Kentucky Fried Chicken was founded by Colonel Harland Sanders in Corbin, Kentucky. Sanders was born in a small farm in Henryville, Indiana, in 1980. Due to family problems he left the home and school at the age of 12 and started to work in a farm for 4 dollars a month by the time he had reached 15 he left that job and started doing variety of jobs like painter, ploughman, streetcar conductor, insurance salesman, service station operator etc. (http://www.fundinguniverse.com).
Sanders always loved cooking. He was good in cooking pan fried chicken, country ham, fresh vegetables, and home made biscuits which his mother taught him during his childhood days. Years after, the demand for his cooking rose and he moved across the street and facilitated a 142 seat restaurant, a motel and a gas station and it was named as Harland Sanders Court and Café. . During the 1930s Sanders became popular. He was named as "Honorary Kentucky Colonel" by the state governor. By that time he had developed a unique quick method of spicing and pressure frying chicken. Due to his regional popularity, the Harland Sanders Court and Cafe received an endorsement by Duncan Hines's Adventures in Good Eating in 1939. ( Hameed 2008).
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Latter on the company was very famous for its excellent expansion plan; franchising. However as time passed by there were lot of mistakes that was done by the organisation. With the onset of recession things became more worse for the company.They faced stiff competition from other returants like McDonald's and Subway. As these companies had pre planned strategies to face the deteriorating economic conditions. Moreover KFC only served chicken products there was no variety to choose from. This turned out to be a major weakness for the organisation and a stupendous opportunity for the rival firms. Apart from the big resturants, even the small chicken shops gave a tough competition to KFC with their cheap menus; which was very attractive during the economic down turn.These allowed other food courts to make their way to the top. The complete external enviroment changed dramatically resulting in reduced sales for the famous KFC. It was at this time that they company considered change.
Every organisation differs from the other in its style of mangement and structure. Organisational structure is based on the way in which there are interactions within the organisation. There are different types of organisation structure.They are
Characteristics of Bureaucratic Structure/Mechanistic Structure:
In this kind of organisation everything works as per the written rules.
It has a typical pyramid shape with diffrent levels. Flow of information is always from the top to the bottom.
Rules and regulations are very stringent.Utmost importance is given to the achievemnt of goals and objectives.
This kind of organisation lacks a humanistic approach.The work is divided with strict regulations to be followed.
There is no flexibility given to the employees.
There are fromal and strict communication and work atmosphere.
More over promotions and other appraisals are based completely on skills of the individual (H.E.Aldrich,2007,p9-13).
Such a structure is very good for an stable environment. But the current market scenario is completely different. The consumer demands and external environment are changing rapidly hence the having a mechanistic structure is not profitable.
Demerits of Mechanistic/Bureaucratic Structure:
Such an organisation cannot survive in an complex and unstable market.
Decision making process is very complex and time consuming.
They have very limted communication channels and hence ther can be misunderstandings.
They are too rigid which will result in perishment.
The employees are not treated well and their coopeartion will be less.
Since there is strict divsion of labour employee talent can be exploited.
Such organisation are less adaptive to the market trends.
They cannot survive cahnges inth external environment.
They cannot quickly respond to changes.
Power is centralized which causes lot of discontent.
They cannot take advantage of spontaneous opportunity.
CONTIGENCY THEORY AND ORGANISATION STRUCTURE:
This theory states that all the variables within an organisation have a effect on each other. Hence if any one variable changes its effect causes a misfit within the organisation. Then the organisation attempts to make a structure that fits its contigency level. Thus we can safely conclude taht a change in the contigency causes a simultaneous change in the organisation structure. Thus making sure that the orgnisation fits in accurately at any given point of time. As opposing to a buereacratic structure which strictly follows the rules and regulations. Contigency plan prepares the organisation to be in a state were it changes itself according to the changes in the surrounding. So this reduce the problems taht are caused due to buerecratic structure. (L.Donaldson,2001)
ROLE OF STAKE HOLDERS:
Always on Time
Marked to Standard
Stakeholders are the sole reason for the exsistence of business. Hence its very important to keep them informed and updated about any activity within the business. They are the one who should be equally aware and responsible for any change in activity within the organisation. This is very important because the consequences of the same will be affecting them. There are many ways in whic an organisation can involve its stakeholder's in the change process.
