Imperial Hotel Case Study: Addressing High Employee Turnover

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INTRODUCTION TO
MANAGEMENT

TABLE OF CONTENTS
Introduction......................................................................................................................................1
Analysis of the individual problem..................................................................................................2
Solution to the problem...................................................................................................................4
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

Introduction
Management is an important aspect in the organizations and hospitality industry that ensure the
effective administration, management and operations of the activities of the organization as well
as employees for achieving the growth and long-term success of the business. The Imperial hotel
case study is discussing in the current report for developing understanding of the different
practices and applications of the management. The location of the hotel in the London’s West
End that is owned and operated by the international hotel chain i.e. Star Hotels. This hotel
provides hospitality services to tourists or guests that have expectations of high standard or
quality services. There are different departments in the hotel that perform activities such as
human resources management and training, reception, guest services, housekeeping, and
beverage& foods, and hence contribute efficiently in effective management and functioning of
the hotel and quality guest service.
Recently, Peter Farnsworth took the management in the hand as new general manager after
retiring of previous general manager. Previous general manager experienced the issues of
employee turnover that badly impacted or influencing the guest service in the hotel and hence
impacting market image of the hotel. Peter identified numbers of reasons or causes behind the
employee turnover such as aggressive management, unhealthy work environment, poor pay
scale, unsociable working hours and less promotional opportunities. The report will discuss
different management principles and practices that Peter needs to adopt and use for resolving that
particular problem in the hotel.
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Analysis of the individual problem
The new GM (general manager) of Imperial hotel they has analysed the key problem within the
hotel which is related to the high employee turnover that is reducing the productivity and
profitability and hence impacting the customer or guest service in the hotel. Approx 80% of staff
is leaving the hotel within a year because of ineffective management and HR practices and lack
of benefits to the staff. Also, a new general manager identified that there is unhealthy work
culture, unfriendly working hours and lack of promotion and growth opportunities to staff that
are resulting the high staff turnover. A new general needs to use and adopt effective theories and
principles of management for improving the management performance along with productivity
for reducing staff turnover. There are different management theories but the Scientific
Management Theory can be used for improving performance level of the management and that
will help to reduce issue related to high staff turnover (Waring, 2016). This theory covers some
principles related to the management and that will be used by management team to reduce the
staff turnover and improve the performance and productivity of the hotel.
Principles of scientific management theory
Science is not rule of the thumb: As per the principle, Imperial hotel management team needs to
take decisions and develop various strategies after analysing the cause and effect relationships of
the action. The management requirements for identifying the main reason that leads to leaving of
hotel staff every year. The general manager needs for developing the appropriate policies of pay
scale, rewards and promotion after analysing its cause and effect relationships and the needs to
implement these policies for satisfying employees and retain them in the hotel. Manager needs to
avoid the rule of thumb and blind decision-taking action for improving the performance of the
management team and also reducing the employee turnover (Waring, 2016).
Equal distribution of work: This new GM of hotel also evaluated that inequality in delegation of
task between hotels members also resulted in high staff turnover. Manager needs to delegate and
divide task among employees but as per their skills to manage the work equality. This enhances
the morale and efficiency of employees and enables them attaining assigned task with high
commitment for retaining staff within hotel for long-term.
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Proper coordination and cooperation: As per this principle hotel management team needs to be
more cooperative in nature and provide support to the employees in performing their assigned
task with more efficiency. The regular cooperation of management with employees will enhance
the work efficiency and confidence among employees for performing their assigned task more
efficiently and effectively (Morden, 2017). This will develop trust and affection among
employees towards the hotel organization and sustain or retain their employees within the hotel.
Harmony, not discord: The new GM of the hotel also analysed that there is unhealthy work
culture or environment in the hotel that leads to leaving of employees every year. There are
numbers of employees working in the hotel and sometimes that create the problem of conflict
among them due to clashes of their different opinions and views. It is essential for the new
manager to synchronize the employees and motivate them to perform team work and also needs
to resolve conflict issues between them work smoothly in the hotel for long-term.
Recruitment, training and development: Approx 80% of employees leaving the job in the hotel
every year that is increasing more requirements of skilled and experienced employees to deliver
quality hospitality service and perform different work such as housekeeping, cooking, room
service, etc. A new manager needs to recruit more skilled and experienced employees in different
department heads. Also, the management needs to organize training programmes for developing
and improving working skills of employees through which they can perform assigned work more
effectively and efficiently (Waring, 2016). Also, management needs to provide performance
appraisal and promotional opportunities to employees that will ensure their professional as well
as personal development and growth and hence retain them in the hotel.
Mental revolution: A new general manager identified that previous management didn’t value the
efforts and contribution of employees that lead to the problem of high staff turnover. Also,
employees took less interest in properly following the guidelines of the management that create
the conflicts and dissatisfaction among them. A new general manager needs to value the
contribution and efforts of employees for satisfying and encouraging them to stay in the hotel for
long-term.
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Solution to the problem
It is very essential for organisational new general manager to take some quality of decisions and
adopt an appropriate management theory, practices and principles to resolve the problem of
