HRMG5027 Managing Organisational Change Assignment Sample
Introduction
Covid-19 has been the period of haphazard in every sector in the marketplace. The crisis has taken away several different things along with offering some of the most efficient technological evolution in the industry. It is true that during the period of covid-19, it has taught several different aspects which are related to hygiene and safety that has become the new routine of every individual in the world. Moreover, the crisis has been majorly influenced in the business sector specifically to the hospitality industry. There is no doubt that consumers or the travellers are preferring those hotels or restaurants that are following proper protocols by the governments otherwise the organisations not following them are being ignored by the consumers. Hence, in this respect, the following assignment will focus on covid-19 and its impact on a selected industry along with evaluating it efficiently. In this respect, J.W. Marriott of the hospitality industry has been selected for the current study, which will be deeply comprehended and investigated for better efficient outcome.
Company overview
J.W. Marriott started its journey in the hospitality industry in 1927 (Marriott, 2022). Since its establishment, it has been facing extensive growth and has become a renowned hotel chain around the globe. J. Willard Marriott has created the brand based on the guiding principles and maintained the organisational culture efficiently (Marriott, 2022). The organisation has more than 7000 properties across 131 countries and territories. The organisational website of Marriott reflects that maintaining diversity and inclusion is its core value. The organisation has been taking strategies for taking care and wellbeing of employees. In addition to that, the company has also been taking initiatives for its sustainability and social impacts. It has a strategy, “Serve 360”, which means doing good in every direction. More specifically, the organisation has committed to create sustainable and positive impacts in societies in which it is orating.
Figure 1: Market cap of J.W. Marriott from the year 2001 to 2022
(Source: Companies Market Cap, 2022)
The above figure reflects the market cap of the organisation from the year 2001 to 2022. According to information found in Companies Market cap (2022), the organisation is the 263rd most valuable company around the world by market cap. Currently, the organisation has a market cap of approximately $58.97 Billion (Companies Market cap, 2022).
Figure 2: Worldwide revenue of Marriott International from the year 1999 to 2021
(Source: Lock, 2022)
The above statistics reflect the worldwide revenue of Marriott International from the year 1999 to 2021. According to the graph, this hotel giant has generated revenue of approximately 13.86 billion US dollars in 2021 (Lock, 2022).
Impact of the covid-19 pandemic on the organisation
As the covid 19 pandemic took over the world almost every industry all across the globe witnessed multiple challenges. Similarly, the hospitality industry was also highly affected from the pandemic all around the world. As it has been already mentioned in the study that J.W. Marriott is a renowned company operating in the mentioned industry, it was observed that the concerned organisation also faced severe issues due to Covid 19. This pandemic has exerted a more severe impact on the financial status of the organisation as compared to the 9/11 tragedy (Marriott International, 2020).
Corona diseases first appeared in December 2019 and rapidly spread around the globe. There were a number of drivers of the covid 19 spread. One of the significant drivers of coronavirus diseases is cross-border human mobility (Kubota et al. 2020). This driver is highly responsible for the spread of the disease in different regions of the world. In addition to that, other drivers of Covid-19 spread included climatic conditions, region specific susceptibility of the diseases and others. Cross-border human mobility is the factor, which is extremely associated with the hospitality industry, in which J.W. Marriott operates. Human mobility across the borders requires staying in a different place and utilisation of hotel rooms and hospitality services. Coronavirus is a highly infectious and communicable disease, which implies that it can spread by sharing of the same place by infectious and healthy people at the same time (Mohammadi and Shahyad, 2020). For this reason the number of tourists declined during and after covid 19 pandemic, which negatively influenced the revenue of J. W. Marriott. Therefore, due to covid-19 pandemic, the revenue of the organisation dropped in the year 2020 (Lock, 2022). In addition to that, the disease can also spread by using the same objects like towels, utensils and other such items if it has not been properly sanitised. In the hospitality sector, the chance of spread of the disease was very high. Hence, governments of the countries and states worldwide were obliged to close hotels and hospitality service for a specific period of time to stop the spread of the disease. This factor severely impacted the business of J.W. Marriott by reducing the profit due to the hotels being closed for a significant time.
