CASE ANALYSIS OF THE REGENCY

GRAND HOTEL

GROUP INTRODUCTION M Fareed Ahsan M Mohsin Ali Fiza Naqvi Umair Asif Qumail Shahid SM Zohaib Haider Sanwal Zafar Sadaf Siam

SALIENT FEATURES Introduction about the case. Identify the critical issues and Problems. Generate Alternative Solutions. Plan of Implementation. Theory Application.

INTRODUCTION The Regency grand hotel is a five star

hotel located in Bangkok. established by a local consortium of

investors 15 years ago. Operated by Thai GM since its inception. Recently the hotel was acquired by a

large American hotel chain. The GM working since its inception

decided to take early retirement. John Becker, an American with 10 years

experience with the Hotel chain appointed as new GM.

DIFFERENCE IN MANAGEMENT STYLE

Thai Management American Management

THAI MANAGEMENT Job Security High rate Salaries No Innovation Reward system which is not

performance based. Bureaucratic Structure throughout the

Organization.

AMERICAN MANAGEMENT

Encourage Innovation. Delegation of Powers. Introduction of Empowerment. Work Style Changes. Delegate Leadership Style.

CRITICAL ISSUES AND PROBLEMS Cultural differences. Certain change in Leadership Style. Confusion in decision Making by

employees because of change in management style.

Communication Gap. Lack of Feedback. Lack of Relationship. High Turnover and Absenteeism.

CULTURAL DIFFERENCEU.S.A Thailand

Individualistic Culture Community Culture

Need for Urgency No need for Urgency

They show there Ego Very loudly

Gentle and humble

Few culture and social rules Many Social and Culture rules

SOLUTIONS• The one possible plan of action could be

to revise the history. He could adopt the old bureaucratic style of the ex-manager. In order to do so, he would have to adopt an autocratic style and to again centralize the power and authority.

ALTERNATE SOLUTIONSThe alternate solution could be

implementing the following He may use Consult team style in which

the leader present the problem to the employees get there suggestions and make the decision.Positive Consequence Negative

consequence

Involvement of employees keep them motivated

Conflict may arise

Performance based reward system should be introduced in order to keep the employees motivated.

Positive Consequence Negative consequence

Better performance due to more motivation

Increase in cost due to monetary rewards

He should define specified goals to the employees to remove confusion and communication gap.

Positive Consequence Negative consequence

Employees are clear about the goals and how to achieve them

No innovation and creativity by the employees resulting in low growth

The GM should have high need of power with Moderate need of Affiliation and Achievement.

Positive Consequence Negative consequence

High need of power by Manager helps managing properly avoiding ciaos and misunderstanding

Continuous feedback should be given to the employees for better performance.

Positive Consequence Negative consequence

This will keep them motivated towards there goals

If the feedback is negative it will demotivate the employees.

Job design and description of each employee should be clearly stated.

Positive Consequence Negative consequence

Every one knows what to do and how to do resulting in better performance

No one would be ready to serve the customer out of the way resulting in low customer satisfaction

Make proper arrangements for the training of employees. Enhance their competence and empowerment learning by on-the-job and off-the-job training.

Positive Consequence Negative consequence

Enhance their competence and empowerment learning

Increase in Cost of the Organization

IMPLIMENTATION First of all there is a need to change the

leadership style which is Consult Team Style in which the leader present the problem to the employees get there suggestions and make the decision.

Performance based reward should be introduced.

There is a need to specify the goals to the employees and defined there roles.

THEORY APPLICATION Maslow’s Hierarchy Theory of need. Vroom Jago Leadership model McClelland’s Theory of Need. Path Goal theory.

MASLOW’S HIRERACHY THEORY OF NEEDS

SAFETY NEEDThai management American management

Good employee benefits including good salary and Job security.

Employee turnover rate reached an all time high rate of employee turnover showing low job security

SOCIAL NEEDThai Management American Management

Employee have good relationship and affection with each other. They have good belongings and prestige associated with the hotel.

The good relationship that was established earlier was severely strained. They were no longer united and supportive.

SELF ESTEEM Under new management the employee

who take initiatives and made good decision rarely received positive feedback.

SELF ACTUALIZATION Initially employees were discouraged by

Thai management from innovative ideas and risk taking hence resulting in less growth

VROOM – JAGO LEADERSHIP MODELThai GM American GM

He uses Decide style i.e. employee work according to the instructions given by management.

He uses Delegate Style i.e. He permits employee to make the decision in specified limits.

MCCLLELLAND’S THEORY OF NEEDThai GM American GM

High nPOW High nACH

Mod nACH Mod nPOW

Mod nAFF Mod nAFF

PATH GOAL THEORYThai GM American GM

The Thai manager was path-goal oriented. He does have clear cut objectives and goals and for that reason, hotel was in a good position during his management

Becker on the other hand, lacked in this He emphasized more on employee motivation and empowerment. He didn’t define the goals clearly to the staff. There was no proper plan of action to attain the goals which resulted in the downfall and deterioration of the hotel.