Involve the employees of the organisation by asking them to take part in developing an action plan to bring about a change.
Ask the employees to be a part of the meeetings and sessions conducted to plan change.
Involve customers by conducting survey's , which asks them their opinion about the changes that they would appreciate.
Ask the customers to rate the various services within the organisation so as to identify their priorities.
Develop groups involving managers and employees taht are incharge of the change.
Effectively communicate the need and strategies taht are set up to bring about change.
Communicate efficiently the effect of change to all the stake holders.
Suppliers should also be well informed about the upcoming change within the organisation as they are the key stakeholders of any business.
Make the goals and objectives clear to all the stakeholders.
Make the stakeholders responsible for the achievement of the same.
Reward or recognise the employees on any achievement that is made.
Remove fear from the mind of the individuals.
Keep the satkeholders well informed so as to avoid surprise situations. That cause restlessness.
Another important fact to be kept in mind is that change cannot be implemented everyday. As this develops a wrong attitude in the mind of the stakeholders. (S.E.Jackson,R.S.Schuler & S.Werner,2009,p101-103),
Source: Adapted from J.P.Kotter(1996), Leading Change, p21
Stage 1 Establishing a sense of urgency:
The first stage in this process is creating a sense of change among the stakeholders. This can be done by assessing the market requirements and to gain competetitive advantage. To take advantage of the new opportunities those have emerged in the market.The stakeholders should be explained in detail why the organisation is considering a change.
Stage 2 Creating The Guiding Coalition:
This step involves developing a group of people who can lead the change.While developing this group care has to be taken to involve at least one individual from every stakeholder group. The group has to have influential and responsible people who can work together as a team and successfully bring about the change.
Stage 3 Developing A Vision And Strategy:
To bring about a change efforts have to be made to plan the change accurately.This is one of the most important steps were stakeholders should be actively involved. While devloping a vision or startegy make sure that the opinion of the stakeholders in taken into consideration. Once the plan has been developed then strategies have to be developed to achieve these plans.
Stage 4: Communicating the Change Vision:
The best way of implementing a change is by explaining the need for a change to all the stakeholders by using all the channels of communication. All the employees should be explained in detail their specific roles in a change process thus avoiding any misunderstanding or overlap of work. This will also help reduce the wastage of energy. The management and the various departments within the organistion should make a combined effort to implement the change.
Stage 5: Empowering Broad Based Action:
This step involves removing all the factors that act as a barrier in bringing about the change. These factors may be resistance by the employees or no support from the suppliers and so on.Encourage people to use new methods to do the work and get rid of obsolete methods of handling things.Explain to them how benefical the new changes will be to them.
Stage 6: Generating Short Term Wins:
Setting up small targets that have to be achieved and which will help in achieving the main goal. Reward on the achievement of targets and recognise the efforts that have been put into doing the same. Thus motivating the employees to work more zealously towards implementation of the change.
Stage 7: Consolidating Gains and Producing More Change:
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Achievements of all types should be rewarded and the employees should be given recognition for the work they do. This can be done either by promoting them, better wages, and more responsibilities. Thus motivating them to actively participate in the change. . Introducing new change agents that exhibit greater potential
Stage 8: Anchoring New Approaches in the Culture:
Improving the overall performance by creating good leadership, enthusiastic work force and effective management. Making the changes that been developed permanent. Ensuring that the change results achieving the desired goals. Train the workforce to have an attitude that is always focusing towards the success of the organisation.
