Strategies to Address Staff Turnover at the Imperial Hotel, London

This report analyzes the high staff turnover issue (80% annually) at the Imperial Hotel in London. The report identifies key factors contributing to this problem, including inadequate pay, high travel costs, a poor work culture, and aggressive management styles. It then explores the application of management theories, specifically Herzberg's motivation theory and Henry Fayol's management principles, to address these issues. The report proposes several solutions, such as increasing employee pay and benefits, improving training and development opportunities, modifying working hours, and implementing financial and non-financial rewards. It also recommends appointing effective supervisors who can communicate well with staff and rectify mistakes constructively. The overall aim is to reduce staff turnover, improve employee morale and productivity, enhance service quality, and ultimately increase the hotel's profitability and reputation. Desklib is a valuable resource for students seeking similar solved assignments and study tools.

Introduction to Management
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Table of Contents
1.0Introduction.................................................................................................................................2
2.0 Analysis of the individual problem............................................................................................4
2.1 Summary of the Issue................................................................................................................4
2.2 Management of the Issue...........................................................................................................5
2.3 Describe and present your results for effective management of the problem...........................7
2.5 A summary and justification of key proposals for the resolution of the problem in the
organisation......................................................................................................................................8
3.0 Conclusion...............................................................................................................................10
Reference List................................................................................................................................11
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1.0 Introduction
Management refers to a process that involves a series of activities performed for administering
the operations of business and improves the business activities along with the effective resolution
of the issues related to the business so that the business organization can gain competitive
advantage in the industry. Absence of effective management can give birth to different issues
such as the workplace conflicts and the reduced productivity, inefficiency among employees and
employee turnover.
The assignment will introduce a brief introduction to the issue faced by the hotel named “High
staff turnover with 80% of the staff leaving within the year”. A proper analysis of the issues as
well as explanation of several management theories to deal with the issues along with proposal
of the methods to resolve the issues will be underlined. However, the hotel is going through
several issues as per the case study that can hamper the operations as well as the public image of
the hotel. One of the most significant problems is staff turnover. Around 80% of the total staff is
resigning from the hotel in a year. At the time of exit interviews, it was recognize that there are
several reasons behind such significant number of staff turnover. As per the grieved staff, there is
absence of the healthy work culture in the workplace, the staff is not getting proper pay, they are
incurring huge travelling costs for arriving to the hotel for performing their job, the aggressive
behavior of the manager with the staff, and many more. This has also increased the cost of the
hotel in relation to the staffing process, reduces service quality to the customers and thereby
negatively affecting the sales of the hotel.
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Brief history of the Imperial hotel
The Imperial Hotel is considered as one of the most well developed inns in London, The United
Kingdom. It is a four star hotel and consists of the five hundred bedrooms to provide excellent
facilities to its customers. It primarily serves the foreign tourists as well as the business visitors
since they possess many aspirations from the quality services provided by Imperial Hotel. In
order to provide excellent facilities to the business tourists, the hotel involves several other lavish
facilities such as multiple numbers of conference rooms, all hotel accommodations consisting
impressive suite services, conference rooms comprising of the involvement of thousand people,
significant number of restaurants as well as bars facilities. It also consists of four hundred hotel
staff as a whole and six department heads to manage and control the operations of the hotel
(Cetin, 2016).
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2.0 Analysis of the individual problem
2.1 Summary of the Issue
According to the given scenario, one of the most significant issues is the staff turnover. A
significant number of the staff (80%) in Imperial Hotel is discontinuing their operations with the
hotel. While conducting the exit interviews, it was observed that there are several reasons behind
the staff turnover from the hotel in a year.
The staffs were resigning from their job in the hotel because they were not provided with
adequate salary. There has been a gradual increase in the traveling costs incurred by the staff for
reaching the hotel in order to perform their job effectively, but the management of the hotel was
not increasing the salary level. The work culture in the workplace does not contain healthy
environment, there is lack of staff appraisal opportunities, and the ways of management of the
performance of staff tend to be very aggressive (Anderson, 2015). The employees were not
provided with effective training and development that can enhance their effectiveness and build
their skills, there is lack of staff appraisal facilities in the form of provision of financial and non-
financial rewards such as the promotion, incentives, bonuses, salary increment, competitive job
and others. The working are allotted to the staff of the imperial hotel is very rigid in nature
(Cascio, 2018). As per the case study, mainly, the front-line staff is leaving their job.
Since the existing staff of the hotel is resigning from the staff because of several reasons, the
management of Imperial Hotel is required to employ fresh staff by the proper staffing process.
