Plaza InnGroup Case Study: Major Areas of Concern, Causes, Recommendations, and Implementation

Read this case study on Plaza InnGroup to learn about the major areas of concern, causes, recommendations, and implementation for enhanced organizational performance and success strategies.

The Plaza Inn-
Group Case Study
Instructor-Launa Linaker
MGMT-121 SB01 (1)
Group Members:
Navroop Kaur Sidhu (3028457)
Gurleen Brar(3021890)
Avneet Kaur (3028787)
Nature Kaur Bhinder (3028058)
Arshpreet Singh Grewal (3025891)

Company Overview
• Owned by renowned entrepreneurs of Quebec City,
Tim Boyle and Andre Bertrand, the Plaza Inn had its
establishment in the year 1920 with a classic Victorian
theme.
• Got featured on the top 10 best Inns by Travel
Magazine.
• The company has undergone significant transitions
with the inclusion of new General Manager, David
Bart.
• Such unprompted alterations developed certain
significant areas of concern among the workforce of
the company.

Major Areas Of Concern
• Operational Symptoms:
 Plaza Inn has been
experiencing immense
shortage of employees that
led to a rapid decline of the
growth in the company’s
sales revenues and profits
 Unorganized operational
system such as deficit of
effective communication
ability and dysfunctional
administrative employee
base is incapable to produce
desired efficiency level.

Major Areas Of Concern
• Behavioural Symptoms:
 Plaza Inn started to receive criticisms from marketing
analysts because of immense work load and pressure
on its staffs.

Causes
Reports reveal the incompetence and ineffective decision
making ability of David Bart which has been reducing
reduced rate of efficiency and delay in room reservations
or other customer services
Following reasons accountable for declined rate of
company’s progress:
 Increased rate of miscommunication and lack of
mutual understanding between GM and former Front
Desk Receptionist, Laura (Robbins & Coulter, 2005)
 Causes behind the increased rate of inefficiency in
functioning of Plaza Inn

Causes
Unexpected replacement of managers within the very
short period
 Abruptly opened several branches of Plaza Inn
without any prior and accurate strategically
implemented approach
Product sale at very reasonable price led to the decline
of Plaza Inn’s brand recognition and customer loyalty
Lack of employee accessibility
Bart’s lack of knowledge and awareness of hospitality
managerial responsibilities have led to the rapid
decline of the company’s growth

PROBLEMS OCCURRING IN PLAZA INN
1. Lack of effective management and supervision
throughout the plaza has led to severe degree of
ineptitude and inefficiency on four significant
management functional areas: planning, organizing,
leading and controlling
2. The business enterprise has been showing high
degree of incompetence in accomplishing
organizational standards and anticipated aims and
objectives
3. Front office being operated single-handedly thus
hampering the smooth functioning of Plaza Inn

PROBLEMS OCCURRING IN PLAZA INN
4. Front office facing further challenges in
providing proper customer services
specifically in room booking services,
attending important calls and important
guests.
5. Thus, resulting to the significant decline of
the hotel’s demand and sales profitability
level
6. Varied spans of supervision within the
organizational structure of the company, thus
leading to severe inconsistency with the
standards and principles of Plaza Inn

RECOMMENDATION
Benefits
• Proper division of work facilitates
the productivity level and reduce
pressure on employees.
• Proper systematic organization will
perform with utmost excellence
without any workload and technical
and managerial errors.
• Cost-effective implementation.
Limitations
• Lack of feasibility.
• Result in ineffectiveness
and lack of assistance
and collaboration.
1. Enhanced Organizational Structure
General Manager, David Bart must take into consideration
 Factors associated to work specialization, chain of command, and span
of control (Directive Management)
 Proper allocation of tasks with suitable and effective techniques

RECOMMENDATION
Benefits
• Enhance the competence level
of manager to supervise
employee performance
• Development of knowledge and
awareness among employees
with rapid decision making
procedures
• Increased rate of opportunities
among employees
Limitations
• Costly to purchase
required equipment and
mechanism
• Time consuming
procedure to provide
inductions to employee
base
Improved communication
 Enhance the level of communication and further improve
the chances of organizational success
 Technological advancement and social media have
immense significance in the process of communication
between various departments of Plaza Inn

RECOMMENDATION
Benefits
• Employees will show intense
rate of motivation and
enthusiasm
• Consistent working
environment
• Useful for managing
employee conflict and
disputes
Limitations
• Lack of proficiency
• Improved level of direction
needed at the time of crisis
• Involves risk taking as not all
the decisions
Directive Management:
 It provides rapid response and increase rate of motivation
among employees by risks and discipline
 Immensely useful for David Bart to implement such
management style

CONCLUSION
Decision: A conclusion reached after a consideration. In
other words, it is related to choose the best out of all the
alternatives (Stuart)
• The decision fits the priorities and is effective while
handling any form of conflicting situations arising
between employee-employee or employer- employee.
• Decision matrix is implemented when one is showing
certain degree of indecisiveness between several
choices or interests (Stuart)

Conclusion
Criteria Alternatives and marks
Enhanced
Organizational
Structure
Improved
Communication
Directive
Management
Reduced Burden 4 4 3
Better Economic condition 4 3 3
Time management 4 3 3
Mutual understanding 3 4 3
Work effectiveness 4 3 3
Talent identification 2 2 4
Productivity 4 3 3
Total 25 22 22
Decision Matrix

EVALUATION OF DECISION MATRIX
• Rating:
• 1 Point = Ineffective
• 2 Points = Better
• 3 Points = Effective
• 4 Points = Highly Effective
With the evaluation of the
Decision Matrix it can be stated
that higher degree of development
is required within the structural
formulation of Plaza Inn.
Decision Matrix would further
facilitate to the elevation of the
organizational positioning for a
limited duration.
It will further prove to be
immensely beneficial to
the company and advance
it towards achieving
success and growth in the
market.

IMPLEMENTATION OF DECISION
MATRIX
• David Bart, the current G.M. of Plaza Inn
must implement strategic approaches to
enhance improved organizational
performance and attain success strategies
and progress.
• Bart must focus on effective recruitment
strategies and employ the most proficient
and expertise ones.
• To attain enhanced organizational behavior
proper discussion and group meetings must
be introduced in order to condense the rate
of conflicting situations within the company.

IMPLEMENTATION OF
DECISION MATRIX
• Recreational programmes and events must be
organized to encourage the employees of the company
and further provide them some relaxation from the
daily routine work.
• Employees can be acknowledged and motivated in
order to make active involvement in innovative
thinking and learning.
• Employees must be engaged in active decision-making
processes in order to gather sincere reviews from the
employee base to promote improved management
system.

ORGANIZATIONAL CHART
David Bart
Hospitality
Supervisor
F & B
Manager
Catering Manager
Executive Chef
Maintenance
Supervisor
Controller
Sales Manager
Housekeeping
Manager
Front Office
Manager
Front Dest
Receptionist
Communication
Operator
Valet Bellhop

REFERENCES
• (Directive management)
http://www.huffingtonpost.com/rosalind-
cardinal/6-management-styles-and-when-
to-use-them_b_6446960.html
• (Stuart)
http://leansoftwareengineering.com/pugh-d
ecision-matrix/
• Robbins, S., & Coulter, M.
(2005).Management (8th Ed.). Upper
Saddle River, NJ: Pearson Prentice Hall.