ROARING DRAGON HOTEL
Contents
Company Background
Roaring Dragon Hotel was a state owned enterprise (SOE) and one of the original 3-star hotels in South-West China
It had gained reputation as a premium guesthouse
The organization was greatly influenced by Chinese culture
Employee recruitment was based on Guanxi or connections, favouring nepotism
Guanxi or connections of employees led to a large number of income-generating contacts
The number of employees were 675 and the Board of Management had 4 members
The employees of RDH were proud to be a part of the organization
The hotel ensured job security and a relaxed organizational culture for its employees
Managers even left the premises during work hours to conduct their private businesses
The existing staff members of the hotel, with around 30 years of experience, came from simple backgrounds with no education
However, the RDH team as a whole lacked professionalism and efficiency
Need for Change
The provincial government felt that RDH needed modernization, because of the following reasons:
Management was reluctant to adapt to changing trends in the industry, resulting in a decline in RDH’s popularity and income
Management was not keen on generating profit or improving the service standards
Adapting to new practices would imply a change in their current working atmosphere
HI’s Intervention
With HI coming on board in April 2002, significant changes were made in all sectors of RDH. Also, it was decided that until the quality of service of RDH was brought up to the level of HI’s international standards, RDH would not be branded as Hotel International Roaring Dragon Hotel. The major alterations that happened can be classified under the following heads:
Organizational Culture
Prior to HI’s intervention, the culture at RDH was traditionally Chinese with nepotism at its core. The organisational culture was relaxed with several employees indulging in private business.
Company Background
Roaring Dragon Hotel was a state owned enterprise (SOE) and one of the original 3-star hotels in South-West China
It had gained reputation as a premium guesthouse
The organization was greatly influenced by Chinese culture
Employee recruitment was based on Guanxi or connections, favouring nepotism
Guanxi or connections of employees led to a large number of income-generating contacts
The number of employees were 675 and the Board of Management had 4 members
The employees of RDH were proud to be a part of the organization
The hotel ensured job security and a relaxed organizational culture for its employees
Managers even left the premises during work hours to conduct their private businesses
The existing staff members of the hotel, with around 30 years of experience, came from simple backgrounds with no education
However, the RDH team as a whole lacked professionalism and efficiency
Need for Change
The provincial government felt that RDH needed modernization, because of the following reasons:
Management was reluctant to adapt to changing trends in the industry, resulting in a decline in RDH’s popularity and income
Management was not keen on generating profit or improving the service standards
Adapting to new practices would imply a change in their current working atmosphere
HI’s Intervention
With HI coming on board in April 2002, significant changes were made in all sectors of RDH. Also, it was decided that until the quality of service of RDH was brought up to the level of HI’s international standards, RDH would not be branded as Hotel International Roaring Dragon Hotel. The major alterations that happened can be classified under the following heads:
Organizational Culture
Prior to HI’s intervention, the culture at RDH was traditionally Chinese with nepotism at its core. The organisational culture was relaxed with several employees indulging in private business.