Imperial Hotel: Management Solutions for Staff Problems Report

This report examines the operational challenges faced by the Imperial Hotel in London, particularly within its back-of-house staff. The core issues identified include staff pilferage, failure to adhere to standard operating procedures (SOPs), low employee motivation, internal conflicts, and the rising cost of business operations. The report analyzes the causes and effects of these problems, emphasizing the impact of ineffective leadership, poor training, and the recruitment of Spanish-speaking staff without adequate integration. To address these issues, the report evaluates the application of management theories, including system theory and contingency theory. The proposed solutions focus on improving training programs, implementing attractive incentive schemes, and adopting flexible employment contracts. The report suggests that by adopting a more holistic approach to management, the hotel can improve employee performance, reduce operational costs, and enhance guest satisfaction.

INTRODUCTION TO
MANAGEMENT
(Problem 6)

Contents
INTRODUCTION.......................................................................................................................................3
ANALYSIS OF THE INDIVIDUAL PROBLEM.......................................................................................3
Cause and effect of problem....................................................................................................................3
Use management theories for resolving trouble.......................................................................................5
Justification and summary of proposed solution......................................................................................6
CONCLUSION...........................................................................................................................................7
REFERENCES............................................................................................................................................8
Appendix.....................................................................................................................................................9

INTRODUCTION
Problems are part of every business whether it is small or big. Most of the issues which
are faced by an origination are related to poor management. There are various departments in an
enterprise like human resources, finance, operational, customer service etc. All of them are
important for the organization and top level management has to give equal and proper attention
to them for assuring that their troubles get resolved at the point of its generation (Kim, Im and
Hwang, 2015). This is essential for motivating them for attaining best result. This assignment is
based on The Imperial Hotel, London. They are facing various kinds of problems in their
organization but main focus of this project will on the back of house staff. Employees are failing
to maintain basic Standard Operating Procedures (SOPS), this can be considered main reason
behind increasing operational cost. This report will discuss about cause of problems and how
they can be resolved in short period of time and in effective manner. New General Manager has
suggested some solutions for every problem. Key problems back of house staff is related to
pilfered of goods and unnecessary increment in the cost of business because employees are not
able to maintain minimum standards. There are various ways of resolving these types of
problems but Peter Farnworth is only focusing on three solutions, this will be clearly defined and
evaluated under this project. Few management theories will also be included in this assignment
for understanding and finding solution of basic problems like low level of motivation in
employees.
ANALYSIS OF THE INDIVIDUAL PROBLEM
Cause and effect of problem
Among all the problems, this can be considered as one of the most important issue, which this
hotel has to address, because this problem is enhancing cost of business. An organization can

only increase their profits either by reducing total expenditure or by increasing revenue.
Housekeeping department has always been a difficult wing to manage (Anderson and et. al.,
2018). Staff turnover in this division is 60% and it is getting worst. Employees are held liable for
stealing goods of hotel as well as customers also. They do not care much about increasing cost
and fail to ensure optimum utilization of available resources. Below are some other problems:
Recruitment of Spanish staff – When things were not going smooth then this Hotel
thought about recruiting people for housekeeping from Spain. They signed an agreement with
ABC international. They are a recruiting firm who has experience of working in hotel industry
from a long period of time. The cost of recruitment for The Imperial Hotel, London has not
increased much by taking assistance of third party at the time of selection. But recruiting Spanish
people has created more problems for this hotel as management have to train them from zero
because these workers do not have any basic standard of working. Some of them have some
experience but it was not enough that Hotel does not need to provide them any additional
training. On the job training to Spanish worker play crucial role in increasing total cost of
business.
Demands of Spanish staff – The main problem with this Spanish staff was that they only wanted
to work with someone who is Spanish. They did not cooperate with seniors and often denied to
work if their shifts are not together (Kandampully, Zhang and Bilgihan, 2015). For a Hotel which
has 400-500 rooms, this arranging this kind of shift is not possible. This ultimately results in
more low motivation to the worker and made a negative impact on their performance. These
employees are scored high compared to old staff and when they did not get shifts according to
them then they started to do not take much interest in their work. This is the prime reason that
number of complain for poor service has increased. Insignificant demands of Spanish workers
are another reason was given so much importance by management that it created additional
trouble for Hotel. This proves that leadership was ineffective earlier (problem 4).
Low motivation to old employees – This organization gained success in retaining some
employees for a significant period of time. But, new recruitments of Spanish workers happened
and management started giving more importance to them, because of their high score, then it
demotivated them. An employee cannot provide better service to customer when his/her own
morale is down. When company suspect old employees at the time of investigating in the case of
pilfer then they feel bad because they were and are standing with the hotel in hard time. The
issue of poor guest satisfaction (problem 1) generally arises when employees need motivation. IF
their demands are met in right time then it can also reduce staff turnover (problem 2).
Reducing standard of in-house staff working – Standard of in-house work has gone down
because most of the employees are new and they are from different country. They do not know
correct way of speaking to customer and they even steal goods of hotel and customers also.
When these kinds of activities happen in an organization then the probability of low level of
customer satisfaction is high (Combe, 2014). Few Spanish employees do not care about needs of

