Imperial Hotel Case Study: Employee Turnover and Management

This report analyzes the issue of employee turnover at the Imperial Hotel, identifying poor work culture, aggressive management styles, lack of training, and unmanageable working hours as key contributing factors. The report proposes solutions such as adopting democratic leadership, providing training, arranging transport, and implementing shift-based schedules. It explores the application of management theories, including Mayo's Human Relations Theory, Systems Theory, and Theory X and Theory Y, along with the principles of management like division of work, unity of command, authority and responsibility, and stability of tenure. The conclusion emphasizes the importance of effective management in addressing issues, improving efficiency, and ensuring the long-term sustainability of the business, ultimately aiming to enhance employee satisfaction, reduce turnover, and improve guest service.

Introduction to
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
Analysis of the Problem ..................................................................................................................1
CONCLUSION................................................................................................................................5
.........................................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Management is the set of principles determines the functions of planning, organising,
directing and controlling the business activities effectively to achieve organisational goals.
Organisation needs to effectively manage all the resources such as human, financial and
technological resources so as to accomplish business objectives in a proper manner (Anderson
and et. al., 2018). Firms need to effectively develops strategies to manage all its business
activities to coordinate efforts towards the realisation of goals. In the project chosen organisation
is Imperial Hotel. It is a chain of hotels that provides services that provides food and beverage
and lodging facilities to its guest. This project is based on the case study of Imperial hotel to
identify the problem related to employee turnover. Its main purpose is to identify the issue
related to employee turnover and applying management concepts and theories to overcome the
issue hotel is facing.
Analysis of the Problem
In order to effectively run the business it is necessary for the organisation to identify the
reason behind the issue and develops effective strategy to overcome those issues. From the case
study of Imperial hotel it has been identified that there is a problem of employee turnover which
negatively impacts the image of the organisation and effects the quality and productivity of the
hotel. This also reduces the number of guest visiting hotel on a regular basis.
In the imperial hotel there is around 80% of the staff leaving within the year, reason
behind this is the poor perception of the work culture and aggressively management style
adopted by the leaders and the managers. Employee turnover therefore decreases the goodwill of
the company and results in attracting less number of guests and tourists. Therefore in order to
avoid such problems managers at Imperial hotel should adopt to democratic style of leadership
which emphasis on open and honest communication between the employees and the supervisor.
This will create a positive work culture within the hotel and will increase moral of the employees
as they feel that they are valuable part of the organisation and reduces employee turnover.
Democratic leadership style will enhance open and honest communication between the
employees and the supervisor and will create a friendly atmosphere at the work place (Cleere,
2012).
When there is high employee turnover there would be poor guest satisfaction as
employee lacks in providing the efficient services because of their low moral. This may lead to
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negative work culture with leads to high level of absenteeism among employees. Moreover it
was identified that high ratio of employee turnover is because of the lack of training provided to
the employees as well as unmanageable working hours for the employee creates problem for
them in getting transport at home. In order to avoid such issue managers should take action to
arrange transport facilities for the employees who go late to home as well as should provide
training to its employees in order to increase their efficiency to perform work. This would
increase their productivity of work and would provide maximum satisfaction to the guest and
will also reduce employee turnover (Combe, 2014).
Moreover late working hours or unmanageable working hours creates dissatisfaction
among the employee, and this leads to high labour turnover. In order to avoid such problems
manager of the organisation should take effective decisions such that it can appoint employees
on a shift basis, so that it will reduce the problem of long working hours and will remove
unsatisfactory behaviour among the employees. This will reduce turnover within the
organisation. If the managers would not take effective decisions employees will not work
properly and would not provide better services to the guest and will ultimately reduce the
financial condition of the hotel and would affect their day to day business operations. Thus high
turnover among the employees will reduce the performance of the whole organisation. This
would be highly costly for the imperial hotel to employ new staff and would lead to high
training cost and would have a negative impact on the quality of the service to the guests and
reduces number of regular guests. Thus managers should provide effective decisions to the issues
faced by the employee so as to stabilise personnel in the organisation and maintains long term
sustainability of business (Fukasawa and et. al., 2013).
This creates problem in the operations of the business performance and puts pressure on
the management of hotel to increase their staffing budget which is particularly difficult for
Imperial hotel. In order to avoid such problems bonus schemes should be introduced in the hotel
by providing extra incentives and rewards top the employee according to their performance. This
will motivate the employees to perform their work effectively and would lead to excellent
performance and improved productivity. Moreover manager at respective hotel can provided
rewards towards employee of the month of the whole organisation as well as employee of the
month towards single department. This would increase productivity of the employee to perform
better. This would maintain high level of profitability, sustainability in the market for long period
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of time. In order to avoid the issues related to employee turnover, management is applying
some theories for resolving issues in a proper manner.
Mayo's Human Relation Theory- This theory focuses on maintaining proper relations in the
organisation and ensures that employees are treated in a proper manner and should be involved
in taking effective decision for the hotel. This would assist the employees at hotel to increase
their efficiency and increase productivity of the business. This helps the managers to understand
the need of the employees in the hotel and should be provided with the facility to increase their
moral towards work. This will create positive impact and establishes better image in the market
and therefore resolves the issue of employee turnover. Managers should develop effective
relations at the workplace so employee feel free while performing their roles and responsibilities
and creates a open and honest discussion between the employees and the supervisor and
positively resolves all the issues within the Imperial Hotel. It results in providing employees with
flexible working hours, proper physical conditions of work a,d as well as friendly supervision
allows employees(Hazen and et. al., 2014).
