Imperial Hotel Case Study: Revitalizing Management and Operations

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INTRODUCTION TO MANAGEMENT
THE IMPERIAL HOTEL

Table of Contents
INTRODUCTION........................................................................................................................2
ANALYSIS OF THE PROBLEM.....................................................................................................3
CONCLUSION............................................................................................................................8
BIBLIOGRAPHY......................................................................................................................... 9
PERSONAL REFLECTION..........................................................................................................10
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INTRODUCTION
Management is the backbone of a business firm which manages its operations and functions
which help in achieving goals and objectives. Management is necessary to run a business
corporation which ensures the attainment of business objectives of the company (Anastasia,
2016). In this report, monitoring and control issues of managers are discussed with
reference to employee’s turnover ratio of the Imperial Hotel, London. It is a branch of hotels
in London which is situated in the heart of London’s West End. The hotel charges £100 per
room per night for its Bedford rooms (Imperial Hotels, 2019). It contains a series of hotels
which are situated in nearby streets to one another. President, Bedford, Tavistock, Royal
National, Morton, and County are some of the other hotels in the network of an imperial
hotel of London.
Due to ineffective leadership and management of previous managers and heads of the
department, guest satisfaction level has been declined over the past years. The
mismanagement in the hotel leads to subsequent losses and declining profitability. The
business of the hotel is depleting due to management issues. The head of departments
failed to address the monitoring and control procedures in the hotel. After the retirement of
General Manager, many Head of departments left the hotel due to its declining
performances which are affecting their own growth and profitability as an employee of the
hotel.
The report suggests remedial actions that can be taken by the new manager in order to
relive the hotel from its past experience of mismanagement and declining productivity.
There are many areas which are left unopened and untouched by previous managers which
can reduce employee turnover, increase profitability and help in achieving success.
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ANALYSIS OF THE PROBLEM
EXECUTIVE SUMMARY
The imperial hotel is a famous international branded chain of hotels in 4-star market hotels
which operated 25 hotels in the UK. The imperial hotel in London has 500 bedrooms and is
situated in the west end of London. This hotel serves many tourist and international
business guests with its high-quality services. The hotel has many facilities which include
conference rooms, bars, restaurants, leisure centre with swimming pool, etc. which cater to
all the needs of its guests. The hotel is in operation for around 100 years and providing its
facilities to its guests over the years.
MANAGEMENT THEORIES
Management is an art of dealing and managing operations of an organization successfully so
that the business can achieve its goals and objectives (Business Dictionary, 2019). It is the
process of directing, controlling, organizing, planning, and monitoring different individuals
and activities of the company (Wilkinson, 2013). There are many management theories
which can be used by the managers in order to monitor and control the functions of the
department more efficiently. Due to poor management practices, many employees leave
their job and thus it is important to learn management theories and apply them in the
business (Hamilton, 2019). These theories are discussed below:
Scientific Management Theory
The scientific management theory was introduced by Frederick W. Taylor which considered
scientific methods for determining the most suitable way of doing work in a company.
Standardization and specialization are the two main criteria which are suggested by Taylor
in order to conduct different operations of the department. The whole work is divided into
small segments and then the task is performed. This theory suggests that the workers
should be assigned task according to their capabilities. Taylor focused on the need for
training for the employees for achieving efficiency in their tasks. He also lays emphasis on
the importance of cooperation among the managers and workers (Seidel, 2018).
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Bureaucratic Management Theory
Bureaucratic Management Theory was introduced by Max Weber who was a German
sociologist. This theory includes division of labor which ensure clarity of work and command
with no room of confusion. Keeping record and documentation of operations is another
criterion of bureaucratic management theory. The operations are performed in a disciplined
manner and consistent with the rules and regulations of the company. The employees of a
company are motivated and recognized for their performances by promotions and other
rewards. This theory is an impersonal management theory which increases the results of the
company by effectively managing its personnel.
Human Relations Theories
Human Relations Theories was introduced by Elton Mayo who was an Australian born
psychologist and Harvard researcher. This theory of management aims at increasing the
declining performance of the employees and provides them satisfaction for the work they
perform. In order to increase productivity, the theory focuses on collaboration and
coordination among the groups. The psychological factors of individuals are given
importance in this theory of human relation management. The employees are motivated by
making them a part of a group and by giving them personal attention (Fernandes, 2018).
