Imperial Hotel's High Staff Turnover: Analysis and Solutions

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INTRODUCTION TO MANAGEMENT

TABLE OF CONTENTS
Introduction......................................................................................................................................1
Analysis of the individual problem..................................................................................................2
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

Introduction
Imperial hotel is one of the international leading brand hotel situated in London, UK having 500
bedrooms along with operating around a number of 25 hotels in UK which are in the market of 4
stars. The hotel aims at maximizing its profits and productivity by providing most satisfied
services to their customers and guests. Peter Farnsworth, the newly appointed owner in the
Imperial hotel has identified some critical issues and challenges which the organization is facing.
The profits and overall work performance of the hotel is reducing which is having the negative
influence on the success and growth of the business. Therefore, the new general manager is
required to highlight such issues and adopt appropriate strategies and make changes to resolve
the current problems.
Peter Farnsworth has observed that one of the major problems that are negatively affecting the
objective accomplishment of the organization is the high rate of staff turnover which is 80% in a
year. There are many reasons because of which the staffs are leaving. Some of them are poor
work culture, temporary nature of employment, improper training, application of aggressive
management and supervisory styles, lack of bonus and promotion opportunities, attractive pay
offers by competitors, etc. Due to this, the organization is in need to make improvements in their
working and operations so that the additional staff related cost can be minimized and the
dissatisfaction of their customers because of poor quality services can be reduced.
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Analysis of the individual problem
Management theory review for the current problem
The current problem Imperial hotel is facing is the increasing rate of employee turnover which in
turn is affecting the business as a whole along with the reduced customer satisfaction. For
minimizing the staff turnover rate and for improving the organizational overall performance, the
new general manager has adopted the FW Taylor’s theory of scientific management which is
highly effective in terms of resolving the challenges and business problems (Carter and Tamayo,
2017). The theory suggests that employers must conduct adequate training programs for the
staffs to boost their confidence and to make them better understand their job role so that they can
feel motivated and can retain for a longer time period. This in result will improve the
performance of both the organization and their staff along with gaining more productivity.
Another important aspect of the scientific theory is the availability of proper rewards and
promotional opportunities for their staff by distributing the roles and responsibilities in an
appropriate manner and as per their skills to increase their job satisfaction. The manager and staff
are required to apply the principles of this theory in their working to enhance their performance.
Theory applied for leaders and managers
The managers of Imperial hotel should formulated efficient policies and strategies as per the
principles included in the theory of scientific management in order to reduce the employee
turnover rate and improve the overall business performance and productivity. The managers and
leaders must perform the decision making process and monitoring activities in a disciplinary
manner and as per the guidance given in the theory so that they can identify the cause of turnover
in the organization and can make operational improvements (Hayardisi et.al, 2018).
 As per this theory, managers and leaders are supposed to take some scientific decisions in
favour of the employees and must avoid the rule of thumb. They must change the
aggressive style of operation and management and try to identify their problem in a
humble way to gain their trust. The strictness must be avoided and work should be
assigned as per the comfort of their staff.
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 The HR department must hire the staff based on permanent nature of employment rather
than adopting temporary employment nature. Further, the turnover problem can resolved
by imparting training that can be work based for improving the skill and knowledge of
employees. Leaders must focus on the providing opportunities for employee’s personal
and professional development.
 There is need to improve the cooperation and communication level among the staff
members and the management with view to maintain healthy and positive relations within
the workplace. This can take place by providing adequate rewards and recognition to
their staff for their efficient performance by the managers and leaders (Brenner and
Schimke, 2015).
Theory applied for staff and workers
The staff members of Imperial hotel must perform their roles and responsibilities in accordance
with the guidance given by the managers through the application of Taylor’s theory. For
reducing the turnover and gaining job satisfaction, the employees must perform their work in an
efficient manner with improvements implemented in the organization on the basis of scientific
principles and guidelines.
 This theory gives emphasis on increasing harmony at workplace so that the performance
and motivation level of employees can be increased and their turnover rate can be
declined. As harmony is basis of strong employment relationships, employee can feel
motivated towards the achievement of the business goals.
 When the training is implemented within the organization, the employees are required to
provide cooperation and must be attentive and willing to learn the skills required for
better work performance. This will solve the problem of customer dissatisfaction, as the
employee will increase their efforts to offer best possible services to their customers and
guests (Reynolds and Dang, 2017).
Thus, it has been summarized that application of scientific management theory of Taylor can
help Imperial hotel to resolve their current problem of increased staff turnover by systematically
applying the principles and guidelines mentioned in this theory. The theory suggested that both
managers and employees are required to improve their communication so that with proper
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cooperation they can gain higher customer satisfaction. Manager must implement effective
policies related to providing the opportunities of rewards, promotions and training so that they
can gain the commitment and retention of their staff. On the other hand, the employees are
required to maintain discipline and provide necessary support to the hotel as they are running out
of profits due to various changes taking place in the hotel in terms of redecoration. Further, the
drawbacks identified in this theory are the lack of understanding of employee about the methods
