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Introduction
Perhaps, every organisation
wants to initiate a management system and strategy that could maintain the
organization’s capability, strength and competitiveness. It is important
that the management team and the organization per se should always open
their mind for changes that they might encounter in order to cope and
adapt to the latest development that are happening within and outside
their environment. With the constant changes in this world and with the
tremendous growth of technologies, many people especially those in the
organization find themselves normally adapting. This is because change
can bring many improvement and development in certain aspects. In many
ways, change can make work easier, pave the way for future innovations or
generally improve people’s lives. Similarly, change has been adapted by
various work organizations for varied reasons.
Known as change
management, companies, businesses and organizations are integrating change
into their work system so as to be competitive and be more efficient in
satisfying clients or customer needs. According to Carlopio (1998, 2)
change may be referred as the implementation of an innovation, in which
the vital role is to improve output through an adaptation of practices.
Nevertheless, the process of change is multifaceted, with its different
approaches possible. Moreover, there are many strategies for its
implementation and that the success of the chosen strategy is considered
as the most valuable.
In an
organisation, changes in management system, operations and other important
activities is necessary particularly when the management has encountered
problems with their current systems or they wanted to implement such
change everything for enhancing and improving the overall performance of
the organisation.
Internal or external drivers are the factors that force changes (Yee,
1998), innovations may be done at different level in the structure of any
organization (Swenson, 1997) and that reforms may be universal or limited
(Reigeluth, 1994) in nature. Internal drivers for change could include
evolving business requirements, organizational restructuring or revision
to corporate strategy/business objectives. External drivers could include
developments in technology, economic trends that affect the
profitability/value for money of the relationship and the need for
electronic or technical service.
Management of
change can be considered as a primary activity in realizing the goals and
objectives of any organization, even as implementation is the sensible or
physical steps of employing an innovation. Individuals and their
relationships are regarded as the major components to its successful
execution, and sustainable mechanisms are needed to achieve the
development and improvement in its procedures. The recognition of
sections for improvement is the first level of the process of change,
followed by the integration of plausible solutions to address conflicts
and issues that are being identified. Actions in these sections are being
held independent of position within the organization.
The primary
purpose of this paper is to provide insights about the change management
process in the chosen organisation which is located in Bahrain and
evaluate the resistance occurred with the said changes as well as the
strategies used to solve it.
Overview of the Company
McDonald’s has a rich
history that started out in 1954. The company was put to the spotlight by
Ray Kroc. Throughout the years, marketing ideas have poured through and
helped the company become one of the most renowned fast food brands
globally. The trademark design for the fast food was carefully studied and
it came with a happy clown character known as Ronald MacDonald (McDonald
Corporation 2005). The Big Mac and the Egg Muffin have been some of
McDonald’s most innovative products. In terms of marketing, the happy meal
approach was also a creative as it entices children to eat at MacDonald’s
because of the toys they can get. Today, McDonald’s is also on the
Internet bandwagon, providing information to people all over the world
with a click of a mouse (McDonald’s Corporation, 2006).
As mentioned,
McDonald’s operates a total of 30,000 fast food restaurants around the
world in 119 countries including Bahrain. The McDonald’s branch in Bahrain
are owned by Bahraini and operated by Mr. Adel Fakhro of the Bahrain
Restaurants Company. The company has nine branches in the country. The
first McDonald established in Bahrain opened on December 15, 1994. From
then on, the company has been working to integrate the employees of
Bahrain into the workforce of McDonald and became an essential part of
communities in which it is located. McDonald is also known to provide
Bahraini clients with the great experience which they have come to know
and love.
McDonald's restaurants offer
a substantially uniform menu, common in the usual fast foods. This
includes hamburgers, cheeseburgers, chicken sandwiches, French fries,
salads, milk shakes, desserts and ice cream sundaes. The company’s top
sellers, and can also be considered as innovative ones, include the Big
Mac, Quarter Pounder with Cheese, the Filet-O-Fish and Chicken McNuggets.
The customer target of McDonald’s is usually children or young
people. In fact, McDonald’s already entered the children’s wear market.
