Introduction:
The Roaring Dragon Hotel is a three-star hotel that is located in the southwest part of China. Since the 1980’s the state-owned-enterprise has enjoyed a long colorful history and reputation as on of the regions premium hotels. The at the office which is in another city. On average Mr. Wen shows up at the hotel once a month. In 2002 he decided that it was time to expand their hotel and make the jump to a five star hotel. Wen hired a consulting company to conduct an evaluation of his hotel from top to bottom. Everything from the service to the procedures was included in the evaluation. He also wanted to make sure that his employees would be able to make the jump to a premium hotel. The results of the evaluation were shocking to Mr. Wen. The results showed that his staff was lazy and incompetent. There was no way that he would be able to make the transition to a five star hotel without firing most of the six-hundred employees or spending a large amount on re-training the existing ones. It was found that employees were reading newspapers, drinking tea, conducting personal business and even leaving the premises while on the clock.

Background:
Roaring Dragon Hotel with long colorful history needed change since the market economy was slowly developing in the region and so they need competitiveness to compete with other local hotels and also with international hotels. They need new paradigm and new practices and mind set. It is the big change from planned economy era to market economy era. By these needs, the provincial government identified Hotel International as an organization to take over management of the RDH and help realize the hotel’s potential. In 1999, Mr. Paul Fortune, from Austria, had taken over as the manager of the hotel. He brought in significant changes to the hotel. But unfortunately, the changes he brought in