Akbar's Restaurant ....

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Assignment On : Management of Change for Akbar ’s restaurant. Course : MSc in Accounting & Finance Year : 2009/2010 Module code : HRM4007-N-YEAR2009 Module Title : Management of Change Module Leader : Carolyn Ward Student Name : Ashish Kumar Gupta Student No : J9109405 J9109405 Management of Change 1 | Page

description

Change does not come easily. It has been said that the only person in the world who likes change is a baby with a wet diaper. Yet, change is not necessarily something to be resisted. If change were so bad, we would all still be living in caves and commuting on horseback. It’s quite clear that the issue is not change itself but how it’s introduced. The aim of writing this report is to understand the concept of organizational change is in regard to organization-wide change, as opposed to smaller changes such as adding a new person, modifying a services, Examples of organization-wide change might include a change in mission, restructuring operations (e.g., restructuring to self-managed teams, layoffs, etc.), new technologies, innovative ideas and management development.In this report, I have taken Akbar’s restaurant as a case study and analysis on this company only. As I am an employee of Akbar’s restaurant in Middlesbrough Branch, all the aspects are true and fair as per my own observation. I have mentioned all the changes and innovation which is done in the restaurant or should be done in future. I have co- relate all the theories what I have studied in class with my work experience.

Transcript of Akbar's Restaurant ....

Page 1: Akbar's Restaurant ....

Assignment On : Management of Change for

Akbar’s restaurant.

Course : MSc in Accounting & Finance

Year : 2009/2010

Module code : HRM4007-N-YEAR2009

Module Title : Management of Change

Module Leader : Carolyn Ward

Student Name: Ashish Kumar Gupta

Student No : J9109405

Submission Date: 22/03/2010

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Preface

Change does not come easily. It has been said that the only person in the world who likes change is a baby with a wet diaper. Yet, change is not necessarily something to be resisted. If change were so bad, we would all still be living in caves and commuting on horseback. It’s quite clear that the issue is not change itself but how it’s introduced.

The aim of writing this report is to understand the concept of organizational change is in regard to organization-wide change, as opposed to smaller changes such as adding a new person, modifying a services, Examples of organization-wide change might include a change in mission, restructuring operations (e.g., restructuring to self-managed teams, layoffs, etc.), new technologies, innovative ideas and management development.

In this report, I have taken Akbar’s restaurant as a case study and analysis on this company only. As I am an employee of Akbar’s restaurant in Middlesbrough Branch, all the aspects are true and fair as per my own observation. I have mentioned all the changes and innovation which is done in the restaurant or should be done in future. I have co- relate all the theories what I have studied in class with my work experience.

I would like to take this opportunity to thank my Course leader Mrs. Carolyn Ward with whom I often interacted and who have provided me their unique perspectives which I believe have been very influential in molding this Report.

Ashish Kumar Gupta 22nd March, 2010

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Content

Introduction .....................................................................................1

Background History ......................................................................1

Competitor of Akbar’s Restaurant.............................................2

Company Internal and External challenges............................3

Structure of Akbar’s Restaurant.................................................4

Level of Akbar’s restaurant changes.........................................5

Internal and external factors forces to change......................7, 8

Change in serving customers.......................................................9

Utilisation of Staff ..........................................................................11

Change in seating Area.................................................................14

Change in communication...........................................................15

Result of changes...........................................................................17

Recommendation...........................................................................17

Conclusion........................................................................................18

References........................................................................................19

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Introduction:

In this report, I have analysed change of management in Akbar’s restaurant to understand the

concept of organizational change. This report briefly explain each changes happened in

Akbar’s restaurant and some theory based on that, and critically analysed each sector of

change, whether it is positive or negative.

Background of Akbar’s:

Akbar’s is one of the famous restaurants in England, United Kingdom. Akbar’s is an Asian

restaurant which serves basically Indian and Pakistani Dishes. It has over all 8 branches in

England including which been start running on following Years:

- 1995   Bradford, Leeds Road

-2003   Leeds, East gate

-2004   Leeds, Greek Street

-2006   Manchester, Liverpool Road

-2006   York, George Hudson Street

-2007   Sheffield, Meadow Bank Road

-2008   Bradford Cafe, Leeds Road

-2009   Middlesbrough, Linthorpe Road

-2009   Birmingham, Hagley Road 

In 1995 the first branch was opened on Leeds road, Bradford with the seating capacity of 28

people only. Since then, through sheer enthusiasm, determination and hard work, the

restaurant has never looked back, always going from strength to strength. During that period

Akbar's has gained a huge reputation for its high quality cuisine, vibrant atmosphere and

first class service.

