Introduction to Management

This report provides an introduction to management and its importance in organizations. It discusses the problem of high turnover rates in the British hotel industry and its impact on performance and consumer satisfaction. The report reviews management theories related to turnover rates and explores effective procedures and processes to address this issue. A three-point plan is provided to improve employee engagement and retention.

Introduction to
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
TASK ..............................................................................................................................................4
Review of management theories related to high turnover rates .................................................4
Effective Management procedures and processes:.....................................................................5
Three-point plan procedure and process.....................................................................................7
CONCLUSION ...............................................................................................................................8

INTRODUCTION
The British hotel industry faces huge problem related to high employee turnover as most
of the employees tend to leave the organisation within a few months of their employment. This
problem impacts the overall performance of the hotel and reduces consumer satisfaction. The
Imperial hotel is one of the oldest hotels in west London and has an image of British heritage
associated with it. The construction of the original hotel building was completed in 1911 and was
rebuilt in 1966 and currently has 500 bedrooms along with provisions for business conference,
restaurants, bars and swimming area. Recently the hotel is facing threat in the form of high
turnover rates of employees with prominent turnover ratio in the front line department of the
hotel. The business and reputation of the Imperial Hotel in London has been hugely impacted by
annual staff turnover of 80%. This absence of talented employees from the respective
organisation not only impacts financial capabilities of the organisation but also have negative
results on consumer satisfaction. The result of such system which encourages the staff members
to leave is that the Imperial hotel is lowest performance among all the hotels owned by the Star
Hotels chain. This report discusses main reason behind high turnover rates among the employees
of the respective organisation from management and operational view along with review of
appropriate management models and approaches related to this issue. In addition to this, a 3
point plan containing solutions for this issue is provided which gives guidelines for improving
employee engagement and retention of talented employees.
MAIN BODY
TASK
Review of management theories related to high turnover rates
Effective management of employees reduces turnover ratio and encourages talented
employees to work with the organisation. This practice involves utilising various theories which
help the management gain a better understanding of needs and interests of their employees and
enhance employee satisfaction (Ashdown, 2018) .This helps the management properly use the
skills of their workforce in a way which increases overall performance of organisation. Various
management theories in the context of high turnover rates faced by the organisation are provided
below:
The Hawthorne effect

According to this theory, which was developed by conducting sequence of experiments
by Elton Mayo, workers perform better when they are monitored by supervisors regularly and
given response related to progress of their employees. The results experiments conducted during
formulation of this theory put emphasis on giving deserving employees acknowledgement
through suitable financial incentives or promotions. The respective organisation faces low
engagement since staff is recruited on low wages and implementing policies which monitor
progress of each staff member and credits deserving employees for their diligent services to the
company enhances output and performance of every employee (Dykstra, 2018). This creates a
healthy competitive environment where employees have a reason to enhance their skills and take
responsibilities which reduces turnover ratio of the organisation.
Employee Equity Theory
This theory which was built by John Stacey Adams states that employees are encouraged
to maximise their working potential and stay within an organisation for a longer period of time if
they are given equal growth opportunities treated equally and judged on the basis of their
capabilities rather than any physical characteristics. High levels of bureaucracy along with
ignorant nature of supervisors discourage employees from reaching their full potential and affect
productivity of the workforce (Jackson, 2020). This increases employee absence and turnover
ratio as the employees feel unwanted and unappreciated for their handwork. Functional
bureaucracy present at the Imperial hotel affects employee satisfaction, therefore the organisation
needs to adopt policies which encourage equal treatment and provide job security to all
employees regardless of their position in bureaucratic structure of the organisation . This will
provide the required motivation to the employees to stay with the organisation for long period of
time and expand their abilities while working with the organisation.
Hierarchy of needs
Abraham Maslow's theory of hierarchy of needs depicts an order of basic needs that
should be fulfilled by an employer to keep talented employees within their organisation. Various
needs of the employees can be assorted into levels according to their significance. If the
employees are not able to satisfy needs present at the lowest levels such as job security,they will
quickly leave the organisation (Letcher and Vallero, 2019) . The needs of employees includes
personnel need such as recognition for their work and promotion to superior positions while
healthy and safe working environment is requirement of every employee. The management at

Imperial hotel needs to understand the needs and interests of each individual employees and
implement practices which help them gain growth opportunities while working in an
organisation and help them gain a respectable position in the organisation (Rose, 2018) . The
turnover ratio of the respective hotel will decrease if the execute policies which increase
employee satisfaction and help them achieve all of their needs.
Effective Management procedures and processes:
The Imperial hotel of London being one of the oldest hotels in town is a recognizable
place yet has its own traditional way of handling different situations and challenges. These may
include channelling of staff, restoration and redecoration the entity, refurbishment etc. according
to today's needs and objectives of the workplace.
For construction of a better planned strategy various management procedures and processes were
studied and adopted as per the different problems faced by the hotel discussed below:
A proper management process lays emphasis on the internal functions of an organisation
and its managers through planning, organizing, leading and controlling of activities in the
organisation. Hereby, planning involves good decision making by determining different courses
of actions for operating in the entity. After plan is made coordination of activities according to
resources is done by the manager (Teece and Leih, 2016) . The third step to the process is
leading and directing the workforce towards achieving goals. The last step to management
process is controlling all the above activities in the process of work schedules and check weather
work is done properly or not as per the planning. After knowing steps to the process of
management,
One of the major challenges faced by the company was analysed and brought into
consideration that was high rate of staff turnover affecting other activities of the company as
well. Cause behind such circumstances and their effect is discussed below:
Temporary employment: Short period employment required by students and migrated
foreign nationals generally join the organisation for a temporary short-term.
Front-line staff : With average and low pays rewarded to front-line workers, they leave
the organisation unsatisfied with poor living wage rate pay (Webb, 2017) . Also the working
hours according to low wages leave the staff demotivated and unsociable.

