The Regency Grand Hotel

Topics: Decision making, Management, Decision theory Pages: 15 (4674 words) Published: January 29, 2013
The Regency Grand Hotel|
A Case of Employee Empowerment|

Table of Contents
Executive Summary3
Problem Statement5
Situation Analysis5
Organizational Behavior Symptoms & Issues6
STEP Analysis7
SWOT Analysis8
Organizational Behavior Analysis10
External Analysis14
Action and Implementation22
Contingency plan23
Exhibit 124
Exhibit 224
Exhibit 425

Executive Summary
Recently purchased by a large American hotel chain, the Regency Grand hotel, located in Bangkok Thailand, is an example of prestige, with a 5-star rating. For the past 15 years it has almost always performed well.

John Becker has been appointed as head manager of the newly purchased hotel. He is renowned for successfully turning around other newly purchased hotels that were underperforming. However, his strategy of employee empowerment was not properly implemented at the Regency Grand hotel. This has resulted in many organizational issues such as high stress, increased absenteeism, an increased turnover rate, as well as many other problems.

It has been revealed that these problems have largely been attributed to a lack of communication to employees about their roles, a lack of consideration about the local culture, and a failure to fully assess the situation beforehand. At this point, some symptoms of the issues are beginning to show, such as decreased customer satisfaction and negative reviews. Becker has four options to remedy these organizational issues, before he loses control of the situation. His options include implementing; a strict chain of command, with no room for innovation; strict chain of command on decision making, with room for innovation; simply empower his employees empower; or empower his employees with a new supervisor role. The most logical course of action would be to still maintain an employee empowerment strategy, but add a new role of supervisor that would act as a decision consultant for fellow employees, while working alongside them. It maintains the benefits of employee empowerment strategies, while providing additional direction for the expectations of employees. It will be implemented immediately through the use of meetings, and proper training. Problem Statement

The Regency Grand Hotel, located in Bangkok Thailand, has suffered from a decline in overall performance since the newly appointed manager, John Becker, attempted implementing employee empowerment strategies without success, within the newly acquired hotel. Sandra Chakri, the Senior Vice President of Human Resources for the large American hotel chain’s Asia-Pacific region, has been tasked with assessing the situation and recommending a plan of action to the Hotel chain’s senior management team. Situation Analysis

The Regency Grand hotel has enjoyed being considered one of the most highly rated hotels in Bangkok Thailand, since its grand-opening 15 years ago. Under the previous management, employees enjoyed a number of benefits, including a year-end bonus that was worth about 4 month’s salary. The previous management also maintained a strict order of procedures, which limited employee’s ability to make their own decisions about their work.

After the large American hotel chain purchased the hotel, John Becker was posted as the hotel manager at the new location. In his 10 year career, he has become renowned for turning around other newly purchased locations of the American hotel chain which were preforming poorly. The key to his success has always been empowering his employees.

John Becker applied this same strategy at the new hotel and as a result, the employees, who are used to a strict hierarchy of order, have become unorganized and inefficient. This has caused both the levels of employee job satisfaction, and customer satisfaction to fall....
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