Challenges Facing Chacha Group Hotel - Case Study Example

Organisational Review Report Customer’s name: Customer’s course: Supervisor: Date of submission: 7th December, 2012 TABLE OF CONTENT Contents Contents 2 1 Introduction 5 1.1 General overview of challenges facing organisations 5 2 Challenges facing Chacha Group Hotel 6 3 Recommendations 8 5 Bibliography 11 Appendix Appendix 1Table 1: Estimated Financial Expenditure……………..………………………….12 Appendix 2 Table 2: System Implementation Plan……………………………………………...13 Executive summary 1. Introduction An organisation is a social unit formed by persons with a common objective. Each organisation lays down its own plan and this brings out the uniqueness of different organizations. 1.1 General overview of challenges facing different organisations Many organisations face common threats. These include poor or lack of vision, mission, strategies and plan of what they want to achieve, poor managerial and data keeping methodologies. Poor financial utilisation or planning is also a challenge. A demotivated worker is an additional challenge resulting from working environment or job description which is not clear. Other businesses have written plans which are not implemented. 2. Challenges facing Chacha Group Hotel Chacha Group Hotel has four branches. The company faces challenges of poor communication and coordination between the branches. The IT systems in place are out-dated. They are solely run and, therefore, the day-to-day performance of each branch is not concentrated in a common pool. The data storage is also disorderly and difficult to access specific information in the system. Communication between the branches takes place through post mails and phone call a format which is tedious and slow. The customers are attendent manually and, there is a lot of paper work. This is quite a slow process. The process also demotivates the employees. The main branch in London has not been renewed in more than two decades giving unwelcoming look. Due to these challenges the customers are shunning away from this inn to other restaurants. 3. Recommendation The classical and open theories have been considered as the best theories in reviewing the current status in this case. .An excellent and well installed IT System is the best solution to the current crisis in the Chacha Group Hotels. The process is estimated to consume $86,814.00 see table1 in appendix 1. The budget includes the renovation of the London branch. The activity plan of implementation is stated to take place as from January 2013. The first evaluation of the IT system will be carried on January 2014. This will be after six months of business operation under the installed IT System see table 2 in appendix 2. 4. Conclusion In order for the Chacha Group Hotels to keep face with its competitors, it has to review the current IT system in place. The implementation of high level IT system will not only accrue benefit but, also motivate the employees. Organisational Review Report 1 Introduction Abbey and Dickson, (1983) An organisation can be defined as a social unit formed by persons with a specific structure. These persons manage the unit to meet a specific need or a common goal or objective. Objectives should be time bound, realistic, achievable, specific, measurable and achievable. The persons pursuing the structure should clearly stipulate what they want to achieve. The target should, therefore, be quantifiable either in terms of monetary value or numbers. The structures’ plan should be real and not build on castles which are meaningless. Lastly, the organization should state when to achieve the target. Else, they should state when monitoring or evaluation deem to be useful. This will ensure they analyse their efforts in regards to their organizational plan. 1.1 General overview of challenges facing organisations Any organization that breaks the ground is practical for it to have the following in place: the issues at hand, the vision, mission and strategic plan if it has to succeed Burns & Stalker (1961). The issues incorporate the problems which the members of the organisation feels are crucial and need a solution following a laid action. The vision is framed from the problems. Vision acts as reflecting mirror on whether the organisation is facing the right direction. The mission statement is developed by the members of a given organisation and it portrays the purposes of the organisation. The strategy involves all the procedures and processes the organisations plans to undertake in order to achieve their goal. The members should focus the organisation in the future and outline some challenges they are likely to face. These challenges need to be outlined in line with their solution. Outlining the challenges helps the organisation be prepared for the worst events in case the organisation is hit by blows of nature. Basically, businesses commence in order to make a profit. This fact is not always the outcome in many organizations. How to manage the losses when they occur should be laid as the business kicks off. On the other hand, a successful business will also grow and expand. The members should have a plan from the moment the organisation begins and how they will expand the business. However, the expansion may as well be reviewed during the evaluation of the organisational growth. Business also face other challenges such as poor managing styles, lack of clarity in managing structures and decision making, over committed or unconfident board of directors, badly run and planned meetings as well as poor record keeping. Other barriers involve (www.healthknowledge.org.uk) unclear staff job description and when to receive their pay. Unclear cut off on how to deal with low performing workers. Haphazard administrative systems which act as a barrier to the effective operation, inadequate control and financial management procedures, lack of enough capacity or willingness by the management or the personnel on board to address the problems facing a given organisation are other threats too. Some organizations face challenges as they invest in solving technical issues rather than the ethics, values and principle matters. 