Whilst the food at each restaurant is outstandingly consistent each restaurant has its own

themed design. The restaurants have been designed to provide a contemporary atmosphere

and carry a certain aura which is no less than being in any major city in the world.

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Competitor of Akbar’s Restaurant in Middlesbrough:

As there are plenty of Restaurants in United Kingdom, which deals in Indian Cuisines and

now a day’s many of the British Restaurant are also provide some Indian dishes such as

Chicken Tikka, Chicken Korma etc, so now it become very hard to competition among

restaurants in the market.

Middlesbrough Branch was opened last year in March, 2009. As Akbar’s have good

reputation because of previous branches response in different county but still in

Middlesbrough people are not aware about this, and secondly here two restaurants are

running success fully such as Iqbal’s Balti Raj and Kababish (K.O) in Indian Cuisines and

some of the small restaurants also such as DOSA house etc. About 85 % of Indian cuisine

business was under control of Kababish (K.O) and 10% of business under Iqbal’s Balti Raj

and rest 5 % with other small competitors.

85%

10%

5%

SalesKababish Balti Raj Others

Finally on March, 2009 Akbar’s of Bradford has opened his branch in this tough competition market of Indian Cuisines in Middlesbrough. On opening of this branch, several internal and externals problem were faced by the Managers of Akbar’s such as:

Low Sales

Prices of Dishes

Competitors

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Loan from Bank

Exciting Structure of companies

Uncertainty of Employee

Company strategy and policy

Location of Business

Varieties of Drinks

Satisfaction of Customer.

Extra work load on weekends

Separate hall for parties

Raw material availability

Takeaway food facility

Car Parking

Seating capacity

Company Internal and External Challenges.

Political Influences Economical Influences

Government Ideology Suppliers

International Law Currency Exchange Rate

Universal rights

Structure of Akbar’s restaurant in Middlesbrough:

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Government Legislation Government Ideology International Law Human Rights Wars Taxation Health and Safety law

Competitors Suppliers Raw material rates Employment rates Wage rates and

employee benefit Partnership ownership

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Owner of Branch (Manager)

Branch manager

Assistant Manager

Chef

Assistant chef

Starter maker

Cashier Bar manager Internal Inspector Waiters Receptionist

As per above diagram, the owner of the branch is head of all department, he is looking after

everything which is happening or will be happen in Akbar’s Restaurant of Middlesbrough

branch. After that Branch manager is the one who look out all this and can do changes also,

he is the one who look out customer and employees complaint and sort it out as soon as

possible and he is also liable to allot seats to the customer and look after day to day problems.

Assistant manager is the one who is liable to perform all the duties of Branch manager in the

absence of the Branch manager. Chef is the one who Prepare the main course meal by putting

all the spices and raw material, he is a sort of manager in the kitchen, as he is the one who is

responsible for every complaint about food. Assistant chef is the one who help the main chef

to make the dishes and give him everything cut and dried. Starter makers are those persons

who make starter dishes. Cashier is the one who look after all the pay in and pay out of

Akbar’s and also look out the take away department also. Bar Manager is the one who look

after Bar and serve drinks and spirits to the customer and place the order, when needed.

Internal Inspector is the one who inspect each and every department of the restaurant and

give all the reports to the owner of the business regarding weakness and drawbacks of

restaurant. Waiters are those people who look after each customer individually and take order

of food and give them a best facility. Receptionist is the one who look after customer and

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greeting him at the moment when they enter into restaurant and organise their table as soon as

possible.

Level of Akbar’s restaurant change

Type of Change

Revolutionary change

Strategic Level

Dominantly Strategic

Characteristics

Change involves shifting or redefining existing parameters.

Organizational structure and Staff utilisation are likely to change.

Reason to Change

The Akbar’s Restaurant owner and chief have decided to increase the sell, improve the

infrastructure of organisation and maintain the reputation of Akbar’s restaurant. In previous

year May – August Akbar’s made place in market only 45% that’s why they have huge

pressure to take serious action in respect of change in management in Akbar’s Middlesbrough

branch.

The main key elements on which these changes are focused on are as follows:

Increased in competition

Car parking

Food Price

Varieties of Drinks

Varieties in Desserts

Staff Utilization

Health and Safety Law

Seating capacity of customers

Maintain First come first serve policy

Utilization of space

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Mission to the Change:

Best restaurant in Middlesbrough.

Introduce new taste of Food, Drinks and services.

Full Utilisation of Staff and space.

