Managing Organizational Change

Leroy Banks is the Director of Change Management for Red Carpet, a national hospitality and entertainment company. He has contracted you to be an OD Consultant because Red Carpet has recently acquired a movie theater company and needs to manage the change process. External forces for change are those that come from an organization’s outside environment. Internal forces for change are those that arise from employees within the organization. Leroy has asked you to begin by assessing forces for change.

Review the Red Carpet scenario for this course and with your classmates; discuss the following in 400–600 words :

Identify and describe an example of an external force for change.
Identify and describe an example of an internal force for change.
In your opinion, what are the biggest challenges of being in the role of an OD Consultant at Red Carpet?

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Assessing Forces for Change at Red Carpet

Red Carpet, a national hospitality and entertainment company, is facing a significant organizational change due to its recent acquisition of a movie theater company. This merger presents both opportunities and challenges, requiring careful management of the change process. As an OD consultant brought in to assist with this transition, my initial task is to assess the forces for change, both external and internal, that are impacting Red Carpet.

External Force for Change: Shifting Consumer Preferences

One significant external force driving change at Red Carpet is the evolving landscape of consumer entertainment preferences. The rise of streaming services, on-demand content, and interactive entertainment experiences has dramatically altered how people consume media. Movie theaters, while still relevant, face increasing competition for consumers’ time and disposable income. This external pressure necessitates that Red Carpet adapt its business model to remain competitive. The acquisition of the movie theater company can be seen as a strategic move to diversify Red Carpet’s offerings and capture a wider segment of the entertainment market. However, simply acquiring the theaters is not enough. Red Carpet must understand how these changing preferences are impacting the movie-going experience and innovate to attract and retain customers. This might involve incorporating new technologies (e.g., interactive seating, virtual reality experiences), offering bundled entertainment packages (e.g., dinner and a movie), or creating a more personalized and engaging customer experience. Failure to adapt to these shifting preferences could lead to declining revenue and market share for Red Carpet.

 

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Internal Force for Change: Integrating Organizational Cultures

An important internal force for change at Red Carpet stems from the need to integrate the organizational cultures of the two companies. Mergers and acquisitions often bring together two distinct groups of employees with different values, norms, and ways of working. Red Carpet and the acquired movie theater company likely have their own established cultures, and these may not be compatible. For instance, one company might have a more hierarchical structure while the other is more collaborative. One might prioritize innovation while the other emphasizes operational efficiency. The challenge for Red Carpet is to create a unified organizational culture that leverages the strengths of both companies while minimizing potential conflicts. This involves careful consideration of how to blend existing cultures, communicate new values and expectations, and provide training and support to employees during the integration process. Resistance to change from employees who are accustomed to the old ways of working can be a significant obstacle. Effectively addressing this internal force for change is crucial for building a cohesive workforce and maximizing the potential of the merger.

Challenges of Being an OD Consultant at Red Carpet

Being an OD consultant during this time of transition at Red Carpet presents several significant challenges:

  1. Resistance to Change: Employees from both organizations may be resistant to the changes brought about by the merger. They may fear job losses, changes in their roles and responsibilities, or a loss of their familiar work environment. Overcoming this resistance requires careful communication, empathy, and a clear demonstration of the benefits of the merger.

  2. Cultural Integration: Blending the organizational cultures of the two companies is a delicate process. It requires understanding the nuances of each culture, identifying areas of compatibility and conflict, and developing a strategy for creating a shared vision and set of values. This can be a complex and time-consuming undertaking.

  3. Communication Barriers: Effective communication is essential during a change process. However, communication can be challenging, especially when dealing with two groups of employees who may have different communication styles and preferences. Ensuring that all employees receive consistent and timely information is crucial.

  4. Managing Expectations: Employees, managers, and executives will have different expectations about the merger and its outcomes. The OD consultant must manage these expectations realistically and ensure that everyone is aligned on the goals and objectives of the integration process.

  5. Maintaining Morale: Mergers and acquisitions can create uncertainty and anxiety among employees, which can negatively impact morale. The OD consultant must work to maintain morale by providing support, addressing concerns, and celebrating successes.

  6. Balancing Stakeholder Interests: Different stakeholders (e.g., employees, managers, shareholders) may have conflicting interests. The OD consultant must balance these interests and ensure that the change process is fair and equitable.

  7. Measuring Success: It can be difficult to measure the success of a cultural integration effort. The OD consultant must develop metrics and evaluation methods to track progress and identify areas for improvement.

  8. Working with Limited Resources: Organizations undergoing mergers may face financial constraints, which can limit the resources available for change management initiatives. The OD consultant must be resourceful and find creative ways to achieve results with limited resources.

By understanding these challenges and proactively addressing them, the OD consultant can play a critical role in helping Red Carpet successfully navigate this period of change and achieve its strategic objectives.

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