Case Study Regency Grand HotelThe Regency
Case Study Regency Grand Hotel
The Regency Hotel
Introduction: The Regency Grand was Thai owned and operated. It was a profitable and successful company during it 15 year existence with very high morale within the company. Employee’s worked according to management’s instructions. Employees were not allowed to be innovated and creative. All decisions were at management level. When Regency was bought out by a US Hotel chain, the general manager decided to retire early. The American based company then appointed John Becker as general manager. John has 10 years experience with the American company. John was appointed due to his previous success integrating newly acquired hotels in the US. In most previous acquisitions, Becker took over operation with poor profitability and low morale. After he implemented changes the employees morale decline, absenteeism increased, customer complaints increased, and poor ratings in the media.
1. Culture--The US based company failed to research or invested in any culture changes that might affect employees when they acquired the Regency Hotel.
2. Change--John made sweeping changes that once worked in the past for fledging acquired hotels. Becker failed to plan and implement change. He did not involve any staff in the change process nor did he have a change agent to help oversee the change process within the newly acquired hotel. John based his decisions off what was successful in the past in American style business. He failed to consider the Regency was already successful and profitable with high employee morale.
3. Communication--John empowered employees to make minor decisions while only elevating major decisions to management. John failed to communicate expectations of what are minor decisions and what are major decisions. He also encouraged employees to be innovative and creative.
* Problem Statement: There are several issues with this case, but the three main problems in this case are Culture, Change, and Communication. The
The Regency Hotel
Introduction: The Regency Grand was Thai owned and operated. It was a profitable and successful company during it 15 year existence with very high morale within the company. Employee’s worked according to management’s instructions. Employees were not allowed to be innovated and creative. All decisions were at management level. When Regency was bought out by a US Hotel chain, the general manager decided to retire early. The American based company then appointed John Becker as general manager. John has 10 years experience with the American company. John was appointed due to his previous success integrating newly acquired hotels in the US. In most previous acquisitions, Becker took over operation with poor profitability and low morale. After he implemented changes the employees morale decline, absenteeism increased, customer complaints increased, and poor ratings in the media.
1. Culture--The US based company failed to research or invested in any culture changes that might affect employees when they acquired the Regency Hotel.
2. Change--John made sweeping changes that once worked in the past for fledging acquired hotels. Becker failed to plan and implement change. He did not involve any staff in the change process nor did he have a change agent to help oversee the change process within the newly acquired hotel. John based his decisions off what was successful in the past in American style business. He failed to consider the Regency was already successful and profitable with high employee morale.
3. Communication--John empowered employees to make minor decisions while only elevating major decisions to management. John failed to communicate expectations of what are minor decisions and what are major decisions. He also encouraged employees to be innovative and creative.
* Problem Statement: There are several issues with this case, but the three main problems in this case are Culture, Change, and Communication. The