1 Role of Human Resources in Strategic Planning and Organizational Change Chapter 11

2 Factors Influencing Organizational Change Organizational change – The process by which an organization moves away from what it is currently doing towards some desirable future status.

3 Factors Influencing Organizational Change Legislation Competition Consumer preferences Niche marketing – The activity of offering specific products and services to sub-segments of a market in efforts to attract large numbers of this sub-segment to the operation. Demographic issues Global issues Ethical concerns Economy Employee unions External Factors that Influence Change:

4 Factors Influencing Organizational Change  Strategies – A general method or plan developed in efforts to attain a long-range goal.  Tactic – A specific action step used to help attain a short-term objective.

5 Resistance to Organizational Change  Brainstorm – A decision-making approach in which group members suggest alternative potential causes and/or solutions to problems for group consideration.  Cost benefit analysis – The process of evaluating alternative products and services based upon cost and quality differences between each.

6 Reasons “good” employees may resist change:  Concerns about the change or the change process  Uncertainty about one’s professional future  Conflict between organizational level  The organization itself  The organization’s culture  Unfamiliarity with change details Resistance to Organizational Change

7 Gradual change – Organizational change that is simple and narrowly focused on a specific department or management function, and that has an incremental impact on the hospitality organization. Examples of gradual change:  Food trends  Lodging industry competition  Faster/more accurate data collection Data mining – The use of technology to analyze guest information in efforts to improve marketing-related decisions. A Continuum of Change

8 Intermediate Change Examples of intermediate change:  Desire for continuous improvement Total quality management – A management system (process) that focuses on identifying what guests want and need, and then consistently delivering these products and services while attaining expected performance standards. Empower – The act of delegating necessary authority to staff members that allows them to make decisions that otherwise would be made by their managers.  Higher quality decision-making  Desire to focus on an organization’s primary business A Continuum of Change

9 Dynamic change – Organizational change that is complex and broadly focused, and which impacts the entire hospitality organization as it creates a significant difference in its operation. Examples of dynamic change:  New business model  Business expansion  Reorganization A Continuum of Change

10 Condo-hotel – A lodging property which offers transient guests rooms that are owned by persons who place their rooms into the property’s rental pool, and who then receive a portion of their room’s rental revenues. A Continuum of Change

11 To help an organization confront and benefit from change, an HR manager must have:  Business skills  “Political” skills  Analytical skills  System skills  People skills Role of HR in Change

12  Gradual anticipated change  Gradual unanticipated change  Dynamic anticipated change  Unanticipated dynamic change Proactive vs. Reactive Leadership Approaches Planning for Change

13 Strategic planning – A systematic method of developing long-term plans to attain business objectives by anticipating and adapting to expected changes. HR Managers and Strategic Planning

14 1. Consider the organization’s mission 2. Scan the environment 3. Analyze the situation SWOT analysis – “Strengths, Weaknesses, Opportunities and Threats analysis: a systematic approach to assess an organization’s current environment as part of the strategic planning process. 4. Determine long-term goals 5. Establish strategies HR Managers and Strategic Planning General steps in planning process:

15 6. Identify interim objectives 7. Assign responsibilities and time lines 8. Communicate the plan 9. Monitor the plan; take corrective action 10: Celebrate a successful plan 11: Repeat the planning process Rolling plan (long-range planning) – A plan in which the final year in the planning cycle is moved ahead one year as plans for each year are implemented. HR Managers and Strategic Planning General steps in planning process:

16 Labor and skills shortages Escalating construction cost “Keeping up” with technology Changing demographics impact travel trends The impact of profits as higher expenses are countered by the need to increase wages HR Managers and Strategic Planning Top 10 issues confronting the lodging industry (according to the ISHC)

17 Consumer confusion about brands Changes in distribution The impact of travel restrictions on travel Growth of new markets Availability of capital HR Managers and Strategic Planning Top 10 issues confronting the lodging industry (according to the ISHC)