Vision of the Change

Customer Perspective

Financial Perspective

Internal Perspective

Future Growth

Objectives of Change

To spark new and innovative ideas to organise seating facility.

To increase good sale.

To provide good space for car parking.

To provide dishes as per customer taste such as Mild, hot.

To revised the food price as per its cost and demand.

To utilise employee in best way.

To fulfil the criteria for maintain 5 star in health and safety for present and future also.

To attract new customer with the external and internal designing.

To create monopoly in the market for Indian cuisines in Middlesbrough.

To provide best service to the customers.

To increase the goodwill of Akbar’s in Middlesbrough.

To utilise the space in best way.

To maintain first come first serve policy

To reduce the complaint of customers.

Factors Forcing Change

Akbar’s of Middlesbrough branch get too much pressure to change, from both the sources

(Internal and External), which have been implemented by the chief owner of the business are

as follow:

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Change internal and external culture of an organisation.

Changing Market strategy.

Cost cutting( Downsizing)

Increased Competition

Inflation

Minimum paying wages

Customer complaints

Overcrowd on weekends

Delay in food orders

Less verities of Drinks

Food price is high

Car parking

Internal Factors forcing to change

The internal factors of Akbar’s that force change was identified through a formal analysis at

different level and on different sector such as kitchen, bar, Cashier, reception and car parking.

As there was only one chef who is making dishes, so there was delay in serving food on

weekends, same with bar also there was only one bar manager so he stuck in serving

customer and serving to the tables. Cashier faced problem in taking takeaway order on the

same telephone line, receptionist also got stuck on weekends because of too much crowd and

less availability of tables.

Some of the internal factors that forces to change are as follow:

Strength

Akbar’s strength, helps to identify a competitive advantage to increase the sales and is

important when decide on changing the focus of the company. It decides to push certain

services or facilities in favour of drooping others.

Weakness

Akbar’s weakness is a main motivation for changes. Weaknesses can be indentified internally

services and customer’s feedback, it is required to immediate attention and change especially

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in food industry because that make customer to switch to another restaurant. This weakness

can be resolved by strong management control or by changes in services.

Threats

Threats to Akbar’s usually make the company to react because of the competitors and other

substitutions.

External Factors Forces to change

The External factors of an organization that force change can be identified by pressure faced

by organisation while running of business such as tax, Inflation, Climate, change in market

conditions, Human Rights, Health and safety law and many more, some of that are explain in

following ways:

Social

Changes in lifestyle absolute changes in organisation but cultural level, ethical

issues can also have effect on the inside an organisation.

Economical

The local, national and even international economy impact can force an

Organisation into changing their work practices even product prices.

Political

Political pressure such as union, government policy, Government minimum wage

rate.

Ecological

The local and national ecological and environmental is also important issue that

have effect on culture within a company

Legislative

The legal issues such as taxes, working time regulation also have effect on

organisation.

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Step First for Change

Type of Change in serving customers

Akbar’s restaurant of Middlesbrough introduces a pager system, which is an electronic device

which buzzes and flashes with a remote control in the premises. This pagers help to serve

customer on first come first serve policy.

Change in serving customers

Change in serving customers will be a big challenge for management because there is no

guarantee that technology will be helpful to the management objectives and acceptable by the

customers also. The management must identified first there objectives and strategic needs of

the company.

Strategy and Implementation of Pager system

Pager system helps Akbar’s workers to serve customers on first come first serve

policy.

Pager system gives satisfaction to customers also that, they are served first before the

people who comes after them in such a crowd also.

Pager system also helps to customer that, how long they need to wait for their table so

they are mentally prepare for that.

Pager system also helps to customer to do other work or use facility of Akbar’s apart

from thinking about their table.

Planning and standards

Planning is the key element for successful to introduce new technology in the management.

Objective must be defined after knowing the problem of the management. Planning must

include following:

Planning the layout

Organisation need to take in consideration the work place, staff, work flow, equipments,

hygiene and process as well as health and safety requirement.

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Suitable for the Operator

Work places where operators are working, they must be must be fully aware about

management, hazards and emergency shutdown and safety equipments.

Health and Safety Standards

Employees must aware health and safety standards. Organisation should strongly recommend

that all operating and maintenance instructions are kept carefully in the accessible place.

Standard of Maintenance

In reputed organisation where health and safety is concerned equipment and work place must

be maintained in efficient working order.

Setting safe Procedure

The setting up safe working procedure use of chemicals, equipments and use of personal

protective equipment are particularly important.

