Aim of the Report
The report aims to provide background information on the selected problem that is affecting Imperial Hotel. An analysis of the problem will be conducted by evaluating various management theories. The chosen issue will also be analyzed and discussed more deeply. Finally, justification of the proposals recommended for solving the problem will be addressed.
The Imperial Hotel is a 500 bedroom hotel located in the heart of London's West End. The hotel is owned and managed by a reputable international branded chain of hotels in the four-star market. The hotel has a new manager who is supposed to mitigate some of the challenges facing the hotel. The hotel has been undergoing a series of drawbacks that have been affecting its performance in the industry. Imperial Hotel has a negative work culture that is causing high levels of sick leave and poor attendance among the employees. The negative work culture of the hotel is significantly brought out by the pressure placed on managers to increase sales month by month by filling the hotel rooms. Poor performance causes the manager's bonus scheme to reduce. The long working hours and staff covering for their colleagues resulted in the creation of a toxic culture that has affected the whole organization. The management style of the hotel is authoritarian and dictatorial; thus, there is minimal communication between the managers and the employees. The employees are demotivated to work for the organization, and there are a high turnover and minimal supervision from the managers; thus, causing services of the hotel to run inappropriately.
Analysis of the Individual Problem
The negative work culture at the Imperial Hotel has led to significant consequences such as increased sick leave and absenteeism by the employees. The issue at the hotel can be understood through an analysis of various management theories. One of the approaches is conflict management theory. Organizational conflict occurs when employees engage in activities that do not align with the company's objectives. According to Rahim (2002), based on the conflict management theory, disagreements in an organization happen when employees engage in activities that are incongruent with their needs. For instance, in the Imperial Hotel, most of the workers work part-time. They are expected to work for long hours, yet they have other family obligations to attend; hence, the increased sick leaves and absenteeism by the employees. Conflict also arises when a party wants a mutually desirable resource that is in short supply causing the lack of satisfaction among the members. The Imperial Hotel utilizes an authoritarian leadership style, which is dictatorial. The managers ignore the needs of the employees to the extent that they do not offer any support concerning short leaves and flexible working hours. The employees feel unsatisfied with the working conditions, and this has led to the high employee turnover.
Another significant management theory that can be utilized to evaluate issues facing the hotel is the human resource theory. Elton Mayo coined the Human resource theory, and out of his experiments, he noted that work satisfaction and performance were determined not by economics but by working conditions, attitudes, positive management response, and attitudes (Onday, 2016). The theory is based on the assumption that organizations exist to serve human needs, not vice versa. It is also based on the assumption that organizations and people need each other. Finally, when the connection between the organization and the employees is not fit, both will suffer. In the case of Imperial Hotel, the hotel focuses on economics instead of the employees. The managers are put under pressures to make sales every month consecutively and fill the rooms. The management fails to realize the input brought by the employees as noted in the human resource theory. The satisfaction of the employees at the organization has been adversely affected due to the negative management response and harsh working conditions characterized by long working hours contrary to the beliefs of the human resource theory. The management practices at the Imperial Hotel contradict with the assumptions of the human resource theory. For instance, Imperial Hotel operates to make profits only instead of serving human needs (employees being priority). The hotel fails to realize that both parties require each other to run efficiently; thus, the consequences are evident with the problems being highlighted at the hotel. Finally, the hotel fails to realize that when the connection between the managers and the employees fails to materialize both will suffer. In this case, the employees have experienced the harsh working conditions resulting in the high turnover and absenteeism. Nevertheless, the actions of the employees will influence the performance of the hotel directly or indirectly.
The X-Y theory is another approach that can be utilized to evaluate the situation at Imperial Hotel. The theory was coined by McGregor and has a valid principle from which to develop positive management style and techniques. Theory X utilizes an authoritarian method where the emphasis is on productivity (Nor, 2013). The theory assumes that employees are reluctant in their job and there should be a motivated staff to assist the employees to accomplish their daily objectives. An authoritarian leadership style is evident at the Imperial Hotel. The previous manager had created a toxic environment for both the employees and the organization. The lack of a motivated staff at the hotel has led to reduced levels of supervision and high employee turnover. Theory Y is the opposite of X and states that employees must be allowed to seek responsibility and commit to their jobs without being coerced. McGregor favors theory Y than X because it is more concerned with the aspect of human beings rather than the organization. In the case of Imperial Hotel, theory Y is not utilized because the workers are not allowed to participate in any decision-making process. The authoritarian leadership style limits their input to their organization and demotivates them. The high turnover and absenteeism can be directly related to the lack of room for the employees to realize their responsibilities and the freedom to make choices. The management of the hotel fails to recognize the human side of the hotel and focuses more on filling the rooms and increasing sales. The perspective taken by the administration is contrary to theory Y; hence, the increased problems at the hotel. The three theories mentioned in this section are essential for defining and analyzing the issues facing Imperial Hotel. From the approaches mentioned, it is evident that the hotel requires a transformation in its management style to retain its employees and increase revenue.