customer and do not do their work properly when they did not get shift with other Spanish
workers. Incident like stealing goods of customers make a huge negative impact on the image of
hotel and it is result of ineffective leadership. When management does not make effective
monitoring and control system (problem 4) then issues related to poor guest satisfaction
(problem 1) and low standards automatically arises.
Internal conflict among employees – Old and new employees of housekeeping staff do
not want to work together. There are different groups in Hotel and their tuning with others is not
fine. One of the prime reasons behind internal conflict is demand of Spanish workers. All of
them want to work in same shift which is not possible. Even if hotel allow them to work in same
shift then it increases dissatisfaction in old worker because they feel that new Spanish workers
are getting more importance compared to them. This can ultimately increases workers turnover
rate (problem 2) and promote negative work culture (problem 3).
Pilfer – Stealing products of hotel is common issues which are faced by many Hotels.
But, at The on The Imperial Hotel, this trouble is so big that even customers consider it very
serious issues because they do not feel safe in the hotel. When employees do not follow basic
standards of working then this type of problem arises often. Pilfer is another key reason behind
increment in operation cost of this hotel. Most of other problem like poor customer satisfaction,
low employees retention rate, negative culture of work, ineffective leadership and poor team
working have direct link with this single problem.
Use management theories for resolving trouble
System theory – This theory states that if a manager understand and make a system at workplace
for completing every task then organization can attain better results. System is essential for
examining patterns and it can improve coordination among all departments and employees. This
theory cannot resolve specific problems in one short but it has ability to resolve the entire
problem which The Imperial Hotel is facing in present scenario, specially Pilfer and increasing
cost of operations (Mae and Mills, 2015). This organization can analyze a pattern that too many
workers from a single country can indulge in the activity of groupism. People from same
background always prefer to work together so instead of hiring them from single country,
organization has to find other specialist agencies that have sound connection in different
countries. This initial suggestion from the side of Peter Farnsworth new general manager is
appropriate and it can resolve major problems. Currently this hotel is taking services of ABC
international but now they have to explore other options and develop an effective training system
where employees get proper training so they can improve their performance and at-least meet
basic standards. Below are few other areas where system theory of management can also assist in
The Imperial Hotel, London:
Training events for managers – Currently, hotel do not have sound operating and control
procedure for managing the work related to housekeeping. If, by developing a system, this
organization hire talented people by changing their recruiter then they can train them

accordingly. Hotel is currently missing right pool of talent and this is cause of the entire problem
which they are coping up in present situation. The suggestion given by General Manager is
appropriate but it is incomplete. Contracted staff can come in the organization by taking
assistance of specialist agencies but this will not resolve the issues relating to pilfer and failure to
follow SOPS. But if new employees get proper training and they get basic understanding about
goals of Hotel, then they will focus on meeting basic SOP. Cases of Pilfer will also go down if
employees will understand that it negatively affect customer satisfaction (Jani and Han, 2014).
Attractive incentive scheme – Raising working standard of employees is only possible if hotel
develop a lucrative incentive system. This suggestion by GM of Hotel is very effective for
raising performance standards but it he should not only focus on monetary motivation. Few old
employees do not care much about salary, they need recognition because they are working from
a long period of time and their contribution was ignored in the every time. Activities like Pilfer
happen when employees do not have money and essential training. If they will earn well then
they will never think about stealing belongings of hotel or customers (Rahimi and Gunlu, 2016).
Operation cost can also be brought down by using a new incentive system. When workers will
perform better and make sure that customer get an amazing experience in hotel then company
can easily raise price of their rooms. This will reduce the impact of increasing operational cost.
But this is not the main benefit which this incentive scheme can give to Hotel, if general manager
make a system where an employee’s who is saving money for hotel will get some of the amount
from the saving total then workers will get a different kind of motivation. It will motivate them
to make sure that they minimize wastage of resources. Employees of the month and year,
voucher for staying in hotel of group are few motivations which can enhance employee retention
rate and force worker to follow high standards of working.
Contingency theory - This theory states that there is no best fit solution for every problem.
Manager has to make new and different plan or strategy every time they face a new trouble. This
theory is very popular in current era because it is most realistic and it motivates manager and
management to reduce their dependency from one system or strategy, which may not work in
every kind of situation. In present scenario, The Imperial Hotel is facing different kind of
problems. General manager cannot make a single stagey for resolving all the issues. He has to
adopt various strategies for every problems and contingency theory can help him in finding best
solution of a problem (Nieves and Segarra-Ciprés, 2015).
 Zero hour contracts – General Manager want to improve performance of hotel in 12
months. This is only possible if they adopt few tactics which are out of the box. Zero
hours contract is a superb suggestion by general manager. He understands that sometime
need of employees is more in peek season while but in off season it is not much. Students
will get ready to work at low salary and they will show more dedication because they will
have a fear that if they will not work according to the standards then they not get a call
from hotel tomorrow. Students will not raises demands like same shifts and they will not

