...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. 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...
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...intended with the Regency Grand Hotel. The series of events that occurred thereafter led to deterioration and poor overall performance (McShane & Sheen, 2012). Incorrect implementation of empowerment is clearly the underlying cause for the hotel’s recent performance, which is explained by the Expectancy Theory of motivation and Dissatisfaction Model. Problem Empowerment was too quickly placed in action without the consideration of culture differences and previous working ethics. This led to hotel performance failure because of employee dissatisfaction. The Dissatisfaction model (Exit-voice-loyalty-neglect) explains how employees had responded to job dissatisfaction (McShane & Steen 2012). The Expectancy theory of motivation complements the previous theory in explaining how employees worked towards a particular outcome (McShane &Steen, 2012). Analysis “After meeting with the managerial team at The Regency Grand Hotel, Becker was pleased with the response from the managerial staff and was eager to have his empowerment plan implemented (McShane & Steen, 2012).” Managers in this meeting expressed loyalty (Dissatisfaction model) by merely accepting the current conditions and waiting for the problem to work itself out (McShane & Steen, 2012). Empowerment encourages employee autonomy, decision-making, and innovation; all of these being opposite ideologies to the bureaucratic management system the hotel were used to. “In the past, the Regency had emphasized administrative...
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...1 Paper: Assignment Style: Oxrford Pages: 7 Sources: 6 Level: Graduate Case Study – The Regency Grand Hotel [Writer Name] [Institute Name] 2 Case Study – The Regency Grand Hotel Summary of the Information The Regency Grand was Thai owned and operated. Its performance was very good. It was a profitable and successful company during its 15 year existence with very high morale within the company. Employee’s worked according to management’s instructions. Employees were not allowed to be innovated and creative. All decisions were at management level. Recently, the hotel was sold to a large American hotel chain (Calrity, 2010). Its general manager got retirement and manager of the American hotel chain, John Becker, became the general manager. Becker has been a successful management person in the hotel chain, so he was given the charge of this hotel as well to handle it and make it more successful. John has 10 years experience with the American company. John was appointed due to his previous success integrating newly acquired hotels in the US. In most previous acquisitions, Becker took over operation with poor profitability and low morale (Bakker, & Schaufeli, 2008) Previously the employees were not allowed to be creative and innovative, while Becker implemented empowerment in the hotel. For the employees, the decision of good and motivational that they can make many decisions by themselves, as they were not allowed under the previous management....
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...The Regency Hotel Introduction: The Regency Grand was Thai owned and operated. It was a profitable and successful company during it 15 year existence with very high morale within the company. Employee’s worked according to management’s instructions. Employees were not allowed to be innovated and creative. All decisions were at management level. When Regency was bought out by a US Hotel chain, the general manager decided to retire early. The American based company then appointed John Becker as general manager. John has 10 years experience with the American company. John was appointed due to his previous success integrating newly acquired hotels in the US. In most previous acquisitions, Becker took over operation with poor profitability and low morale. After he implemented changes the employees morale decline, absenteeism increased, customer complaints increased, and poor ratings in the media. 1. Culture--The US based company failed to research or invested in any culture changes that might affect employees when they acquired the Regency Hotel. 2. Change--John made sweeping changes that once worked in the past for fledging acquired hotels. Becker failed to plan and implement change. He did not involve any staff in the change process nor did he have a change agent to help oversee the change process within the newly acquired hotel. John based his decisions off what was successful in the past in American style business. He failed to consider the Regency was already...
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...Introduction Introduction to the Regency Grand Hotel the Hotel is among the five star hotels in Bangkok, established by local investors. The ownership of the hotel was later transferred to the American Hotel Chain. John Becker a man with a good history in organisational management became the General Manager. Becker introduced an empowerment strategy as an aspect that would increase employee motivation and satisfaction. The practice reduced the bureaucratic governance that was embedded in the past management. The employees were now able to get involved in decision making, creativity, and innovation. Interaction with top management was also encouraged. Becker's policy however did not improve the performance of the organisation, 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 organisation therefore deteriorated. Symptoms & Causes of Deterioration of Performance: Symptoms & Causes of Deterioration of Performance, Cultural factors, Communication factors, Staff performance: 1. Personality and organisational 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 Organisational change inadequately managed. • Following this...
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...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. 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...