Systems theory
System theory of management lays emphasis on the effect of employees on the systems of
a company along with analysing the effect of the system on the employees of a company.
The managers are responsible to check the work performance of various departments and
individuals as a whole by comparing them with the overall goals and objectives of the
company. This theory identifies various systems of the company for achieving the business
goals of the company in an integrated form. It does not consider different activities of the
company in isolation but they are considered in a combined manner. This theory makes sure
that different departments of the company should work in a combined manner by relation
to their work with another.
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CURRENT ISSUES FACED BY THE IMPERIAL HOTEL
The Imperial Hotel of London is facing management issue which has dragged the hotel into
low profitability and high staff turnover ratio. The satisfaction level of guests is declining
continuously due to the poor performances of previous managers. Employee turnover rate
is estimated at 80 per cent in all the departments due to poor staff morale. The hotel is
graded at lowest among the star hotel chains in the satisfaction rate of guests which is
estimated at 65 per cent in a survey. Previous managers have failed to monitor the
performances of various departments of the company such as housekeeping, kitchens and
hotel's reception which was needed to be compared with the standards maintained by the
hotel. Many heads of the departments who were working for more than ten years in the
hotel also left their job due to the retirement of the previous general manager. The hotel is
in a huge mess in terms of management, guest satisfaction level, employee turnover, and
low profitability.
APPLICATION OF MANAGEMENT THEORY FOR RESOLVING THE ISSUES FACED BY IMPERIAL
HOTEL
Scientific Management Theory
The scientific theory of management can be used by the managers of the Imperial Hotel to
use scientific methods to optimize the productivity of the employees. The managers should
set standards for the performances of various departments and employees. Tasks and
duties must be assigned according to the capabilities of employees. This will ensure
increased productivity and individual performance in the hotel. This theory lays emphasis on
the importance of training. Conducting different training programs will ensure updating
knowledge of the employees in the hotel. Standardization and specialization will be
achieved in the hotel with the help of this theory.
Bureaucratic Management Theory
The bureaucratic Management Theory follows an informal code of conduct in the company
which ensures accountability and profitability. The managers of the Imperial hotel can use
this theory in order to fix the roles and responsibilities of employees and reward the best
performance at the year-end to give motivation for good work. This will enhance the
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satisfaction level of employees and will reduce employee turnover ratio. The managers can
review day to day performance of various departments by keeping records and maintaining
documentation of everyday work. Division of labor and maintaining the hierarchical chain of
command will ensure clarity in work and review system.
Human Relations Theories
Elton Mayo’s human relation theory can be very helpful for the managers of Imperial hotel
which will revive the relationship between management and employees. There is a need for
strong leadership and collaboration in the hotel which can be achieved by the human
relation theory of management. Poor communication between the various department of
the hotel results in many guest complaints. This issue can be resolved with the help of Elton
Mayo's theory of management which unifies activities of various departments and help in
collaborations.
Systems theory
The main objective of the Imperial Hotel is to enhance its guest experience and satisfaction
level which will ultimately increase the profitability and productivity of the hotel. System
theory of management focuses on the overall objective of the company by coordinating
functions of its different systems and departments. Managers of Imperial hotel can use this
theory to match the activities of various systems such as housekeeping, room service,
kitchen, and hotel's reception with each other in order to achieve the common goal of the
hotel.
SUMMARY AND RECOMMENDATIONS
Peter Farnsworth can make a 12 months plan for reliving the hotel from its current issues of
reducing profitability and employee’s turnover. A combination of two or more management
theories will help him in making the leadership and management strong and effective in the
hotel. A strict control action for measurement of the performances should be made and
applied in these 12 months. This can be done by analyzing the results of each department by
asking the reports from each departmental head. The housekeeping department will work in
coordination with the front office, kitchen, reception, security, finance, and food or
beverages services. This will ensure coordinated activities in the hotel which will result in
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better performance overall. Peter Farnsworth has the responsibility of overall control in the
hotel for each department. He can use his authority to fill the gaps between the functioning
of various departments as well as individuals. Working hours can be fixed by Peter
Farnsworth for the housekeeping department who will work for 8 hours per day in which he
will cover 12 to 14 rooms by giving an average of 30 minutes in each room. Effective
housekeeping will result in cleanliness and enhance the experience of the guest. This will
resolve one of the major issues of the hotel which is the low satisfaction level of the guest of
the hotel. The gap between the expectations of guests and the services provided will be
reduced with the help of proper housekeeping services by the hotel.
