An Overview of Change Management in the Hospitality Industry

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UNLV Theses/Dissertations/Professional Papers/Capstones

10-1-2008

An Overview of change management in the hospitality industry

Jennifer Lee
University of Nevada, Las Vegas

Repository Citation
Lee, Jennifer, "An Overview of change management in the hospitality industry" (2008). UNLV Theses/Dissertations/Professional Papers/Capstones. Paper 547. http://digitalscholarship.unlv.edu/thesesdissertations/547

This Professional Paper is brought to you for free and open access by Digital Scholarship@UNLV. It has been accepted for inclusion in UNLV Theses/ Dissertations/Professional Papers/Capstones by an authorized administrator of Digital Scholarship@UNLV. For more information, please contact marianne.buehler@unlv.edu.

An Overview of Change Management in the Hospitality Industry

Jennifer Lee

PART ONE

An organization operates based on shifting circumstances, both internal and external. Such a dynamic environment demands adaptability within the organization and consequently, capabilities to absorb inevitable change. Such focus requires the commitment of an organization’s staff. In the hospitality industry, this is especially so, considering the labor-intensive operations that respond to the volatile sales and the seasonality of a perishable good. This paper considers critical issues in change management that are relevant to the hospitality industry. Research studies in change management over the last several years will be identified and analyzed. In addition, case studies which support common findings will be included. Background

Studies in organizational change can be found as far back as 1998. In an ever- changing industry environment, the subject is still signified. Organizational change can be forced upon due to external industry factors or by internal management decisions. In the lodging industry, change is predictable due to the mobile forces of capital sources, industry structure, investment performance, and most relevant, operational performance (Singh, 2000). These influences are expected to produce managerial implications. The Society for Human Resource Management (SHRM) conducted a Change Management Survey in 2007 and reported critical detriments to implementing necessary organizational change (Norris, 2008). Due to the human touch of the hospitality industry, change management is a powerful topic in customer relations (Kale, 2005). Therefore,

successful change management holds the ability to strengthen an organization’s competitive edge in terms of its operation.

Purpose

The purpose of this paper is to identify elements of organizational change that impact operational performance within a hospitality organization. The findings will provide an outline of key operational elements to consider when managing an organization during such a tumultuous period. Justification

The results may be applied to the hospitality industry and may also contribute to the working research in organizational change. Applications to the hospitality industry include the identification of manageable challenges in the analysis of organizational change. In 2000, projected expenditures on change management services were expected to exceed $6 billion by 2003 by International Data Corporation, a research firm (Goff, 2000). The many ways in which change can cost an organization a fortune validate the priority of controlling costs throughout the process (Kale, 2005). A classified understanding of organizational change could enrich existing correlations to operational performance. Change management education offers a framework from which preparations may be constructed in order for ongoing operations to achieve optimal fluidity. Some research emphasizes the psychological impact of organizational change (Sullivan, 2004; Welch & McCarville, 2003) and therefore, possessing knowledge of expectable...
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