Regency Grand Hotel

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Executive Summary
Sandra Chakri, Senior Vice President of Human Resources, has been sent into examine the current situation being experienced at the Regency Grand Hotel in Bangkok, Thailand. Chakri should evaluate why the current strategy of empowerment has been unsuccessful at the hotel. Part of this analysis should include an assessment of the different types of personalities within the hotel’s workforce. Chakri’s report should also offer solutions to the increased levels of stress, absenteeism, and turnover rate. Chakri’s recommendation should be made as soon as possible, to the Hotel chain’s senior management team. After a thorough evaluation, Chakri found that the hotel was dealing with major organizational behaviour issues. The employees had been very resistant to change. There were also many cross-cultural differences that were hindering operations. Furthermore, stress, absenteeism, and employee turnover were at an all-time high. Using her knowledge of OB theory, Chakri made a recommendation to the senior management team. This recommendation involved additional training for employees, adding an advisor for Becker, and implementing stress management strategies. Chakri recommends that these changes be made immediately, in order to maintain the long-term success of the Regency Grand Hotel.

Problem Statement
Sandra Chakri, Senior Vice President of Human Resources, has been sent into examine the current situation being experienced at the Regency Grand Hotel in Bangkok, Thailand. Chakri should evaluate why the current strategy of empowerment has been unsuccessful at the hotel. Part of this analysis should include an assessment of the different types of personalities within the hotel’s workforce. Chakri’s report should also offer solutions to the increased levels of stress, absenteeism, and turnover rate. Chakri’s recommendation should be made as soon as possible, to the Hotel chain’s senior management team. OB Issues

There is a number of Organizational Behaviour issues associated with this case. The issue of empowerment plays a big part in this case. Prior to the arrival of Becker, the hotel was operating very smoothly. However, when Becker arrived to the hotel, he gave his employees a high level of empowerment. Some of the employees enjoyed having control within the workplace, but for the most part, employees were uncertain of what was expected of them, and these led to increased stress. Part of the problem can also be attributed to differences in cross-cultural values. Becker being an American, may not fully understand the cultural differences between the Americans and the Thai people. Becker also lacks core leadership skills, as he makes little to no effort in trying to get his staff to understand what is expected from them. Furthermore, Becker often got frustrated when employees would ask him for guidance in decision making processes. All of these issues have led to increased stress and lower confidence levels amongst the employees. Moreover, the hotel is observing increased absenteeism and turnover rates amongst its employees. Finally, it is interesting to note that employees get paid lucrative bonuses, regardless of the hotel’s overall performance. This is something that should be examined closer as it may be the stem of some of the problems. Chakri’s recommendation should address these issues if the hotel plans on becoming successful again. Internal Analysis

Detailed Company Information
The Regency Grand Hotel is a 5-Star hotel located in Bangkok, Thailand. The hotel was regarded as one of Bangkok’s most prestigious hotels. It employs 700 employees who enjoy great benefits. The Regency has recently been purchased by an American hotel chain looking to expand into Thailand. Since Becker has implemented his new strategies, the company’s reputation has taken a severe hit. An International travel magazine recently described Becker’s hotel as “one of Asia’s nightmare hotels”. If the hotel continues to tarnish...
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