Analysis of Employee Turnover at Imperial Hotel: A Management Report

This report analyzes the issue of high employee turnover at the Imperial Hotel, identifying key contributing factors such as low pay, aggressive management styles, lack of training, poor communication, and inadequate supervision. The report explores the negative impacts of these issues, including poor guest satisfaction, negative work culture, and decreased productivity. To address these challenges, the report proposes a 3-point action plan focusing on total quality management (TQM) to improve service quality, the application of Maslow's hierarchy of needs to enhance staff morale, and the implementation of Henri Fayol's 14 principles of management to boost productivity. The suggested actions include providing employee training, improving pay and incentives, fostering a better working environment, and promoting employee participation in decision-making processes to create a more sustainable and efficient operational model for the hotel.

Introduction To Management

Table of Contents
INTRODUCTION...........................................................................................................................1
ANALYSIS......................................................................................................................................1
Discussion of a problem, its causes and its relationships with other 4 problems........................1
3 Point Plan Action For The Problem-Solving With The Help Of Theories And Principles......3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Management is the most popular and widely used terms in every kind of organisation
whether its private or public or non-profit organisation. Management is defined as a process of
getting things done through others with the aim of achieving organisational goals and objectives
(Erasmus, Strydom and Rudansky-Kloppers, 2016). Management is the process of planning,
organising, staffing, directing and controlling the organisation's people and operations by
managers. Management is considered to be responsible for the achievement of all stakeholders of
the organization. Without management, no organization can survive in constant changing
environment (Hammer, 2015). Management is also required to manage Hotels. Hotel's success or
failure depends upon the services. A good services can be produce by good management process.
The Imperial Hotel is a hotel located at central London which is a branch of Imperial Hotels
London. It has 500 bedrooms, 12 conference rooms, 3 bars, 4 restaurants and leisure centre with
swimming pool. It has 450 staffs with 6 heads of departments (Company Overview of The
Imperial London Hotels Ltd, 2019). Currently, Imperial Hotel is facing many problems such as
Poor guest satisfaction, negative working culture and environment, high employee turnover, poor
team of front of house staffs and back of house staffs, poor use of IT systems and poor operating
and controlling systems and procedures. Out of which HIGH EMPLOYEE TURNOVER is one
of the major problem faced by Imperial Hotel. Due to which many other problems are arising.
Report will highlight on Employee turnover and its relationships with other problems. Report
will also tell about the solving these problems with the help of some principles and theories.
ANALYSIS
Discussion of a problem, its causes and its relationships with other 4 problems
Hotel Imperial faces 80% staff turnover which is high with staff leaving within the year.
Staff turnover refers to the term which means employees are leaving the organisation and they
are replacing by new employees. The hotel is facing such problems due to so many reasons. The
staffs who are hiring have temporary nature of employment which means they are doing their job
for the short term period. Also, their pay is low which lead them to not work for the longer in the
hotel. Also, hotel have followed aggressive management style in which managers talk with their
staffs rudely and don't listen to them (Hodari, Balla and Aroul, 2017). They only focus on goal
achievement. In this style, managers don't care about the employees and don't listen to them.
They only puts unnecessary rules and regulations at the hotel. They don't involve the employees
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in decision making probess and also don't give the opportunities for the personal as well as
professional development to the employees which lead to low morale, high fluctuations, high
conflicts at work place and no collaboration (Molina-Azorín and et.al., 2015). This will help
employees to leave the organization in order to not willing of working at wrong and conflictive
working environment. There is no particular working hours or shifting hours which lead
employees to work for long time and unable to manage a balance between his/her personal and
professional life. This imbalance lead employees to take stress, less focus on work and deliver
bad quality of services to the guests. Poor performance lead to poor pay. Part-time staffs are
mostly female who have family commitments. In aggressive style, there is no proper formal and
informal communication pattern which is reason behind no friendly working environment as
employees don't know anyone in the hotel. This lead to co-ordination between department and
activities which lead to delay in accessing information and service delivery. This lead customers
to experience bad service quality and employees to work at boring and bad working
environment. This lead to high employee and staff turnover. Manager doesn't care about them
and their commitments which lead them to leave the organisation. This all become the reason
behind high turnover. Hotel don't give proper and regular training to the employees. Without
training, employees are facing basic problems such as poor quality of services deliver by them,
lack of polite communication between employees and guests, lack of proper management of
work, lack of timely responses and lack of proper behaviour of employees etc. These all lead to
poor customers' satisfaction and high employee turnover because improper work make
employees low motivated, put high pressure on him and low pay (Simons, McLean Parks and
Tomlinson, 2018). Due to aggressive style, managers and leaders only think about themselves
and organisational goals which lead them not to hire potential employees who have qualities of
good manager and good leader. This lead to lack of promotion and incentive activities in the
organisation. Without promotion and incentives, no employees can get motivate for the better
performance. Also, due to lack of training, managerial succession and promotion schemes,
company is not able to hire good staffs. This lead to lack of good employees and high turnover in
the hotel. Hotel also don't have enough supervisor who can supervise employees and help them
to solve the problems. And those supervisors who are working at hotel is not satisfied with
current employees, hotel's cultures and environment. This lead them to leave the organisation.
