In the earner set-up. He employees were expected to follow the orders of their managers without questioning them. Initiatives to solve problems at personal level were discouraged and it led to lack of innovation and risk-averse behavior. Eventually, the hotel staff got accustomed to the style of management over the past fifteen years, and it made the work go smoothly with minimal number of conflicts. The practice reduced the bureaucratic governance that was embedded in the past management.
The employees were now able to get involved In decision making, creature, and innovation. Interaction with top management was also encouraged. Backer’s policy however did not improve the performance of the organization, he spent a great deal of time solving employee problems, there was an increase in the number of complaints by customers and an increase in mistakes made by the employees. The performance of the organization therefore deteriorated. However, the recent sale of the hotel to a new American group Introduced an altogether new style of administration to the employees.
The management style of the new GM was entirely opposite to what the staff was familiar to, and it caused problems bringing the hotel’s performance and reputation down the drain. Symptoms & Causes of Deterioration of Performance: Symptoms & Causes of Deterioration of Performance, Cultural factors, Communication factors, Staff performance: 1 . Personality and organizational fit 2. Job design and role ambiguity 3. Espoused and enacted values Power hierarchy &: decision making process 4. Stress 5. Absenteeism, 6. High staff turnover and 7.
Job satisfaction Major Issues In the case Major issues in the case Organizational change inadequately managed. The differences in the newly merged workforce with dissimilar profiles had not been addressed. Following this, Becker did not employ a communication strategy that supported the dissimilarity between management and employees and their different cultures. I en unclear calicles making process Ana power annularly. Lack AT proper analysis of the chances of success of the strategy of empowerment. Lack of proper coordination within the management team, when trying to implement the empowerment strategy.
The Hotel also faced the challenge of social emotional conflicts among employees. Contingencies of power such as source of power were not clearly outlined. These issues resulted in high levels of stress, absenteeism and remover. An overview of the problems occurred Junior and senior managers feel losing power because of the practice of empowerment. Most of the managers waste time on dealing with minor issues. The general manager John Becker is sick of giving minor decision instructions to his subordinates.
Motivation Motivation Motivation is a fundamental aspect of improving the quality of performance of the work force. The Regency Hotel management aimed at developing motivation among employees. However the employees were not motivated. Increased frustration, stress, Job dissatisfaction and high turnover were some of the factors that immemorial employees. Encouraging innovativeness and creativity among employees is an essential component of a successful organization. The free environment provided by the organization was not effectively utilized by the employees.
The performance of the organization depreciated as a result. Motivated staff Improved performance of organization Empowerment Empowerment refers to increasing the spiritual, political, social or economic strength of the individuals. It often involves the empowerment developing confidence in their capacities. In some situations empowerment could motivate employees. The problem n the hotel is the measurement of a major or a minor issue. There is not a definition or standard states what a major issue is. Actually employee needs to know what he/ she can touch and what he/she cannot.
Conflict comes when the management disagrees with the employees’ view. For example, a guest goes to the front-counter people and asks for a room upgrade. The front-counter boy thinks he could do that without approval from his superiority the front-counter manager may think it is a big issue because it would affect the profit of the business. What the front-counter boy has done may annoy the front-counter manager. Issues ; Consequences After Empowerment Empowerment can be described as People having the skills and the self-belief to proactively deal with issues and make the most of the opportunities available to them. UT soon after the execution of empowerment Becker realism that things are not going according to his expectation because staff of regency grant don’t know what is empowerment? Because they use to work as per their manager order in the previous management they are not allowed to innovate & generate anything new ,Ana were Electorates Day teen sensor managers Ana rater all tens teen note want o take risk and get punished by the management but general manger back in America was working in a empowered environment where staff has a power of decision making & can take minor decision on their own . Classically it’s a cultural difference between management and staff, where people+ from Thailand believe in team work and management is from America who believes in individuality they believe that they can do anything unaccompanied which was the first issue. Outcomes Of The Failure Of Empowerment Due to failure of empowerment hotel regency grand was losing its profit, client’s and tutus in Bangkok as well as it’s intangible assets like market value and quality standards began to decline.
Becker thought that empowerment will help his hotel to earn more profit and guest satisfaction but his strategies backfired on the hotel reputation, resulting in the decline of the overall Performance of the hotel. It was for the first time that there were an increase in number of guest complaints both verbally and in written. Guest started complaining about the services provided to them and above all disgrace in the news paper as one of the Sais’s nightmare hotel. Criticism about service standards of the hotel, Staffs were also not happy takes it to the inequity among the employees.
Back biting among employees was commonly seen now and good working atmosphere was harshly strained. Lack of team spirits among the employees now they were against each other when mistakes were made by any employee. Unclear power hierarchy Unclear power hierarchy Another major issue encountered at the Regency Grand Hotel which affected the organizational culture was the problem of unclear power hierarchies which lead to staff not understanding their role clearly in the decision making process. Employees were given empowerment but this proved to be problematic as staff were unable to discern between what constituted a major or minor problem.