employee high turnover issues within the hotel. Manager needs to make some changes in HR
policies, practices and take affective action and develop appropriate strategies for reducing the
staff turnover in the hotel. Following are given below some HR practices and strategies to
resolve the problem in the hotel:
Satisfactory pay or salaries: Most of the employees in the hotel are leaving their job due to poor
pay scale and salaries package as compared to other hotels or hospitality organizations. Other
competitor hotels are offering attractive salaries and hence attracting the staff to work in their
hotels. Therefore, it is essential for the new general manager to offer and provide satisfactory or
attractive salaries to employees as compare to other competitor hotels for retaining employees in
the hotel for long-term.
Social work environment: It has also identified that most of employees in the hotel leaving their
jobs due to unsocial work culture in the workplace. Employees from different culture,
backgrounds and locations are creating the conflicts among them due to clashes of their different
opinions and ideas (Jain and Kaur, 2014). Therefore, it is essential for the new general manager
to develop the social and healthy work culture or environment by creating the harmony among
employees and encouraging them to work in teams for delivering quality services to guests in the
hotel.
Motivation: Lack of motivation to employees in the hotel is also a major reason behind the high
employee turnover. The previous management was not providing proper motivation to
employees on giving their best performance and delivering quality guest service and hence more
employees leaving their jobs. The new manager needs to change their current motivational
policies and strategies and needs to develop and offer monetary as well as non-monetary
motivation to employees for enabling them to put more quality efforts in delivering quality guest
service (Hitka and Balážová, 2015).
Flexible or social working hours: The working hours related to unsocial is also main reasons
behind high staff turnover in the hotel. The previous management was not offering the flexible
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working hours to employees that were creating dissatisfaction among them and more employees
leaving their jobs every year. A new manager needs to change policies related to the working
hours and offer flexibility to employees as per their preferences that will enable them to give
time to professional as well as social life.
Training and development: A new general manager identified that the previous management
was not providing proper training to employees that leads to more employee turnover. Due to
lack of training and development or promotional opportunities, employees within the hotel are
also facing some difficulties while performing their individual work in an efficient manner and
ensuring the professional growth and hence leaving their jobs. The new management needs to
regularly organize training and development programmes for improving and enhancing skills and
abilities of employees and offering them promotional and growth opportunities that will develop
them on professional as well as social level (Cohen, 2017).
Transportation facility: In the hotel, there was no transportation facility for employees for
reaching to home from hotel and from hotel to home. This created major problems for employees
to work in different shifts and reach home on-time as well as to hotel. The new management
needs to organize sufficient resources and then needs to start the transportation facility for
employees that will pick them from home and drop to hotel and from hotel to home. this facility
will make easy for the employees to work in different shifts and reach hotel and home on-time.
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Justifications of the resolution to the problem
Peter Farnsworth as the general manager (GM) will be taken management responsibilities within
Imperial hotel as previous general manager retried from their position within hotel. But the
previous GM experienced various problems in the hotel that are impacting the guest service,
productivity and profitability of the hotel. The new GM has identified that the major problem the
previous manager experienced was the high staff turnover that was because of poor pay scale,
ineffective rewarding system, unsocial work culture, hours, aggressive management, and lack of
training to employees (Noe et.al, 2017). Therefore, to overcome this problem, there is a need to
improve the performance and effectiveness of the management by adopting and using
appropriate management theory and principles. The scientific management theory is most
appropriate that a new general manager can adopt and use in the workplace in the hotel for
satisfying requirements of employees and hence reducing the employee turnover (Waring, 2016).
The latest and recent requirement of management is related to create a social and healthy work
culture and provide flexible working hours and satisfactory salaries for satisfying them and
retaining in the hotel. Also, the management can recruit or hire new skilled and experienced
employees to fill the vacant job positions in the hotel improve the performance and productivity
of the hotel. The department or unit of management within hotel also needs organize the training
events for enhancing and improving working skills and abilities that will enable them to deliver
quality hospitality services to their guests or tourists that expect high standards services (Cohen,
2017). There is also need to provide easy transportation facility to employees that will pick and
drop them from hotel to home and home to hotel on-time.
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Conclusion
The current report has highlighted the management and its importance to ensure their
performance and hotel operation. The report has discussed the scientific management theory and
it principles that can be used by hotel manager in enhancing the performance and management
productivity as well as the hotel and delivering quality hospitality services to guests. The hotel
was facing the issue of staff turnover and the new management adopt and apply scientific
management principles along with theory to overcome the problem. Also the new management
make some changes in the HR policies, practices and strategies such as social work culture,
flexible working hours, attractive salary package, more training and development opportunities
and transportation facility to employees for satisfying them and retaining in the hotel for long-
term.
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References
Books and Journals
 Cohen, E., 2017. Employee training and development. In CSR for HR (pp. 153-162).
Routledge.
 Hitka, M. and Balážová, Ž., 2015. The impact of age, education and seniority on
motivation of employees. Business: Theory and practice, 16, p.113.
 Jain, R. and Kaur, S., 2014. Impact of work environment on job
satisfaction. International Journal of Scientific and Research Publications, 4(1), pp.1-8.
 Morden, T., 2017. Principles of management. Routledge.
 Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2017. Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill
Education.
 Waring, S.P., 2016. Taylorism transformed: Scientific management theory since 1945.
UNC Press Books.
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