Structure Change at Royce Consulting

Problem Identification:

The prime task that has to be carried out by Royce Consulting is to shift their present permanent and personal desk office system to hoteling office system. The main problem for achieving this objective is the resistance by the managers of the firm.

Royce Consulting is trying to bring this structural change to its office mainly because of the following vital factors:

a. Offices become empty from 40 to 60 percent of the time

b. The cost of real state is continuously increasing

c. From the growth projection in near future of this firm, they expect that they would need more space for new employees to support the increased business

So, the firm evaluates the situation how to minimize the cost while business will grow as per predictions and targets. From option analysis, they conclude that hoteling system office will save $360,000 per year and a one-time expense of $410,000 over their present office system.

The salient feature of the hoteling system office is needed to describe to analyze the roots of resistance from managers against the proposed changes. They are as below:

a. No permanent office assigned for any manager

b. Offices are scheduled by reservations

c. Long-term scheduling of an office is feasible

d. Storage space would be located in a separate file room

e. Hoteling coordinator is responsible for maintaining offices

f. Managers would have to bring in whatever files they needed for their works

So, we will see in the analysis section how these six changes among from many changes pose dissatisfaction and raise their resistance against the change.

Analysis and Evaluation:

The major factors of the new office system that lead managers' resistance are most five factors as discussed below.

a. Managers are losing their permanent desks, private office and habits

b. Since offices are scheduled by reservations they are in problem when managers need to work for contingency and unscheduled time with clients. Manager may need to stay outside for whole-day for an unscheduled work but if he made a reservation & didn't return on office. What will happen if another senior person wanted for the same office but he was not assigned?

c. Long-term scheduling is also same problem as in above point

d. Files are located in separate room and they are not familiar with that system

e. Coordinator