Kurt Lewin’s legacy for change management can be used by Peter Farnsworth for
reinstalling new changes in the management of the hotel. Kurt Lewin's legacy for change
management suggests that changes can be brought in management by three simple steps of
unfreezing, change and refreeze (Cumming et al, 2016).
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CONCLUSION
The hotel industry is all about personal experience and services provided which should be
addressed simultaneously. Guest satisfaction is the most important criteria of hotels which
decide its position in the industry. Currently, the Imperial hotel of London is facing many
issues related to its management which consequently left the hotel in hue mess by its
previous managers. Employee turnover rate is very high in the hotel which is approximately
80 per cent according to a survey. Motivation is a very important aspect which ensures
employee satisfaction with the help of reward systems and promotion criteria. Recognizing
an employee for his good work will encourage him to push his limits to work better. Peter
Farnsworth should use Kurt Lewin's legacy for change management in order to devise new
management system in the hotel. There is a requirement of strong leadership and
management which can coordinate different activities of the hotel. Various departments
and their functions are working in isolation which reduces the overall performance of the
hotel. It is due to the mismanagement on the part of previous managers that the average
rating of the hotel is 65 per cent only in the industry.
Peter Farnsworth can organize different training programs for his employees for enhancing
their knowledge and abilities. Good workers will provide good services to the guest which
will result in guest satisfaction. Recruitment and selection procedure can be changed by
Peter Farnsworth for ensuring capable employees for the hotel. The feedback mechanism
can be started by Peter Farnsworth in order to take reviews of their guests. This system will
help the manager in learning about the improvement areas of the hotel.
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BIBLIOGRAPHY
Anastasia, 2016. 6 Management Styles and When Best to Use Them. (Online) Available at:
https://www.cleverism.com/management-styles/ (Accessed on 9th March, 2019).
Business Dictionary, 2019. Management. (Online) Available at:
http://www.businessdictionary.com/definition/management.html (Accessed on 9th March,
2019).
Cumming, S., Bridgman, T. and Brown, K. G., 2016. (Online) Available at:
https://journals.sagepub.com/doi/pdf/10.1177/0018726715577707 (Accessed on 9th
March, 2019).
Fernandes, P., 2018. Management Theories Every Small Business Owner Should Know.
(Online) Available at: https://www.businessnewsdaily.com/10626-management-theories-
for-smbs.html (Accessed on 9th March, 2019).
Hamilton, C., 2019. What Is the Importance of Studying Management Theories & Practice?
(Online) Available at: https://smallbusiness.chron.com/importance-studying-management-
theories-practice-31541.html (Accessed on 9th March, 2019).
Imperial Hotels, 2019. The Imperial Hotel - Great Value Central London Hotel Rooms from
£101 per night. (Online) Available at: https://www.imperialhotels.co.uk/en/imperial
(Accessed on 9th March, 2019).
Seidel, M., 2018. Four Types of Management Theory. (Online) Available at:
https://bizfluent.com/info-8375509-four-types-management-theory.html (Accessed on 9th
March, 2019).
Wilkinson, J., 2013. Management Definition. (Online) Available at:
https://strategiccfo.com/management-definition/ (Accessed on 9th March, 2019).
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PERSONAL REFLECTION
Peter Farnsworth can adopt a situational approach where leaders match their styles with
their subordinates. This will improve the relationship between managers and their
subordinates. It is a flexible approach which will help Peter Farnsworth in maximizing the
efforts of his subordinates and delegating works to them. Another style of management that
can be adopted by Peter Farnsworth is Participative style which ensures acceptance of
decisions made by managers by his subordinates. However, the 12 months plan of Peter
Farnsworth can be achieved by the directive style of management so that important and
urgent decisions can be made by managers on time. My proposal to Peter Farnsworth will
be to adopt behavioral management approach which will help in achieving specialization
and standardization in the work performances of supervisors. The whole hotel is based on
the strong leadership and management of heads of the departments. A healthy work
environment can be created by supervisors in order to gain the trust of their employees.
The human relation theory can be applied by Peter Farnsworth for developing better work
atmosphere for the employees of the hotel. They will be motivated to work better and thus
the overall performance of the hotel can be enhanced.
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