The Imperial Hotel Case Study

This report analyzes the problem of negative work culture and high absenteeism at The Imperial Hotel, examining the core reasons and proposing solutions based on relevant organizational culture theories.

THE IMPERIAL HOTEL
( Problem No 3)

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
ANALYSES....................................................................................................................................1
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
APPENDIX......................................................................................................................................7

INTRODUCTION
Organisational culture can be defined as values, beliefs of company. Culture of firm
impact on employees’ behaviour and affect their performance in the entity. Present study is
based on The Imperial hotel (Manojlovich and Ketefian, 2016). It is well known hotel that offers
luxurious services and products to its guests. General manager of hotel has noticed that company
is facing several problems. One of the major problem is negative working culture amongst
employees. Present study will explain the issues in Imperial hotel and will describe relevant
theories of organisational culture. In addition, report will give explain ways through which this
problem can be resolved soon.
ANALYSES
Problem
Employees are assets of business; they contribute well in accomplishing goal of business
unit. The head of department is facing pressure to increase sales of organisation and pushing up
to enhance room rate. Higher authorities provide bonuses to employees on the bases of their
financial performance in business unit. It has been observed that Imperial hotel consistently
performing poor and it is unable to offer value for money to its guest. There is high level of sick
leave and poor attendance among staff members. Most of the workers go on leave without
taking permission from their senior authorities (Yap and Webber, 2015). One of the major
reasons of negative working culture is poor supervision and demotivation among employees.
Workers like to work in healthy working atmosphere, but in Imperial hotel they have to
work under pressure. They do not get any kind of monetary benefits against their performance.
People get bonuses if they raise sales of business. Thus, it creates negative perception in the
mind of employees and they take so many leaves without informing the supervisors. Another
reason of increasing level and absenteeism is high level of staff turnover of supervisory staff.
Whenever guest comes to the hotel then they do not receive standard services. Thus, they have
perception that Imperial hotel charges high amount for the services but do not offer luxurious
services to its guest as other hotels provide (Driskill, 2018). Such kind of perception decreases
satisfaction level of consumers that is why entity is facing the issue of decreasing sales and
increasing controlling cost of business.
Theories
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Charles Handy has given the great model of organisational culture. This theory explains
four different types of culture that influence behaviour of employees in business unit (Hartnell
and et.al., 2016).
Power culture
This culture explain that power held in the hand of few individuals in organisation.
Higher authorities of company have power to make decision and employees have to follow
instruction of their supervisors. In such type of atmosphere company makes some rule and
regulations that creates power culture at workplace. Power of supervisors decides the activities
of business unit. In such type of culture workers are being judged on the bases of their
achievement (Tang and Zhang, 2016).
Role culture
It is another type of culture in which each person is given different role in organisation.
This is the type of culture in which employees have to work under highly controlled
environment. All person knows their role and responsibilities in firm and they work according to
their role on company. This type of culture is generally occurring in the kinds of companies
where tall structure is being followed. There are long chain of command and indirect
communication between employees and employer. This culture tends to be bureaucratic. This
makes the person negative towards firm because they have to work under pressure (Handy's
Model of Organisational Culture, 2018). People are given specific role on the bases of their
abilities and individual has to perform these responsibilities.
Task culture
This is another kind of culture in which people work together to address specific
problem. Task is very important thus, power shifts between team members; all employees
discuss the topic and make suitable decision to resolve the issue. This culture motivates
employees because they get chance to make decision and their judgement helps the firm in
resolving specific problems. As power is in hand of employees thus, they feel motivated and
perform their duties well. This culture helps in increasing productivity and creativity at
workplace (Neves and Eisenberger, 2014).
Person culture
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This is another type of culture in which individuals think that they are superior in
organisation. They do not like to work under pressure thus, if enterprise pressurize them then
they leave their job.
Imperial hotel is facing the issue of staff absenteeism or poor attendance of workers.
Whenever guest come to hotel then they do not receive the luxurious services as other hotels.
One of the major reason of ineffective services is high sick leaves of employees and poor
attendance. Company follows power culture where employees are not given any rights. They
have to work under pressure (Peretz, Levi and Fried, 2015). As head of department has to
increase daily sales of hotel thus, individual is pressurizing staff members to work hard. Bonuses
and incentives are based on overall financial performance of employees. This demotivate them
and create issue for them. They do not get appraisal for their work that decreases their moral as
well. Furthermore, turnover of supervisor authorities is also high, that is why lower level staff
members are unable to build strong relationship with their managers. If managers build strong
relationship with staff members and it may help in rising contribution of employees. By this way
they become positive and put their hard efforts to provide luxurious services to guest. But in
Imperial hotel supervisors leave their job and entity hires new candidate for the post. Thus, there
is poor relationship between employees and higher authorities. That is why they take leave
without informing their seniors. In such condition there is lack of staff to serve guest. Thus, they
do not receive luxurious services (Barak, Findler and Wind, 2016). This negative culture creates
negative feeling in the mind of customer and they think to experience another hotel.
Deal and Kennedy has given another model of organisational culture. This theory
explains that culture of organisation is the key drivers for failure or success of business unit. If
culture of enterprise is good, then it may help in gaining success but if culture is negative then it
