RDH MANAGEMENT
Introduction:
The Roaring Dragon Hotel (RDH) is a State Owned Enterprise (SOE) and one of the renowned Hotels in South West China. It has great reputation and a very good history in serving the customers and having very healthy relationship with the employees (Grainger, 2008).
Background:
The employees are transferred from other State owned Enterprises and other government departments on ‘guanxi’. They had a relaxed organizational culture, Tian Wen was the General Manager in 2000, and he used to follow the management practices that were followed in economy era. All the employees in RDH used to have job security. Based on the government decisions in 2001, Paul Fortune became the new GM and he was appointed by Hotel International (HI) in April 2002 (Grainger, 2008).
Problems:
Ever since Fortune took over the position as General Manager of RDH, and also when Hotel International took over the control, things at RDH started getting out of hand.
1. There were many issues because of the Chinese traditional ‘guanxi’ management system has been replaced by European style of management, and that effected the relations between the touring companies and the RDH, also employees faced a lot of issues.
2. The peace and serene environment that was once there was replaced by depression and hopelessness, employees lost their confidence and were constantly worried about their job. Many employees were laid off and the rest of the employees had extra burden on them because they have to do the work of three people. Meal Roaster was one of the many issues.
3. The new management didn’t respect the employees or valued their suggestions, and also didn’t really understand the customer needs thus, it lost many customers and it has financial issues and the reputation of RDH went down.
Recommendations:
China is a place where ‘guanxi’ means a lot. By respecting and understanding the cultural values and also by understanding the ‘Guanxi’ system and also by respecting employees, the
The Roaring Dragon Hotel (RDH) is a State Owned Enterprise (SOE) and one of the renowned Hotels in South West China. It has great reputation and a very good history in serving the customers and having very healthy relationship with the employees (Grainger, 2008).
Background:
The employees are transferred from other State owned Enterprises and other government departments on ‘guanxi’. They had a relaxed organizational culture, Tian Wen was the General Manager in 2000, and he used to follow the management practices that were followed in economy era. All the employees in RDH used to have job security. Based on the government decisions in 2001, Paul Fortune became the new GM and he was appointed by Hotel International (HI) in April 2002 (Grainger, 2008).
Problems:
Ever since Fortune took over the position as General Manager of RDH, and also when Hotel International took over the control, things at RDH started getting out of hand.
1. There were many issues because of the Chinese traditional ‘guanxi’ management system has been replaced by European style of management, and that effected the relations between the touring companies and the RDH, also employees faced a lot of issues.
2. The peace and serene environment that was once there was replaced by depression and hopelessness, employees lost their confidence and were constantly worried about their job. Many employees were laid off and the rest of the employees had extra burden on them because they have to do the work of three people. Meal Roaster was one of the many issues.
3. The new management didn’t respect the employees or valued their suggestions, and also didn’t really understand the customer needs thus, it lost many customers and it has financial issues and the reputation of RDH went down.
Recommendations:
China is a place where ‘guanxi’ means a lot. By respecting and understanding the cultural values and also by understanding the ‘Guanxi’ system and also by respecting employees, the