1. Why do the managers at Royce oppose the “hoteling” concept even though it is financially the superior system?
2. How does the organizational culture affect this situation and this decision?
3. If the partners to ahead with the plan, what would you predict will be the outcome?
4. Based on your analysis, what recommendations would you give to the partners?
Royce Consulting is considering some changes that the staff seems to like, but that managers are opposed to. One change regards the assignment of offices. Since managers often work at client sites, the proposal is a “hoteling” system in which mangers would schedule an office for when it its needed rather than having a permanent office assigned to them. This would take advantage of the fact that offices were frequently vacant, but would require a change in work patterns and would require managers to keep their files in a centralized file room. Another change is to upgrade to state-of-the-art electronic office technology using notebook computers, proprietary software, and an electronic filing system.
Royce had developed a very stable and well defined culture that was taught to all new hires. The norms included high performance expectations and strong job involvement. All managers were expected to be professionals and behave in a professional manner. The company was very client-oriented and the management style was directive.
As Royce projected further growth and staffing needs, a need was seen to improve on space unitization and manger productivity. A feasibility study was conducted and it was discovered that the partners generally supported the plans for change and felt that managers would follow their leadership. Most partners and managers did not want their files centralized, however. The managers also opposed the “hoteling” concept since they had worked hard to become managers and have an office of their own. An office gave them status and convenience. In survey results the managers revealed the fact that they supported shared offices more than the “hoteling” idea. However, they said they would go along with what the partners directed, reflecting the prevailing culture. The managers enthusiastically supported the new productivity tools.