Analysis of Employee Turnover at Imperial Hotel: A Case Study

Desklib provides solved assignments and past papers to help students succeed.

Introduction to management

TABLE OF CONTENTS
Introduction......................................................................................................................................1
Individual problem identification....................................................................................................2
Current problem at Imperial hotel...............................................................................................2
Vroom expectancy theory............................................................................................................2
Scientific management theory.....................................................................................................3
Herzberg motivational theory......................................................................................................3
Solutions as per the analysed problems...........................................................................................5
Justification for Solution to the current problem.............................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

Introduction
Hospitality sector organisations within the UK are well known and established because there are
a number of hotels in the different locations of the UK. The imperial hotel will also count under
leading hotels of the UK who operates business activities and functions worldwide. The imperial
hotel also considers as the 4 stars hotel and located at various different places all around the
world. Dynamic environment and its changes put an impact on the functions of business due to
which decision-making process and handling of activities will be changed. In the current
scenario, Imperial hotel is facing various work-based problems and that creates a negative impact
on the business operations of the hotel. The major issue facing by the hotel is employee turnover
in main departments and that influence customer satisfaction but in a negative manner (Hom et
al, 2017). The employee turnover is also connected with the employee job leaving percentage
due to some of the reasons.
The key issues identified at the workplace of Imperial hotel are improper training, poor work
culture, improper management styles etc are the reasons which force the employees for leaving
their job. The organisation productivity also gets reduced because of the employee turnover and
customer dissatisfaction which decreases the existing workforce morale and enhances the
workload. Due to these internal business issues and problems, the goodwill of the hotel also gets
affected in the market, but it is essential for the management team to take effective and strong
decisions for improving their internal business functions. By implementing effective
management decisions it becomes easy to enhance the morale of the employees and provide a
healthy and positive working environment (Reina et al, 2018). Below study will be conducted to
analyse the individual internal hotel issues along with the solutions to overcome the problems by
implementing management theories.
1

Individual problem identification
Current problem at Imperial hotel
Employee reduction at the workplace is related to the employee turnover, and under this
condition, the employee voluntary decides to resign or leave the job because of some issues
related to personal and professional dissatisfaction. Due to employee turnover, the organisation
and individual get into the extreme cost as it increases the staffing cost, recruitment cost and
training cost to manage the workforce. In the case of the Imperial hotel, the major employee
turnover is analysed within the front office unit because of the improper utilisation of the policies
or plans (Reina et al, 2018). The hotel management team analyses this problem and also
identified that employees are not happy and satisfied with the policies and workplace conditions.
The cost of induction at the hotel is also increased because of the consistent employee changes.
The staff cost also gets high within the Imperial hotel. All the problems within the hotel are
created a direct impact on the hotel service quality due to which guest of the hotel get
dissatisfied.
Vroom expectancy theory
This theory covers the human competency that is connected with expectancy strength which is
analysed through relevant outcome along with its attractiveness. In addition to this, individual
motivation level gets changed as per the circumstances, and that also influence the outcome
towards the individual. Individual perspective changes are related to the changes within the
working conditions and that lower down competency level of the employees. As per the given
case of Imperial hotel, it is analysed that customer dissatisfaction, and employee turnover
occurred at the workplace because of the poor working condition, low payment, lack of benefits
and low level of motivation (Miner, 2015).
Vroom expectancy theory shows that hotel workplace conditions as per the expectation level of
the employees so that they can generate high productivity level. Employee’s initiatives, along
with their commitment, are based on the expectancy level they are having from their job. If the
expectation of the employees will not get satisfied, then their efforts towards the hotel objectives
get reduced. To lower down this type of negative impact, rewards (monetary or non-monetary)
2

will play an effective role to enhance the efforts and commitment of employees. By providing
rewards benefits will enhance their motivation level and increase performance level also.
Scientific management theory
This management theory is stated by the Taylor under which the information related to the
operations and management are mentioned that are used to implement some changes within the
organisation. The management approach also helps regarding process management and
workflow assessment to remove some activities which are not effective and beneficial for the
hotel and its staff. As per this theory, employees of the hotel need to listen to the manager’s
instructions and actions that are taken for the benefits of the hotel. Scientific management theory
also suggests and recommends to the business department that they need to hire a strict manager
who will undertake all the functions and operations of the specific departments or units (Shafritz
et al, 2015).
Within the hotel, all the managers need to consider some points under their departments such as-
working conditions, workforce training, use of latest technology and financial increments. By
focusing on these areas will help the managers to manage their employee’s performance and
enhance the productivity level of the Imperial hotel. Increased employees morale and
performance level will enhance the service quality and satisfy the accommodation and other
hospitality needs of the guest.
Herzberg motivational theory
This motivation theory covers two factors such as- motivational factors and hygienic factors that
satisfy the needs of the employees who are working for the Imperial hotel. These two factors
within this motivational theory drive the satisfaction and dissatisfaction level of the employees.
Responsibilities, growth opportunities, achievements, recognition and promotions are some of
the factors that cover under motivational needs of the employees. Quality supervision, job
security, policies, relationships and physical workplace working condition are covered under the
hygiene factor. These factors show that when the employees of the hotel are dissatisfied
regarding working condition then their performance will get affected. In the Imperial hotel, the
working condition at the workplace is quite unpleasant due to which higher turnover problem is
facing by them as employees think that their appearance within the hotel is not required or
3

valuable due to which they decide to leave the job (Alshmemri et al, 2017). The management
team of Imperial hotel need to focus on employee retention strategies to satisfy their employees.
These motivational factors and theories that are recommended for Imperial hotel need to be
implemented by the managers and leaders so that they can enhance the job satisfaction level of
the employees. For example, employee turnover increment will be managed by providing health
and positive working environment through which the working efficiency level of employees get
increased and improve their performance level. Herzberg motivation will be implemented by
focusing on the motivational factors so that they can retain employees for a long period.
4

