The Regency Grand Hotel is one of the most prestigious and luxurious hotels in Bangkok, Thailand. Since its inception, it has earned a brand name in the industry owing to the exceptional salaries and benefits offered. The hotel staff and managers felt privileged being a member of the hotel, and perceived that they were being taken well care of under the leadership of the then General Manager.
The following case study illuminates the dilemma of the employees undergoing the management changeover following its acquisition by an international group.
In the earlier set-up, the employees were expected to follow the orders of their managers without questioning them. Initiatives to solve problems at personal level were discouraged and it led to lack of innovation and risk-averse behavior. Eventually, the hotel staff got accustomed to the style of management over the past fifteen years, and it made the work go smoothly with minimal number of conflicts. 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.
However, the recent sale of the hotel to a new American group introduced an altogether new style of administration to the employees. The management style of the new GM was entirely opposite to what the staff was familiar to, and it caused problems bringing the hotel’s performance and reputation down the drain.
Symptoms & Causes of Deterioration of Performance:
Symptoms & Causes of Deterioration of Performance, Cultural factors, Communication factors, Staff
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