Reference no: EM133352169

Assignment:

Case Study

Since our last report on the situation at Seven Trees Hotel, the owner of the hotel, Mr Dennis Long, has decided to rather use a professional change agent to identify and implement the crucial changes in the hotel. Mr Long's efforts to implement the changes that he thought were critical for the survival of the hotel were met by so much resistance from his staff thatthe entire hotel came to a complete standstill. It was still only the gardener who arrived for work; all other staff members were absent from work without informing Mr Long. The change agent, Mr Jeremy Ndlovu, did a thorough assessment of the hotel and concluded that to transform the structure and processes of the hotel should be the initial focus.

Although he believed that this would improve the situation at the hotel considerably, he was also very concerned about the skills levels of the managers as well as workers. Although Mr Long did pay his employees the minimum wage, he had no bonus system in place to motivate them to work more creatively. Mr Long felt that he was doing the workers a favour by employing them ... and not vice versa.

Mr Ndlovu identified several processes that impacted on all departments of the hotel. While changes to these processes were vital for the hotel's survival, he expected them to be very unpopular in the short term as some of the managers and employees stood to lose their permanent jobs. However, Mr Ndlovu made it clear to Mr Long that for the hotel to survive - and for the managers and workers to keep their jobs - everyone had to adhere to the new systems and processes. It would require retraining and re-skilling of almost everyone working in the hotel. Mr Ndlovu further emphasised that Mr Long will have to communicate clearly to all stakeholders what was required to make the hotel successful again. Mr Long would also have to explain why these changes are necessary.

Mr Long was caught off balance when Mr Ndlovu suggested that the hotel be painted a more modern colour and that the overgrown garden be simplified. He further suggested that the reception kiosk be removed to make space for a more open-plan entrance into the hotel lobby. Mr Ndlovu also suggested very strongly that the hotel signage and logos be changed to something more inviting. Sensing that Mr Long was getting irritated by these suggestions, Mr Ndlovu made a last suggestion, namely that the signage outside as well as inside the hotel be in three of South Africa's 11 official languages and not just in the language that Mr Long spoke. All managers and staff members were contacted and asked to attend a meeting in which Mr Long explained to them what the future at the hotel holds for each one.

Most of the managers and employees attended the meeting. During the meeting one of the younger employees, Sarah Moot, smacked her fist on the table and said that all these changes are wrong. She stormed out of the meeting room. The predominant feeling when the meeting was over being still one of complete denial of the importance of the changes. When all managers and workers had left the meeting room Mr Long reflected on the old hotel and all his childhood memories of the place. He knew that it was now in his hands to get the hotel back on track. He stood up from his chair, which had been his father's for many years, and decided that he wanted to implement all these changes within a month. He also felt that there is no more time for talking and explaining to the managers and staff. From now on it will be work ... and only work!

Source: Smit, Botha and Vrba (2020)

Question

Mixed reactions to the change process may be expected from stakeholders.

a) What could possible reasons be for Sarah Moot's outburst and clear resistance to the changes mentioned during the meeting?

b) What word describes Sarah's psychological reaction to the changes?

c) What word describes the rest of the managers' and workers' psychological reaction to the changes when they left the meeting?