Human Behavior in Organizations - Case Study Example

Human Behaviour in Organizations: The Regency Grand Hotel (Name) (Institution) (Date) Introduction Established fifteen years ago, The Regency Grand Hotel is among the most luxurious hotels in Bangkok, Thailand. With over 700 employees, the hotel offers excellent working conditions to the workers, in addition to end year bonuses, and job security. These have translated towards the hotel’s overall performance. Following the purchase of the hotel by an American hotel chain, the company’s management has also changed. John Becker has taken over as the general manager of the hotel from the Thai counterpart. Becker, the new general manager, believes that the performance of the Regency Grand Hotel can improve if the practice of empowerment is encouraged among the employees of the company. Unlike his predecessor, Becker encourages employees to be more proactive, giving them more room to make independent decisions concerning minor issues in the hotel. This way, the manager hopes that they can be more motivated and satisfied in their jobs. This paper analyzes the situation at The Regency Grand Hotel following the hotel’s acquisition by the American hotel chain, and the subsequent change in management. This paper also explores the new management practice introduced by the new general manager and the reasons associated with its failure. Background issues and problems When Becker began encouraging empowerment among the employees of the hotel, he had an objective of improving service delivery at the hotel and reducing bureaucracy, thereby increasing the speed at which decision-making occurs at the hotel. Through empowerment, Becker hoped the employees would become more guest oriented, creative and innovative. Initially, the practice worked as intended. The level of bureaucracy was at an all time low, and there was a clear difference from the past management. After a while, however, it was evident that the new practice of empowerment was doing nothing to improve the performance of the hotel. The supervisors often reversed decisions made by the junior employees, there were no clear stipulations as to what constituted minor or serious issues, and Becker spent more time solving problems from both employees and hotel guests that there was no time for the general manager to think about other pertinent issues. The performance of the hotel, therefore, deteriorated significantly. Assumptions of case study In this case study, empowerment means giving the employees more power or authority to make decisions. It is clear that the new strategy was not planned for appropriately and poorly introduced. Using the five-anchor model used to study human behaviour within the organization, the multiple levels of analysis, contingency anchor, and open systems anchor support this view. Under the “contingency anchor”, one action may result in different reactions under different situations. As in the case of The Regency Grand Hotel, Becker was an expert in turning, poorly performing companies, around. However, the situation and the business environment in Bangkok, Thailand is not the same as that of the United States. The manager assumed that similar outcomes would be witnessed at the hotel. When John Becker took over as the general manager, he had a vision of how the new strategy of empowerment would improve the performance of the hotel. However, he failed when it came to ensuring that the entire hotel staff transitioned smoothly to the new practice. He made an assumption about the employees’ reception towards change. The inability of management to handle the organizational change, effectively, is the primary cause of all the issues faced by the hotel. With a clear communication strategy, the situation can still be salvaged, and the new practice made to work for the hotel. Cause-effect analysis According to Robbins (2009), managers delegate work to others to get things done more efficiently and faster. This is one role of a manager, which John Becker failed to achieve. The new general manager failed to manage efficiently the employees at the hotel and a result, spent more time dealing with disgruntled employees and unsatisfied hotel guests. The new practice of empowerment should have improved efficiency at the hotel, reducing bureaucracy, and improving job satisfaction and motivation among the employees of the hotel. However, the hotel deteriorated for the worst, losing reputation and recording poor performance for the first time. The attitudes of the employees at the hotel may have also contributed towards the failure of the new practice. Empowerment is a useful tool for motivating employees and improving their commitment to the performance of the organization. However, to employees used to a certain leadership direction, it may be difficult to change to something different. Giving the employees more authority and responsibility is a smart business strategy; however, this is a difficult strategy to apply if the employees do not want to embrace the strategy. When the American hotel chain took over the ownership of The Regency Grand Hotel, the new management retained all of the employees, though; a small number was reassigned to other positions. The management should consider the different personality traits among the employees, since these influences their work values, before making such a move. In the hotel business, personality traits such as agreeableness and emotional stability are of enormous significance. When selecting among different employees for certain jobs, personality traits take the front seat. For instance, employees working at the front desk should be more welcoming and cheerful. This improves service delivery in that the guests feel welcome to stay at the hotel. Major issues arising from the case study Factors, which may have resulted in the problems experienced by the hotels, include a breakdown in communication, lack of a clear distinction of what comprise minor issues and complicated issues, and job ambiguity. Different outcomes may have been recorded if these issues were addressed before the commencement of the new management style. Clear guidelines need to be set to provide direction to employees as to what to expect once a new practice comes into force. Major issues that arise from this case study include poor handling of organizational change, indistinct decision-making process, conflict between managers and employees, and overdependence on senior management. Issues such as absenteeism, rapidly increasing complaints from hotel guests, job frustration, and increased stress levels come about because of the outstanding issues stated above. Framework for analysis The framework used to provide an insight into the situation at The Regency Grand Hotel could be broken down as primary goal of this framework is to augment the knowledge of the case study, while, subsequently, finding solutions to the issues faced by the hotel management. I. Organizational culture and change Robbins (2009) states