Introduction to the Regency Grand Hotel The Hotel is among the five star hotels in Bangkok, established by local investors. The ownership of the hotel was later transferred to the American Hotel Chain. John Becker a man with a good history in organizational management became the General Manager. Becker introduced an empowerment strategy as an aspect that would increase employee motivation and satisfaction. The practice reduced the bureaucratic governance that was embedded in the past management. The employees were now able to get involved in decision making, creativity, and innovation. Interaction with top management was also encouraged. Becker's policy however did not improve the performance of the organization, he spent a great deal of time solving employee problems, there was an increase in the number of complaints by customers and an increase in mistakes made by the employees. The performance of the organization therefore deteriorated.
Symptoms & Causes of Deterioration of Performance:
Symptoms & Causes of Deterioration of Performance Cultural factors Communication factors Staff performance: personality and organizational fit Job design and role ambiguity Espoused and enacted values Power hierarchy & decision making process Stress, absenteeism, high staff turnover and job satisfaction
Major issues in the case:
Major issues in the case Organizational change inadequately managed. The differences in the newly merged workforce with dissimilar profiles had not been addressed. Following this, Becker did not employ a communication strategy that supported the dissimilarity between management and employees and their different cultures. The unclear decision making process and power hierarchy. Lack of proper analysis of the chances of success of the strategy of empowerment. Lack of proper coordination within the management team, when trying to implement the empowerment strategy. The Hotel also faced the challenge of social emotional conflicts among employees. Contingencies of power such as source of power were not clearly outlined. These issues resulted in high levels of stress, absenteeism and turnover.
Communication and Culture:
Communication and Culture Prior to the take over, The Regency Grand was Thai owned and operated. While weighed down by the internal processes the census was one of understanding and fitted in within the cultural bounds. The American conglomerate conducted little research into the culture as reflected by Becker’s appointment and utilization of predetermined strategies ill-suited to an already successful business. English is becoming the common business language in Thailand (Chakorn, 2006). Verbal and written communication differs greatly between the two cultures, amplifying the need for Active listening.
Implementation of organizational change:
Implementation of organizational change in times of change within an organization, it is essential for the management team to ensure that employees are actively involved in the process of change. Becker introduced his new policy to the directors of the organization. He however, found himself all alone trying to implement the empowerment practice. Involving employees in the decision making initiatives is crucial. The purpose of this is to make them feel part of the organization (Lynn, 2008). The empowerment criteria employed by Becker enabled assimilation of employees in the decision making process. Their contributions were however, not profitable to the organization. Involve staff in change Involve staff in decision making Ensure staff feel included in organization More successful organizational change
Organizational Culture and Change :
Organizational Culture and Change Organizational culture exists where a set of cognitions is widely shared by members of a social unit and comprised of fundamental assumptions, values, behavioral norms and expectations, and larger patterns of behavior (O’Reilly, Chatman...