Solution

1.0 Introduction

Organisational change requires detailed planning and proper management due to its complexity. This assignment provides a critical evaluation of three key areas in response to Exc!usivo’s HR challenges regarding the consultation of employees about proposed changes, management of organisational culture to support changes and addressing resistance to changes. A structured, analytical response is provided for each section, ensuring that case study issues are connected to the relevant theories and models. The first section discusses the strengths and the weaknesses of consulting employees on change initiatives, based on employee voice theory and participative change models. It explores how involving employees leads to commitment, while also taking into account the circumstances that might inhibit that process like delays in decision-making and resistance from top management. The second section highlights approaches for managing culture to achieve change. An analysis is presented by integrating organisational culture theories such as Schein’s model to discuss how culture will influence change adoption. In addition, it looks at interventions like leadership alignment, communication strategy, and reinforcement mechanisms to make the new HR structures culturally congruent. The last section explores issues of resistance to change and ways to manage it. This section, using frameworks such as Kotter’s and Lewin’s change models, describes why employees resist change, from uncertainty to power dynamics, and suggests specific interventions like training, incentives, and transparent communication designed to prompt buy-in. The assignment concludes with a summary of the key insights gained and the wider practical implications for Exc!usivo’s HR transformation.

2.0 Strengths and Limitations of Consulting Employees About Proposed Changes

Consulting employees in organisational change is essential for effective implementation, developing employee commitment, minimising employee resistance, and benefiting from employee insight. According to McNab et al. (2020), this makes the employees feel appreciated, hence promoting increased willingness to adapt to changes. Theories of employee voice suggest allowing employees to participate in the process of decision-making builds a sense of ownership, encouraging employees to be motivated and less resistant towards organisational changes (Follmer et al., 2018). From an employee’s perspective, listening to their views and opinions provides a sense of value.  It acknowledges their significance to the organisation, enabling employees to understand their role within the organisation and how they, both individually and collectively, can contribute to current and continued organisational success. As Doerwald et al. (2021) explain, these factors collectively foster enhanced employee commitment to the organisation, a sense of belonging, and increased job satisfaction. Employers also benefit from these issues.  Increased job satisfaction leads to enhanced organisational citizenship behaviour and improved individual and the overall organisational performance (Hughes, 2022).

Models like Lewin’s Change model (See Figure 1) illustrate that allowing employees to contribute ideas is beneficial in unfreezing the established norms. In the Unfreeze stage, Lewin posits that prior to acquiring new knowledge or abilities, individuals must unlearn their traditional approaches (Connelly, 2023). This can be accomplished through several methods, including providing individuals with a compelling reason for change and implementing measures to performance management, to influence the behaviour of specific individuals.

Figure 1: Lewin’s Three Stage Model of Change

Source: Connelly (2023)

In Exc!usivo, where guest experience managers are involved in determining a fair tipping policy, engagement may be effective in enhancing acceptance, as well as preventing conflicts. Likewise, well-being coaches could offer suggestions about redistributing workload that are both practicable and sustainable. When employees feel heard, they are more supportive of the changes, reducing opposition and creating a collaborative work environment (Kaur Bagga et al., 2023). In addition, employee participation can facilitate innovation by giving frontline workers the opportunity to develop creative solutions that top management might have overlooked. Employees participation in the decision-making process breeds a culture of transparency and trust that is essential in fostering healthy relations between management and staff, which is essential for long run of organisational stability (Tortorella et al., 2020).

Another advantage of consulting employees is improved decision quality. Uhl-Bien (2021) asserts that employees have operational knowledge and therefore can make more informed decision and be better at problem solving. This matches the socio technical system’s theory by taking into account both technical and human factors in change initiatives (Hughes, 2022). According to this theory, there is need to consider both the interactions between the psychological and social needs of the work groups, the creation and recreation of organisational culture, and the pragmatic technical production demands of the organisation (McNab et al., 2020). Hence, by consulting Super-cruise and Exc!usivo staff, hidden operational issues may be identified and tensions reduced through workplace integration strategies. Because they have firsthand experience, they can draw attention to practical problems that management might overlook and allow for more efficient and informed policy adjustment. Organisations can make strategic and achievable changes and minimise unforeseen disruptions when employees not only highlight issues but also contribute new ideas from their daily experience (Vito et al., 2022). Additionally, encouraging employee participation contributes to a bottom-up change approach such that adjustments are not occurring only at the top management and thus implementation is easier (Galeazzo et al., 2021). In general, organisations that consult effectively with their employees tend to have fewer implementation errors and higher operational efficiency.

While these advantages exist, there are challenges associated with consulting employees. This is in line with Prouska et al. (2019) who explain that when diverse perspectives are involved, decision-making can become protracted, often because conflicting interests clash. For example, discussions around tipping policies may extend the implementation timeline because stakeholders may have differing expectations around such policies. Moreover, management may resist consultation especially if it challenges hierarchical control, leading to only superficial consultation instead of meaningful dialogue (Torlak et al., 2021). In addition, employees might not come to an agreement when their interests vary greatly. Though consultation leads to inclusivity, it can also lead to delays and inefficiencies, especially in situations that demand urgency. This can be illustrated using the rational incremental model of change shown in Figure 2, which assumes that the change required can be broken into equally sized episodes.

Figure 2: The Rational incremental change Model

Source: McNab et al. (2020)

According to this model, everyone involved is consulted and coached through the change, spending disproportionate amounts of time persuading people to buy in to the different episodes of change (McNab et al., 2020). Second, there is the challenge of some employees feeling overwhelmed by new responsibilities assigned to consultation, seeing it as more of a burden than an opportunity. For example, if employees give input that is discarded, they might become frustrated and disengaged, which could lower morale. Also, employees may be afraid to speak up for fear of retaliation or negative career consequences, hampering the utility of consultation (Hughes, 2022).

Furthermore, consulting employees does not always guarantee consensus. As stated by By (2021), there may be divergent understanding of ideas, which will make it hard to put together cohesive strategies. For example, some employees may want to continue individual tipping discretion, while others may want a pooled tipping model. Navigating these differences will be a task for leadership, accomplished through conflict resolution techniques and compromise strategies that will come to a fair and equitable outcome (Abbas et al., 2024). There is also the risk of consultation fatigue, whereby employees will disengage if they think that their input is not taken into consideration. These challenges can be mitigated though utilising structured consultation mechanisms, like focus groups or representative committees, which bring the discussions together in an organised way and still maintain employee input (D’Acunto et al., 2021). Additionally, effective consultation strategies require clear and transparent communication with employees about the degree to which their input is influential in decision making. Organisations can avoid misunderstandings and effectively set expectations by clearly defining the scope of employee involvement (Ullrich et al., 2023). Through a structured yet flexible approach, Exc!usivo can bring out the benefits of employee consultation while minimising the disadvantages (Agazu et al., 2022). Ultimately, being able to maintain a balance between consultation, and decisive leadership is needed for effective organisational change.

3.0 Managing Culture to Enable the Change to Take Place

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