The new McKids products include footwear, videos, toys and casual clothes.
The most recent products of the company are the Salad Plus.
McDonald’s is among the most
popular fast food brands in the world. Started out in the fifties,
McDonald’s now boasts of operating, franchising, and serving a worldwide
chain of around 30,000 fast food restaurants that prepare, package and
sell a menu of ready to eat foods. Specifically, it has branches in
Bahrain which is regarded as one of the most popular food chain in the
country (Elliott
2003).
However, despite of the
established brand of McDonald’s Corporation and contrary to its previous
achievements; it seems that there is a need for the management to redefine
its image. The current growing and bustling population is obviously
different from the population of the previous decades in terms of health
and nutritional attitudes and behaviours (McDonald’s 2005).
Today, People are more
concerned with their health and figures than ever before. Obviously, the
reason for this increased awareness is because of the fact that
information is everywhere and every reports and research about diet seem
to link fast foods with the growing number of fatness. Furthermore, there
is also a number of emerging diet programs that promote and encourage the
public to be figure conscious.
This would be a problem for
McDonald’s because it has already gain the reputation of a fast food that
continuously provides greasy unhealthy food while competitors have already
made measures to reduce fats in their products. The company needs to do
something about and shift its positive image back. This calls for a new
integrated marketing communication plan that should be appealing to
current customers. The campaign should make the McDonald’s brand as
something that is irresistible, then followed with the information that
its products are already health friendly. In this approach, positive
changes will be made (Clow & Baack 2004). As the management realise these
innovation or needs, McDonald decides to implement such changes the
soonest possible time.
Scope of the Changes
The scope of this change for McDonald is limited to the implementation
of Integrated marketing Communication (IMC) as part of the marketing
strategy of the company. In this innovation, the critical area that had
been given attention is the advertising and promotional campaign of the
company. Generally, advertising or promotional campaigns are regarded as
an open sponsorship of offering products, services and any ideas through
the use of any mediums of communication. In this regard, there are
different kinds of media which are use for advertising and promotional
campaign purposes. Basically, in this new IMC theme, the focus will be
heavily on advertising and sales promotion. Specifically, this change will
give emphasis on the Integrated Marketing Campaign (IMC) as part of the
marketing strategy of the company.
Integrated Marketing Campaign
aims to adopt a new health-conscious sub-image that would be consistent
with the latest trend of health awareness and the growing concern in
obesity among children and target market. In addition, its goal is to
introduce the adoption of a new, separate low-fat menu for children,
intended to counter the growing bad publicity being thrown at McDonald’s.
The company is also aware that this kind of strategy which gives
importance to the health of consumer would effectively inform both parents
and children about the nutritional value of new, ‘soon-to-be called’
McKids Meals, and how they are different from the traditional McDonald’s
meals. In addition, the innovation of Integrated Marketing Communication
that would be implemented may be able to provide an effective advertising
and public relations campaign that would successfully introduce the new
McDonald’s to the public.
In order to execute such
innovation, the company has been able to organise a team that would handle
all the essential matters related to this change. Further, the company
also placed the nutritional content of their meals with the McDonald
(Bahrain) website. The focus of this change would be on the sale promotion
and advertising, not to mention other marketing mix which would be
included to make this innovation or change successful. Today, McDonald’s
varieties of menu for kids had faced criticism, most especially in terms
of its nutritional contents. In order to change the public image of the
McDonald, the Integrated Marketing Communication has been implemented.
Integrated Marketing Communication is a technique for ensuring that a
company’s mission and vision is being highlighted in every advertisement
or promotion that will be adopted.
Change Resistance and their
Plausible Solutions
It cannot be
denied that changes attract different conflicts before, during and after
its implementation. These conflicts or resistance are attributed as the
main reason why changes can be successful or just a failure. These will
lead into failure if the management of the organization does not employ
solutions to avoid or totally prevent such conflicts and it will lead to
success if such conflicts will be given enough attention and proper
solution. Thus, the managers need to have the necessary abilities not only
in detecting what needs to be changed but also how to introduce the change
effectively.