The one specific problem that is affecting the Imperial Hotel is the negative culture, which is affecting the running of the hotel adversely. Form the case study; it is evident that an unsupportive culture in any organization can affect the proper running of activities. At the Imperial Hotel, the workers are undergoing various challenges such as long working hours, lack of free time outside of the job, and poor communication with the managers. The existence of such problems have resulted in high cases of employee absenteeism and turnover. According to Faldetta, Fasonne, and Provenzano (2013) employee turnover is one of the initial problems affecting the hospitality industry. It results in many negative consequences direct and indirect on the organization. Direct impacts include an increase in recruitment and training costs of new employees. Premature turnover may waste the investments of the hotel on workforce development (Faldetta, Fasonne, and Provenzano, 2013). Indirect impacts of turnover include a reduction of employee productivity due to poor service quality, job commitment, and job dissatisfaction. The author also notes that the success of the hospitality industry is based on the quality of the employees and how well they are managed. A competent human resource department should be formulated to ensure the success of the industry. In the case of the Imperial Hotel, it is essential for the managers to restructure their management style and start focusing on valuing their employees, training qualified personnel, and develop a competent human resource department that will cater for the needs of both the employees and the hotel. If such conditions are met, then employee retention rate at the Imperial Hotel will increase because they will be satisfied with their job. Effective communication between the managers and the workers will also result in job satisfaction, commitment, and retention. Imperial Hotel should also redesign is leadership style and adopt a method that will incorporate, listen, and respond to the queries of the employees. The current dictatorial style of leadership is derailing the effectiveness of the hotel. The strategies mentioned above should be implemented to ensure the success, and the glory of the hotel is retained and maintained regarding quality service and employee satisfaction.
Justification of Key Proposals
The issue facing the Imperial Hotel requires proper action to be taken to ensure the organization runs efficiently. Peter Farnsworth the current manager of the hotel suggested various recommendations be adopted. One of them is the improvement of standard levels of supervision within all departments. Firstly, for imperial Hotel to set standard levels of supervision, the managers must understand guest expectation. According to Peterhans (2010), the standard levels of the hotel can only be implemented if the hotel meets the AAA evaluation process. The assessment involves a series of inspectors assessing some of the services of the hotel such as the check-in section, arrival services, reservation services, and many others. The achieved score will determine the standard level that classifies the hotel. The next recommendation that will help solve the problems affecting the Imperial Hotel is to train the employees to understand the standards and values of the organization. Adequate training will enable the managers to guarantee that the employees are well-informed of the organization standards and values. The training process should include the training costs and the return on investment from training. The hotel should practice smart hiring process, which should consist of a detailed and an up-to-date job description (Peterhans, 2010). The selection process should be reliable and valid. Personality tests should be incorporated to measure how well the trainee will fit in the job, how the applicant will behave in the work environment and the existence of issues that will disrupt the work. For instance, most of the employees at the Imperial Hotel are part-time workers who have other commitment outside the job, and this has affected the successful running of the hotel. The management would have been in a better position if they had conducted personality tests to ascertain the position and the impact the employees will have on the hotel.
A culture of collaboration and respect should also be developed among the colleagues working in the hotel. The hospitality industry is faced with stiff competition, and for hotels such as the Imperial Hotel to stay on top of the game, they should encourage knowledge sharing in the form of teamwork. Teams share among themselves the knowledge and experiences they have acquired; thus, promoting creativity and quality product and service delivery. According to Hu, Horng, and Sun (2009) companies can only attain competitive advantage if they incorporate knowledge expertise and skills of their employees to make use of effective managerial practices. In cas...
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