that organizational change “refers to a system of shared meaning held by members, distinguishing the organization from others”. It is clear that the Regency Grand Hotel lacks in organizational culture given that the employees’ ideas are shut down often, teamwork does not exist among them, and their initiative stifled. A strong organizational culture is one where all employees, regardless of level and background, share in similar values. In such an environment, employees can seek creativity, innovativeness, and empowers employees to achieve their full potential. An organization’s culture often stems from tradition, what the company has done before. When John Becker introduced the new management style, a new organizational culture would have formed at the hotel. Employees had the authority to make decisions without necessarily having to seek consultations of their superiors, and there was a reduction in the level of bureaucracy at the hotel. However, after a while the employees’ decisions were often reversed by their superiors and eventually, they reverted to the old ways of doing things. This shows the attachment to the old organizational culture, which the employees reverted to when the new one did not work out as planned. The environment within which business operate is rarely stable. Businesses such as The Regency Grand Hotel constantly face changes both internally and externally, and management should put in place adequate measures to deal with these changes. When the American hotel chain bought the Regency Grand Hotel, it was expected that the management style would change. The hotel should have been prepared by educating its employees on what aspects of the business would change, as well as, what the company required of them. The changes experienced by the employees of the hotel constitute planned change. This means that these changes were not accidental; instead, the general manager was aware of the change that would accompany the new management style. Robbins describes a change as “intentional, goal-oriented activity”. Planned change aims at changing certain aspects of the behaviour of the employees, as well as, enabling the organization to adapt better to change. The introduction of the new management style was intended to change the behaviour of the employees towards creativity and innovativeness, as well as, improve the speed of decision-making and subsequently, improve service delivery. II. Motivation Motivation is a significant factor when it comes to ensuring job satisfaction among employees. Several theories of motivation attempt to explain why motivation plays a vital role in organizational performance. “The hierarchy of needs theory”, formulated by Abraham Maslow, states the five needs that exist within human beings. These needs, though infinite, need to be addressed to ensure the individual remains motivated. An example of needs includes respect and belonging. For the employees of the hotel, they need an organizational culture that respects their ideas and opinions and enable them belong. “The cognitive evaluation theory” also explains the significance of motivation within the workplace. This theory suggests that there exist intrinsic and extrinsic motivators, which drive individuals towards achieving success. Intrinsic motivators arise from the individual performing tasks. Employees at the hotel may feel more motivated if the management does not question their competence every time they make decisions. Extrinsic motivators, on the other hand, include feedback received by employees for satisfactory work. “McClelland’s theory of needs” suggests three needs: power, affiliation, and achievement. Individuals need to feel like they belong to something, have power and authority to make decisions and the need to excel. These needs are lacking among the employees of the hotel since the organizational culture at the hotel is weak, and employees do not have enough room for creativity and innovativeness. Solutions “The job characteristics model” shows that the employees at The Regency Grand Hotel will be more motivated if their jobs have high levels of characteristics. This means that each employee should occupy the job for which he or she is best suited. This way, the process of decision-making becomes smoother while conflicts within the workplace are reduced significantly. In addition to this, there should be a clear distinction as to what comprises a minor and a serious issue. A solution lies in the execution of the new practice of empowerment. If executed properly, the new management style is likely to result in a different outcome. The general manager should focus on preparing the employees of the hotel for the change, bearing in mind the diversity within the workplace. The culture of people of people from Thailand is quite different from that of the Americans, and John Becker should consider these issues before coming to any decisions, which may affect the employees. All the issues faced by The Regency Hotel could have been avoided if only an efficient communication strategy was in place. The increased conflict among the employees of the hotel arises from a breakdown in communication and their inability to work as a team. It is, therefore, imperative that the management organizes teambuilding exercises to encourage employees to work together to augment the performance of the hotel. Consequences A clear distinction of the job descriptions of every employee, at the hotel, ensures no role ambiguity and any subsequent conflict, which may arise. The empowerment practice can work under proper conditions, and management at The Regency Grand Hotel should reintroduce the practice to create a new organizational culture at the hotel. In addition to all this, the establishment of the hierarchy of power among the management and employees will improve the speed of decision-making. Preferred solution Employees at The Regency Grand Hotel need more motivation for them to perform their duties effectively. Issues such as absenteeism and frustrations at the work place can all be eliminated with the right amount of motivation. The senior management should also ensure that an effective feedback channel exists so that employees receive recognition for any satisfactory work done. This way the employees become more motivated to perform even better than before. Lessons to be learnt A number of the problems experienced by the management at The Regency Grand Hotel could have been avoided or reduced, if only adequate steps were taken to introduce the new practice to employees and handle organizational change. Effective channels of communication and feedback for work done could have also aided the situation at the hotel. Changes in the business environment such as culture, tradition, and religious affiliations should be given utmost consideration especially when introducing new programs to employees. References Robbins, S. P. (2009). Organisational Behaviour: Global and Southern African Perspectives. Cape Town: Pearson South Africa. Read More