Regency Grand Hotel free essay sample

Introduction Case Study of Regency Grand Hotel This hotel is based in Bangkok and was established by local investors 15 years ago and was operated by Thai general manager since that time. It had 700 employees that time and use to provide good employee benefits, above market rate salaries and job security and bonuses regardless of the hotel performance during that year. This hotel was sold to an American large chain of hotel who wanted to expand its operation in Thailand. The general manger decided to take an early retirement since the acquisition was announced..The new owners kept all old employees and few were transferred to other positions. A new general manager John Becker an American with 10 years of management experience was appointed. Becker was a strong believer of empowerment, which increases performance, job satisfaction and employee motivation and this factors contribute to the hotel profitability and customer experience. The Grand hotel was always profitable since it opened 15 years ago. We will write a custom essay sample on Regency Grand Hotel or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Management instructions were always followed by the employees and earlier, innovation and creativity was discouraged.Often employees were punished for their mistakes as a result employees were afraid to take ownership or to try new ideas. Becker has introduced empowerment and has given clear instructions to the managers, he told the managers that employees must be empower with decision-making authority so that they could use their initiative and judgement to satisfy guests needs. However, only serious and complex issues need to be dealt by superiors and advised mangers not to discuss minor issues with him. In the past Regency use to operate under administrative control resulting in many bureaucratic procedures throughout the organization.Becker used to spend lot of time in interacting with employees which helped many employees to understand what he wanted and expected of them but the employees had difficulty to distinguish major and minor issues. More often supervisors use to reverse employee decisions by stating that it was major issue and need management approval and employees who use to take initiative rarely use to receive positive feedback from their superiors. Eventually, employees lost confidence in decision making and started relying on superiors.Becker realized that his subordinates were consulting him more often than before and majority of them were minor issues. This made him frustrated and very often he use to tell his secretary that â€Å" unless the hotel is on fire, don’t let anyone disturb me. † Contrary to his expectation, the business and overall perfor mance began to downfall. There were more guest complaints and one of the local newspaper and overseas newspaper had published negative feedback on the hotel. Even employees stress level was increased with the introduction of empowerment.Absenteeism and staff turnover rate reached an all time high and there was no unity and support amongst staff. Organizational Behaviour related work problems that have been identified in this case study are as follows: a) Leadership and Management style Ability to influence people and getting the desired work done is called leadership and managers are basically leaders who discharge their duties using their effective leadership styles depending upon the nature of organisation, mode of operation or kind of followers and employees being skilled or unskilled.As per the case study the management style is very important when it comes to run the operation smoothly and effectively. The earlier management for this hotel was following bureaucratic style of leadership(transactional d ef) also the management style stated by Mc gregor which broadly categorised managers in to two groups i. e group x and group y. Here, group x managers are basically bureaucrats who are not team players and believe in punishment and reward system while on other hand group y managers are approachable, they work as a team and are very supportive when it comes to employee motivation and boosting the morale. ) Work psychology and motivation Job satisfaction and dissatisfaction is a great concern for the managers as it is directly linked to the job performance. Job dissatisfaction de moralises the employee which can have serious consequences that includes employee unrest, absenteeism,tardiness,employee turn over and union activities. The hidden or the psychological contract between employees and the management keep employees motivated all the time during work. Any discrepancies in this will lead to dissatisfaction at both the ends as it may effect the job performance and also damaged overall growth of organisation.The Thai management operating in this hotel had kept many rewards system to motivate the employees wh ere monetary benefits were given the top priority as salaries were above market rate. Also, psychologically workers were secured . According to Maslow theory on hierarchy of needs the job security of employees is taken care at the same time the physiological needs are being supported by the management with good employee benefits. This motivates the employee and drives them to next level of motivation where they try to focus on work and perform better. ) Psychological contract and employee performance Psychological contract is an unwritten contract between the employees and the management which explains a series of mutual understanding and satisfaction of needs(Mullins L,2008). In this case study, psychologically employees were under fear of getting punished when they were under Thai management and this fear factor made them to work under disciplined way and strictly followed set of rules and guidelines lead by the management which made them to discharge their duties accurately with minimum errors.In returned the employees knew that working in a right way and performing will reward them with high salary and bene fits provided by the organisation but when the same hotel was manged by an American management this psychological contarct started deteriorating as this management style was different than the previous one and things started changing in terms of job performance, distribution of powers, handling guests and other issues.The new strategy adopted by the new management which believes in empowerment made supervisors feel inferior than their subordinates as employees started interacting with top management for any minor issues. The fear of getting punished for mistakes doesn’t exist among the employees in the organisation as they were empowered and were now capable of making decisions by themselves which disturbed the teamwork and started pointing fingers on each other for anyones mistakes and no one took the blame. Analysis of the problems and Solution ) Leadership and Management style: Every organization has its own set of SOP’s and protocol to be followed and it is very significant to understand the kind of work the organisation is indulged in. As lack of this knowledge will give unclear picture of the organisation and kind of management strategies to be used. As per Mc Gregors theory of leadership group x and group y managers, the hotel regent was operated by group x managers which were task oriented managers who thoroughly understand the organisation and the people working within.