Regency Hotel Case Study
The Regency Hotel is a beautiful five star hotel that is located in Bangkok. This hotel was established by a local group of investors and was operated by a Thai general manger at the beginning. This Regency Hotel was one of the country’s most prestigious hotels. The employee count for the hotel was around 700 and the moral of the employees was very high. They hotel offered very good employee benefits, above average salaries, plus job security. They also included a great yearend bonus that was not based on the hotels overall performance.
After some time the hotel was sold to a very large American hotel chain, after finding out the general manager decided it was ...view middle of the document...
From the very beginning the hotel was very profitable, the old management encouraged following management instructions and not showing innovation or creativity. In Fact, creativity and innovation were discouraged. The hotel would punish employees that tried something new that was not first approved from management. As a result the employees never wanted to take any risks in fear of getting in trouble. When Becker met with the managers he explained very in-depth that the employees must be empowered to make their own choices so that they can use their initiative, creativity, and judgement. He did a limit though, any really complex issue would have to be resolved from the managers. Mistakes were also to be allowed, but only once. After a mistake was made they would have to learn from it and make sure to never make the same mistake twice.
Becker also did not want to have to waste his time on any minor decisions. Becker was there to address all of the major issues the hotel was having and he trusted the mangers to deal with all of the minor issues without his knowing. After informing the mangers of this new style, many of the mangers were really up to the challenge. Before Becker the hotel was very micro-managed, to the point where the front desk would have to ask the general manger if that could upgrade a room. Becker made it possible for the front desk people to make the decision themselves, as a result some of the employees actually left the hotel. The employees often have a very troubling time distinguishing the difference between a major and a minor issue.
Becker soon found out that the managers and employees could not handle the system in place, after sometime the employees lost confidence in making choices and begun to just relay on the old system as before to avoid getting in trouble. The managers were still bothering Becker to the point that he had to tell them to only come to him if the “hotel was on fire”. Soon the overall performance of the hotel was deteriorating. The turnover rate was at an all-time high and the work environment became cut throat.
The Hotel fell apart for a lot of reasons, from small things like stress to bigger things like the major culture differences that were just ignored from the beginning. The culture factors were the biggest thing that should have been addressed at the beginning. I understand the want to have an American general manger in an American owned company but the company itself should have made sure that Beck was coming in very educated to the differences in the culture compared to the Americans that he was used to working with. Becker should have done more listening to what the mangers wanted to do. First off they have been there the longest and all the employees are going to trust what they say and not some new person that is not even a native in their country. Second, since they have been there the longest odds are that they will have a better idea of how the company will work.