Reference no: EM133044083

Founder and CEO Bryan of ABC Resort took a deep breath while seated at his chair. The resort was built 20 years ago and was THE premium resort in Langkawi until five years ago. ABC Resort's market dominance and profits have gradually declined over the years due to entry of new high-end short-stay service apartments and increasing competition from value-for money cluster hotels that have since refurbished their hotel facilities to be on par with the aging. These hotels also offer more diverse stay-experiences that are in high demand by guests of a younger demographics, e.g. eco-cottages, adventure-based activities, etc. The COVID-19 pandemic dealt a further blow to the resort registered with heavy financial losses in 2019.

Bryan sense that it is time for the resort to make 'bold radical measures' to ensure its long-term viability. However, he anticipates much resistance from the employees. The company has always pride itself for being a big family. When employees come to work, they are coming to a second home. Supervisors value loyalty and feel bounded by their commitment to helping employees grow and do well at work. Company culture is rooted in mutual respect, teamwork, communication and consensus. While cohesive, this culture is not without its problems. Staff at ABC Resort are afraid to 'rock the boat' as they value traditions and maintain harmony. New staff that push for change are often thumbed-down and pressured to conform to the collective norm in the name of preserving tradition.

Bryan decides to bring in a management consultant to conduct an independent review and propose a plan. The consultant recommends comprehensive changes, including organisational restructuring, process improvement and manpower utilisation. Employees are anxious as they fear that they may lose their jobs or are unable to learn the new skills required to adapt to the new processes. While Bryan understand the need for change, he is concerned about his staff and wants to take care of them. As far as possible, he wants to avoid any retrenchment and would like to explore job redesign, retraining and redeployment as a first measure. However, employees have to be willing to change and pick up new skills. Bryan believes that engagement is key to a successful transformation and begin to meet with small groups of employees to explain to employees the need for change and share his vision for a transformed resort. His tag line is 'Co-creating a whole new experience for all at ABC'. Bryan makes it a point to be 'on the ground' by attending reskilling workshops or trials of new processes. When employees have doubts or difficulties adjusting, Bryan spends time coaching and reassuring them. For those who are 'believers of change', he empowers them to be innovative and propose ideas to support or drive the vision. Under Bryan's strong leadership, it is highly likely that ABC Resort will regain its top spot as THE premium resort in Langkawi in a few years' time.

(a) Describe the external and internal forces that are creating a need for organisational change at ABC Resort.

(b) Applying the Competing Values Framework, identify the dominant culture within ABC resort and analyse if this culture is likely to facilitate or impede the transformation efforts.

(c) Explain why it was important for Bryan to engage employees on the need for change by analysing the process of change and source of resistance to change in ABC Resort.

(d) Identify the leadership style adopted by Bryan with illustration from the case, and discuss how it may contribute to successful change in ABC Resort given its dominant culture.