Analysis of High Turnover Rate in Imperial Hotel London

This report analyzes the high turnover rate in the Imperial Hotel in London and discusses the likely causes from a management and operational perspective. It also proposes a 3-point plan for resolving the problem and suggests management theories to fix the issue of high turnover.

Case Study Imperial
Hotel London

Table of Contents
INTRODUCTION...........................................................................................................................1
Analysis of the high turnover rate....................................................................................................1
a) Problem’s likely causes from a management and operational perspective.............................1
b) 3 point plan for resolving the problem....................................................................................2
c) Management theories to fix the problem of high turnover.....................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
The Imperial Hotel in London a pioneer organisation offer their services to customers as
being of the market leader. Hotel is part of chain of 25 hotels. This organisation mainly serve
international business individuals and tourists. With having 500 bedrooms this hotel offer their
services around 25 cities of United Kingdom. In this report second problem will going to be
discuss which is related to high staff turnover with 80% of staff leaving within the year. This
problem hold the potential to negatively damage organisation image within marketplace. Further
certain form of operational and management theories is being discussed in this report. In addition
with this, report covers relevant solution for high staff turnover as to effectively overcome this
issue.
Analysis of the high turnover rate
a) Problem’s likely causes from a management and operational perspective
1

It has been identified that, The Imperial Hotel in London faces the problem of high
turnover that general manager of company is looking forward to tackle. The rate of turnover
which is being faced by hotel is 80% that denotes that 805 or more than employees that hotel
hires leave organisational employment annually. As per according an interview with staff
members, it has been identified by hotel that main reason that made employees quitting their job
is due to poor perception of work culture within organisational structure of hotel. In addition
with this, unsociable working hours are also acts as major reason that lead towards high turnover
(Alvesson and Willmott, 2012). Further it has been denoted that, lack of proper training, poor
pay and less opportunity for promotion to supervisory level are also one the most prominent
reason for high amount of turnover in Imperial hotel. The poor pay that has been offered by hotel
are not sufficient for employees even to fulfil their high travelling cost in Central London. In
addition with this, it has been determined that hotel is offering low competitive advantage as per
compared to other hotel within London that are offering high payment as well as better working
condition than The Imperial Hotel in London. All these factor are major element that lead
towards increasing high turnover rates. This acts as a major threat for organisation as it
simultaneously lead entity towards low level of profitability and negative brand image within
marketplace.
b) 3 point plan for resolving the problem
As per the above discussion it has been identified that Imperial Hotel is faced major issue
of high staff turnover that further create adverse environment for organisation in order to perform
their work in hospitality business sector. Thus, in order to overcome this issue and ensure
reattainment of employees for longer duration of time it is essential for hotel manageable to take
advantage of best effective form of plans and strategies. With the help of this company can
effectively able to offer competitive benefits to employees as per compared to other competitors.
Further it is being evaluated that Imperial Hotel is ready to offer motivation to employees those
who feel discouraged and demotivated that make them to leave hotel premises, however this has
been ascertained that employees are still not encouraged towards retaining for long in hotel.
Thus, it is essential for management to devise a plan in order to resolve this issue within
specified period of time while ensuring effective accomplishment of organisation objectives and
further gain higher level of satisfaction from consumers. In this regard, management farmed plan
that mainly consist 3 strategies in order to significantly deal with issue:
2

 In order to effectively overcome the issue of high staff turnover Imperial hotel
management undertake strategy which is related to implementing incentive scheme
within organisational workplace structure with the help of which employees can be
effectively motivated while ensuring their long term sustainability within organisation. In
addition with this, by adopting incentive scheme management of hotel can effectively
increase morale and enthusiasm of employees with the help of which they can further
lead towards more directive performance. In addition with this, The incentive scheme for
staff consists of “employee of month” for which the selected employee will be rewarded
with £200. Further this reward is also available for each and every department for a price
of £50. With the initiation of this incentive scheme by Hotel management it has been
ascertained that hotel is taking steps as to offer motivation to employees.
 Another strategy that has been undertaken by management of Imperial Hotel is to offer
regular training and development secession to employees in order to increase their skills,
efficiency and knowledge and further equip them with essential tactics as to make them
perform their roles, responsibilities and organisational functions in best effective manner.
 In addition with this, it has been identified that employees can be effectively motivated
by undertaking brainstorming sessions within which their valuable opinions and views
are duly considered. With the help of this, management of hotel effectively can
effectively able to devise betterment strategies as to develop employees of respective
hotel. Along with this, brainstorming activities also generate send of empowerment
within employees that lead them to perform their functions in effective and efficient
manner as to further ensure organisational success.
With the help of this plan Imperial Hotel can effectively able to offer qualitative services
to customer by increasing morale and motivation of employees. In addition with this, it will
further benefit organisation to increase workplace efficiency of their organisation. With the
assistance of this plan hotel can provide numerous form of benefits to their employees that
influence them to retain in organisational structure for long duration of time.
c) Management theories to fix the problem of high turnover
The plan that has been framed above effectively aid management to resolve the issue of
high turnover that has been encountered by management in best effective manner. It has been
identified that management of Imperial Hotel can effectively able to resolve this problem by
3

