The Regency Grand Hotel is one of the most prestigious and luxurious hotels in Bangkok, Thailand. Since its inception, it has earned a brand name in the industry owing to the exceptional salaries and benefits offered. The hotel staff and managers felt privileged being a member of the hotel, and perceived that they were being taken well care of under the leadership of the then General Manager.
The following case study illuminates the dilemma of the employees undergoing the management changeover following its acquisition by an international group. In the earlier set-up, the employees were expected to follow the orders of their managers without questioning them. Initiatives to solve problems at personal level were discouraged and it led to lack of innovation and risk-averse behavior. Eventually, the hotel staff got accustomed to the style of management over the past fifteen years, and it made the work go smoothly with minimal number of conflicts. 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 organisation, 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 organisation therefore deteriorated.
However, the recent sale of the hotel to a new American group introduced an altogether new style of administration to the employees. The management style of the new GM was entirely opposite to what the staff was familiar to, and it caused problems bringing the hotel’s performance and reputation down the drain. Symptoms & Causes of Deterioration of Performance:
Symptoms & Causes of Deterioration of Performance, Cultural factors, Communication factors, Staff performance: 1. Personality and organisational fit
2. Job design and role ambiguity
3. Espoused and enacted values Power hierarchy & decision making process 4. Stress
6. high staff turnover and
7. Job satisfaction
Major issues in the case
Major issues in the case Organisational 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. An overview of the problems occurred
Junior and senior managers feel losing power because of the practice of empowerment. Most of the managers waste time on dealing with minor issues. The general manager John Becker is sick of giving minor decision instructions to his subordinates.
Motivation Motivation is a fundamental aspect of improving the quality of performance of the work force. The Regency Hotel management aimed at developing motivation among employees. However the employees were not motivated. Increased frustration, stress, job dissatisfaction and high turnover were some of the factors that demoralised employees. Encouraging innovativeness and creativity among employees is an essential component of a successful organisation. The free environment provided by the organisation was not effectively utilized by the employees. The performance of the organisation depreciated as a result....
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