Introduction
The Roaring Dragon Hotel, one of the reputed three star hotels in South West China had a very bright and successful period since 1950. By 2000, there was increase in competition and management has never bothered to review its policies, and this probed a concern in to hotel business.
Back Ground
Due to competition and lack of policy reviews in the hotel management, there was sign of decline in business. So the board decided to change the tradition Chinese management to international management by giving contract to Hotel International Company. The company came up with new harsh rules and amendments to make the hotel professional and profitable. The changes in rules and regulations impacted the employees severely in the hotel.
Problem
The new management observed most of the employees are from long term, old and incapable of performing duties according to the demand. So, the management decided to trim the employee’s strength and hire fresh legs to increase efficiency. They conducted strict trainings and observed them on notice periods, offered redundancies to employees etc. Since many are guanxi employees, they hold many contacts with the government and other business, as they left the job they also took away many long term trusted customers of the hotel.
Opportunity
Major employee satisfaction could be fulfilled and communication gap could be reduced among employees and management, which results in efficient working of the hotel. Since hotel was already in to expansion, it benefits profits with full occupancy by bringing back old and new customers with new policies and amendments.
Recommendations
Understanding the cultural aspects and working conditions before dealing in to the business is very important especially in cross culture business units. In here, the guanxi plays an important role in bringing up the business for the hotel. The