Managing Director Challenge

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Introduction
The Island club is located on a Caribbean Island that attracts about 1.5 million visitors a year to it’s the many hotels, resorts and private inns. Local government of the Island has been creating opportunities for its citizens to contribute to the tourism industry. This has resulted in growth to all segments of tourism and many employment possibilities of different levels. Government also protects employment for its citizens and supports them to rise to senior positions in the tourism industry. Since the Island has a well-established financial sector, the Island Club customers are primarily the wealthy financiers who are visiting the Island for business or pleasure purposes. They are attracted to the island resorts because of the Island’s low taxes and offshore banking system. Most of these customers are from other parts of the world and have had previous exposure to exclusive hotels and resorts around the globe. The club is experiencing labor, leadership, cross-cultural, training and motivational issues which could negatively influence the level of services that they provide to their high demanding customers and eventually affect the club’s positioning in the market. The purpose of this report is to advise Paul Taylor, the Managing Director of the Island Club, before a meeting between himself and the Club’s Board of Directors Executive Committee. The meeting will be discussing the amalgamation of Acting Director of Food and Beverage and Acting Director of Culinary/Restaurant Service & Private Dining) back into Director of Food & Beverage.

How does the élite nature of the Club influence the management style of the organization? The membership of the Island Club is composed of sophisticated, wealthy, experienced travellers. These members assume a “5-star” level of service. In order to satisfy the requirement of exceptional service, the Club has designed a “Top Quality Management (TQM)” approach. According to the current orientation handbook employees are to “Do the right thing; do whatever we do right; do it right the first time and on time; do it consistently right every time.” Using TQM should have encouraged empowered front line staff with supportive management. A focus on quality should provide an ideal environment for psychological empowerment. (Chistensen Hughes, 2003) However, the management at the Club is attempting to ensure the level of customer service required by micro managing. There are several reasons that this has occurred. The Island Government has forced establishments to hire residents; the Club has only four permits for off-island work permits. The executive of the Club have failed to develop training programs to develop employees into effective leaders, who can assume management roles in a skillful manner. Union staff has compensation such that there is no incentive to assuming management positions. Women have filled many of the supervisory and management positions; island men have difficulty with accepting direction from women. Formal discipline procedure uses forms that managers have not received the training necessary for them to fill in correctly or legibly - so the discipline process does not happen effectively. (Within the Food and Beverage department, managers are working as many as 80 hours a week, often covering shifts of staff that do not come to work.) Employees are not motivated and are not accountable for the quality of their work; they are compensated for seniority and not for accepting responsibility or performance. The culture has also encouraged employees to believe that they are “the best” on the island. This may have contributed to a management style that rewards individual performance rather than teamwork. What communication barriers exist between management and employees? The union employees and the majority of management are islanders. The island is small. So, most of the people employed by the Club are relatives, friends, neighbor’s, etc....
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