Apart from the above discussed driver, another factor related to Covid-19, which affected the growth of J.W. Marriott during the pandemic and continuing to effects even after pandemic is restriction on travel. In the second quarter of 2020 a total loss of $184 million was reported by the company (Marriott International, 2021). Almost every country in the world imposed travel bans in order to eliminate the chances of spread of diseases on an extreme level. These bans and restrictions reduced the growth of the tourism sector to a great extent. As it is understood that the tourism and hospitality sector is interdependent on each other (Ntounis et al. 2022). This factor directly or indirectly influenced the growth of J.W. Marriott as well. Even in this post pandemic era there are partial travel restrictions imposed in many countries. Hence, the organisation is still facing challenges in order to mitigate the impact of pandemic on the business. Overall, it can be stated that the coronavirus diseases and its drivers have extensively impacted the performance of J.W. Marriott to a great extent in various ways.
Changes in the organisation during the covid-19 pandemic
From the above evaluation and discussion, it can be asserted that the organisation had adversely been impacted due to covid-19 emergence. With an impact, the organisation has not left with any other option rather than changing their way of operating along with business policies (Ntounis et al. 2022). J .W. Marriott is one of the greatest names in the hospitality industry; the company has been operating in the sector for 92 years and known as the leader of the industry. The visibility of the organisation in the industry is due to its commitment towards the quality, rigorous training and standards. Soon after covid-19, the organisation has taken a step and announced to be promoting cleanliness standards along with maintaining the hospitality norms while meeting all the strategy for the challenges imposed by the pandemic situation (Park and Lehto, 2021). In this context, the CEO of the J.W. Marriott has asserted that “We want our guests to understand what we are doing today and planning for in the near future in the areas of cleanliness, hygiene and social distancing. It’s equally important to us that our associates know the changes we are making to help safeguard their health as they serve our guests” (Marriott International, 2022).
Figure 3: Marriott providing commitment towards providing top class service to customer
(Source: YouGov, 2022)
Marriott, which is known as the highly reputed organisation, has formed Marriott Global Cleanliness Council to handle the pandemic situation at the marketplace (Marriott International, 2022). The organisation was always offering their best to the consumer but they do not have this council which is dedicated to defining the next generation of international hospitality cleaning standards, standards, and behaviours that reduce errors and increase safety for both clients and Marriott colleagues. This change can be reflected with the help of the ADKAR model of change management, which suggests five standards as per the below image (Buehring, 2021).
Figure 4: ADKAR model of change management
(Source: Buehring, 2021)
The ADKAR model of management refers to the transition which is utilised for facilitating change in an organisation while collaborating the entire organisation. While taking the example of Marriott, the council which has been framed after covid-19 outbreak helps in addressing the goals of the model (Jaaron et al. 2021). Through the help of Marriott Global Cleanliness Council, the organisation is able to create awareness while fostering desire for change. Along with this, while implementing this to their organisational management, with efficient training and awareness, it ensures that the employees are getting and understanding the needs for change. The Council would be overseen by Marriott International’s Chief Global Officer, Ray Bennett, and will draw on expertise and insight from both internal and external professionals, including senior executives from various Marriott disciplines such as engineering, housekeeping, occupational health, associate wellness, and food safety (Salem et al. 2022).
While considering all of these aspects of change, Lewin’s 3 stage model of change can be incorporated successfully for better apprehension. The model suggests the process of change with unfreeze, change and refreeze (Jaaron et al. 2021).
Figure 5: Lewin’s 3 stage model of change
(Source: Akbar et al. 2019)
J.W. Marriott has taken their operations and housekeeping services for the process of unfreeze and then changed it over the following few months. While conserving the stage of refreeze, Marriott has implemented technological advances such as electrostatic sprayers along with disinfectant to disinfect objects across the property. In order to treat recognized diseases, this type of technology employs the greatest classification of cleaning agents as suggested by World Health Organisation (WHO) as well as Centres for Disease Control and Prevention (CDC) (Marriott International, 2022). Furthermore, the organisation has stated a net loss during the period that amounted to $267 million, compared to a net profit that was earned in 2019 (pre-pandemic) valued at $1.27 billion (Lock, 2022). However, the corporation reported a net profit that amounted around $1.09 billion in 2021 due to its change in the management which is setting high standards at the marketplace.