2 Challenges facing Chacha Group Hotel Chacha Group Hotels in this case has not been left out in the challenges that face common organizations. The organization in this case faces several draw backs. The hotel had a good progress in the past; due to change in technology globally its performance is currently affected Abbey and Dickson (1983). The negative effect is likely to result into customers’ loss leading to losses. Chacha Group Hotel uses flyers, magazines, word of mouth and local newspapers to make its advertisement. Currently, most persons use their laptops, Ipad, mobile phones among other computerised devices to get information on a daily basis. The information obtained from these gadgets includes daily news. It is, therefore, noting that as days go by so does the number of those persons who purchase written material go down. In addition, since the organisation not only targets the local people the message does not reach the persons living in the out scats of London, Edinburgh, Paris and Rome. The company had accrued 50,000 customers last year. Ashton (2004), therefore, a good IT system put in place can boost the turn out in the future. Having had started in 1962, Chacha Group Hotel should have grown significantly to date. The growth should not only be in expansion of three extra hotels as it is but also in terms of sophisticated communication systems. The organisation lacks centralised control and management. This is highlighted by the fact that although there are four computers one in each branch and not controlled from a central place. The lack of common managerial system means there might be a lot of loss or leakage of finances without the knowledge of either party to other activities unplanned for. Any firm should aim to satisfy its customers. Poor IT system and manual attendant to customers has shown to cause delay in serving the customers. Lack of database of how the business performs in a daily basis also results in poor conclusion of achievements of the company. Chacha Group Hotel still uses manual prepared records and files. The files are prone to tear and loss. The future assessment of the business will also be affected following the loss of information. The system also does not have consistence information presentation. The recovery of such information remains a challenge to any person who may require the information. Some information is also likely to go unattended. The firm experiences low communication since information is passed across either by post-mails and phone calls rather than email delaying response. The XP computers in use Abbey and Dickson (1983) have not been incorporated with search software, document interpretation software and financial information usually not encoded. The system, therefore, portrays reduced progress to this firm. From the case outline, the hotel does not highlight its issues, visions, missions and strategies of how it was laid in 1962. This also is likely to be a threat since the firm lacks stipulated goal. The company does not also highlight when evaluation of the business and monitoring is usually done. 3 Recommendations The Chacha Group Hotel has to put into consideration several factors of the IT systems to address challenges at hand. Such characteristics Burns and Stalker (1961) of a good information system in management include being cost effective. The cost incurred in installing and running the system should not impact on the clients. It should also be timely in the provision of information. It has to be exhaustive providing information from the broad perspective up to the redefined level. The refined information should involve only the most relevant data for the organisation. The MIS has to be accurate and precise. It should not give inaccurate estimated cost as this does affect the effectiveness and efficiency of the firm. Lastly the gathered information should regard to the organisations issue at hand being reviewed. These factors are also supported by the Open system theory. Backer (1992) Open system theory takes into account human factors in workforce like motivation and emotions. As per this theory, companies and institutions acknowledge employees driving force of cultural and social motivators as they increase productivity at all managerial levels. In this theory, businesses does not work autonomously they involve facilities, subsidiaries, divisions and labour. It does not have a single overseer manager but, includes other managers in charge of different operations. As a result, this theory recognizes motivation of its member (Miller, 2008). This theory gives more importance to out-sourced facilities and managers increased power in business operations. Moreover, it embraces the ideology that every company, industry and institution remains unique and requires unique system to tackle its needs. Chacha Group Hotel should