To: Mr. Jim Johnson, Manager of West Indies Yacht Club Resort(WIYCR) From: Mr. Patrick Dowd, Management Consultant
Date: 8th December, 2010
Recommendation Report for West Indies Yacht Club Resort
As the request of the General Manager of WIYCR Mr. Jim Johnson, our team has performed a review on the operation of the Resort to identify the reasons of the problems the resort was facing. This report is to provide further information on top of the presentation. The resort has recently carried out a study on the operation at the resort and identified three main problems: 1. High turnover rate of expatriate managers
2. Increasing number of complaints by guests
3. Increasing level of tension between the expatriate and local staff
During the review, the team has interviewed all the managers of different departments to understand the current practice and assess the adequacy of procedures for the operation of the departments. And the team also talked to selected customers and tried to identify the areas and reasons of their dissatisfactions .In addition, the team has also performed physical observations at different operation areas to note for the underlying reasons of the problems.
2. Findings and analysis
Through observations and conversations with staff in the resort, the team noted that the problems are mainly caused by lack of motivation for staff members resulting in poor performance of their job duties. The demotivated employees were mainly dedicated to two factors: Rigid law regulation and cultural differences
2.1 Rigid law regulation and ineffective compensation system The current law regulation governing the local labor market is rigid. Organizations were not permitted to fire staff during slow seasons and the condition of firing employees are very restricted even when their performance is poor. In other words, their jobs were almost guaranteed and they would not worry that they would lose their job. Besides, the resort’s compensation system was ineffective. Each year, employees were given a salary raise without any performance review. As a result of the law regulation and compensation system, local employees are not motivated to work hard because they will get salary raise even they perform badly.
2.2 Cultural Differences
The cultural value of the expatriate and the local staff is entirely different and this contributes misunderstanding between them. Through observations and conversations with staff, two cultural differences are concluded.
First, expatriate and local staff have different preferences towards their job. Expatriates pursue promotion and money while locals treasure relationship with co-workers. Referring to the Property Manager, the resort had provided opportunities for some of the locals to be promoted but they were not interested because they did not want the added responsibility, even if it meant more money. Besides, as explained by an expatriate manager, locals did not even take the opportunity to get tips as they thought it was not worth to work so hard to get the tips. The above incidents showed that, the achievement-oriented reward system running in the resort could not motivate the locals to work hard.
In addition, expatriate and local staff have different managerial and working style. Expatriates usually rely on using memo to give instruction but locals used to follow instructions which are physically demonstrated rather than using memo because of high illiteracy rate. With reference to the Property Manager’s past experience, the local staff did not place the garbage to the correct area until it was physically demonstrated. Employees may feel inadaptable to the different managerial style.
The above findings show that there is such an enormous gap between the two parties. Expatriates did not understand the need of the locals. These differences between their cultural values may reduce the communications between them and finally leads to...
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