provide a compelling argument for why and how change is required. Creating a feeling of urgency for a change is critical, especially if the change is dramatic and rapid. Being able to articulate the reasons for why a change is necessary. Those that are affected by that urgency might be created by asking how long it will take. Its critical to include everyone who will be impacted by the change in order to ensure that teams arent making sense of things based on incomplete or inaccurate information, which might lead to erroneous conclusions being drawn. The fear of losing ones job is the most common apprehension workers have when faced with change. When making choices on layoffs and retention, change agents should use an open, fair, and objective criterion to provide employees a feeling of justice and control. They should also explain these decisions as early as possible to minimise the uncertainty that employees feel. To ensure that individuals are more receptive to change, it is important to provide them with the required training and emotional support.

Resistance  

When people begin to question whether the change is suitable because of conflicting judgments, misunderstandings, or a lack of trust, the resistance stage emerges. Overcoming opposition to organisational change begins with a communicationbased approach. Most business owners and executives are aware of the importance of good communication (Sacerdote, 2014). Allow the companys personnel to start the discussion instead of the managers. Allowing people to vent their opinions might help reduce their irritation and bewilderment about the issue. The opinions, concerns, and ideas of the workers will be crucial in guiding the change program and the general feeling behind it. Knowing what the workers think will help the CEO better grasp the underlying reasons for their opposition to change.

Exploration and Commitment  

If Palm Riviera wants to see real progress, it must put the needs of its people first. A new process or workflow strategy at Palm Riviera should be approached from an employee adoption viewpoint rather than an excessively technical one. Consider more than simply the potential of the new approach. Instead of focusing on what this new process can do for your staff, concentrate on what they can accomplish (Sacerdote, 2014). Organizational transformation requires trust, which can only be built by putting workers first. The use of culture to overcome opposition is a very effective topdown tactic. Inspirational leaders build a workplace culture where overcoming opposition is seen as an integral component of change management, rather than a distinct corporate activity. The first step is to identify and develop those individuals on the team who have a natural leadership style. They may have a significant impact on the company by serving as positive role models for the rest of the workforce. It takes time for a workplace to go through a shift. There is a tremendous degree of expectation and engagement from all levels of the organisation in the leadup to the transition. When change is implemented in stages, it is easier for workers to gradually adapt to new methods of functioning. Most of the time, a more gradual and methodical approach is preferable to a sudden change of course. When a change is implemented gradually, workers have time to adjust and leaders have time to address any concerns or questions that may arise.

Conclusion

Due to change management, the firm can effectively execute and utilize change. Workers are better ready to focus on their shift and go about their best business when they know about what is generally anticipated of them. Advances inside a firm might be troublesome and exorbitant in the event that they are not as expected oversaw by the associations change supervisory crew. In revenue management, change management refers to how hotels shift employees and teams and align their resources, procedures, and technology in order to achieve a single objective. A hotels workers and teams must be actively engaged in a transition plan that supports the new direction of the business when it is restructured. This may include bringing in new executives, redefining job descriptions, and raising the bar on employees talents and knowledge. Taking a proactive approach to change may reduce the likelihood of a negative impact on employee morale and acceptance since many individuals are scared and resistant to changes in the procedures, practises, and technology with which they have been acquainted. Data gathering, analysis, planning, and implementation of business practises that enable the development of new processes, technology, and revenue strategies may begin at Palm Riviera. The hotel organizations practical capability for change should be taken into account in these initiatives as well.

References

Afsar, B., Shahjehan, A. and Shah, S.I., 2018. Frontline employees’ highperformance work practices, trust in supervisor, jobembeddedness and turnover intentions in hospitality industry. International Journal of Contemporary Hospitality Management.

Ali, B.J. and Anwar, G., 2021. The mediation role of change management in employee development. Ali, BJ, & Anwar, G.(2021). The Mediation Role of Change Management in Employee Development. International Journal of English Literature and Social Sciences, 6(2), pp.361374.

Amarantou, V., Kazakopoulou, S., Chatzoudes, D. and Chatzoglou, P., 2018. Resistance to change: an empirical investigation of its antecedents. Journal of Organizational Change Management.

Arvand, N. and Baroto, M.B., 2016. How to implement strategy more effectively. International Journal of Business Performance Management, 17(3), pp.301320.

Awino, Z.B., Njeru, W.G. and Adwet, K., 2017. Strategy implementation: McKinsey’s 7S framework configuration and performance of large supermarkets in Nairobi, Kenya. Archives of Business Research, 5(6).

Channon, D.F. and Caldart, A.A., 2015. McKinsey 7S model. Wiley encyclopedia of management, pp.11.

Cox, A.M., Pinfield, S. and Rutter, S., 2018. Extending McKinsey’s 7S model to understand strategic alignment in academic libraries. Library Management.

Kumar, S., 2019. The McKinsey 7S Model helps in Strategy implementation: A Theoretical Foundation. Tecnia Journal of Management Studies, 14(1).

Law, P., 2020. An operational audit for a change model in the hospitality industry.

Makhonge, J., 2017. Strategy Implementation at Safari Park Hotel and Casino (Doctoral dissertation, University of Nairobi).

Mwangi, J.N., 2017. Strategic Management Drivers and Performance of Five Star Hotels in Nairobi County (Doctoral dissertation, University of Nairobi).

Njeru, K.N. and Kariuki, P., 2019. Influence of Mckinsey Framework on Competitive Advantage of Firms in the Telecommunication Industry in Kenya. Journal of International Business, Innovation and Strategic Management, 3(1), pp.6881.

Razmi, J., Mehrvar, M. and Hassani, A., 2020. An assessment model of McKinsey 7s modelbased framework for knowledge management maturity in agility promotion. Journal of Information & Knowledge Management, 19(04), p.2050036.

Sacerdote, L. F., 2014. Resistance to change: three models to overcome it. [Online]
Available at: https://www.linkedin.com/pulse/201411171243594962385resistancetochangethreemodelstoovercomeit