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...MGMT 20124: Preparing a Report for a Case Study In addition to the correct format of your report there are content issues you need to consider. It is useful to read through the case a couple of times and get a feel as to what you will need to find before you go searching for articles. This is always problematic, but you do need to summarise the articles for support in your report, using the content, findings and conclusions. Therefore it is important that the articles are used in the detailed analysis, and argument in development of alternatives. The ‘knowledge & understanding, as well as “research skills” can be satisfied by finding arguments (through the literature) for and against, the issues that are raised within the facts of the case. That is, how well you critically analyze the facts and refer to theories, models and concepts. It will also have a bearing on how well the recommendation/s put forward will have the predictive likelihood of success. To get to that point means that you will have to put forward a range of options and on balanced argument make your decision as to what you recommend and why. Essentially it falls under what can be termed as, triangulation. (see the diagram below.) Your “Guide for Students” also gives good advice re this format. There is no “right or wrong” answer here. The marks to be gained will rise or fall based on the decision (recommendation) you make, as in the real world, and the quality of your ‘reasoned’ argument. Always...
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...Ongori (2009), employee empowerment have benefited many organizations through managing and taking care especially enhancing employee commitment and reducing employee turnover. As the case of the Regency Grand Hotel, the new management introduced the empowerment practice while at the same time expecting the employees to go beyond guidelines and standards to consider guest needs on a case to case basis (McShane & Travaglione 2007). Employees’ empowerment is needed in organization in order to expect employees to be in position to make quick decision and respond quickly to any changes. However, in order to effective and efficient, empowerment is required trust, motivation, decision making and breaking the inner boundaries between manager and employees (Thite 2004). There are internal and external factors which affecting the employee empowerment in the organization. Employee empowerment often fails due to various patterns and attitudes of employees. Most of people would feel uncomfortable and do not want to accept the change in management. Ongori (2009) stated that people may believe they want greater freedom and responsibility, while on the other hand, after years of being restricted, people may be unwilling and unable to take advantage of empowerment. In the case of Regency Grand Hotel, the previous management enforce employee to always work according to the management’s instruction and ensuring that the instructions are carried out diligently and conscientiously (McShane & Travaglione...
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...Introduction to the Regency Grand Hotel: Introduction to the Regency Grand Hotel The Hotel is among the five star hotels in Bangkok, established by local investors. The ownership of the hotel was later transferred to the American Hotel Chain. John Becker a man with a good history in organizational management became the General Manager. Becker introduced an empowerment strategy as an aspect that would increase employee motivation and satisfaction. The practice reduced the bureaucratic governance that was embedded in the past management. The employees were now able to get involved in decision making, creativity, and innovation. Interaction with top management was also encouraged. Becker'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. Symptoms & Causes of Deterioration of Performance: Symptoms & Causes of Deterioration of Performance Cultural factors Communication factors Staff performance: personality and organizational fit Job design and role ambiguity Espoused and enacted values Power hierarchy & decision making process Stress, absenteeism, high staff turnover and job satisfaction Major issues in the case: Major issues in the case Organizational change inadequately managed. The differences in the newly merged workforce...
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...The Regency Grand Hotel, a five-star hotel in Bangkok, Thailand is noted to be one of Bangkok’s most prestigious hotels and its staff enjoyed the prestige of being associated with the hotel. The recent sale of the Regency to a large American chain of hotels and the appointment of a new general manager, John Becker, an American with 10 years of management experience with the hotel chain have significantly affected the hotel’s reputation and good standing in the hotel industry. Becker thought that the practice of empowerment would benefit the overall performance of the hotel. From his U.S. experience, Becker “found that empowerment increased employee motivation, performance, and job satisfaction, all of which contributed to the hotel’s profitability and customer service ratings” (McShane/Von Glinow, p.188-190). Not long after implementation of the practice of empowerment, Becker realized that contrary to his expectations, the business and overall performance of the hotel began to deteriorate. Guest complaints increased, employees’ mistakes increased, absenteeism increased, and employee turnover rate reached an alarming high. The good working conditions that were in place under old management had been severely strained. No longer did the employees appear united and supportive of the other. Diagnosis: Love 2 Drawing from the Multiple Levels of Analysis Anchor (organization, group, individual), at the organizational level of analysis, System Theory can...
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...Regency Grand Hotel Case The Regency Grand hotel was established by the local consortium of investors 15 years ago, and was operated well by Thai general manager since that time. It had 700 employees in the organization and used to provide creditable employee benefits, such as above market rate salaries, job securities and bonuses regardless of the hotel performance during the year. Based on those advantages, The Regency Grand hotel became one of the most prestigious hotels in Bangkok. The hotel used to be very profitable and all the employees have always followed the orders and instructions from senior management layer clearly and carried them out conscientiously and carefully. However, the organization’s previous cultural made employees lack innovation and creativity. Indeed, employees were afraid of to be innovative and take risks because they would get the punishment from the management for their self-assertion and exceed superior authority. Meanwhile, in the past, the Regency Grand had emphasized administrative control, resulting in many bureaucratic procedures throughout the organization. The employees suffered the resistance when trying to help or coordinate with guests for some minor matters. The hotel was not working quite effectively or efficiently to some extent. Recently, the hotel was acquired by a large American hotel chain which wanted to expand their operation into Thailand. The Thai general manager decided to take an earlier retirement when he got the announcement...
