The performance of The Galley restaurant

The Galley is a restaurant which is a part of the large international shipping company which used to cater food to the company employees. The restaurant was in a cafeteria style with 150 seats and was located on the top floor. Due to a rise in the international market the Galley reduced in size. In the year 2003 the restaurant merged with the Lunchbox Ltd. The area around the building went under a huge change, new technology, new restaurants with new concepts, quite a large number of offices and a pub which gave a tough competition to the Galley to survive in that area.( Galley case study). The report contains a SWOT analysis and some theory on managing change successful in an organization. Since the area has gone under rapid change so it was necessary to conduct a SWOT analysis to find out the organizations factors that match to the surrounding area. It also provides information which is helpful in matching the resources and capabilities in the competitive environment to know where it stands. SWOT analysis is done to make some strategies for the business. Strength and weakness are internal to a company. Each and every organization should find out its strengths and weakness to become successful in achieving the goals of the organizations. Resources can be tangible and non-tangible, human and non-human. Threat and opportunity are external to any organization. Any organization to become successful and to survive in the market should know its surrounding area. Strengths are its employees, brand name of the company, any unique selling proportion etc. weakness include outdated resources, human resource gets older etc. Opportunities inc- lude any growth in the business and threats include competitors and active participation of trade union. The aim of SWOT analysis is to make a clear picture about where the organization stands. (Bhat and kumar, 2009). Kirkpatrick has suggested that element like Empathy, communication and participation are successful in managing a change in any organization. After the market condition is known then specific steps should be taken to manage change in an organization. The organization should prepare itself to adapt the change in the surrounding. If a change is planned it shows that the organization is trying to improve its operation ways so as to survive in the competition. (Mullins, 2005).The report contains detailed information about the SWOT analysis and change management.

SWOT ANALYSIS:

A SWOT analysis “is an analytical tool which is used in the business to assist in assessing a business in relation to other competitive business. It is a quick way to look at the current environment as well as what the future may hold.” (Hall, 2003, pg-92)

2.1.1 STRENGTH(S)

The galley has the following strengths.

2.1.2 INFRASTRUCTURE:

The Galley Cafeteria is a 150 seat cafeteria and is located on the top floor of an eight storey office block. The view from the top can be very useful for attracting customers and can also act as a unique selling proportion.

2.1.3 EXPERIENCED STAFF:

In this cafeteria 20 employees have been working since 1970s and are experienced and have emotion attached to the organization. The employees know the type of customers come and also know about the area.

2.1.4 EXPERIENCED MANAGER:

Jean Porter was an experienced caterer who had previously worked and managed other outlets of lunchbox. Jean had a proper knowledge about the company’s objectives and hence use the experience to maximize profits and minimize the loss.

2.1.5 BRANDNAME/GOODWILL OF LUNCHBOX:

A brand is a term, name, sign, symbol, design or a combination that identifies a company’s product from its competitors. The brand of Lunchbox can be used to make the Galley unique and attract customers as the area had gone under rapid change.

2.1.6 LOYALTY OF STAFF:

The Galley had merged with the Lunchbox in the year 2003. The employees accepted the change and still were working with the organization.

2.1.7 STILL GAINING PROFITS:

The area around the building had gone under a vast change with new restaurants, new technologies but the Galley had a few old customers who used to come.

WEAKNESS (s)

The Galley has the following weakness.

3.1.1 SCARCITY OF NATURAL RESOURCES:

The area had a gone under rapid change and the Galley has been operating since 1970s so there are chances of outdated resources and no proper training given to the employees to cope up with the change.

3.1.2 LACK OF LEADERSHIP QUALITY:

Jean was not able to motivate the employees to adopt the change. Jean tried to force orders rather than planning some strategies to make them a feel a sense of ownership for the company. Team work and co-ordination was missing which lead to conflict between the employees and the manager.

3.1.3 SUBSIDISED MEAL IN THE GALLEY:

The area had gone under rapid change with new restaurants, new technologies and new cuisines. The galley had a very few range of dishes which lead to decrease in customers.

3.1.4 RESISTANCE TO CHANGE:

When Jean joined the company she introduced a wider range of dishes. The staff did not accept the changes and did not listen to Jean as she was 10 years younger.

