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Roaring Dragon Hotel

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  • April 2011
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“Roaring Dragon Hotel” is a case study about the company culture change and conflict by taking over of a former Chinese management hotel by a western international hotel management company. Corporate culture is the total sum of the values, customs, traditions, and meanings that make a company unique. Corporate culture is often called "the character of an organization", since it embodies the vision of the company’s founders. The values of a corporate culture influence the ethical standards within a corporation, as well as managerial behavior. So it is not easy to change the corporate culture in short time.

In 2000, Roaring Dragon Hotel with long colorful history needed change since the market economy was slowly developing in the region and so they need competitiveness to compete with other local hotels and also with international hotels. They need new paradigm and new practices and mind set. It is the big change from planned economy era to market economy era. In planned economy era, they don’t need to compete severely, so they were very relaxed and didn’t have motivation to work harder. Many businesses were done by guanxi, so there was much corruption. By these needs, the provincial government identified Hotel International as an organization to take over management of the RDH and help realize the hotel’s potential.

After taking over by HI, there were many changes in RDH and employees should have to adapt them to the changes and most of them experienced severe conflict. When it was Chinese Hotel, it was relationship (family) based and focused on harmony among the people and guanxi was very important and the people with guanxi were treated well. The atmosphere was relaxed, friendly and supportive. Now it is contract based and guanxi is not important any more. Efficiency and effectiveness is important. The atmosphere is no more friendly and there was much depression.

I think there were some major issues in the process of change. 1) Guanxi was...