Analyzing High Staff Turnover at Imperial Hotel: A Management Report

This report delves into the issue of high staff turnover at the Imperial Hotel, analyzing the underlying causes and their impact on the business. The analysis highlights factors such as poor work culture, inadequate training, and low pay as primary drivers of employee dissatisfaction, leading to an 80% turnover rate within a year. The report examines the implications of this high turnover, including increased costs, declining service quality, and reduced profitability. It explores the application of management theories, such as Vroom's expectancy theory, to address the problem and proposes a 3-point plan to improve employee retention. The plan includes identifying the problem, exploring potential solutions like improving working conditions and offering better incentives, and implementing these solutions over a defined timeframe. The report concludes by emphasizing the importance of effective management in fostering a positive work environment and retaining employees to achieve organizational goals. The report suggests that the hotel should focus on improving employee satisfaction through improved working conditions, training, and compensation, and by involving employees in decision-making.

Introduction to
Management
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Contents
INTRODUCTION...........................................................................................................................3
ANALYSIS OF INDIVIDUAL PROBLEM...................................................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
Management is the art of administrating the operations of the organization for creating a
business environment in order to achieve the goals and objectives. There are different types of
strategies and methodologies which are applied for getting desired results. It comprises of
number of activities such as planning, organizing, briefing and controlling (Erasmus, Strydom
and Rudansky-Kloppers, eds., 2016). These are done on a continuous basis for making decisions
for the benefit of the entity. In this report, The Imperial Hotel has been chosen which has its
headquarters in London, United Kingdom. This assignment covers the outcomes of the chosen
problem from the context of management and operational by forming a relationship with other
problems, formulation of plan for resolving the problem by considering variety of factors and
application of management and operations theories and principles within the organisation for
getting solution of the chosen issue. In this report, a problem about high staff turnover with 80%
of the staff leaving within the year has been chosen. According to the data gathered from the exit
interview, it has been identified that poor work culture, improper and irregularity in training, low
pay levels and many more are the reasons by which employees do not feel satisfied. This has
ultimately contributed to increase in budget and costs associated with the appointment and
retaining the employees. This has affected the quality of the services which led to decline in
profit and sales of Imperial Hotel. Furthermore, employee lost their interest in working in the
entity which has added more to the chosen issue.
ANALYSIS OF INDIVIDUAL PROBLEM
Imperial Hotel has number of issues which have been affecting its business adversely.
These range from lack of satisfaction to poor operating and control procedures. One of the main
problems is high staff turnover which have reached to 80% of the overall workforce leaving the
company within the previous year. Since, Imperial hotel has a strong market position and brand
recognition among the competitors, it always conduct exit interview to know the reason of
moving out of the company (Coles, Bailey and Calvert, 2012). The data gathered shows that
employees were not satisfied to a great extent because of poor working conditions, improper
training also there was no regularity in this activity, the cost to travelling to work in Central
London was more which was getting difficult to manage in the pay scale provided by the entity
etc. Furthermore, there are competitors who value their employees and provide them with good
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working conditions, benefits as well as better pay which have made them leave Imperial Hotel
and move to other hotels in UK hospitality industry.
With the time, the number of staff leaving the company increased which marked up to
80% of the total workforce. It has created a situation which has pushed the budget as the staff
costs have increased. This has increased approx. 35% of the sales. It is significant factor which
can lower down the profit. In other words, the revenue generated by the sales is being used in
meeting the increased costs which are enhanced up to percentage mentioned above. This is
because of the training and induction provided to the new candidates who are appointed in
Imperial Hotel because of the staff turnover. The main impact of this issue can be seen on
decline in the quality of the services which are provided to the guests. It has been receiving bad
comments and reviews for the present quality of the services provided to the visitors (Robbins
and Coulter, 2012).
It has been observed that this problem has resulted in number of causes in the
management and operations. Also, this is the base for other issues in the entity. Employee
turnover is a situation where people working in the organisation leave the company for the
reasons which could be personal as well as professional. High staff turnover reflects poor
management of the managers and leaders in retaining the employees. From the perspective of
management, this main cause of this problem is because of the policies that have been
formulated for the employees. The terms and conditions are not favourable to them which make
them demotivated to work with their full efficiency. This is connected to not fulfilling the
demands of guests because when staff is not able to put their absolute efforts it reduces the
satisfaction to the guests.
Furthermore, with the 80% employees moving out the company, it is getting difficult to
have sufficient number of individuals who can be posted at front office for arrival of the guests.
Since, front desk is the link between all other units in a hotel, it has to maintain the systems
related to property as well as reservation. In the context of Imperial Hotel, if it does not have
good employees in the organisation then the work of front desk can be difficult. It works as the
face of the entity which leaves positive impression on the guests arriving at the hotel. Apart from
this, employees are appointed for the carrying the job of housekeeping, kitchen, maintenance for
keeping the customers happy (Van Der Aalst, La Rosa and Santoro, 2016). It is the role of
human labour to exercise various controls and procedures for maintaining minimum stock in
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order to make the stay pleasant. Also, these departments should meet the basic Standard
Operating Procedures. But the current condition of employee turnover has increased operating
costs as Imperial is failing to meet the standards. This is going to make the situations worse
therefore, it should take initiatives to resolve the individual issue of employee turnover.