The changes have been
implemented for enhancing the promotional and advertising campaign of the
company and to make the company more competitive and adjust the
organization to the existing changes emerging with its internal and
external environment not bring it to its downturn. With the change
management process implemented by McDonald, there are certain resistance
or conflicts that have been encountered. The following are resistance
faced by McDonald and its plausible solutions to be taken: perception or
reaction of McDonald’s employees and customers, McDonald’s organizational
culture and absence of support.
One of the
resistances that occur is the reactions of the company’s employees and or
customers. Although there are employees who are in favour of the changes
for example in using Integrated Marketing Communication, some employees
and managers are not in favour for such implementation. Some managers
and employees resist the changes because of the fear that it won’t help
the company with the problem or it may worsen the problem. In addition,
the people that implement the Integrated Marketing Communication might not
have enough knowledge to resolve the malfunctioning of said approach.
Moreover, due to the fast
paced of technological advancement nowadays, specifically in the
information technology, the computer units put in the offices of the
company might be depreciated as part of the marketing campaign
technological facilities as time goes, thus may add to bigger problems.
The employees are not the only one who can have negative perception for
the change within the organization, the customers of the company might not
have a positive reaction towards the new campaign, thus may lead to
another conflict, since the clients should not be able to cope with the
changes and may result of not achieving the core objective of the change
for McDonald as a whole. Another resistance is the company will have
shortage in their qualified personnel that would sustain the
implementation of the changes especially employees who will be assigned
for maintenance crew who is responsible for maintaining the capability of
the marketing communication approach.
In strategic
implementation of the innovation there are barriers and enablers which are
attributed as the main factors for the success of the implemented changes
or not. Barriers may include different resources which may not be
available for the innovation process. These include the organisational or
stakeholder resistance to change, shortage in financial budget,
ineffective used of communication media. One of the conflicts that may
arise in the implementation of change in an organisation is the absence of
support in sustaining the success that can be achieved in the process.
Innovation is a social process that should be undertaken in a continuing
phases and not just a decision event (Carlopio, 1998). Thus, those
involved in the change process must undergo learning experiences in order
to appreciate the objectives of the change. These forces are the ones
attributed which may hinder strategic implementation of the innovation
within McDonald. Lacking of one of these barriers, or inability to handle
these barriers effectively, the company may not be able to implement the
Integrated Marketing Communication as part of its marketing strategy.
In order to solve such issue,
the management of McDonald or the one who have implemented the change must
be able to ensure that these negative responses must be deteriorated by
providing the McDonald employees, staff, and customers their demands.
First, as the these University members uttered that one of the problems
they might encounter is the deterioration of the modern technology used,
the managers must provide a technology that can last much longer, a system
that guarantees a long lasting functions.
Secondly, since there would
be a problem among the students and faculties, the administration must be
able to assure that the information are being disseminate properly to
their members and that the information given is complete and
understandable to avoid confusion among the entire University members. And
lastly, with the problem with the shortage of enough personnel that will
handle the implementation of such change, the University administration in
cooperation with the Officer in Charge must provide a follow-up program to
conduct training and development for all their staff that would be
involved in the said changes.
The cultural differences of
the members of the company may have the tendency to create inner
conflicts. Due to cultural differences, the McDonald members may not
function harmoniously thus making the implementation of change be more
complicated. In addition cultural differences may lead to another
conflict within the company as an organization due to arguments and other
conflicts that might be created. When assessing the interaction between
culture and empowerment, the administration and management of the
management of McDonald must be able to identify and understand those
subcultures that might engender a work environment more or less empowering
than the larger organizational system (Wilkins & Dyer, 1988).
In order to solve such
problem, the management of McDonald should be able to develop a thriving
organizational culture and a stronger organization by good management of
the stakeholders, providing their needs and the things that they deserve
in order for them to be motivated for their sake and for the company’s
sake as well. In addition, elements such as work processes, organization
design, career path, performance management and a compensation program are
part of human capital management strategy and a plan to ensure continuing
success. The change management process imposed by the company must have
been seen that they may also encounter problem with some of their
customers.