undertaking use of management theories. This will also benefit company to ensure that
operations that can be undertaken by employees are as per according to the requirement of
organisation. There are number of theories that states that organisation is required to take use of
most effective and appropriate form of theories and principles as to further offer satisfaction to
customers in best effective manner. The preferred management approach that can be undertaken
by management of Imperial Hotel is human relation approach to management. This approach
states that manager of organisation is required to effectively evaluate organisational behaviour
( the manner in which individuals within organisational structure interact within workplace).
Main motive that has been hold by human relation theory is that, an organisation can only able to
fulfil their goals and targets through individuals and with people. The Human resource relations
approach was coined by Elton Mayo in the 1990s as to effectively make improvement in
organisational performance. This form of management theory states that individuals are not
economic-rational beings, but emotional. In addition with this, it has been identified that all the
form of organisation are mainly depend on cooperation rather than on mechanical systems.
Mentioned below human relations approach features is being defined:
 Manager is required to effectively understand behaviour of human.
 It has been identified that managers are required to have formative understanding of
inter-personal relations among individuals within workforce structure.
 With the help of maintaining good human relations with employees at organisation
workplace structure entity can further lead towards improvised production along with
high level of motivation.
In addition with this, it has been identified that employee equity theory is formative
example of management theory with the implementation of which Imperial Hotel can effectively
able to reduce high rate of turnover. Employee equity theory mainly based upon human relations
in order to effectively make improvement in morale and productivity. This theory mainly works
on a basis that, it is essential to find formative balance among production level of employees and
the level of employee output. In this production level mainly indicates efficiency, skills level and
hard work. Further it has been denoted that employee output level mainly indicates the level of
benefits and salaries that an employee mainly receive from production input. As it has been
evaluated that if an employee feel that level of input is more than level of output, it makes them
feel de-motivated to perform their roles at workplace. Thus, it is essential for an organisation to
4

make sure that employees input at workplace must be rewarded with adequate pay level and
benefits. Further in order to make effective improvement in performance level and motivation of
employees employers are required to implement best effective form of reward system as to
motivate them in order to attract their attention and retain them for long duration of time. This
has been denoted that employment equity theory mainly include inputs such as, financial
incentives and job security growth as employee outputs.
The hierarchy of need theory was coined by Abraham Maslow is a human relation
approach with the help of which Imperial Hotel can effectively able to reduce turnover of
employees. As per according to this theory it has been identified that there are certain form of
needs that has been posses by employees which is required to be satisfy by organisation. Further
failure in order to satisfy needs of employees may lead employee to seek towards other
employment opportunities (Radwan, Jones and Minoli, 2012). For an instance, at The Imperial
Hotel in Hotel, there are less number of opportunities that are received by an employee as to get
promotions to supervisory level. As many employees leave hotel because they believe that there
are many attractive and advanced Carrera opportunities that are provided by other rival hotels in
marketplace. Thus, in order to challenge this management of Imperial Hotel is required to
undertake number of strategies as to effectively provide numerous form of opportunities to
employees in order to retain them in organisation for long duration of time.
CONCLUSION
As per the above mentioned report it has been concluded that, issue of high staff turnover
affect performance and productivity of employees in number of ways. Thus, for this it is
essential for management to undertake human relation management approach as to effectively
solve the problem related to high turnover. In addition with this, hotel can provide number of
opportunities to staff along with many advantages and benefits as to retain them for longer time
duration. In addition with this there are number of theories that can be undertaken by
organisation as to offer satisfaction to employees in terms of job. This will effectively lead
organisation to make significant increase in their profitability and productivity.
5

REFERENCES
Books & Journals
Alvesson, M. and Willmott, H., 2012. Making sense of management: A critical introduction.
Sage.
Anderson, D. R. and et. al., 2015. An introduction to management science: quantitative
approaches to decision making. Cengage learning.
Haddow, G. D., Bullock, J. A. and Coppola, D. P., 2017. Introduction to emergency
management. Butterworth-Heinemann.
Hoque, K., 2013. Human resource management in the hotel industry: Strategy, innovation and
performance. Routledge.
Hughes, O. E., 2012. Public management and administration: An introduction. Macmillan
International Higher Education.
Ivanov, S., 2014. Hotel revenue management: From theory to practice. Zangador.
Kotas, R., 2014. Management accounting for hotels and restaurants. Routledge.
Radwan, H. R., Jones, E. and Minoli, D., 2012. Solid waste management in small hotels: a
comparison of green and non-green small hotels in Wales. Journal of Sustainable
Tourism, 20(4), pp.533-550.
6

7