Strategies of the organisation to manage the change
The epidemic of the covid-19 has made a strong destruction to the hospitality industry. Hence, the giant hotel chain has faced a lot of issues. However, it has taken effective strategies in order to deal with arrived issues for the pandemic and be sustainable in the marketplace. During the pandemic, the organisation has focused on maintaining cleanliness and have made changes in hospitality norms across its hotels. More specifically, the orgnaisation has taken multiple approaches to deal with the health and safety issues during the pandemic. For instance, the organisation has launched the “Global Cleanliness Council” to promote higher standards for cleanliness during the time of the pandemic (Marriott International, 2020). The council took responsibility for the in-house cleanliness along with outside experts in water and food safety, infection prevention, hygiene and others. This council works to develop hospitality cleanliness, behaviour, and norms over 7300 properties worldwide (Marriott International, 2020). On the other hand, the company has utilised new technologies such as electrostatic sprayers and disinfectants, which are recommended by the “World Health Organisation” and “The Centers for Disease Control and Prevention” (Marriott International, 2020). Apart from that, the organisation has been more active to take online reservations and provide contactless services. Moreover, it use of contactless payment modes has increased. By installing the mobile app of the organisation customers can use the mobile key service (Marriott, 2022).
The organisation has taken an approach to go hyperlocal during the pandemic of covid-19. More specifically, the organisation has taken a strategy of prioritising local customers during that difficult period of the pandemic. Apart from that, it has also taken a strategy to maintain a deep collaboration between digital partners, technology, and industry with an objective to meet local needs. Hence, the organisation has taken a strategy to put collaboration before transformation (Buiring, 2022). As international travel has been slowed down during the covid-19 pandemic, the organisation has been more focused to make strategies for enhancing domestic business. Marriott has taken initiatives to learn more about the requirements or needs of its customers in order to make effective strategies. For instance, it has made a number of consumer forums in order to know the trends around domestic travel and leisure. The organisation found that domestic travel was relying on relaxation and luxury. On the other hand, the organisation has focused on enhancing domestic tourism, as it has realised that domestic tourism would recover first (Buiring, 2022). Hence, it has taken initiatives to cater the needs of younger travellers at that critical time of the pandemic.
Apart from that, the hotel chain has also taken strategies to be focused on grabbing the domestic opportunity in food and beverages. Organisational managers of Marriott have realised that there is an opportunity of meeting changing trends with their offerings of food and beverages. Their experience with customers from the international market has taught them that drinking and eating like a local can be the most essential part to customers, because it helps them to feel connected with the destination. This is the reason that the organisation has been focused on fulfilling the need for food and beverages during the covid-19 pandemic. Hence, the organisation has taken a strategy to understand local insights to scale efficiency in order to deal with the challenges during the pandemic. For instance, the organisation has gathered information from approximately 1300 listings on “Google My Business” in order to digital behaviour of its domestic customers (Buiring, 2022).
According to a news article, the organisation has taken up a project “We Care” in India. It has identified more than 200 touch points at its properties. After finding those touch points the organisation has made changes in order to meet the new safety and health related challenges (Chaturvedi, 2020). Even in India, the company has reduced the banqueting capacity by 50% during the pandemic (Chaturvedi, 2020).
Impact on the psychological contract of employees
In accordance with the study of Zacher and Rudolph (2021), psychological contracts reflect the belief of employees regarding the mutual obligations between their company and themselves. Before the covid-19 pandemic, the organisation was active to make a better workplace for employees. For instance, it has pushed safety plans for employees by issuing personal safety guidelines. More specifically, for on-site staff and housekeeping workers, the organisation has provided “personal safety devices”, these devices would alert hotel security management if there is any issue or any employee feels unsafe (Top Hotel News, 2018). Apart from that, the organisation has policies for the maternity and paternity Leaves. It has been found that the organisation provides 8 weeks of paid maternity leaves, as well as 8 weeks of unpaid leaves (Fairygodboss, 2022). This kind of initiative has been taken by the organisation in order to fulfil the needs of employees and satisfy them. In a survey, approximately 86% of employees of Marriott international have said that it is a good place for working (Great place to work, 2021).
During the covid-19 pandemic, the organisation has taken actions to maintain a good working environment. As employees have to be on the frontline they have faced a lot of difficulties during the covid-19 pandemic. The organisation has maintained honesty and transparency, as they are the key for efficient leadership. Moreover, in properties of the organisation health and safety of employees have been measured properly. Company executives of Marriott have arranged Zoom meetings to discuss with employees regarding safety measures (Mayer, 2021). More specifically, they have discussed how to deal with customers who did not want to wear masks. This can be seen as an example that the organisation is really focused on employees’ health and safety measures. Moreover, the workplace has become more virtual during the pandemic. Organisational leaders have taken initiatives to show empathy and compassion to their employees during the pandemic (Mayer, 2021). This reflects the psychological contract that was efficiently maintained in the organisation, as the needs of employees were fulfilled by leaders.