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...The Regency Grand Hotel Case Study: A Managerial and Socio-cultural Approach ------------------------------------------------- | | | | | | | | | | | | | | | | | | | | | | | | | | | Executive Summary This analysis reviews the case study of The Regency Grand Hotel following a recent change in the upper management and implementation of a new organisational strategy which has led to the performance deterioration and the increase in customer complaints. The problems are analysed in light of a diverse range of theories and scholarly views regarding the impact of potential factors on organisational performance and profitability foresights. Through theoretical and empirical research, the authors have focused on leadership styles, and the cultural and societal values to analyse the problems at The Regency Grand Hotel. The analysis undertaken brought about a wider and clearer image of the situation both as a whole (macro) and in terms of dissected attributes (micro). The macro problem revolves around cultural differences and imposition of a participative leadership style that did not associate with the socio-cultural dimensions of the organisation. In essence, the case study lead to a common platform entitling that cultural backgrounds and societal factors are the most important factors to be considered before enforcing any managerial strategy. Moreover, a certain level of hierarchy is quiet indispensable in organisations...
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...and other identifying information to protect confidentiality. Copyright © 2014, Richard Ivey School of Business Foundation Version: 2014-09-11 In August 2006, Global Hyatt Corporation opened the world’s first Hyatt Place hotel just outside Chicago in Lombard, Illinois. The Lombard location was the first Hyatt Place-branded hotel to open following Global Hyatt Corporation’s recent acquisition of AmeriSuites, an upscale chain of all-suite business-class hotels, from affiliates of the Blackstone Group hotel chain. The hotel corporation was scheduled to open more than 140 additional Hyatt Place hotels that year and the next in the United States as many AmeriSuites properties continued to undergo renovation and repositioning under Hyatt’s newest selectservice brand. After acquiring AmeriSuites and rebranding it, the leadership of Global Hyatt Corporation was also thinking about the internationalization of new brands. “Growth potential in the upscale limited service category is significant both in the U.S. and internationally. Hyatt will analyze opportunities for expanding the new brand in strategic markets around the world,” announced Steve Goldman, Hyatt’s executive vicepresident of acquisitions and development.2 In 2011, Hyatt Hotels Corporation announced that its select-service brands were expanding internationally. Among other issues, the leadership of the corporation now needed to find answers for several questions: What modes of entry should be used in brand...
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...____________________________________________________________ ____________________ CASE-1-THE REGENCY GRAND HOTEL Marks-15 The Regency Grand Hotel is a five-star hotel in Bangkok, Thailand. The hotel was established 15 years ago by a local consortium of investors and has been operated by a Thai general manager throughout this time. The hotel is one of Bangkok’s most prestigious hotels, and its 700 employees enjoy the prestige of being associated with the hotel. The hotel provides good welfare benefits, above—market rate salary, and job security. In addition, a good year-end bonus amounting to four months’ salary is rewarded to employees regardless of the hotel’s overall performance during the year. Recently the Regency was sold to a large American hotel chain that was very keen to expand its operations into Thailand. When the acquisition was announced, the general manager decided to take early retirement when the hotel changed ownership. The American hotel chain kept all of the Regency employees, although a few were transferred to other positions. John Becker, an American with 10 years of management experience with the hotel chain, was appointed as the new general manager of Regency Grand Hotel. Becker was selected as the new general manager because of his previous successes in integrating newly acquired hotels in the United States. In most of the previous acquisitions Becker, took over operations with poor profitability and low morale. Becker is a strong believer...
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...and effectively. We manage Hyatt for the long-term, and we are confident in our ability to continue to expand into markets where our guests are traveling and to deliver strong results in the years ahead. We are working to better differentiate our brands, to improve and align our operating processes, and to develop our talent. We continue to focus on the two main drivers of earnings growth: improving performance of existing hotels and expanding our presence in attractive markets. Improving Performance of Existing Hotels Our strategy to improve performance of existing hotels applies across our owned, managed and franchised portfolio. We have executed on this strategy by enhancing our operational efficiency, re-investing in our owned hotels and emphasizing engagement among our colleagues at all levels; in turn, we look forward to increases in customer satisfaction and market share. As a result of our efforts, adjusted EBITDA increased over twelve and one-half percent during 2012 as compared to 2011, with strong performance from owned, managed and franchised hotels. The investments we have made in our business in the course of...
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