Currently, in hotel there is conflict between key reception staffs and other departmental staffs
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which lead to lack of co-ordination between operations and bad working environment. This lead
to high turnover. Hotel has hired Spanish staffs who are good at work but not co-operative at all.
This lack of co-ordination lead to lack of communication which creates misunderstanding and
conflicts. This lead to poor working culture. In that working culture, employees won't be able to
work with focus and efficiency. This cause to poor service quality and performance. This lead to
no completion of target of hotel (Kim, Im and Hwang, 2015). Poor performance puts stress on
employees and pay low to them. These all increase the turnover and costs for hiring employees,
which lead to low profitability for hotel.
3 Point Plan Action For The Problem-Solving With The Help Of Theories And Principles
3 POINT PLAN ACTION
MAIN ACTIVITIES EXPECTED
OUTPUTS
MANAGER's
RESPONSIBILITIES
TIMELINE
The hotel has poor
quality of services
which lead to low
profitability. This
quality problem can be
solve through Total
Quality Management
which is long-term
management approach.
Better Working
Environment
Gain Loyal Customers
Provide proper
education to their
employees about TQM
8 to 10 Weeks
Employees and staffs
of Imperial hotel have
low morale. Hotel
should focus on their
morale level and do
something for the
increment of their
morale level. To
improve their morale
Completion of Tasks
Increase in Pay and
Incentives
Take care of every needs
of employees in order to
motivate them.
5 to 6 Weeks
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level, hotel can follow
Maslow – Hierarchy
Of Needs.
Hotel don't have
productivity. For the
productivity, hotel can
follow 14 Principles
Of Management
propounded by Henri
Fayol.
Unity in Employees
Enhance Goodwill
Allow employees to
Allow employees to
participate in
management activities
and process.
5 to 6 Weeks
(Fernandez and Worasuwan, 2017).
QUALITY SERVICE - Through TQM, hotel can focus on following elements such as
Customers, Employees, Strategies, Decision-making process and communications. Hotel can
improve the quality of services which will improve the customer satisfaction. For the
improvement of services, Hotel can treat every guest equally, positively, respectfully and like a
VIP. For that, they can train their staff to be responsive and attentive towards guests. Employees
should be expert in identifying the quality gap and have the capability to solve them. For that
Hotel can educate them on TQM concepts and with the help of them they can implement
framework for TQM. So they can easily identify the gap and mitigate that gap. Hotel can
improve in its process and strategies implementation which can be done through the implication
of participative management approach in which every members of hotel will discuss and take
decision regarding issues. This lead to communication and better understanding, which creates
co-ordination between departments and activities which leads to implication of process and
strategies. This lead to good quality. For the communication, hotel can organize various informal
meetings and cultural activities which lead to employees gathering and communication.
Better Customers' satisfaction, trained employees, co-ordination between various
processes, smooth and systematic implementation of strategies, participative decision-making
process and open communication system will lead to improvement in service quality. This lead
to better working environment, satisfied and efficient employees, satisfied, happy and loyal
customers, which help hotel to earn profitability and operational efficiency. That's how, quality
service make hotel financial sustainable (Ross, 2017).
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STAFF MORALE - Hotel can follow Maslow – hierarchy of needs, in which they can focus on
the five needs of employees and try to fulfil that needs. This lead to employees motivated and do
better performance with satisfied and efficient mood. For the fulfilment of their needs, hotel can
provide their employees basic needs such as home, food, water and education. Hotel can provide
employees security, income and permanent employment. Hotel can organize various family
activities such as sports activities programs, picnics, celebration of various festivals functions
etc., this lead to belongingness. Company can provide their employees recognition and
promotion opportunities etc.