Marriott International has focused on new ways to keep hotel workers safe during the pandemic. For instance, it has taken strategies to improve cleaning in the workplace, maintaining social distance, and wearing masks (PYMNTS, 2020). These kinds of initiatives reflect that the organisation was active to help its employees by providing a better and safe workplace.
Despite having these positive sides, the organisation has faced issues during the pandemic and cut off employees. According to a news article, Marriott has announced furloughing schemes for employees in order to combat the covid-19 pandemic. CEO of the organisation Arne Sorenson stated that, as the hotel business was running low by approximately 75%, it has taken strategies for cutting off employees (Sogno, 2020). More specifically, the organisation has taken a decision to cut off approximately 75% of its 4000 corporate staff at the Bethesda and Maryland head office (Sogno, 2020). This also means an estimated two-thirds of corporate employees have furloughed.
Figure 6: Number of employees of Marriott International from the year 2007 to 2021
(Source: Lock, 2022)
The above graph reflects the number of employees of the giant hotel chain worldwide from 2007 to 2021. It has been found out the number of employees of the organisation was approximately 120,000 worldwide in the year 2021 (Lock, 2022). However, as the graph reflects the number of employees has reduced during the period of the covid-19 pandemic. This is evidence the organisation has cut off employees. This strategy has been taken by the company to be
Recommendations based on personal experience
While considering personal virtual study experience as well as from the previous analysis few recommendations have been constructed below for future efficiencies in operation.
Spreading awareness and promoting cleanliness
It’s fundamental to make people more aware to boost motivation and support, encourage self-mobilisation and engagement, and harness local funds and skills (Moayerian et al. 2022). It can be recommended to J. W. Marriott, that spreading awareness and promoting cleanliness is necessary. Although they have taken measures for cleanliness, for efficiently sustaining their council, it is necessary that they have regular meetings for the employees along with virtual campaigns for the customers for greater awareness. The organisation is one of the most renowned hotels in the industry and initiatives taken by the organisation will specifically impose a significant impact over the population in the world.
Limit physical interaction and adopting telecommunication
Covid-19 has been the most serious disease which has taken the entire world under its claw and it is still a thing in the world. In this respect, it can be suggested that J. W. Marriot can limit their physical interaction while at their hotels while mostly relying on telecommunication. Technology is getting very advanced now and with AI, Robotics and many more tech savvy applications can be implemented which will help in reducing physical interaction with clients and consumers (Chuah et al. 2022).
Provide support to employees
In this time of crisis, there are several employees who might be suffering from a mental stress or due to lots of job shed they are in trauma about their own sustainability in the organisation. In these scenarios, J.W. Marriott can support their employees with satisfactory compensation and benefits which will help them in managing and gaining employee trust and beliefs which is a part of an efficient physiological contract. It is highly required to understand and make an efficient relationship with every employee and through greater benefits and support, employees will be able to work harder which is a positive sign for organisational performance (Taher, 2021).
More investments on emergency measures
Covid-19 has been one of the greatest lessons which has taught several organisations about the needs of funds for emergencies (Messersmith et al. 2021). Managing all of the stakeholders along with having the support of the government in business is very important for a sudden crisis like covid-19. In this respect, it is recommended that J.W. Marriott should also focus on their funding for their emergency action which might help in coming out of a very disastrous situation without reflecting any negative effect on any sector or management.
Conclusion
Based on the above evaluation and comprehension it can be asserted that due to the impact of covid-19 several of different changes have been undertaken in the hospitality sector. The Coronavirus outbreak has sparked major organisational transformation, hence; J.W. Marriott has been taken for entire research and investigation. In this assessment, an analysis of the impact of the covid-19 pandemic and its influential transformation has been showcased. A brief overview of the organisation has been given along with reflecting on the potential impact on the organisation. While searching about the changes in the organisation it has been found out that J.W. Marriott has taken several different measures in respect to cleanliness along with technological adoption for disinfecting the hotels. Furthermore, strategies of the organisation along with the impact on psychological contract has been showcased efficiently. In order to be efficient with the investigation, few recommendations have been provided specifically focusing on covid-19 such as increasing awareness and promoting hygiene, as well as reducing physical interaction and embracing technology. Employee support and increased investments in emergency measures are suggested for successfully managing and coping with the change.
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