Safe Operation

Safe operation depends on instructions, information’s, training and competence.

Supervision

Adequate supervision should be organized to make sure the safe procedure is fallowed.

Training

Training is most effective tool for achieving the organisational goals, change in management,

culture, behaviour and attitude. It can be divided into three major parts.

Change of attitude

Change of knowledge

Change of Skills

Feedback

Feedback is one of the important parts of changes in management. It describes about the

acceptance of the change in market and the objectives of the organisation are fulfilled or not.

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Implementation:

Pager system is a system which is kept with Receptionist at their desk; it is putted in the

series from 1 to 30 and each customer gets that buzzer with the warm greeting, when the

customer entered into restaurant on busy nights. The receptionist jot down customer name

and people who going to take meal and also write pager number (Like 1or 2), the moment

when manager tells that there is availability of table for such people, the receptionist buzz

that pager through remote control he is having, and as buzzer start flashing and buzzing the

customer comer back to reception and from there manger take that customer to the table.

Second Step for Change

Change in Utilisation of Staff

Second big challenge for Akbar’s restaurant to reduce the staff the labour cost, increase the

work force productivity. As on week days there are plenty of staffs working but the

customers are not coming in that time but on weekends, it’s too much crowded and the staffs

is accurate for that day. Akbar’s management team tried to reduce the labour cost and

increase the work force productivity. They decided to downsize the company from bottom to

upper level.

Resistant against change

Akbar’s had to face to lots of resistance from employee, Government department of labour

and pension, Local NGO and many other sources. Employees are not going to accept this

change, because this causes the downfall of their wages and the work load on each employee

also increase as many staff have been putted off. Now skilled and trained employees are

performed the task of other employees. Many of people think things are already fine and they

don’t understand the need of any changes. Organization change often goes against the very

values held valued by members in the organization; the change may go against how members

believe things should be done. That's why much of organizational-change literature discusses

needed changes in the culture of the organization, including changes in member’s values and

beliefs and in the way they pass these values and beliefs.

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Control the Resistance

Every company has human problems to overcome. In the eye of management MBO

(Management by Objective) is power fool tool to control the human resistance.

Human Resource Management Strategy

Human Resource Management underlying issue is how to ultimately reduce jobs and labour

cost without sacrificing quality, service, and market share.

Cameron 1991 identified three downsizing strategies that are profoundly utilized in an

organization.

Workforce Reduction

1. Reduced employment through early retirement ,buyout or other incentive

2. Reduce employment through discharge.

3. Reduce the employment through the transfer to other business units in Akbar’s

group.

Organisation redesign

a) Eliminated unnecessary job

b) Eliminated Full shifts to all staff.

c) Eliminated functions and design

d) Redesigned and reanalysed jobs or task.

Strengthens and Weaknesses of the Change.

There are many strengthens and weaknesses of the change in Akbar’s Restaurant.

Strengthens of Change

There are clear and set objectives before change

Planning and involvement was focused on specific issues and problem.

Marketing survey and collect the data before introducing new technology.

Downsizing strategy was excellent because every employee get incentive in the shape

of Golden handshakes and transfer in other units of group.

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Introduce new technology according to the market demand.

Weaknesses of Change

To identify clearly the causes and consequences of the problems that were surfacing

within the organisation, such as lack of clear policy direction in some areas, and lack

of cross functional communication.

Communication chains between the decision –making unit and the primary sources of

information are long.

An Excessive workload on senior Executives.

Top management t too distance.

Weak power structure

Decentralized structure

Lack of communication between top levels to bottom level.

Lack of sufficient training.

Implementation

Human resources department of Akbar’s restaurant reduces the employment through

incentive scheme for their future and giving them too many offs in weeks or else give them

following option:

a) Golden hand shake

b) Transfer to any other branch with lower position

c) Introduce some job qualification

d) Transfer waiters into kitchen staff

e) Eliminated extra staff to lower department in the same section.

f) Giving Full time shifts on weekends only.

Job Qualification for working in Akbar’s

1. Communication Skills

2. Excellent based record

3. Interaction ability

4. Have good ability to deal with customers

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5. Personality

6. Deal with diplomatic situation

7. Relevant work experience in same industry

8. Ability to take important decision on time.

Thirds step for changes

Type of Change in seating area

Akbar’s restaurant of Middlesbrough is facing too much problem and complaint regarding

waiting time for allocates their seats. Last year on mother’s day the waiting was 1 and half

hour and people were waited for their seats, and this happen on every weekends that customer

need to wait for their table, and sometime it will take more time as prescribed because of in

availability of tables.