Solutions as per the analysed problems
Employee retention strategies need to be implemented by the Imperial hotel managers so that
they can decrease the employee turnover ratio from the hotel. Following are some of the
retention strategies discussed as per the requirement of the hotel:
Positive culture: By providing a healthy and positive working environment will influence the
employee’s satisfaction level in a positive manner. Involving employees in the decision making
and discussion process will reduce the internal conflicts among the employees. Teamwork
motivation among all the employees also improves the working environment of the Imperial
hotel. This will improve the interpersonal relationship among the employees and help to retain
the employees (Anitha, 2016).
Working flexibility: Offering flexible working condition will also enhance the commitment
level of employees, and that also help managers to retain employees for a long duration. Time
flexibility, shift flexibility and paid holidays are some of the benefits that are related to the
working flexibility and that help employee for balancing their personal and professional life.
Flexible working conditions raise employee morale and help to the sustainability of employees in
the hotel.
Performance appraisal: Performance appraisal is one of the best techniques to enhance the
motivational level of the employees. Rewards and other benefits can be provided in the form of
incentives, bonus or increment so that employees will be appreciated for their hard work and
high commitment towards the goals and objectives of Imperial hotel (Hitka et al, 2015).
Monetary and non-monetary both types of benefits can be provided to retain the employees in
the hotel for long term.
Training opportunities: Training and development opportunities enhance the performance level
of the employees. The HR department of the hotel needs to organise training sessions for the
employees under which main focus is done on their lacking areas, so that the performance of
employees gets improved (Anitha, 2016). Consistent training towards employees also helps
managers of Imperial hotel to increase the satisfaction level of the employees.
5

Justification for Solution to the current problem
As it is known that performance of the organization in better way can lead to higher results and
for this all departmental manager’s has to considered the stated solutions. It can be seen that
motivation is highly required in the employees to get greater satisfaction of customers and it is
possible only through proper implementation of motivational theories explained above. The
theories also relates to the employee’s efficiency and increasing the morale level of workforce.
The career opportunities for development shall be offered to the Imperial hotel staff so that in
any way their retention can be received.
The opportunities for future and retention of employees can take place only through individual
goal settings. The customer commitment towards the hotel should be adequate for the employees
in order to get more profits and productivity. The options mentioned has to be monitored
efficiently for getting suitable employee freedom that might result into circumstances that take
the organization away from the objectives. Thus, the implemented choices are appropriate and
will transform the useful goals with respect of increasing the market goodwill and customer
commitments. The proper way is only needed for the managers to implement the suggested
options.
6

Conclusion
From the whole analysis of the study, it can be said that turnover of the employee is the major
issue that is reducing the profit figures of the organization along with the goodwill and customer
satisfaction. It is needed by the hotel manager to take the suitable decisions in getting workforce
and customer commitment. This issue not only impact the profits of business but it will result in
reduced staff morale. It is important to have present employee’s retention as they have in detail
knowledge and lacking areas of the operation then too meeting the objectives of the business.
The use of Herzberg theory supports in getting the employee satisfaction as it considers the
motivational and hygiene factors both. It will manage the long relationship with the Imperial
hotel. The rewards and promotional incentives are the major tools of the organization but it shall
be offered to the workforce on the performance basis. The suitable work culture, additional
benefits and standard pays are important for the hotel effective management. The enhanced
motivation is all time needed in the employees as they are the important asset of the business for
increasing the sales and customer experience.
Imperial hotel need to offer higher services and facilities that will majorly differentiate from the
other organizations competitors and it supports in getting the retention as well. From the whole
study, it can be seen that management is required to have suitable decisions to face the negative
issues of turnover. The better results are needed on urgent basis in order to ensure for long term
growth and sustainability of the organization as well of employees. Imperial Hotel had to make
the use of prioritization for the tasks present in the hotel and on the topmost the improvement is
to be made on workplace conditions.
7

References
Books and Journals
 Alshmemri, M., Shahwan-Akl, L. and Maude, P., 2017. Herzberg’s two-factor
theory. Life Science Journal, 14(5), pp.12-16.
 Anitha, J., 2016. Role of Organisational Culture and Employee Commitment in
Employee Retention. ASBM Journal of Management, 9(1).
 Hitka, M., Vetráková, M., Balážová, Ž. and Danihelová, Z., 2015. Corporate culture as a
tool for competitiveness improvement. Procedia Economics and Finance, 34, pp.27-34.
 Hom, P.W., Lee, T.W., Shaw, J.D. and Hausknecht, J.P., 2017. One hundred years of
employee turnover theory and research. Journal of Applied Psychology, 102(3), p.530.
 Miner, J.B., 2015. Expectancy theories: Victor Vroom, and Lyman Porter and Edward
Lawler. In Organizational Behavior 1 (pp. 110-129). Routledge.
 Reina, C.S., Rogers, K.M., Peterson, S.J., Byron, K. and Hom, P.W., 2018. Quitting the
boss? The role of manager influence tactics and employee emotional engagement in
voluntary turnover. Journal of leadership & organizational studies, 25(1), pp.5-18.
 Shafritz, J.M., Ott, J.S. and Jang, Y.S., 2015. Classics of organization theory. Cengage
Learning.
8