Because of the considerable issue mentioned above, the management of the imperial hotel is
required to incur a huge cost for recruitment, selection and induction training of fresh employees.
There is a huge cost involved in the staffing procedure as well as the induction training provided
to the new employees in order to make them familiar with the affairs, rules, operations carried on
by the hotel. The cost involved in the staffing procedure is exercising a significant impact on the
sales volume of the hotel. The staffing cost is involving thirty-five percent of the sales volume of
the earned by the hotel. This can hamper the effective business operations of the hotel. It can
decrease the productivity of the hotel and therefore affecting the profitability of the hotel in a
negative manner. The fresh employees hired by the hotel might not be as effective as the
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previous staff were when they were performing their job in the hotel. This creates an adverse
impact over the quality of the facilities provided to the customers who avail the services of the
Imperial Hotel. This reduces the arrival of the guests to avail the services of the hotel leading to a
significant decrease in the sales volume of the hotel, reduction in its profitability as well as poor
public image of Imperial Hotel.
2.2 Management of the Issue
In order to improve the business activities of the Imperial Hotel, the following issues mentioned
above is required to be effectively managed so that the resolutions can be proposed in order to
eliminate the issue of staff turnover successfully. Since the former manager of the hotel was
unable to administer and control the issues faced by the hotel and affecting negatively on the
operations of business, retired from the hotel (Neirotti et al., 2016). “Peter Farnsworth” was
appointed for the job of the “General Manager” in the Imperial Hotel so that he can effectively
manage the emerging issues faces by the hotel and improve its business activities to a significant
level. Several theories can be provided for effective management of the following issue.
Management Theories
Herzberg theory of motivation
The Herzberg theory of motivation is a “dual factor theory” involving motivation and hygiene.
Fredrick Herzberg introduced the theory in the year 1959 (Alshmemri et al., 2017). As per “high
hygiene and high motivation” there are no complaints made by employees, they are completely
satisfied with the facilities provided by the organization where they are working. This is because
the work culture is healthy, employees are provided with proper training and impressive salary as
well as other related benefits. In case of “high hygiene and low motivation”, the employees are
provided with adequate salary but are not rewarded with challenging jobs that increases their
motivation. In case of low hygiene and high motivation, employees have some complaints
because they are provided with challenging jobs that increases their motivation but are not
provided rewarded with adequate salary as compared to the work assigned (Grayson, 2017). In
case of low hygiene low motivation, the complaints of workforce increase because they are
neither provided with competitive jobs that increase their motivation nor adequate salary.
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Figure 1: Herzberg theory of motivation
(Source: Grayson, 2017)
Imperial hotel can adopt the high hygiene and high motivation phase of Herzberg theory in order
to reduce the level of staff turnover in the hotel. By providing desired salary as well as
competitive jobs, management of the Imperial Hotel can increase staff motivation and morale
and improve job satisfaction.
Henry Fayol Management Theory
Management theory introduced by Henry Fayol, provide guidelines to effective management. It
comprises of fourteen principles of management that are very necessary to be complied with by
an organization in order to manage the business operations effectively (Shafritz et al., 2015).
This will improve the workplace relationship, increase productivity and employee efficiency,
reduce employee absenteeism and turnover, increase job satisfaction, improve result
representation, and reduce workplace conflicts. Esprit the corps implies that effective teamwork
and equality among employees in the workplace will improve performance quality of employees
(Kiruja, 2018). Division of labor will enable the manager to place right person and right job for
improving performance quality and employee motivation and morale.
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Figure 2: Henry Fayol Management Theory
(Source: Shafritz et al., 2015)
Imperial Hotels can comply with this theory in order to manage and control its business
operations and improve its productivity in an effective manner. Division of labor, teamwork and
many other principles will improve business performance of its hotel and raise customer demand
for its services leading to increase in sales volume and productivity as well as effective cost
control.
2.3 Describe and present your results for effective management of the problem.
Owing to the issues faced by the Imperial Hotel related to the staff turnover, the general manager
of the Imperial Hotel, Peter Fransworth provided with several initial suggestions that can
improve the operations of the business carried on by Imperial hotel and resolve the issues
effectively. By providing impressive salary packages to the employees, imperial hotel can retain
the employees and increase job loyalty. The hotel can offer financial and non-monetary rewards
to the employees such as promotion, incentives, assignment of competitive jobs, job recognition
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can increase the motivation of the staff and increase their job satisfaction and job loyalty.
Effective training and development can increase the skills of the workforce and help them to
produce successful results.
2.5 A summary and justification of key proposals for the resolution of the problem in the
organisation
In order to resolve the issue mentioned above, imperial hotel is required to perform several
activities for reduction of staff turnover.
