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
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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