Question 2 [30]

CASE STUDY

CAPE VIEW HOTEL

At Cape View Hotel, the owner of the hotel, Mr John Stroebel, has decided to rather use a professional change agent to identify and implement crucial changes at the hotel. Mr Stroebel'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 that the 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 Stroebel that they would be absent.

The change agent, Mr Steven Mahlangu, 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 the workers.

Comprehensive training and retraining needed to be started, coupled with a rewards and new compensation system. Although Mr Stroebel did pay his employees the minimum wage, he had no bonus system in place to motivate them to work more creatively. Mr Stroebel felt that he was doing the workers a favour by employing them and not vice versa.

Mr Mahlangu 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 Mahlangu made it clear to Mr Stroebel that in order for the hotel to survive - and for the managers and workers to keep their jobs - everyone had to adhere to the new systems (new computers would be installed as well as Wi-fi throughout the hotel) and processes (re-engineering of the booking system). Some structural changes were also being proposed e.g., management reorganisation, decision-making, retrenchments, etc. It would require retraining and re-skilling of almost everyone working in the hotel.

Mr Mahlangu further emphasised that Mr Stroebel would have to communicate clearly to all stakeholders what was required to make the hotel successful again. Mr Stroebel would also have to explain why these changes were necessary.

Mr Stroebel was caught off balance when Mr Mahlangu 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 Mahlangu also suggested very strongly that the hotel signage and logos be changed to something more inviting. Sensing that Mr Stroebel was getting irritated by these suggestions, Mr Mahlangu 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 Stroebel spoke.

All managers and staff members were contacted and asked to attend a meeting in which Mr Stroebel 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, Jane Furst, banged her fist on the table and said that all these changes were @#$%. She stormed out of the meeting room. The predominant feeling when the meeting was over was still one of complete denial of the importance of the changes.

When all managers and workers had left the meeting room, Mr Stroebel 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 of these changes within a month. He also felt that there was no more time for talking and explaining to the managers and staff. From now on it would be work and only work!

Source: Adapted from: Smit, P. J., Botha, T. & Vrba, M. J. 2018. Management Principles. A

contemporary edition for Africa. 7th edition. Cape Town: Juta.

2.1 Using examples from the case study, discuss the reasons that show great resistance by managers and workers to the proposed changes suggested by the change agent, Mr Mahlangu. (10)

2.2 Explain, using examples from the case study, the major change interventions (changes in processes) proposed by Mr Mahlangu. (10)

Note: It is not clear from the case study what the proposal was. Students are free to use their imagination to cite relevant examples.

2.3 Mr Stroebel is completely unrealistic about the time required (within one month) to implement the change initiative.

Identify and discuss information in the case study that supports or negates the above statement. (10)