Change in the seating area:

Akbar’s restaurant is two floor restaurants but as per rules and regulation the first floor is

only use for big parties and weeding purposes only, and the ground floor is for day to day

customers. So most of the time, the upper floor of Akbar’s restaurant remain vacant. When

the problem of seating capacity happen every weekend, then the branch manager talked to the

owner of the business regarding the same, and then they took permission for running

restaurant on upper floor also, and finally they renovate the first floor for customers.

Planning

Planning is most important thing before taking any action in any field and especially in

restaurant sector, because if the customer are dissatisfied with the change the result will be in

negative towards sale of the restaurant.

Supervision

Adequate supervision makes the changes more accurate and towards the objectives of the

organisation.

Maintenance of Standards

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Maintenance of Standards is also important in the big organisation and where health and

safety comes on priority, as Akbar’s is five star restaurants in respect of Health and safety,

maintenance of standards are necessary.

Implication:

Akbar’s restaurant is now opened second floor for day to day customers also and for big

parties also, they have opened a bar also upstairs so that customer won’t bother about drinks

and all those stuffs.

Strength of Change

Waiting time for getting table has go down

Bookings party get there table straight away, upstairs.

Waiters also get shy of relief from fast work.

Customers also get full time to have dinner

Cashier and managers work comfortably.

Weakness of Change

Big investment

Extra Employees

Look out both the floor at the same time.

Have to install lift for handicapped and old age people.

Fourth step for Changes:

Type of Change in Communication

Communication problem is one of the big issue in Akbar’s, on weekends the restaurant get

too much busy that manager is unable to look after kitchen staffs and reception as well as first

floor customers .As kitchen is like an engine of any restaurant, breaking communication

problem with that may cause any mistake.

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Change in Communication:

Akbar’s restaurant has introduced new equipments to the staff ‘Walky- talky’; it is a device

which works like a mobile in hundred meter area. One set of this is given to Receptionist with

the ear plug, same of this given to one of the kitchen staff and two devices with the two

managers of Akbar’s.

Fulfilment of Objectives:

The first aim before taking any action is to indentify that, particular innovation of changes

will fulfil the objectives of the organization.

Trail of technology

Trail of the new device or technology must be done before putting that device in to regular

uses.

Implications:

Akbar’s restaurant, now use this equipment and have gone for trial also and find that this

walky-talky is fulfil their objectives. It is a device which is electronically charge every day so

that, a person can move anywhere in premises without the problem of wire. It is use to talk

with each other in busy time.

Strength of Change:

Communication between all the major sectors of restaurant.

Effectiveness in work also.

Easy to manage from anywhere

Less hard work

Weakness of change:

Investment

Extra care of devices

Chances of damage

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Result of changes:

Asians Boro(British) Britishers Others0

10

20

30

40

50

60

70

Customers Feedback

KababishAkbar'sOthers

This chart gives an idea about the customers like Akbar’s restaurant food and services as

compare to Kababish and others Asians restaurant in Middlesbrough. Maximum people of

different origin love to have food in Akbar’s.

Recommendations:

Akbar’s performing well in Middlesbrough; it should expand their business and open

a new branch in Newcastle also.

Alternative of setting off employee should be implemented.

Waiting section should more big.

Timing should be specified in serving food and drinks

Several Occasions must be celebrated in the restaurant so that people are more aware

about restaurant.

Home delivery of Food facility should start.

Parking space should be more spacious.

Conclusion:

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Thus we have analysed each aspect of change in management in Akbar’s restaurant. By

summarized all the above theory, we have got following conclusion

The changes are effective in every organisation but raising the performance also

matter allot in the practical for smooth running of business.

Changes must be done for raising profit of the company, and raising goodwill of the

company in the market.

The effects of the change can be use for the development of new market culture, and

these changes can highlighted in marketing strategy or in any restaurants.

The main objective of change is rapid growth of business and in terms of services

also.

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References:

Geoge and A.Ullrich, Organization. Behaviour, design and change, First AdditionRichard d. Irwin Inc 1976

David C Wilson, A Strategy of Change David, 1992 by routledge

Managing People and Technology Change John Bailey publishing pitman 1993

Ronald j. burke (2000), the organisation in crisis, Second Addition, cooper Blackwell

publisher ltd

Jim Stewart (1991), Managing change through training and development

Harrison & St .John, Foundation In Strategic Management, International Thomson

Publishing Company.

Akbar’s restaurant, http://akbars.co.uk/ (Accessed on 22/03/2010)

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