Thus if we involve stakeholders at every level bringing about a change will be more smooth. A there will be greater chance of success. Less of hassels will be faced bythe organisation to achieve its goals and objectives.Henec while develpoing systems to bring about a change aslo make sure to employee all the individuals who will be affected by the change.
THEORIES ON CHANGE MANAGEMENT
There are many theories on change management given by various authors. These theories guides us to manage change within an organisation in a manner that it will help improve the current scenario of teh oragnisation. The most famous change management theory is given by Lwein and Lippit.
LEWINS THOERY OF CHANGE:
Miner J.B 2006, has looked into the work of Kurt Lewin, Kurt Lewin was a famous psychologist, he is well known for his contribution into the change theories. According to him change occurs when there is no equilibrium between the force opposing the change and the force supporting the change. He has given a more detail explanation to manage change within the organisation. This model although very basic, helps to understand the main concepts involved in bringing about a change. There are three steps involved in this process
Unfreezing: This stage is the most difficult stage in this process, as at this stage the people have to realise the need for change. This is very difficult as a getting person to believe that a change is needed is a difficult task. This can be done by educating them about the need for the change, by involving them in the change, explain them how profitable the change will be for the individual and the organisation as a whole.At this satge KFC will have to discuss the current issues that are faced by them to the employees and the stakeholder's. Thus making them aware of the need for change.However wjile discussing the issues with the stakeholders they should be assured that this is just a passing phase and will be over come soon.
Moving: Once the first step is successfully implemented, then the change has to be implemented.At this step the stakeholders of the organisation should be made aware of the change that is to be implementd..During thi sstep the company will face a lot of questions and resistance. This stage will implement properly only if the earlier step has be convincingly implemented. Thus the people are prepared to accept the change , and minimum opposition is faced. This is the most crucial step in managing change within the organisation.
Freezing: At this step once the change is introduced the people are trained to get habituated to the change.Once the company reaches this phase all they will have to do is get the employees to use the new techniques. By regularly making them use the new techniques. Thus as time passes by the new change becomes a part of their behaviour and is fit into the system.(Miner.J.B,2006 )
LIPPITTS THEORY OF CHANGE:
Phase 1 Diagnosing the Problem:
This is the first step in any change management theory, unless the need for the change is analysed there is no way that a change can be brought about. Similarly till there is no realization of a problem no attempts would be made to find a solution. In this phase KFC will have to identify the weak area with in the business.
Phase 2 Assessing the motivation and capacity of change:
In this step he says that before introducing a change it has to be measured how prepared the people are for accepting change; as accepting a change is not a very easy for all. Once the problem areas are identified then a rough plan has to be developed to find solutions to these problems.More over while planning a change the capability of the organisation has to be taken into account.Hnece based on the rough plan KFC will have to assess wehther they have the potential to carry out the plan successfully. KFC will have to check the availability of space, labour,skill, finance and technology for implementing the change.
Phase 3: Assessing the change agent's motivation and resources:
Once the above two steps have been done properly. Then there is a need to appoint change agent a person who will lead and guide the change. In case of KFC the change agent should a person who is well connected to all the stakeholders.This will make the whole process of change a lot more easier and faster. The person who is a change agent has to be well prepared and motivated to face obstacles that are in the way.The change agent in KFC should be well aware of the staregies that are going to be implemented. The reason behind this is they have to motivate all the people in the change process.
Phase 4: Selecting Progressive change objectives:
As the change is planned there are objectives that are planned which have to be met with. These are like smaller milestones that have to be overcome while acquiring the final goal.
Phase 5: Choosing the appropriate role of the change agent:
The Change agent is like a leader who tactfully manages the change throughout the entire process. As there can be conflicts or friction among the human components. So the major role of the change agent is playing the role of a facilitator.
Phase 6: Maintaining the change:
Once the change implementation is started, efforts should be made to maintain this implemented change. This can be done by regularly practising the new change. Collecting a feed back about the effect of the change keep track whether the change is yielding the desired result. If not suggest measures that would direct the change properly.