Staff found that in many cases when they did make a decision it was later overturned by supervisors. One part of the process of empowerment is impact. “Empowered employees view themselves as active participants in the organization; that is, their decisions and actions have an influence on the company’s success” (Ms Shame, 2008, p. 185). Becker introduced empowerment but this part of the process was distorted as the employees felt that their decisions were not valued and often overturned. Additionally, Becker stated he would not tolerate the same mistake twice.
Staff now found it easier to revert back to their old ways of passing all problems over to their supervisors. This was directly counteractive to the plan of “allocating more decision-making authority to front line employees” (Machines, 2008, p. 192). This further reduced the effect of empowerment. Job Design and Role Ambiguity Job Design and Role Ambiguity Employees were uncertain of the types of issues that were to be considered “Minor” and “Major”. Without clarification, they continued to refer problems to management.
Jobs that have ambiguous demands, Jobs that have too many demands, and Jobs that do not allow the employee to participate in work related echelons are Kelly to anneal attempts at stressful performance, tenured frustrating higher order needs” (Behr, Walsh ; Table, 1976, 42). This frustration results in reduced effort and motivation. They go further to state that “Effort toward quality is related to role ambiguity in that concern with the quality of one’s work is not maintained if it is unclear what constitutes task success”(Behr et al, 1974, 46).
Supervisors were unsure and reversed employee decisions to refer them on to higher evils of management. Role Conflict: The front-line staff were expected to experiment and be creative in dealing with situations at work, but were only allowed to make a mistake once. This resulted in reduced learning capacity as employees began behaving defensively in order to avoid reprimands for errors. Reduced Job Satisfaction: Increase in customer complaints, increase in absenteeism and employee turnover. Intra-organizational relationships suffered as trust was lost and fear reigned.
Poor reviews due to declining levels of customer service. Role Ambiguity Role ambiguity Role ambiguity was another issue for the Hotel. Role ambiguity can be defined as a lack of information needed to perform the role (Pearce, 1981; Cooper et al. , 2001). This issue can lead to many problems. “Employees who experience role ambiguity tend to perform at lower levels than employees who have a clear understanding of Job requirements and what is expected of them. Likewise, role ambiguity is reflected in employees’ uncertainty concerning appropriate actions in commonly occurring Job situations.
It explicitly results when employees are not clear concerning the amount of authority they have and when they do not know others’ Job reference expectations Job design According to the Job characteristics model, employees are more motivated and satisfied when Jobs have higher levels of characteristics. People have different skills, it is important to put the right person into the right position. A few employees of the hotel were transferred to other positions when the acquisition was done.
They might not have the abilities to complete the full range of the new work. Recommendations Recommendations for introduction into the Regency Grand Hotel In addition to the exercise, relaxation techniques and learning and development solutions, it is commended that Employee Assistance Programs be introduced to the Hotel, this program offers employees a service whereby challenging situations can be discussed with counselors and psychologists who can provide tools that will embed coping mechanisms (Traveler and Protocol, 2005).
Recommended stress reducing strategies Physical activities Relaxation techniques Learning and development solutions Employee assistance program O The remedy for the situations that have evolved within the hotel is to clearly define each person’s role and make them aware of the importance their part plays in the overall operation of the hotel. Ensure employees are aware AT tenet irresponsibleness Ayatollah to Attlee want Is a major Ana melon problem and make it clear to members of staff who has the power to make decisions at each level, would also be of great assistance.
For example if a problem arises at the front counter with a customer which would incur a minimal cost to the organization this could be handled by reception staff with little impact on the supervisor and within a much faster time frame causing less inconvenience to already disgruntled customers. This could be achieved by removal of the ‘same mistake twice rule’ that Becker introduced. In this way employees would truly feel empowered to make decisions that would have an impact on the organization thereby feeling that they were an important part in the hierarchy that exists in the hotel.
Address Managerial / Supervisory level employees’ concerns at losing power. Reward them for encouragement and development of front-line team results. Conclusion The majority of problems experienced during the acquisition of the Regency Hotel may have been avoided or at least reduced dramatically through effective communication strategies, incorporating a comprehensive feedback loop to ensure understanding of changes and new requirements on an organizational level as well as individual level for all employees.
Cultural, personal and organizational aspects should be taken into account; and changes to Job design and Job roles should be made clear to ensure successful adoption of the new system. At this stage, the Regency hotel is in a state of flux, with reduction in staff retention, profit and reputation. Effective change management strategies as outlined in this presentation should now be introduced to assist the employees to build a new Organizational Culture and incorporate the Empowerment strategy.
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