get involved in the activities like Pilfer because they know that if they will get caught
then it will ruin their career before it get start.
Justification and summary of proposed solution
One can find many solutions of different problems but the most important thing is that
whether they can easily implement it or not. Selecting specialist agencies for hiring new
employees is a realistic solution (Deery and Jago, 2015). ABC international made a huge mistake
by hiring most of the workers from Spain. These workers prefer to work in same shift and they
did not agree to give their best if their demands are not met. This ultimately raises the problems
of low standard of working at the hotel. Specialist agency will help this organization in hiring
candidates from various places. Training program will assist The Imperial Hotel, London in
improving performance of new and old workers. It will improve working culture in the
organization and reduce employees’ turnover rate. When manager will train then they will get
knowledge about hot to monitor performance of worker and how to control them.
Employees normally steal goods when their salary is low. If they will get an attractive
incentive scheme then they will not think about these wrongdoings and try to maintaining high
performance standards at the workplace (Pirani and Arafat, 2014). Prices like employee of the
month and years will motivate others workers of housekeeping and other division to expand their
limits and do their job in the best way possible. Zero hour contract can be considered as the best
solution for resolving the issue of high operational cost. Students are more dedicated towards
their work because they do not focus on sampling earning money. They want to get experience
of working in a real hotel because it is good for their career. Employees who will be called
through zero hour contract will have a pressure to perform better because if they will not perform
according to the standards of hotel then they not get a call for job on next day. This will force
them to deliver expected result.
CONCLUSION
From above report it can be concluded The Imperial Hotel is coping up with different
issues because of their past mistakes. They do not have control on their employees and because
of high workers turnover rate management is in vulnerable position. Training to manager and
recruitment of new workers will improve operational procedure. General Manager has to fire
some of the Spanish worker so he can give the message that he control everything and demands
which are not genuine will not be entertained by management. In present time, employees do not
give their best because they know understand that even if they will give their best then they will
not get any appreciation from the side of top level. But after new incentive scheme things will
change. Pilfering is a big problem for this hotel, strong monitoring system will play crucial role
in overcoming this issue. Incentive scheme will bring drastic changes in SOP and it will motivate
workers to improve their performance on daily basis. Zero hour concept is a new but effective

idea. If will minimize the important of key problems i.e. low employee retention rate. It can
reduce operational cost and provide issues of relating to stealing & low standard of working.

REFERENCES
Books and Journals
Anderson and et. al.,2018. An Introduction to Management Science: Quantitative Approach.
Cengage learning.
Combe, C., 2014. Introduction to management. Oxford University Press.
Deery, M. and Jago, L., 2015. Revisiting talent management, work-life balance and retention
strategies. International Journal of Contemporary Hospitality Management. 27(3).
pp.453-472.
Jani, D. and Han, H., 2014. Personality, satisfaction, image, ambience, and loyalty: Testing their
relationships in the hotel industry. International Journal of Hospitality
Management. 37. pp.11-20.
Kandampully, J., Zhang, T. and Bilgihan, A., 2015. Customer loyalty: a review and future
directions with a special focus on the hospitality industry. International Journal of
Contemporary Hospitality Management. 27(3). pp.379-414.
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.
Mae, F. and Mills, G., 2015. Introduction to Management.
Nieves, J. and Segarra-Ciprés, M., 2015. Management innovation in the hotel industry. Tourism
Management. 46. pp.51-58.
Pirani, S.I. and Arafat, H.A., 2014. Solid waste management in the hospitality industry: A
review. Journal of environmental management. 146. pp.320-336.
Rahimi, R. and Gunlu, E., 2016. Implementing Customer Relationship Management (CRM) in
hotel industry from organizational culture perspective: Case of a chain hotel in the
UK. International Journal of Contemporary Hospitality Management. 28(1). pp.89-
112.

Appendix
Problem
 Belongings of customers and hotel are getting stolen
 Employees failing to meet basic standard of Operating procedure
Cause
 Poor monitoring and controlling procedure.
 High operation cost because of poor performance standard
Solution
 Hire specialist agency for recruitment procedure and provide
training to employees
 Lucrative incentive scheme