Phase 7: Terminating the help relationship:
In all the phases the lead role is played by the change agent, in this phase the change agents role should be completely removed. So that the organisation now can function normally accepting the change and implementing it proactively.(Roussel and Swansburg, 2009).
Thus if KFC manages to follow either one of the theories for improving its current strategies they can easily survive in the market. However there are ceratin areas that have to be supervised while implementing change.
IMPLEMENTING CHANGE EFFECTIVELY
Allowing too much complacency:
A common mistake made by most of the organisations that did not achieve success in the bringing about a change. The major reason for this is that they have not planned the change accurately. They have not developed a sense of need among the managers and employees to incorporate a change as it comes. Hence these main components of the organisation are not prepared to handle the change, as they not aware of the necessity of a change.
Failing to create a sufficiently powerful guiding coalition:
Bringing about a change is not a effortless task. The effort required will be a lot, as we have to completely reengineer the existing system. For such a job it requires all the expertise to be drawn in so as to deal it successfully. This means a committed dynamic team of people with all the skills has to be formed that can lead the change through all the phases.
Underestimating the power of vision: Working without a vision is like, walking on a road without knowing where you want to reach. A vision is like a force that keeps you motivated to work towards its achievement. When the vision is strong, it helps in keeping the team on track. It provides guidance to the team to work in the right direction. A strong vision maintains the enthusiasm among the workers to work zealously to achieve the goals.
Under communicating the vision: A change cannot be successfully implemented until, there is support from all the members in the organisation. This support can only be gained when all the members can relate and accept the change willingly. Communication is the only way in which all the support can be gained from the members of the organisation. The best way of doing this is by using all the channels of communications to explain the vision of the organisation. Communicate to them how important this vision is for the organisation and it will help in development of the employees. The profitability of the vision should be well explained. The members should be explained their roles and responsibilities accurately.
Failing to create short term wins: It is only human to get reward for the efforts that have been put in. If the efforts or hard work of the people are not realised, they tend to get de motivated to work efficiently. Hence it is very important to recognise the work done by the members and reward them for the same. Thus they get motivated and encouraged to work harder to achieve the goals. They also get a feed back that they are on the right track and that their work is being observed and appreciated.
Declaring victory too soon: One of the most common and general mistake that is committed by the organisation. Once the change is incorporated, this change has to be practiced regularly. So that the new change becomes a part of the system. But many a time's organisations make wrong anticipation about the change. This is a major fall for the organisation as all the efforts that have put in till now are gone in vain. Hence it is always wise to spend excess time training the people to manage the new change and confirming the change is complete before moving ahead. (Kotter.J.P, 1996).
These are some of the points that have to be dealt with great care so as to avoid any relapse and successfully implement the change. Thus it can be noticed that implementing a change is not a difficult task if it has been done with a lot of planning and care.
EFFECT OF CHANGE ON KFC:
A change in the pricing startegy will have a positive effect on KFC.
A new range products will attarct new and retain old customers.
Use of loyalty scheme will result in higher sales.
Introduction of the breakfast menu will generate more revenue for the organisation.
Use of innovation in all the aspects of the business will be benefical.
Use of new marketing stategies will help in serving a greater customer base.
The company can compet efficently in the market.
The comapny will genearte more value to the satke holders
The company will expand its business in a more cordial manner.
The company can face the changes in a more appropriate manner.
Using the change models will aslo prepare the companyto welcome change ina more positive way.
As mentioned in the start of the assignment, change is the only thing that is constant. Every organisation that has reached great heights in their perspective business. Has always welcomed change with startegies that have not only hleped them to improve their performance but also set up a better business.Thus we can conclude that if any organisation refrains from change they leading on apath to perishment. Its not only important to accept change but aslo to manuver it in a way that earns more revenue for the organisation. The corporate world is full of competition on the best can survive, and to be the best one has to continuously change with demands of the market.