included and scientific standards adopted by the manager (Carter and Yeo, 2016).
Specific Problem’s Solution
The solutions provided by Peter Farnsworth at the initial stage of the current case study is highly
effective as it gives emphasis on introducing various incentives and promotion schemes so that
the increased staff turnover rate of employee within the organization can be reduced and
managed with a view to improve the overall business performance and gain the satisfaction the
Imperial hotel’s customers and guests. Below are discussed some other important solutions to the
current problems prevailing in the hotel.
Training activities: to minimize the problem of high employee turnover, the mangers of Imperial
hotel are required to impart adequate training and development programs for their staff members
that can be helpful in increasing the knowledge and understanding about their job roles. This will
result in enhancing the confidence of employee for performing their task in a more competent
manner along with their interest in retaining for a longer time period (Reis et.al, 2015).
Flexible working conditions: the unsociable working hours for the employees of Imperial hotel
has resulted in increasing the staff turnover rate which has decreased the productivity and
efficiency of business. Therefore, the managers has planned to make changes in the work
practices and allowed flexibility in the working hours and shifts so that employees facing
difficulty in managing the time and work can gain satisfaction.
Rewards and incentive schemes: by offering lucrative rewards and bonus for the work
performed by the employees in an improved manner, the managers can increase the retention rate
of staff within the hotel (Manso, G., 2017). Schemes like giving benefits and rewards to best
performance of the month along with the opportunity for getting promotion and career
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development will be helpful for the organization to provide higher job satisfaction for their
employees.
Customer service improvement: with the retention of more talented and qualified staff, the
satisfaction of the guests and customers can be improved as the skilled staff focus on proving
qualitative and more advanced services to them. This can also be possible by the efforts of
managers to make improvements in the operational and management activities along with
ensuring proper monitoring and controlling within the workplace (Hill and Brierley, 2017).
Improving manager’s performance: the poor performance of managers and leaders has also
resulted in making the staff to leave and work for their competitive organizations. Thus, the
application of scientific management theory provides necessary guidance to the leaders and
managers to remove the aggressive style of management and supervision that can affect the
performance and confidence of their employees in a negative way. Thus, for reducing turnover of
staff, manager’s performance is needed to be managed efficiently.
Justification of key proposals for the resolution of the problem
The major problem identified by Peter Farnsworth in Imperial hotel is the increased turnover rate
of workers which is close to 85%. The employees of any enterprise are considered as the most
valuable resources as they support in increasing the business productivity and efficiency, they
must be provided with appropriate monetary and non-monetary motivation along with proper
support and coordination from the higher authorities. Therefore, the organization has adopted the
theory of Taylor for both workers and managers to solve such issues. This can support Imperial
hotel to gain the trust and loyalty of their staff members so that they can feel more committed
towards performing their job role in a more adequate manner. By this, the increasing complaints
of the customers can be resolved and they provide positive feedbacks for the services offered to
them during and their experience faced during the stay at the hotel (Reichert and Sohn, 2018).
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Conclusion
It has been analysed form the current case study that Imperial hotel in UK is facing some critical
problems that are becoming the barrier for them to attain higher growth and success. The current
study has discussed that the problem of high staff turnover identified by the new general
manager is affecting the overall performance of the business and requiring high staff cost. The
reasons of such problem are the aggressive supervisory and management styles, inefficient bonus
schemes, lack of promotional activities, mismanagement, lack of employee training, employing
students as staff, competitor’s strategies, etc. To minimize the negative impact of staff turnover
problems, this study has suggested some effective solutions.
Application of Taylor’s scientific management theory in Imperial hotel has supported both the
workers and the management to resolve the current issues. The theory has highlighted the
importance of harmony, cooperation and adopting better work practices within the workplace.
Along with this, the solutions like providing proper training, incentives and rewards schemes,
proving motivation and encouragement, improvement in managers and leader’s performance,
gaining employee’s trust and commitment by employee engagement, etc. can support the
organization to minimize the employee turnover and increase their interest in retaining for a
longer duration.
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References
Books and journals
 Brenner, T. and Schimke, A., 2015. Growth development paths of firms—A study of
smaller businesses. Journal of Small Business Management, 53(2), pp.539-557.
 Carter, M. and Tamayo, A., 2017. Entrepreneurial and intrapreneurial skills of managers
as determinant of organizational performance of small and medium enterprises in Davao
region, Philippines.
 Carter, S. and Yeo, A.C.M., 2016. Students-as-customers’ satisfaction, predictive
retention with marketing implications: the case of Malaysian higher education business
students.International Journal of Educational Management, 30(5), pp.635-652.
 Hayardisi, G., Seminar, K.B. and Ramadhan, A., 2018. Analysing Signal Strength and
Connection Speed in Cloud Networks for Enterprise Business
Intelligence. Telkomnika,16(4), pp.1779-1784.
 Hill, N. and Brierley, J., 2017. How to measure customer satisfaction. Routledge.
 Manso, G., 2017. Creating incentives for innovation. California Management
Review, 60(1), pp.18-32.
 Reichert, B.E. and Sohn, M., 2018. The Hidden Cost of Competition: Effects of
Competition for Monetary and Non-Monetary Rewards on Emotional Pressure and
Altruistic Knowledge Sharing.
 Reis, R., Oates, C., McGuinness, M. and Elliott, D., 2015. Developing relationships
through direct marketing in a business-to-business context: the training sector in
Portugal.International Journal of Engineering and Industrial Management, (2), pp.47-59.
 Reynolds, S.J. and Dang, C.T., 2017. Are the “customers” of business ethics courses
satisfied? An examination of one source of business ethics education legitimacy. Business
& Society, 56(7), pp.947-974.
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