3.1.5 PRESSURE FROM NEW OWNERS:

The owner and the manager tried to force their ideas on the employees. Jean abolished the half an hour morning coffee, smoking break which annoyed the staff.

4. OPPORTUNITY:

The galley has the following opportunities:

4.1.1 DEVELOPMENT IN THE LOCAL AREA:

The area around the building has gone under rapid change with offices, restaurants, cinema and a pub. There are chances of increased marketing condition. Proper strategies and advertisements are done then more customers can be attracted.

4.1.2 DIVERSIFICATION:

Galley can make plans to increase its outlets. New products can be introduced with new varieties and modify its service operations.

4.1.3 TIE-UP WITH MULTIPLEX:

Galley can take contracts from the multiplex and can open up a food court where they can sell their products and at the same time they can promote their restaurants and thus can increase their customers.

5. THREAT (s):

5.1.1 GLOBALISATION AND FIERCE WORLD COMPETITION:

The area around the building has gone under rapid change. New restaurants have opened up with new strategies and varieties in dishes.

5.1.2 INVOLVEMENT OF TRADE UNION:

Trade union plays an important role in any organization. The trade Union has legal powers to shut down the company if the employees are not happy.

5.1.3 CUT-OFF IN WAGES:

The employees did not respond to the managers orders so the management decided to cut down the wages by 5% as a result there are chances of high turnover of employees.

Thus a SWOT is a systematic identification to find out the company’s position in the market. Strengths are matched with opportunity to convert the weakness into strengths and threats into opportunity.( Stapleton and Thomas,1998).Change management is done to retain this position and still gain profits and minimize the loss incurred.

6. Change Management has been defined as “the process of continually renewing an organization’s direction, structure and capabilities to serve the ever changing needs of external and internal customer’s”. (Moran and Brightman, 2001: 111 as cited in Todnem{2005} ). Change may originate from outside or inside the organization. In order to promote or adopt the change the organization should define the origin of change and the need to change to its employees. (Mullins, 2005). “Change is a pervasive influence. We are all subject to continual change of one form or another. Change is an inescapable part of both social and organisational life” (Mullins, 2005, pg-909).

Kirkpatrick has suggested that Empathy is the first key to anticipate the feelings and reactions of the employees towards a change. Communication is the second key to communicate clearly with all the employees affected by the change. Participation is the third key to make the employees involved and generate ideas for the change. (Kirkpatrick, 2001)

7. EMPATHY:

Empathy is about putting oneself in the conditions of other person and looking into things from their point of view. Manager should try to find out the reason for their resistance. The author mentions that may be the employees feel threatened and disoriented by the challenge of change. (Kirkpatrick, 2008).Managers should have the skill to anticipate the point of view and emotions behind the resistance. It is the ability to understand others perspective in a neutral way and understand their emotions and give weight to their concern and ideas. (Cook, Macaulay and Coldicott, 2004).Managers should take initiative to make a change effective. Usually employees are emotionally attached to the organization and hence feel afraid to accept the change and hence adopt a negative attitude. (Mullins, 2005).Supervisors should think beyond their positions and analyse the change from an employee’s perspective. An empathetic manager can encourage and increase the sense of ownership among them and it can also act as a tool for motivation and leadership. (Pugh, 2007). Managers should analyse from employees view point and this can be done by anticipating the advantages and disadvantages according to them. (Kavanaugh and Ninemeier, 1995).

Jean Porter in the Galley Cafeteria tried to force decisions on the employees she did not try to look at the things from the employee’s point of view and hence could not create a sense of ownership towards the organization. The employees did not respond to her decisions as she was ten years younger and hence their was ego problem. Jean should have tried to bridge the age gap between them. Employees also became hostile towards her as she forced some rules on them. As mentioned above Kirkpatrick and some other authors mentioned that Jean should come down her position and think from the staffs view. The employees working did not adopt the change as Jean did not discuss about the cause of change in the organization and did not show concern to their views.