may create issue for the firm to sustain in market for longer duration. This model explains four
types of culture:
 Tough-guy: In this culture individuals like to take risk and like to work in tough
situations. Employees enjoy excitement. In such kind of atmosphere team members those
who blossom slowly find difficulty thus, they leave their job (Tang and Zhang, 2016).
 Work hard: In such kind of culture employees themselves challenge and take risk.
Employees have to maintain energy so that they can contribute well in boosting sales of
business unit.
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 Bet your company: In this type of culture employees wait for longer period to ensure
whether they will be paid for their decision or not. This brings innovation and enhances
long term focus of employees (Hartnell and et.al., 2016).
 Process: In this type atmosphere risk is low and feedback is also slow.
Imperial hotel has tough guy, macho culture, in which people those who do not like to
take risk leave their job. Enterprise promotes such candidates those who contribute well in
raising financial performance of business. That is the reason that bonus scheme has been
designed on the base of employee’s financial performance. Such kind of culture demotivate
people because it is not always possible to work under pressure just to prove themselves without
having any incentives benefits (Yap and Webber, 2015). Thus, they go on sick leave without
informing their seniors
Solution
 In order to resolve this issue of poor attendance and high sick leave, Imperial hotel has to
improve level of supervision within all departments. Company has to ensure working of
all employees and have to supervise their performance closely. This would help in
creating discipline at workplace where all individuals will put their hard efforts to raise
sales of hotel. Close supervision will help the authorities in finding root cause of issues
and they will be able to take correct decision to resolve these problems (Driskill, 2018).
 Imperial hotel should improve collaborative culture, all staff members have to discuss
their issues with colleagues This will create friendly workplace culture. By this way
employees will feel happy and they will like to work in the organisation. This would be
better in minimizing their absenteeism issue. They will attend hotel on regular bases and
will provide quality or luxurious services to guests.
 Imperial hotel should design good reward system for its valuable employees. It has offer
reward to people if they serve consumers well and attend office regularly. This will
motivate staff and will reduce sick leaves of employees. By this way entity will be able to
resolve issue of poor attendance (Tang and Zhang, 2016).
 Hotel should also involve staff in decision making and planning process. High
involvement will encourage them and raise their confidence towards brand. This will
bring creativity and will help in developing relationship between employees and
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employers. This will create healthy workplace culture and will support in increasing
attendance of staff members
CONCLUSION
From the above report it can be concluded that poor working culture demotivates
employees and they do not like to work in such kind of atmosphere. Thus, their absenteeism gets
increased that affect overall financial performance of business unit to great extent.
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REFERENCES
Books and Journals
Barak, M. E. M., Findler, L. and Wind, L. H., 2016. Diversity, inclusion, and commitment in
organizations: International empirical explorations. Journal of Behavioral and Applied
Management. 2(2). pp.813.
Driskill, G. W., 2018. Organizational culture in action: A cultural analysis workbook.
Routledge.
Hartnell, C..and et.al., 2016. Do similarities or differences between CEO leadership and
organizational culture have a more positive effect on firm performance? A test of
competing predictions. Journal of Applied Psychology. 101(6). pp.846.
Manojlovich, M. and Ketefian, S., 2016. The effects of organizational culture on nursing
professionalism: Implications for health resource planning. Canadian Journal of Nursing
Research Archive. 33(4).
Neves, P. and Eisenberger, R., 2014. Perceived organizational support and risk taking. Journal of
managerial psychology. 29(2). pp.187-205.
Peretz, H., Levi, A. and Fried, Y., 2015. Organizational diversity programs across cultures:
effects on absenteeism, turnover, performance and innovation. The International Journal
of Human Resource Management. 26(6). pp.875-903.
Tang, M. and Zhang, T., 2016. The impacts of organizational culture on information security
culture: a case study. Information Technology and Management. 17(2). pp.179-186.
Yap, Q. S. and Webber, J. K., 2015. Developing corporate culture in a training department: A
qualitative case study of internal and outsourced staff.
Online
Handy's Model of Organisational Culture. 2018. [Online].Available through <
https://www.tutor2u.net/business/reference/models-of-organisational-culture-handy>
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APPENDIX
Student Name/No:
Group/Seminar Tutor:
Date of submission:
Problem No:
Problem 3: A negative work culture amongst the staff with high levels of sick leave and poor
attendance
What do you consider the core reasons for this specific problem at the hotel?
High supervisory staff turnover is the major reason of high level of sick leaves and poor
attendance. As higher authorities leave their job that affect discipline and people do not take their
responsibilities.
Another reason of this problem is poor monetary benefits, that demotivate people and they do not
like to work in such atmosphere.
Briefly identify how your specific problem may be linked to any other of the 5 remaining
problems identified in the hotel case(Confer with your team members who investigating the
other listed problems)
Due to poor culture employees are not satisfied thus, they leave job or do not provide luxurious
services to guests. As supervisors are unable to lead people well that creates ineffective working
culture where people feels over burden thus, they leave their job. Culture, staff turnover are high
influenced by leadership of higher authorities. Due to ineffective leadership there is
inappropriate culture.
How useful do you consider the suggested actions are proposed by Peter Farnsworth to
resolve your specific problem?
Company has to provide monetary benefits to employees and have to give them rewards for their
good attendance. This will help in making people positive towards brand and will reduce sick
leaves. Furthermore, involvement of workers in planning and decision making process will raise
confidence of staff and they will contribute well in achieving goal of business unit.
Consider two alternative ways that this specific problem could be resolved which have not
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as yet been considered.
 Training to staff members may help in resolving the issue of high level of sick leaves and
poor attendance in Imperial hotel.
 Creating collaborating environment is another great way to resolve this problem.
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