HRMT 440 Colorado Technical University Organizational Change Red Carpet Case - Business Finance
UNIT 2 - DISCUSSION BOARD – TYPES OF CHANGE Delivery Length: 500-600 words Respond to the scenario below with your thoughts, ideas, and comments. Be substantive and clear and use research to reinforce your ideas.Now that you have gained an understanding of Red Carpet, Leroy has asked you to join in on a preliminary meeting with the VP of HR and other members of the organization to discuss change. The meeting is important because many employees are unsure of their role in the change process. In fact, the VP of HR has not settled yet on what type of change is needed or how to start the change process. Leroy has asked you to participate in the discussion to help clarify information needed about the change process. Review the Red Carpet scenario for this course*, and with your classmates, discuss the following questions that will provide insight into the change process:In your opinion, what does Red Carpet need to change? Should the change be transformational, developmental, or transitional, and why? What employees or employee groups should be included in the change process, and why? What do you recommend Red Carpet do to begin the change process?Assignment Objectives:Apply various models of organization changeEstablish a foundation for developing the skills necessary to manage change in the organizationEvaluate an organizational process using a qualitative research processINSTRUCTOR GUIDANCE FOR THIS ASSIGMENT: For this assignment, you are “drilling down” to the specifics for your change. When beginning your research, keep the following questions in mind for which you want to address in your initial post:Research transformation, developmental and transitional change. Think about the elements of each, apply to Red Carpet, and then determine which is the BEST option for Red Carpet (defend your choice).When thinking about stakeholders, consider who may be affected (i.e. who may lose their job); think about the impact on the local community; consider customers who may be concerned (deteriorating quality, order lead time, etc..).What would employees question the most? Their job security? Community leaders may be concerned about a downturn in the local tax base, etc..Again, going back to the live chat #2 – define your BASIC CONSIDERATIONS for change. They MUST be concrete and specific. RED CARPET SCENARIO IS ATTACHED TO THIS MESSAGE
unit_2___db_types_of_change_.docx
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UNIT 2 - DISCUSSION BOARD – TYPES OF CHANGE
Delivery Length: 500-600 words
Respond to the scenario below with your thoughts, ideas, and comments. Be substantive and
clear and use research to reinforce your ideas.
Now that you have gained an understanding of Red Carpet, Leroy has asked you to join in on a
preliminary meeting with the VP of HR and other members of the organization to discuss
change. The meeting is important because many employees are unsure of their role in the
change process. In fact, the VP of HR has not settled yet on what type of change is needed or
how to start the change process. Leroy has asked you to participate in the discussion to help
clarify information needed about the change process.
Review the Red Carpet scenario for this course*, and with your classmates, discuss the
following questions that will provide insight into the change process:
•
In your opinion, what does Red Carpet need to change? Should the change be
transformational, developmental, or transitional, and why?
• What employees or employee groups should be included in the change process, and
why?
• What do you recommend Red Carpet do to begin the change process?
Assignment Objectives:
Apply various models of organization change
Establish a foundation for developing the skills necessary to manage change in the organization
Evaluate an organizational process using a qualitative research process
INSTRUCTOR GUIDANCE FOR THIS ASSIGMENT:
For this assignment, you are “drilling down” to the specifics for your change.
When beginning your research, keep the following questions in mind for which you want to
address in your initial post:
Research transformation, developmental and transitional change. Think about the elements of
each, apply to Red Carpet, and then determine which is the BEST option for Red Carpet (defend
your choice).
1. When thinking about stakeholders, consider who may be affected (i.e. who may lose
their job); think about the impact on the local community; consider customers who may
be concerned (deteriorating quality, order lead time, etc..).
2. What would employees question the most? Their job security? Community leaders may
be concerned about a downturn in the local tax base, etc..
3. Again, going back to the live chat #2 – define your BASIC CONSIDERATIONS for
change. They MUST be concrete and specific.
*Red Carpet scenario* to remember:
Problem-Based Learning (PBL) Scenario: Red Carpet LLC
Red Carpet LLC is a national hospitality and entertainment company with headquarters in Philadelphia, PA with
national operations in the US. Historically, the company has had 3 divisions: hotels, food service, and cruise lines.
However, it recently completed the acquisition of Sparkstar theaters, a movie theater company, that it is slated to
become its 4th division. Red Carpet now owns 200 hotels in 48 states, 4 brands of restaurants with 1776 locations,
4 Buoy Bay branded cruise ships, and 300 Sparkstar theaters.
Its matrix organizational structure consists of a central HR, accounting, business development, sales, marketing,
and research and development departments located at the headquarters in Philadelphia that serve each division.