Poor attendances :More sick leaves and attendance issues not only affect the internal
management of the hotel but also leave the guests unsatisfied that includes issue of checking in
and out, quality of room service, unhygienic rooms, no proper gesture etc.
Work culture: Workforce applying for exit interviews have been facing issues such as
no freedom to speech and ideas are regulated under strict supervisors following management
styles.
Since employees are bound to follow orders from top management, it make them feel
inferior (Wensveen, 2016) . Proper training on a consistent basis should be given to employees
for such rigid rules and regulations to follow.
These problems affected the organisation and effects are mentioned in following points:
Training and operational costs: Since a huge number of employees started leaving
irregularly having their personal and unsatisfactory reasons, The Imperial Hotel had to spend a
lot on recruitment, selection and training of employees repeatedly.
Low growth and productivity challenge: Current employees taking leaves on a
consistent basis is an hindrance towards achievement of company objectives resulting in low
productivity. As there are rigid rules to follow, there is no creativity and innovation exercised in
the Hotel leading to almost no growth opportunities for employees. Bureaucracy in the
organisation also demotivate staff to work enthusiastically with no appraisals and promotions in
future.
Goodwill of the firm: Self-fulfilment of guests visiting the hotel experiences were not
satisfied by their services and hence affected the goodwill of the firm restricting other people
from visiting The Imperial hotel (Jackson, 2020)(Letcher and Vallero, 2019)(Rose, 2018 . Also
with low visits, profits of the organisation will be affected leading to less capital that can be
invested for future plans and stability in market industry.
Increasing competition: With growing travel and tourism in the global world, travellers
are aware of all facilities they aspire for anywhere with quick access to ratings among hotels
through different online search websites as well as applications today in comparison with price
range and quality standards are matched with their needs or not (Letcher and Vallero, 2019)
(Rose, 2018 . There are a lot of competitors in the hotel industry today with best price rooms
availability making it a challenge for the old ones struggling to survive.

Unsatisfied customers: Advancement in hotel industry has come up with a lot of choices
and demands from consumers in market (Rose, 2018) . Therefore, if they face any issues such as
standing in long queues at reception, rude behaviour of staff, unhygienic conditions etc. may
switch easily to any a substitute one with better facilities.
Three-point plan procedure and process
To deal with the above causes and effects on the selected firm, Imperial Hotel of London
may come up with a three-point plan procedure that can be followed to overcome challenges and
issues mentioned below as:
There are three basic elements of any management process that are people, their ideas and
resources.
Planning & Administration: Management itself is called as cumulative efforts from all
to achieve goal of the organisation. With good administrative roles set up , manager can easily
plan to segregate work to every department with giving individual roles and responsibilities to
selected leaders (Teece and Leih, 2016) . Giving authority to responsible employees make them
leaders and work more effectively unlike the traditional method of superior management.
Leadership: A good leader is the one who is followed by other as a role model which
makes it easy for people to trust them and keeps them motivated towards their work. Imperial
hotel of London may come up with promoting leaders of the organisation who will in return help
direct and train other employees of different departments. Differentiating work into group will
help staff understand their work properly lead by one head and will make them learn team work.
Teamwork in one way to make employees accountable to their work allotted on time resulting in
decrease in absenteeism of employees.
Follow-up & benefits: According to the performance of employees, they should be
trained and rewarded of their best works. This will encourage the hotel staff to perform more
effectively and efficiently (Ashdown, 2018) . Taking regular follow-ups from leaders of every
department will help manager take correct measures in making improved new plans for future.
Adopting performance appraisal techniques will motivate employees get performance-based
incentives as per their work. Good training by leaders will influence people to make extra efforts
such as kind gesture to guests, serving customers over an extra mile, timely check-ins and
checkouts etc.

CONCLUSION
From the above report it is conclude that the serious problem of high turnover rates faced
by the British hospitality industry is rooted in ineffective management of the employees. Various
management theories such as Employment Equity theory and results drawn from experiments
point that the for high turnover ratio is related to low recognition of the employees and absence
of feedback channels which provide the employees information related to their progress. High
turnover ratio decreases goodwill of the firm, increases financial burden of and recruiting
training new employees and lowers consumer satisfaction which reduces revisits to the
establishment. High turnover ratio burdens the employees at The presence of leadership which
give the employees regular training to expand their skills motivate them to maximise their
potential and take new responsibilities. This reduces turnover ratio as the employees fell that
their handwork is given appropriate appreciation from authorities which encourage them to
develop capabilities for their career growth. Compensation schemes to give financial incentives
to employees with good performance and equal opportunities to employees for career
advancements are some of the methods which increase retention of talented employees in the
organisation.

REFERENCES
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Letcher and Vallero, 2019. Waste: A handbook for management. Academic Press.
Rose, 2018. Reward Management: A Practical Introduction. Kogan Page Publishers.
Teece and Leih, 2016. Uncertainty, innovation, and dynamic capabilities: An
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Webb, 2017. Knowledge management: Linchpin of change. Routledge.
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