 Imperial hotels can conduct effective training and development opportunities to the staff
in order to increase the skills of the employees. Imperial Hotel is required to increase the
pay of the existing staff to retain them to the hotel.
 The Imperial Hotel is required modify the working hours in order to reduce work
pressure from the employees.
 By providing proper financial and non-financial rewards to the staff such as promotion,
incentives, assignment of competitive jobs, job recognition can increase the motivation of
the staff and increase their job satisfaction and job loyalty (Anitha, 2014).
 Division of labor, teamwork and many other principles will improve business
performance of its hotel and raise customer demand for its services leading to increase in
sales volume and productivity as well as effective cost control.
 Provision of several benefits to the staff by the management of the hotel such as dearness
allowance and other health benefits will improve employee performance and quality.
Apart from the above-mentioned specific recommendations, there are other several problems that
the management could adopt and implement. These recommendations are listed below.
 Imperial hotels can appoint supervisors to make them oversee the performance of the
staff and rectify them effectively the mistakes committed by the employees during
performing their work effectively (ALUBBE, 2015). The supervisors should not behave
aggressively with the employees, instead they should maintain effective communication
with the staff to increase their motivation, identify their issues and confusions and
resolving them successfully. This will increase the effective of employees and employee
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productivity, improve representation of performance results and increase profitability of
the business for gaining a competitive advantage in the industry.
 The Imperial Hotel is required to assign right job to the right person. Right person at the
right job will increase towards job, which will lead to improving performance quality and
employee motivation and morale.
 In order to raise customers demand, the employees should be provided with training
regarding the ways of communicating with the employees so that the staff can provide
effective services to the customers resolve their issues and queries and hence contribute
to development in the sales volume and improvement in the profitability of the business
carried on by the Imperial Hotel.
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3.0 Conclusion
The following assignment concludes that a significant number of the staff (80%) is discontinuing
their operations with the hotel. While conducting the exit interviews, it was observed that there
are several reasons behind the staff turnover from the hotel in a year It can disrupt the smooth
functioning of the business operations of Imperial Hotel and exercise an adverse influence on the
business performance of the hotel.
Imperial hotel can adopt the high hygiene and high motivation phase of Herzberg theory in order
to reduce the level of staff turnover in the hotel. By providing desired salary as well as
competitive jobs, management of the Imperial Hotel can increase staff motivation and morale
and improve job satisfaction. Compliance of management theory introduced by Henry Fayol will
benefit the hotel to significant level. By providing effective training, development, and staff
appraisal techniques opportunities to the staff, management of the hotel can increase the skills of
the employees. This will improve employee efficiency; increase staff motivation and morale
reduce employee absenteeism and turnover, increase job satisfaction, improve result
representation, and reduce workplace conflicts.
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Reference List
Alshmemri, M., Shahwan-Akl, L. and Maude, P., 2017. Herzberg’s two-factor theory. Life
Science Journal, 14(5).
ALUBBE, F., 2015. FACTORS INFLUENCING THE IMPLEMENTATION OF THE
TEACHERS PERFORMANCE APPRAISAL SYSTEMS; A CASE OF PUBLIC
SECONDARY SCHOOLS IN WESTLANDS CONSTITUENCY IN KENYA(Doctoral
dissertation, UNIVERSITY OF NAIROBI).
Anderson, W., 2015. Human resource needs and skill gaps in the tourism and hospitality sector
in Tanzania. Consultancy Report submitted to The Ministry of Education and Vocational
Training, Tanzania. Google Scholar.
Anitha, J., 2014. Determinants of employee engagement and their impact on employee
performance. International journal of productivity and performance management, 63(3), p.308.
Cascio, W., 2018. Managing human resources. McGraw-Hill Education.
Cetin, G. and Walls, A., 2016. Understanding the customer experiences from the perspective of
guests and hotel managers: Empirical findings from luxury hotels in Istanbul, Turkey. Journal of
Hospitality Marketing & Management, 25(4), pp.395-424.
Grayson, D. and Hodges, A., 2017. Corporate social opportunity!: Seven steps to make corporate
social responsibility work for your business. Routledge.
Kiruja, E.K. and Mukuru, E., 2018. Effect of motivation on employee performance in public
middle level Technical Training Institutions in Kenya. IJAME.
Neirotti, P., Raguseo, E. and Paolucci, E., 2016. Are customers’ reviews creating value in the
hospitality industry? Exploring the moderating effects of market positioning. International
Journal of Information Management, 36(6), pp.1133-1143.
Shafritz, J.M., Ott, J.S. and Jang, Y.S., 2015. Classics of organization theory. Cengage Learning.
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