Write a case study on management and organization behaviour…………
1.0 EXECUTIVE SUMMARY
The Regency Grand Hotel originally one of the best performing hotels in Bangkok, Thailand failed to deliver due to change in management and leadership style. After receivership from the American hotel chain the previous employees who were used to the old leadership style of bureaucracy could not easily absorb the new leadership style without clear guidelines. In the end there was confusion all over, when the new general manager John Becker failed to give clear orientation of what minor and major issues meant. The decentralization of power and control came to a standstill as some of the employees could not take accountability for their mistakes which led to pointing of fingers and complete laxity in their duties. The following analysis clearly describes why the management style by John Becker failed.
There are three different styles of leadership: Bureaucratic, democratic and laissez-faire. The regency Hotel employees were used to bureaucratic leadership style. They had been discouraged from innovation and making critical decisions that involved management interventions and in this respect they had to follow the laid down bureaucratic procedures. John Becker reduced these bureaucratic procedures to front-line employees. Some of the employees opposed to his decision had to quit and they were immediately replaced. John Becker believes in empowering the employees towards better decision making. He believed they should go beyond by being innovative and guest oriented. He largely relied on laissez-faire leadership style where he allowed them to do what they think was right for them. He failed to understand that United States and Thailand were two different countries with different cultural diversity. He left them on their own without clear guidelines on what minor and major issues meant. Being a leader one must lead by example, Becker simply refused to be consulted by the employees. They ended up being confused on which decisions to make and which ones to consult. They began pointing fingers at each other instead of being accountable for their mistakes. The customers felt dissatisfied by the services offered which was then captured by the media that brought a negative image.
2.2 Motivation and Reward Systems
Motivation is very critical towards the performance of an organization and if not dealt with carefully it might lead to the downfall of a firm. Initially the predecessor of John Becker employed techniques such as good welfare benefits, above market rate salary, job security and a good bonus (Mullins 2009) at the end of the year despite the hotel’s management. The employees were content and used to the bureaucracy system where they worked under command and control. They were never used to making decisions on their own but when John Becker came in he introduced the idea of employee empowerment. He visualized that empowerment contributes immensely to employee motivation and job satisfaction Heathfield (2008). It worked at first, but as time went by he found out that they were consulting him more often than not. He was very furious to a point of ordering the secretary to lock them out unless the hotel was on fire. He completely alienated himself from the employees who began blaming each other on mistakes made by their fellow colleagues. Absenteeism became the order of the day, laxity at work came in and the whole hotel management was in shambles. It was no longer a motivation to them as they abandoned duties to avoid taking the blame. As a result performance was diddling down at an alarming rate. It’s only when the media uncovered it that the general manager John Becker came to light that his management and motivation style had failed in Thailand.
2.3 Group Diversity
John Becker found the employee empowerment in U.S to be more effective and as a result failed to understand that the reward and motivation methods vary with the different group dynamics. Such factors like cultural difference are very fundamental for any manager to consider. It could be that in U.S most employees want to feel the power while in Thailand they believe someone should provide command and the rest should respond to the command (Rhodes, Fincham, 2005) John Becker probably failed to analyse the employees’ personality before applying his management style.
2.4 CONFLICT AND STRESS
Conflict is a process of disagreement in an organization or any setting. In every organization there exist conflicts at different levels. Stress is a state where a body responds to a craving for something. If not managed well conflicts may lead to stress. The employees of Regency Grand Hotel were repeatedly having stress since the prologue of employee empowerment. They began being absent with the excuse of sickness and their turnover rate rose up. They craved for the old good management relationship. Finally they become completely disunited in their duties and the performance level went completely down. This caused uproar in the media sector due to continued customer dissatisfaction. John Becker was completely distressed when an international magazine voted the hotel to be one of the Asia’s nightmare hotels. There was conflict everywhere, the employees continued to blame each other when mistakes were made and problems occurred. The level of stress and conflict went on unmanaged and unresolved as the hotel continues to deteriorate.
When the shareholders takes over the ownership of Regency Grand Hotel or any other company they ought to have an effective market research not only on the profitability of the organization but also on the management styles and other factors that leads to its success. They should not assume that the general managers previously successful in other companies are able to do the same in a different geographical region. Otherwise the shareholders should appoint manager in the countries of origin rather than their foreign countries. Managers should know and understand the personalities of the resident employees. As for the underperforming employees and rebellious staff the management should apply the necessary disciplinary measures like warning them, suspending them or even firing them.
3.2 Current management
John Becker or any other general manager should carry out a SWOT analysis of the organization at large to identify what is the real cause of the deteriorating performance. He should inform and orient the employees on what he expects of them. It is clear that the only step John Becker made was to meet the management staff of the departments who later did not talk to the employees what was expected of them. As a leader and manager he should go step by step to make the employees understand the issues he refers to as minor and major issues. He should not shut himself off from the employees but rather tirelessly give them the right guidelines.
Moreover, the management should align the objectives of the organization with the expectations of the employees. The employees as important assets in the organization should be given training, orientation and clear guidelines and above all proper reward mechanism to sustain the good performance (Saulinier 2009).
During the time the general manager is carrying out orientation of what he expects of them, they should inquire of him what he means by minor and major issues (Olaniyan, Ojo 2008). They should not wait till things have become uncontrollable so as to raise their voices. They should be keen on finer details and take personal initiative to consult among each other. Group work should be emphasized to encourage unity towards the achievement of the organization’s goals (Bauer, Erdogan 2009). The employees must bear in mind that if the organization fails they will lose their livelihood.
3.4 Stress and conflict Management
Every organization must have a mechanism of conflict resolution and stress management. If not managed well employees’ stress might end up into the downfall of an organization. The profits will decline, there will be total disunity and the level of performance will definitely go down. The management should identify the stress causative agent and work from that point. They should resolve issues before they build out to a burn out point where there the solution will be difficult to find.
In organizational management it is clear that there are various elements which must be put in mind for efficient performance. These include the employees’ welfare (Baker
2007) and group dynamics, the leadership style, motivation and the reward system, stress management and conflict resolution. These very critical for a good performance and if not well managed they might see to the downfall of the organization. Therefore it calls for different stakeholders as mentioned in the recommendations above to rise up to the occasion and examine them keenly. Laying down proper policy and strategic guidelines is mandatory to all firms to clearly set down duties of each employee and the extent of their authority to avoid conflict of interests. If these recommendations are followed to date they might just be a crossing bridge to the success of all organizations.
Baker, H, 2007, Employee training, West Sussex, Global Media, UK
D.A. Olaniyan, Lucas. B. Ojo (2008), Staff Training and Development: A Vital Tool for
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Deborah Schroeder-Saulinier, (2009), Organizational effectiveness, Right Management
Dr. Talya Bauer, Berrin Erdogan (2009), Organization behaviour, Flat World Knowledge
Laurie J. Mullins (2009), Management and Organization Behaviour, Prentice Hall
Peter Rhodes, Robin Fincham, (2005), Principles of Organizational Behaviour, Oup Oxford,
Susan M. Heathfield (2008), Using training and Development to Motivate Staff, Human
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