Motivated employees are satisfied and efficient employees who deliver good quality
services and are able to complete their tasks on time. Completion of tasks on time will lead to
hotel to achieve their target which will be profitable. Increase in profit will lead to increase in
their pay and incentives and increase in operational efficiency. Overall employees as well as
hotel will be financial stable (Cherry, 2017)
PRODUCTIVITY – Hotel can follow 14 principles of management such as Division of work,
Authority and responsibility, Discipline, Unity of command, Unity of direction, Subordination of
individual interest to general interest, Remuneration of Personnel, Decentralisation, Scalar
Chain, Order; Equity, Stability in the tenure of Personnel, Initiative and Espirit De corps (14
Principles of Management (Fayol), 2013-2018). Hotel can clearly define its employees their
roles, responsibilities and duties. Also, employees should have clear understanding about the
hierarchical structure follows by hotel. Discipline is a compilation of organisational rules and
employment agreement which is essential for the organisation's operation. Thus, employees
should be in discipline. Hotel can appoint only one boss who can give command to the
employees so that there should be no confusions regarding command. Hotel's all departmental
objectives should be directive towards Organisational objectives. Employees should give
prioritise organisational interests over his interests. Hotel can pay fair and equal remuneration to
the employees who are working at same position. Manager can decentralisation of his
responsibilities to employees so that they can learn and manager can focus on another important
work. There should be clear line in the area of power of authority i.e.- from top to bottom and all
managers at all levels in hotel. Hotel can provide their employees proper resources for the better
performance. Hotel can treat their all employees equally and respectfully. Hotel can allow
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employees to express his new ideas regarding improvement of hotel. Hotel should promote the
team spirit in organization.
This all lead to hotel to run its operational effectively and efficiency. This will lead
employees to motivate for the better work. Motivate employees will do better performance which
lead to increase in productivity and profitability. Like this, hotel gain financially stability
(Morden, 2017).
CONCLUSION
From the above study, it has been summarised that managers are responsible for the
Imperial hotel. They co-ordinated and looked after the work of their employees who worked for
the achievement of hotel's objectives. For the management of hotel, it is important to be
effectiveness and efficiency. Management is concerned with executing the right tasks and
operations and also it concerned with the implication of operations correctly and at minimum
costs. If there is no proper management in hotel, this would lead hotel to fail and decrease in
goodwill of Imperial Hotel. Due to improper management, Hotel had to faced so many problems.
Thus, management should focus on the employees, processes and customers. Without these 3
terms, management is nothing. Management is important because it helps in achieving group
goals, increases efficiency, creates a dynamic organisation, helps achieve personal objectives and
contributes to the development of society.
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REFERENCES
Books And Journals
Cherry, K., 2017. Maslow’sHierarchy of Needs. Dursun, A.(2011). Dede Korkut Hikâyelerinde
Halk Hukuku. Electronic Turkish Studies. 6(4).
Erasmus, B., Strydom, J.W. and Rudansky-Kloppers, S. eds., 2016. Introduction to business
management. Oxford University Press Southern Africa.
Fernandez, K.M. and Worasuwan, K., 2017. Drivers of Hotel Employee Retention: A
Comparative Study. Universal Journal of Management. 5(11). pp.497-501.
Hammer, M., 2015. What is business process management?. In Handbook on business process
management. 1. (pp. 3-16). Springer, Berlin, Heidelberg.
Hodari, D., Balla, P.J. and Aroul, R.R., 2017. The matter of encumbrance: How management
structure affects hotel value. Cornell Hospitality Quarterly. 58(3). pp.293-311.
Kim, S.S., Im, J. and Hwang, J., 2015. The effects of mentoring on role stress, job attitude, and
turnover intention in the hotel industry. International Journal of Hospitality Management. 48.
pp.68-82.
Molina-Azorín, J.F., and et.al., 2015. The effects of quality and environmental management on
competitive advantage: A mixed methods study in the hotel industry. Tourism Management. 50.
pp.41-54.
Morden, T., 2017. Principles of management. Routledge.
Ross, J.E., 2017. Total quality management: Text, cases, and readings. Routledge.
Simons, T., McLean Parks, J. and Tomlinson, E.C., 2018. The benefits of walking your talk:
aggregate effects of behavioral integrity on guest satisfaction, turnover, and hotel profitability.
Cornell Hospitality Quarterly. 59(3). pp.257-274.
Online
14 Principles of Management (Fayol). 2013-2018. [ONLINE]. Available through:
<https://www.toolshero.com/management/14-principles-of-management/>
Company Overview of The Imperial London Hotels Ltd. 2019. [ONLINE]. Available through:
<https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=5774944>
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