Moscow Aerostar
1.0 Introduction
1.1 Purpose of report
Moscow Aerostar (MA) decided to expend the business internationally and operated the business in Russia with Canadian management team who planned to build the Western-style hotel. However, MA been facing challenges, such as cross-cultural issues and diversity dimensions with Russian employees and they are completely inexperienced them. Therefore, MA had lack of cultural understanding that lead the issues regard to human resource management, difference in organizational culture and communication. However, the purpose of this report is to analysis the issues for MA and then provides the appropriate recommendations for the management team to solve the existing problems.
1.2 Background
Moscow Aerostar Hotel opened for business on 1 May 1991, was a joint venture between Aeroflot (Russia) and IMP Group Limited (Canada). The launching of the venture was quite challenging as Russia had just been transforming its image from a communist country to a newer direction (The UK’s expert, n.d.). Since beginning, the hotel offered 417 well-appointed rooms with rate were 15 to 20 per cent lower than competition, hence, management team had maintain the positive reputation. However, the General Manager of the hotel, Andrew Ivanyi had continuously been facing challenges of staff’s recruitment, orientation and training program among significant communication and coordination problems with Russian employees, which including cultures, values and attitudes that did not match with the expectations and standard of a Western-style hotel. In addition, Russian employees were not satisfied with their salary and compensation packages that MA provided. These dilemmas are complicated the development of managerial talent in MA management and should looking for sustainable solutions (Henry & Shea, 2006).
2.0 Key issues
MA management planned to build the Western-style hotel, but without consider the cross-cultural issues among Russian employees.
1.1 Purpose of report
Moscow Aerostar (MA) decided to expend the business internationally and operated the business in Russia with Canadian management team who planned to build the Western-style hotel. However, MA been facing challenges, such as cross-cultural issues and diversity dimensions with Russian employees and they are completely inexperienced them. Therefore, MA had lack of cultural understanding that lead the issues regard to human resource management, difference in organizational culture and communication. However, the purpose of this report is to analysis the issues for MA and then provides the appropriate recommendations for the management team to solve the existing problems.
1.2 Background
Moscow Aerostar Hotel opened for business on 1 May 1991, was a joint venture between Aeroflot (Russia) and IMP Group Limited (Canada). The launching of the venture was quite challenging as Russia had just been transforming its image from a communist country to a newer direction (The UK’s expert, n.d.). Since beginning, the hotel offered 417 well-appointed rooms with rate were 15 to 20 per cent lower than competition, hence, management team had maintain the positive reputation. However, the General Manager of the hotel, Andrew Ivanyi had continuously been facing challenges of staff’s recruitment, orientation and training program among significant communication and coordination problems with Russian employees, which including cultures, values and attitudes that did not match with the expectations and standard of a Western-style hotel. In addition, Russian employees were not satisfied with their salary and compensation packages that MA provided. These dilemmas are complicated the development of managerial talent in MA management and should looking for sustainable solutions (Henry & Shea, 2006).
2.0 Key issues
MA management planned to build the Western-style hotel, but without consider the cross-cultural issues among Russian employees.