7.1.1 COMMUNICATION:

Communication is a skill or ability to negotiate for mutual benefits of the parties involved. Good communication helps to share thoughts and ideas and helps in social negotiation. (Kirkpatrick, Duck and Foley, 2006). Communication is a two way process in which one listens and the other gives feedback. To implement a change proper communication should be there between the employees and the management. (Daft, 1988).Formal and informal communication helps to convey 80% of the information to the employees. Grapevine is a network of informal communication and helps to translate the management’s formal messages to employee’s language. (Bhatt and Kumar, 2009). Management should clearly discuss about the change with the employees. One to one communication, group discussion and debates are the mediums through which information from the owner to the employees are passed. (Robbins and Sanghi, 2006). Supervisor should delegate their work to the subordinates through proper communication. It is very essential that supervisor should communicate properly to implement a change. (Miller, Walker and Drummond, 2007). Poor communication act as a key driver of negative feelings and conflict among the employees. (Tony and Doukakis, 2003). Communication is an important factor in the process of implementing a change because it is used as a tool for discussing and making people understand about the positive and negative aspects of change. (Spike and Lesser, 1995 as cited in Kitchen and Daly {2002}).

Jean should act as a medium of communication between the owner and the employees. She did not explain the company’s aims and objectives to the employees. Employees did not understand about the change and hence were not flexible as a result it led to conflict between the employees and organization. Organizations that effectively communicate their purpose, information about products and their services to the employees are more successful.

7.1.2 PARTICIPATION:

Employees input and ideas should be used to develop and select alternatives as the work of implementation will be easier. Employees who are involved in the decision making process will accept the change. (Kavanaugh, and Ninemeier, 1995). Participation is basically creating opportunities under suitable conditions for the employees to take part in the decision process where the subordinates get control over freedom of choice with respect to his own duties. (McGregor as cited in Banerjee, 1994). Prior to implement a change staff should take part in the decision process as it is very difficult for the staffs to resist a change decision which they have participated. It will also increase commitment towards the organization. (Robbins and Sanghi, 2006).Manager should ask the employees to cooperate and take part in the decision process. Staff would take initiatives and generate ideas and concern to accept the change. (Mullins, 2005). Participation benefits both the organization and the staff. Specific programs like discussions or training can be done to involve the staff to generate their views. Participation contributes to the quality of change and increases the acceptance for those who implement the change. (Kirkpatrick, 2001). Encourage employees to introduce ideas without any fear. Encourage the participation of employees in the use of quality management process of the company. (Tony and Doukakis, 2003). Worker responds positively to change if their responsibilities are increased. Encourage active participation and ask the employees to contribute express their ideas freely. (Walton, 1985 as cited in O’brien {2002}). Manager should be honest and open minded and should be able to build trust among the employees for the organization. (Judson, 1991 as cited in O’Brien {2002}).

Records show that direct employee participation within the company leads to motivation and trust. In direct participation employees are concerned about the working environment, employee turnover, recruitment and wages but in current scenario records show employees are more interested in the development of the business and achieving goals. (Geary and Sisson, 1994 as cited in Shapiro{2000})

Jean did not involve the employees in the decision making process which lead to lack of co-operation and co-ordination. She did not discuss about the aims and objectives with the employees and hence they resisted the change. Jean should recognize the importance of motivation and encourage the staff to contribute in the improvement process

8. CONCLUSION:

The SWOT analysis gave a clear picture about the Galley where it stands in the market. The analysis showed that what the company is good at or bad at and also shows steps how to maximize the profits and minimize the loss. SWOT analysis and change management are done to help every organization to adapt to new circumstances, to take part in the competition in the surrounding area and also to improve product and services. Employees are known as the internal customers or internal market of an organization. Employees should be informed about the organizations mission and vision. Manager should keep a notice that the channels of communication work properly in order to keep the internal market up-to-date about the external market. Special motivation programs should be introduced to meet competition. Managers should understand employee’s capabilities and use some communication techniques like newspaper and videos to provide latest trends in market. Manager should take initiatives to teach employees the necessity in doing things than only asking them to complete. Employees can be motivated through rewards and incentives to provide excellent service. (Tony and Doukakis, 2003).Empathy, communication and participation are the important skills for the successful management of change. Jean should have understood the staff’s mentality towards the change and then discussed with them or inform them about the change and finally asked them to generate ideas during decision making process and give weight to their concern. Kirkpatrick as well as some well known authors have mentioned above the idea or concept to be followed to overcome the change. When Jean the company she should have done through reading about the Galley. Jean did not try to change the weakness and threats to strength and opportunities. If the internal customers (staff) are happy then the external customers will be happy.