VEA Bringing Learning to Life Program Support Notes Change Management in Large Organizations Smoking Laws - A Case Study Senior Secondary TAFE 29 mins Teacher Notes by Debra McNaughton, B.A., Dip.Ed. Produced by VEA Pty Ltd Commissioning Editor Sven Shepherd B.Ed. Executive Producer Simon Garner B.Ed. Suitable for: Business Studies To order or inquire please contact VEA: VEA Inc. 10 Mitchell Place Suite103 White Plains, NY Phone: 866 727 0840 Fax: 866 727 0839 E-mail vea@veavideo.com Website www.veavideo.com
For Teachers: Change Management in Large Organizations Introduction All large organizations face pressures for change. Some of the pressures come from within the organization itself, and are implemented in an attempt to improve some aspect of the business. Other pressures may be imposed from outside the organization, forcing a change upon the business. This program looks at one such pressure the change in smoking legislation that impacted heavily on the hospitality industry. It looks at how change can be effectively managed and the responses of those in the industry who had to make changes to comply with the change in the law. Program Timeline 00:00:00 Introduction 00:01:15 What is change? 00:06:49 Driving forces behind change 00:1:58 Restraining forces preventing change 00:17:06 Implementing change 00:23:30 Change evaluation 00:28:03 Conclusion 00:28:27 Credits 00:29:08 End Website References www.smokefree.gov www.clubmed.com Other Relevant Programs available from VEA Ethics and Responsibility in Management Inside a Large Resort Mergers and Acquisitions Please visit our website for more relevant programs wwww.veavideo.com VEA Bringing learning to life - 2 -
Student Worksheet: Change Management in Large Organizations Before Viewing the Program Brainstorm activity Ask the students to think about either their own part time job or their parent s business places. Make a list of the following points: 1. List any changes that have been implemented in the last two years 2. Next to these changes, state why the changes had occurred, e.g. to increase efficiency, to cut costs, to get an edge on the competition, to conform with changed legislation or because of change in ownership? 3. If students are able to, they can then list the ways the changes were communicated to staff members. Were they told about them in meetings, in information booklets or posters, personally or not told at all? 4. Finally, students could assess whether The change was managed well by those who were implementing the change, in terms of communication and leadership and The changes have been successful in terms of achieving the desired objectives (see 2 above). - 3 -
Change Management in Large Organizations While Viewing the Program 1. Define organizational change. 2. List two reasons why a business might undertake organizational change. 3. According to Susan Herron (CEO of Australian Institute of Management), why is having a strategy for change crucial? 4. Define the term driving force. 5. According to Ricardo Krauskopf (Chairman of the Hotel/Motel and Accommodation Association of Victoria), what is the real cost of smoking? 6. The Federal Government drafted new tobacco laws in 2004. List four areas where smoking is no longer allowed in Queensland. 7. List two factors that Peter Antal (HR manager of Club Med Lindeman Island) says need to be considered when making changes. 8. Define the term restraining forces. 9. List two reasons why employees may resist change. - 4 -
Change Management in Large Organizations 10. List two reasons why external stakeholders may resist an organization s change. 11. Peter Antal said there was minimal financial impact for a big change at Club Med. List three of the things that were done to communicate the change and comply with the legislation. 12. Outline why communication is vital during a period of change. 13. Outline why leadership is vital during a period of change. 14. List two benefits of hiring a change agent when introducing a change in a large organization. 15. Why was the change at Club Med introduced in stages? 16. Explain the purpose of using Key Performance Indicators (KPIs). 17. Peter Antal and Ricardo Krauskopf have differing views about the success of businesses in the hospitality industry when it came to conforming to the new smoking laws. Outline each speaker s point of view on this matter. - 5 -
Change Management in Large Organizations After Viewing the Program 1. Role Play Imagine that you are the manager of a 5-star hotel in a capital city of Australia. You have one restaurant, one café, two bars, 230 accommodation rooms and a staff of 240. The hotel attracts lots of international guests many of whom are from countries where smoking is more common. As a response to the changes in smoking laws, you decide to build a smoking area/garden on the roof of your 25-storey building. a. Describe how, as the manager, you would (a) inform your staff about the changes and (b) enforce the new rules with guests who have been used to smoking throughout the entire hotel. b. Role play your plan with other students playing members of staff and guests who smoke. Can the other students find any flaws with your communication, organizational, leadership or control skills? Can they make suggestions for how to do this more effectively? 2. Change in a business setting Consider a business that you know well (a place you go to often, or your own workplace). a) Suggest one change that the management of that business should implement. b) Explain why you think this change should occur. c) Draw a timeline that clearly shows how you would introduce this change d) Add to your timeline the stages at which the various stakeholders would be informed (employees, customers, suppliers, unions and any others you think should be made aware) and the manner in which they would be informed. e) Is there likely to be resistance to this change? Who do you think it would come from and why? f) Finally, suggest two Key Performance Indicators (KPIs) that would be appropriate to evaluate the success of the change, and justify your choices by relating them back to (b) above. 3. Internet activity Divide the class into groups. Have each group select one web page from www.smokefree.org.au (e.g. bars and restaurants, workplaces, outdoors, homes, cars etc) and find out what the smoking laws in Victoria are for these places. (If you are from a State other than Victoria, go to your State government website to see if they have similar information). - 6 -