Also, in managing people
with different culture, the human capital management of the McDonald
should also incorporate a governance process to ensure equality among
employees. Hence, even though managing people in organization is the most
difficult responsibility to be taken, it is also the most challenging part
that if given enough attention, focus and consideration, this would
enhance the employees loyalty and hard work that may not only benefit them
but as well as the organization may it be a non-profit or a profit
oriented organization. In general, people can give more than what is
expected if the management were able to provide them extra hand and minds
and if the management give them extra time, extra information and extra
people in order to do their job properly.
One of the
conflicts that may arise in the implementation of change in the University
is the absence of support in sustaining the success that can be achieved
in the process. Change is a social process that should be undertaken in a
continuing phases and not just a decision event (Carlopio, 1998). Thus,
those involved in the change process must undergo learning experiences in
order to appreciate the objectives of the change.
In order to solve such
conflicts, the management of the of the University must be able to see to
it that the objectives and the purpose of the change have been
disseminated properly and that all the employees and stakeholder must know
that they are important in making such change successful. Hence, the
management must have the ability to foresee all the possible problems that
might be encountered that would hinder the employees and other involved
authorities to support the change that would be implemented.
Recommendations
The success of the
innovation is still uncertain in a sense that shifting the attitude of
children about healthy fast food meals can be difficult. However, because
of the campaign’s strong encouraging characteristics, there is a strong
chance that it will be successful. Furthermore, the new advertisements for
the new image of McDonald’s will penetrate all types of media to make sure
that message will reach every single children in the 119 countries the
company serve. Also, it is the parents after all who buy children their
food. Thus, with all the image building that will take place, it is hoped
that the new advertisements and the new theme “I love it even more!” will
encourage parents to encourage their children eat healthy meals. The
campaign will also help in silencing the critics of the company because at
long last, strong emphasis on health concerns is being advertised in a
‘kiddie-friendly way.
Innovation
is the introduction of new ideas, goods, services, and practices which are
mainly intended to be useful (Kuhn, 1993). Economic planners now advertise
innovation as the route to technological fixes to the crises of capitalism
and it is a central element of many policies to increase competitiveness
at corporate and national levels. Whether innovation is mainly
supply-pushed that is based on new technological possibilities, or
demand-led, based on social needs and market requirements, has been a
hotly-debated topic. One point of view is that recognition of demand is a
more frequent factor in successful innovation than recognition of
technical potential.
Changes or innovation
in business is achieved in many ways, with much attention having been
given to formal research and development. But innovations may be developed
by less formal on-the-job modifications of practice, through exchange and
combination of professional experience and by many other routes. The more
radical and revolutionary innovations tend to stem from R&D, while more
incremental innovations may emerge from practice - but there are many
exceptions to each of these trends (Lundvall, 1992).
If McDonald will be
able to carefully plan such innovation and use strategic and effective
tools to implement such change, there is a greater possibility that the
company will achieved its vision of a food industry that provides a
health-conscious sub0image which is consistent with the latest trend in
health awareness today and for the future.
Conclusion
According to Beverage (2003)
the management leaders must be willing to keep their fingers on the pulse
of the organization, by monitoring what is working and not working in the
process of the organization change. In order to implement the strategy of
change effectively and successfully, the management must create s safe
environment for changes, reassure, support, and commitment on the
organization.
Therefore, it is concluded
that, changes of management is not bad as long as the changes made can
really enhance the competitiveness and strength of an organisation. It is
effective, if and only if, a thorough investigation and evaluation of the
organization’s performance has made. And if the study suggests that there
is a need for change, then that is the only time, the organisation should
imposed required changes to be done. Because, change of management system
is very critical or crucial, one wrong move, the company, might faced its
biggest downturn instead of strengthen and expand its business portfolio
and survive to the stiff competition in the business arena.
It is recommended that
McDonald must see to it that the changes are well planned and implemented
carefully, because these will the basis for the success and/or failure of
any organisation. |
