Case Study of Regency Grand Hotel
This hotel is based in Bangkok and was established by local investors 15 years ago and was operated by Thai general manager since that time. It had 700 employees that time and use to provide good employee benefits, above market rate salaries and job security and bonuses regardless of the hotel performance during that year. This hotel was sold to an American large chain of hotel who wanted to expand its operation in Thailand. The general manger decided to take an early retirement since the acquisition was announced..The new owners kept all old employees and few were transferred to other positions. A new general manager John Becker an American with 10 years of management experience was appointed.
Becker was a strong believer of empowerment, which increases performance, job satisfaction and employee motivation and this factors contribute to the hotel profitability and customer experience. The Grand hotel was always profitable since it opened 15 years ago. Management instructions were always followed by the employees and earlier, innovation and creativity was discouraged. Often employees were punished for their mistakes as a result employees were afraid to take ownership or to try new ideas.
Becker has introduced empowerment and has given clear instructions to the managers, he told the managers that employees must be empower with decision-making authority so that they could use their initiative and judgement to satisfy guests needs. However, only serious and complex issues need to be dealt by superiors and advised mangers not to discuss minor issues with him. In the past Regency use to operate under administrative control resulting in many bureaucratic procedures throughout the organization. Becker used to spend lot of time in interacting with employees which helped many employees to understand what he wanted and expected of them but the employees had difficulty to distinguish major and minor issues. More...