It is important for hotels to keep the guests happy and satisfied which is one of the main
goals. All the activities by the staff are carried with specific directions so that this and other goals
can be achieved. For this purpose, it is important that every department should have required
number of candidates who can make the achievement possible with their full efforts. Due to
increase employment turnover, Imperial Hotel has to appoint new candidates who need training
to understand and perform their tasks. Therefore, it ultimately leads to higher costs of training
because of which the budget to be allocated for employees and their benefits has to cut.
Furthermore, the time consumed in conducting interviews be it for recruitment or to exit also
reduce the productivity because this precious time can be used in something more profitable in
case of low employment turnover (Vidgen, Shaw and Grant, 2017).
In nutshell, it can be said that Imperial Hotel has failed to retain the employees due to
many reasons which have already been discussed above. This add on the costs to the existing and
staff has to suffer from negative outcomes. Also, this affect their professional growth which
makes them demotivated and they look for better opportunities. Imperial hotel should understand
the issue in a detail context so that appropriate theories can apply along with this effective
strategies can be formulated with a view to implement them within the organization.
There are management theories which have been developed for helping the managers and
leaders to apply them within the organisation for assisting employees in meeting the goals and
objectives. The organisation can choose one or more than that for getting desired results. In
current problem of Imperial Hotel where the employment turnover has reached to the extent of
80% can be resolved through those theories which provide high motivation to the people.
For retaining the employees in the organization, Vroom's expectancy theory can be used.
According to this, every individual has their set of expectations which are governed by different
factors that may be professional or personal (Mahmood, Basharat and Bashir, 2012). The efforts
put by a person depend on the motivation. With its application, the manager of Imperial hotel can
try to fulfil the expectations of good working conditions, increase pay, benefits etc. There is an
element of instrumentality which states that manager should understand the assumptions of
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employees regarding the tasks given to them so that they can easily achieve them. Furthermore,
an individual should be appreciated for their bad performance as well as punishment should be
given where tasks or goals are not achieved within the allotted time.
When it comes to principles of management, principle of motivation is what applied on
the employees. They are made to understand the importance of participating in the activities and
decision making. It can be follow by the manager of Imperial hotel in which staff can be
rewarded for their good performance in monetary as well as non-monetary form. Apart from this,
it should focus on incorporating the clauses by discussing it with the employees in order to make
then satisfy. Furthermore, they should be encouraged to get involved in decision-making for
taking their ideas and views in order to have innovation and new ways of doing the things. This
helps the entity to get connected with its people in an emotional manner with the workforce (Al
Ariss, Cascio and Paauwe, 2014).
A 3 point plan is a base which comprises of three steps that helps in dealing with a
situation. Furthermore, it is the way which can create some positive results on the basis of which
a business can improve its current condition. It is divided into three parts which start from
description of the main issue. In this part, the main points are highlighted in a brief way to have
an idea about the actual problem. Then, the possible solutions are identified which can be used to
overcome the issues. Then lastly, a plan is prepared by defining the time and outcomes for the
same. It involves application of one or more alternatives that have been found, with a view to
help the entity successfully get out the situation. In the context of Imperial Hotel, a 3 point plan
has been provided below:
Description of problem- The main issue in Imperial hotel is high staff turnover which is
about 80% of the overall workforce. There are many reasons which have been contributing to
this which have been determined.
Options to resolve- There are many theories and approaches such as Herzberg two
hygiene factor theory, Vroom’s theory as well as approaches of leadership by which people at
the workplace can be motivated. In order to resolve the issue of improving quality, manager can
focus on checking the quality before delivering the product. For this purpose, employees should
be give right training in order to provide quality services. For improving staff morale, they
should be given rewards, incentives, other facilities with good working conditions so that they
can have greater job satisfaction from the job. Furthermore, for improving operations efficiency
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and productivity, there should be application of strategies that are followed by the competitors to
retain the employees. Also, leaders can include sub-ordinates in decision making so that they can
feel close to the company and a healthy relationship which is more of a emotional can be formed.
Apart from this, employees should be motivated to accept the change and work on them to get
the best results.
Implementation of plan- The above mentioned solutions are going to be implemented
within a time period of 2 months so as to control the employment turnover and reduce it to 50%.
After seeing the results, some more approaches are going to be used after the expiry of 2 months
for reducing the turnover to further 20%.
CONCLUSION
From the above report, it has been concluded that role of management in organising all the
activities and their administration is important. They contribute to the success of the entity by
making higher sales and profit. Furthermore, the manager can go through different kinds of
theories and approaches together with principles which are beneficial to the organisation for
resolving the issue. Apart from this, a three point plan should be formulated in order to
implement that for getting as solution so that efficiency and productivity of the organisation can
be increased.
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REFERENCES
Books & Journals:
Erasmus, B., Strydom, J.W. and Rudansky-Kloppers, S. eds., 2016. Introduction to business
management. Oxford University Press Southern Africa.
Coles, D., Bailey, G. and Calvert, R.E., 2012. Introduction to building management. Routledge.
Robbins, S.P. and Coulter, M., 2012. Management.
Vidgen, R., Shaw, S. and Grant, D.B., 2017. Management challenges in creating value from
business analytics. European Journal of Operational Research. 261(2). pp.626-639.
Van Der Aalst, W.M., La Rosa, M. and Santoro, F.M., 2016. Business process management.
Mahmood, Z., Basharat, M. and Bashir, Z., 2012. Review of Classical Management
Theories. International journal of social sciences & education. 2(1).
Al Ariss, A., Cascio, W.F. and Paauwe, J., 2014. Talent management: Current theories and future
research directions. Journal of World Business. 49(2). pp.173-179.
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