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Company Analysis: The Regency Grand Hotel - Essay Example

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This work looks into the management style of the new manager John Becker and the issues that arose as a result of the transition and the new management style. Soon after the introduction of the new employee empowerment strategy, Becker found that there was a rise in stress levels, employee absenteeism, and employee turnover.
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Company Analysis: The Regency Grand Hotel
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"Company Analysis: The Regency Grand Hotel"

Download file to see previous pages The new American hotel chain did not conduct extensive industry audits and study of the corporate culture of the acquired firm, probably due to lack of experience. Evidently, it failed to identify and tackle the key areas that are necessary for a transition. In fact, in such mergers, there are a large number of issues involved. The first issues is that as Malekzadeh and Nahavandi identified, when there is a merger or acquisition, the acquirer is more likely to believe itself to be more knowledgeable about the industry and the products. Similarly, Stanwick points out that for the acquired, there is total uncertainty as they find it a chaotic situation where it is uncertain as to whether the acquirer will support their long cherished values and beliefs. Admittedly, the previous manager of Regency grand hotel was a Thai national who exhibited a bureaucratic management style where employees were totally reliant on the management for decisions. However, the new manager John Becker wanted to introduce an American management style which promotes employee empowerment....
As the employees of the acquired hotel already had certain degree of skepticism about the new management, it was very necessary to mitigate such feelings and to ensure job security before resorting to considerable changes in management practices. Evidently, the policies did not take into account the existing culture of the organisation. If cultural and communication issues were addressed with adequate importance, this situation would not arise. Communication An important issue that affected the Regency Grand Hotel merger was lack of communication. Dooley and Zimmerman point out that merger is to be treated like long term relationships where communication is very important. There is a number of communication issues involved in this particular case. First of all, the management failed to communicate with the acquired employees to ensure them that their fears of job insecurity and cultural undermining are ill-founded. In addition, it was for the management when it wanted to introduce the management changes in a hurry to ensure that the new strategies and culture are well introduced to the existing employees, and also to address the areas where there is a possibility of friction. As a result, the stress and anxiety that were created in the employees as a result of the acquisition were elevated through the immediate change in the management style where the employees were made to take independent decisions. Without clearly understanding the values and principles of the new management, the employees were in danger of getting fired in case of a wrong decision. This only exaggerated the already existing fear of job uncertainty and the hostility the acquired normally feel towards the acquirer. ...Download file to see next pagesRead More
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