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Navigating Change at Red Carpet LLC
A review of Red-Carpet LLC's scenario highlights that the company needs significant changes to overcome its current challenges and leverage existing market opportunities to maintain its competitive edge. After the acquisition of Sparkstar Theatres, the changes are necessary. The human resource department (HR Department) needs to adopt a strategic approach
to ensure the employees are adequately prepared for the changes in the company structure. The meeting with Leroy, the VP of HR, and other organization members is a vital platform to discuss the nature and scope of change needed for Red Carpet.
In my opinion, transformational change will be effective for Red Carpet. The changes the
company is undoubtedly experiencing are not just operational and procedural shortcomings but are deeply rooted in the organization's culture, structure, and strategic direction. Kraus et al. (2021) confirm that transformational change disrupts embedded organizational structures and values, making it an effective option in the case of Red Carpet. If the change is effectively implemented, it will positively impact redefining the organization's identity, culture, and operational model for successful integration of the recently acquired Sparkstar Theatres. The organization currently faces challenges of internal politics, poor HR practices, underperformance
of employees, and disruptions in the supply chain. The comprehensive nature of transformative change will perfectly address these challenges by transforming the company's business model.
The change process should be inclusive and engaging for all employees. Initially, the top management, including the VPs and other people in top positions, may draft the changes and the execution plan. However, before its implementation, the workers should be given time to review the draft and suggest changes, adding value to the proposal. Involving a cross-section of employees from all departments will ensure fair representation of the departments. This should include general managers, frontline employees, HR representatives, sales, marketing, and R&D. An inclusive approach to change increases commitment to change and reduces resistance (Peng et al., 2021). Additionally, involving many employees introduces diverse perspectives to the change recommendations.
Red Carpet should have a clear communication plan for all employees to begin the change process. The company should explain the reasons for the change, the expected outcomes, the time frame, and each employee's role in the change process. Feedback should be taken seriously, creating an environment where employees feel valued and in a safe space to express