put in place a computer system with high speed, be internetworked and incorporate more computer system to the four branches that each employee has access to. The Chacha organizations lack a common administrative communication this is because the computers are solely run per branch. Networking the computer system, will ease communication between the administrators too. The administrator should keep in touch and communicate frequently regarding the business flow. The software should contain website where customers can access the Chacha Group Hotel. The website should be highly advertised in social media. This will ensure the Chacha firm bits its competitors. The software should contain database for all activities carried in the business chain, the financial breakdown and orderly arrangement of files and folders. Like folders and files may be given a common name and numbers depending on when they are prepared or received. The software should give an option to the managers and other employee to create a password to protect the information and ensure privacy to information. The administrator’s data should only be accessible to him only for safety and reputation of the firm. The customer’s site should allow them to contact the hotel and make booking early in advance online. Data should be entered in a common database to avoid the manual data storage and the killing of the morale of the workers. Workers are key resources in a given organisation. They need to be motivated Backer (1992). Such motivation does not only mean good salaries, but also conducive working environment. This fact is supported by the Neo-classical theory. The Neo-classical theory looks at the worthiness of an individual person in an organization. Neo-classical theory relates workers and their social elements in place of work. It believes that productivity increases depending on the morale of the employees (Richard & Daft, 2009). To achieve this, manager or the head of a particular department have to maintain close relationships with the employees at a bit personal levels. There should be a procedure to reward and recognize performance by different employees. Communication between customer care of Chacha Group firm and the customers should remain feasible 24/7. The hotel in London should also be refurbished and attain a new look to attract customers. To achieve this, the inn has to invest on new computer hardware and software. Ambler (2000), As a consultant, would recommend the HP hardware and software. Hp has shown to maximize the value of business in an organisation. www.bitpipe.computerweekly.com Hp is available, efficient and reduces cost of ownership cumulatively. It also increases performance and reduce the cost of storage. In addition, its capital is financially friendly. I would, therefore, recommend six hp computer systems per branch. The investment breakdown and implementation plan is as shown in the appendix 1 and appendix 2 respectively. 4 Conclusions To conclude the Chacha Group Hotels need to review its current information system. If this firm has to keep with the face of its competitors Ambler (2000). 5 Bibliography Abbey A and Dickson J. (1983). ‘R &D work climate and innovation in semiconductors.’ Academy of management Journal 26 pp. 362-368 Ambler T. (2000). Marketing and the bottom line. London: Pearson education Ltd Ashton D.N. (2004). ‘The impact of organizational structure and practice on learning in the workplace’. Academy of management learning and education, vol.8, pp.43-53 Backer T.E. (1992). ‘On work place creativity: psychological, environmental and organisational strategies’. Creativity research journal. 5, pp. 439-441 Burns T., and Stalker G.M. (1961). The management of innovation. London: Tavistock Health knowledge (www.healthknowledge.org.uk) IT hardware and software retrieved from www.bitpipe.computerweekly.com Miller K. (2008). Organizational communication: approaches and processes. Retrieved from http://www.ehow.com/list_6811366_theories-organizational-structure.html, December7th, 2012 Richard L. & Daft (2009). Organization theory and design. Retrieved from http://www.ehow.com/list_6811366_theories-organizational-structure.html, December 7th, 2012 Appendix 1 Table 1: Estimated Financial Expenditure No. Description Unit Quantity estimated Unit Price Total Estimated Cost 1 Equipment No. $ $ 1.1 Photocopying papers size A4 80g/m2 Reams 48 8.00 384.00 1.2 Cartridge 51A No. 24 200.00 4,800.00 1.30 Desktop Computers No. 24 750.00 18,000.00 1.4 HP LaserJet Printer No. 12 1,250.00 15,000.00 1.50 Uninterrupted Power Supply No. 24 100.00 2,400.00 1.6 Operating System (windows 7 pro) No. 24 190.00 4,560.00 1.70 Microsoft Office Suite (2010 pro) No. 24 415.00 9,960.00 1.8 Anti Virus No. 24 25.00 600.00 1.9 Telecommunication system No. 24 15.00 360.00 1.9 Internet connectivity/ software No 4 500.00 2,000.00 2 Service providers       2.1 web designers No. 1 1250 1,250.00 2.2 IT system installer No. 8 1250 10,000.00 2.3 Contractor for London hotel renovation No. 1 12500 12,500.00 2.4 Transport services Trips 4 1250 5,000.00   Total estimated cost       86,814.00 Appendix 2 Table 2: System Implementation Plan Time Activity January 2013 Selection of the contractor to refurbish London hotel branch February & March, 2013 Renovation of the London hotel branch April & May, 2013 Transport of the IT equipment and installations/ internet connectivity May, 2013 Chacha Group Hotel web design January, 2014 1st evaluation of the IT system in Chacha Group Hotels Read More