Systems Theory- This theory states that all the systems, departments and process within the
hotel are interrelated to each other. This theory can help the managers at the Imperial hotel to
identify the issues arising in the organisation and what are the consequences off it. As it found
that there was a issue regarding the management style adopted by the managers affects the
functioning of the departments within the organisation. This allows manager to change their style
and resolve the problems. Elements of the system theory includes input, through, output, process
and feedback. This will help in proper functioning of the departments as feedback would be
taken regarding their work and issues can be discussed by the employees so that managers can
take proper action and can resolve their problems and benefits the organisation to maintain its
long term sustainability in the market.
Theory X and Theory Y
Under this management theory it is based on the belief that there are certain employees
within the organisation who lacks in the productivity and naturally needs incentives and rewards
in order to enhance their performance. Thus here manager should provide incentives which
motivates the employees to perform effectively. On the other hand Y theory of management
believes that employees willingly takes the responsibilities to perform task in a better way
without a direct reward in return. Therefore managers sees themselves as the valuable part of the
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organisation and creates a healthier atmosphere in the work place. Moreover in order to motivate
employees managers at Imperial hotel are introducing incentive and reward schemes in order to
motivate employees for better performance and increases their productivity of work. This will
allow the employees to stay in the organisation for a longer time period and provide quality
services to its guest and maintains profitability in the hotel.
These are the theories of the management which will allow proper and effective
functioning of business organisations. It will allow the managers to resolve issues and reduces
labour turnover within the hotel in a effective manner (Hughes, 2012).
Principles of Management
Their are various principles of management that the managers of the respective hotel can
adopt in order to resolve issues relating to employee turnover in a proper manner(Principles of
management. 2019). These principles are described as follows-
 Division of Work- This principle states that there should be proper division of work
according to the individuals skills and capabilities. Workers should be given specialised
task according to their skills which increases their efficiency to perform better. Manager
at Imperial hotel should determine that there is proper division of work among employees
so that conflicts doesn't arise and employees could easily perform their work with great
dedication. This resolves the issue of employee turnover and creates positive environment
at the work place.
 Unity of Command- This principle states that there should be a clear chain of authority
within the hotel, employees should be aware about to whom they are accountable.
Managers at the Imperial hotel should follow proper chain of command and employees
determines that there is no autocratic leadership style is followed and determines a proper
business structure. This would avoid issues arising in the organisations and will reduce
the problem of employee turnover. As there was a issue related to dictatorial leadership in
the organisation. This principle will remove the issue as employee will be aware about to
whom they are accountable and will work effectively and provides good quality service
to the guests.
 Authority and Responsibility- This principle is concerned with when authority is
granted to the employee responsibility comes along with it. Managers of the Imperial
Hotel grants grants certain authority to its employees and with that responsibility also
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arises. This gives employees the appropriate power to take decisions which is befitting
the organisation as well as the employees respectively.
 Stability of Tenure of Personnel- This is the major principle in which managers of the
Imperial hotel should reduce employee turnover within the organisation and maintains
stability in the tenure of personnel. This could be done by addressing those issues and
providing solutions to the employees problems. This is an effective way of stabilising the
employees within the organisation.
These are the principles of the management which the leader and managers within the
organisation can adopt in order to resolve the issue and take out the benefits out of it. This will
assist the employee to work effectively and increase the productivity of the business in terms of
increasing large number of guest visiting the hotel and allows business to maintain financial
stability of the business (Runyon, 2013).
CONCLUSION
From the above report it has been concluded that organisation needs to properly manage
its activities in order to achieve success and maintains long term sustainability of business. It is
the responsibility of the managers to analyse the issues in the organisations to take corrective
actions against them. This will improve efficiency and productivity of the business in the long
run and aids an competitive advantage to the firm. With the help of various management theories
and principles manager can resolve the issue at a greater extent and allows the employee to
provide quality service to its clients. Therefore proper management within the organisation helps
in the growth of the business and brings drastic change in the improvement of business activities.
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REFERENCES
Books and Journals
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Cleere, H., 2012. Introduction: the rationale of archaeological heritage management. In
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Combe, C., 2014. Introduction to management. Oxford University Press.
Fukasawa, K., and et. al., 2013. Reconstruction and prediction of invasive mongoose population
dynamics from history of introduction and management: a B ayesian state‐space
modelling approach. Journal of Applied Ecology. 50(2). pp.469-478.
Hazen, B.T., and et. al., 2014. Data quality for data science, predictive analytics, and big data in
supply chain management: An introduction to the problem and suggestions for research
and applications. International Journal of Production Economics. 154. pp.72-80.
Hughes, O.E., 2012. Public management and administration: An introduction. Macmillan
International Higher Education.
Runyon, B. A., 2013. Introduction to the revised American Association for the Study of Liver
Diseases Practice Guideline management of adult patients with ascites due to cirrhosis
2012. Hepatology. 57(4). pp.1651-1653.
Solove, D. J., 2012. Introduction: Privacy self-management and the consent dilemma. Harv. L.
Rev., 126, p.1880.
Wilkinson, A., Wood, G. and Demirbag, M., 2014. Guest editors’ introduction: People
management and emerging market multinationals. Human Resource Management. 53(6).
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Online
Principles of management. 2019. [Online]. Available through:
<https://www.12manage.com/methods_fayol_14_principles_of_management.html>
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