Each division is located in a different part of the US and lead by a VP that reports to the President and CEO. The
company is privately owned by a consortium of investors and investor groups.
Red Carpet has 16,000 employees, 1000 of which work at its corporate headquarters. The organizational culture of
the headquarters is informal and organic and there are few policies and processes that guide employee behavior.
The company, as a whole, does not value HR so employees struggle with many employee relations and
employment law concerns. The company outsources all of its training to one of the investor group companies,
however this training is commonly not customized to the needs of Red Carpet.
As a whole, Red Carpet struggles with its business to business partners and suppliers because of its reputation for
being nonnegotiable. Red Carpet would rather disrupt the quality and availability of its only products and services
rather than partner for the supply chain resources that it needs. Likewise, Red Carpet does not hold many of the
General Managers in its hotels, restaurants, and its cruise ships accountable for performance, opting instead for a
weaker political strategy of blaming and gotcha games.
Being aware of these challenges, Red Carpet acquired Sparkstar for their strong industry reputation and financial
performance in the hopes that merging the structure and culture of Sparkstar into Red Carpet would change the
organization for the better. Historically, Red Carpet has been a highly successful company, however in recent
years, its mismanagement has created noticeable effectives in product and service quality and its bottom line.
Divisions
Hotels: Red Carpet branded hotels are mid-price semi-luxury hotels known for high quality. Each customer is given
a red velvet cupcake upon checking in. Red Carpet relies on its General Managers to micromanage the hotel.
Despite its corporate parent owning a restaurant division, no Red Carpet hotels have restaurants. The Red Carpet
division headquarters are in Sedona AZ. Many of the hotels are in need of refurbishment.
Food Service: Chicken Heaven is a fast-food chain with a long tradition of quality, large customer base, and 1000
locations. It is a solid overall performer for Red Carpet with high employee satisfaction. Burger Blast is another
fast-food chain recently launched to cater to upscale customers who seek customized, gourmet-style burgers. It
has 200 locations, however General Managers are struggling with budget and supplies causing a poor customer
experience and high employee turnover. Food Park is a buffet-style restaurant with 500 locations that has been
recently struggling because of high competition and poor marketing. Delicacy is a high-end restaurant with an
urban theme. It has 76 locations, is the oldest of Red Carpets food service operations, and provides a unique
dining experience for customers. However, General Managers have a high turnover at Delicacy because of the
grueling schedule. The food service division is located in Burke, ID.
Cruise Ships: Buoy Bay cruise ships offer low-cost, short-term cruises from Port Canaveral, FL only to the US Virgin
Islands. Buoy Bay offers customers average quality staterooms and food from Chicken Heaven, Burger Blast, and
Food Park. However, it does not offer a non-buffet formal dining option such as Delicacy. Although they are known
for their over-the-top entertainment, employee turnover is very high relying primary on seasonal employees who
are poorly trained. Buoy Bay has had much controversy. Just 5 years ago, the Buoy Bay cruise ship, Garland of the
Sails, hit a reef, partially sank, and had to be salvaged in a 1.5 billion dollar operation. This resulted in a Federal
investigation that is still pending. The Buoy Bay division is located in Lapsowanne, OR.
Movie Theaters: Sparkstar theaters were recently purchased from the Vegamega group for 2.3 billion dollars.
Sparkstar is the highest rated movie theater chain the US. It has high customer and employee satisfaction, an
efficient organizational structure, and solid financial results. Sparkstars culture is one of high HR involvement
including a strong training and development department, Sparkstar Institute. Sparkstar has a customer rewards
program that provides a free movie rental of the film that the customer saw in the theater which has been very
popular and has increased its strong customer base. Sparkstar has its divisional headquarters in Pasadena, CA.
The Issues
With the purchase of Sparkstar theaters, Red Carpet is hoping to redefine its operations in the next 5 years. It sees
opportunities to integrate its divisions, products, and services to better serve its customers and employees. Here is
a summary of some of the issues that Red Carpet must address in its strategic plan:
•
•
•
•
•
•
•
•
•
•
•
Internal politics and communication
Improved HR and training
Employee relations issues
Federal investigations
Product and service quality
Marketing support
Performance issues
Redefining the organizational structure
Improving its organizational culture
Integrating products and services
Resource and supply chain issues
Your Role
Leroy Banks, the Director of Change management at Red Carpet is seeking an Organization Development
Consultant to address Red Carpets need for change. Youve just received a consulting contract from him to help
prepare a plan to assist Red Carpet. Youre excited about the opportunity and are motivated to work on this
project. You know that your insight will assist Red Carpet with managing organizational change.
...
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