Imperial Hotel's High Staff Turnover: Causes and Solutions

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REPORT ON EMPERIAL HOTEL

Table of Contents
Introduction................................................................................................................................3
Analysis of Individual Problem.................................................................................................3
Conclusion..................................................................................................................................9
Reference List..........................................................................................................................10

Introduction
The Imperial Hotel is a London-based eminent star hotel. The hotel mainly provides service
to international guests having higher expectations with regard to service standards. The hotel
offers several typical facilities to its wide range of guests (Imperial Hotels, 2019). However,
the Hotel is facing considerable range of issues and challenges in the areas of management
operations, poor working culture, excessively high staff turnover rate and lacks in
operational efficiency of front of house and back of house staff.
One of the most significant challenges in this connection has been high staff turnover rate
(80% turnover in a year) in the Imperial Hotel, the reasons of which are assigned to wide
range of operational factors. One very important point has been lack of motivation and
encouragement among the staff. This has been observed that the management in the hotel has
failed in securing sufficient arrangements, employee benefit schemes as well as general
growth opportunities, which has become a leading factor affecting employee turnover. On the
other hand, absence of behavioural management principles (aggressive managerial and
supervisory styles) has led to distressed working situation for employees in the hotel. Apart
from these, there are excessive workload and working over hours. All these factors have led
to creation of the specific situation of decreased job satisfaction, stressful working
environment and negative working culture in the hotel.
Considering this specific individual issue, the following report has tried to point out the
possible causes of the issue from managerial perspectives. This has been followed by
presenting a 3 point plan for resolving the problems, considering from perspectives of
management and operations principles.
Analysis of Individual Problem
Management and Operational perspectives and association with other problems
As confronted by the Imperial Hotel, London, higher rate of staff turnover has been a serious
issue at this point. Considering the main problem and associated areas, this can be assumed
that one of the most important factors here is aggressive nature of supervisory and
managerial operations in the hotel. Moreover, as there are little scopes of future growth
(higher payment, bonus, promotion and working benefits) in the Imperial Hotel, this is clear
that these factors are acting as likely causes of this excessive trend of employee turnover.

Considering from the perspectives of Behavioural theory of Management by Mayo, this is
observed that behaviour of management with employees necessarily affects psychological
stimulus of the staff (Theory of Constraints Institute, 2019). This, in turn, is responsible for
affecting the level of motivation, engagement and involvement of the employees with
workplace (Noe et al., 2017). This is clear that aggressive style or behaviour of managers and
supervisors is one of the most significant challenges responsible for demotivating the
employees in Imperial Hotel. As per the Behavioural Theory, management is required to
behave in well-cordial ways with staff that is important for encouraging them in providing
better results for the organization, which is being hampered in present case (Goffin and
Mitchell, 2016). Hence, behaviour and operational style of management is one significant
reason of high turnover.
Considering from the perspectives of management theories, employee motivation and
encouragement are vital. On applying Alderfer’s ERG Theory of Motivation, this can be
described that the three basic needs of Existence, Relatedness and Growth of staff are not
being fulfilled by the management in Imperial Hotel (Mahadevan, 2015). The factors of low
pay, lack of training, poor level of payment and lack of working condition benefits are
responsible for demotivating the employees mainly. As opined by Bratton and Gold (2017),
growth needs are highly significant factors affecting the overall motivation and engagement
level of employees. Exactly, this particular need of staff in Imperial Hotel is being severely
neglected by the management functions. This is the factors leading to the decreased work
performance and stressed situation of the staff in the hotel (Mone and London, 2018). The
management there has failed in securing fulfilment of psychological desires and growth
requirements of staff.

Figure 1: Alderfer’s ERG Theory of Motivation
(Source: Expert Program Management, 2019)
According to theory of Administrative Management by Fayol, the managers are responsible
for incorporation of six key operational tactics in their functions including Organising,
Command, Control, Coordination, Planning and Forecast (UPSI, 2019). In the present
case, this is observed that the management in Imperial Hotel has failed in establishing a
clear rules and regulation-based administration, leading to the situation of temporary
nature of employment, absence of definite work culture, initiatives for employee benefits
and suitable management styles (Welford, 2014). The overall administration is weak
without any definite approach or regulations towards the above aspects. This has definitely
affected the work culture in the organization leading to higher level of satisfaction of
employees. However, this particular factor associates the areas of creating an aura of
negative work culture and ineffective roles and functionality of the Front of house and
back of house staff in Imperial Hotel (Punt et al., 2016).

Figure 2: Functions of Management by Fayol
(Source: Simplified, 2019)
Absence of clear administrative management in Imperil Hotel has definitely affected overall
rules, regulations and systematic procedures of team working, IT application, infrastructural
development and property management system. In the words of Moore (2014), absence of
Scientific Management is another vital reason of this orderliness in the hotel leading to failure
of meeting the basic standard operating procedures (SOPS) there. According to the theory of
Scientific Management, one of the most essential managerial functions is to train and
develop employees with improved methods of operations along with codifying these
methods into rules (Sling, 2019). This aspect has completely been neglected in Imperial
Hotel. Apart from this, considering from scientific management approach, the interest of the
management in Imperial Hotel has not been harmonised with that of employees. This has
led to higher level of demotivation of employees resulting into non-engagement and
excessive turnover.
On applying the Theory of Constraints of Operations Management, this becomes important
for the management in Imperial Hotel to be focused on identifying the barriers in the path of
improving overall process flow, followed by removing those barriers for leading to smooth
operations (Theory of Constraints Institute, 2019). Considering from this perspectives of
management, this comes clear that the management in the Imperial Hotel has not focused on
identifying the possible constraints that might affect business of the hotel. The management
has not identified the areas of conflicts between management and employees, growth
requirement of employees, performance appraisal and motivation or managerial

succession problems. Therefore, failure in identifying the possible obvious conflict areas
and constraints has led to such situation, which has accelerated development of negative
work culture and working environment in the hotel. As started by Wheelen et al., (2017), this
is quite natural that this sort of failure and negligence necessarily causes poor experience and
satisfaction of the guests, which exactly has been the case in the Imperial Hotel.
Figure 3: Theory of Constraints of Operations Management
(Source: Whatissixsigma.net, 2019)
This is worth considering at this point that the problem of poor guest satisfaction obviously is
resulted from extreme mismanagement in case of maintaining quality of the service and staff.
The problems in system of checking in and checking out, repeated charging of amounts in
bill and insufficient and untimely response of customer complaints are the sole outcomes of
absence of scientific and administrative operational management approach in the hotel
(Nankervis et al., 2016). These are the main issues that are being faced by the staff there
and as the resultant effects; they get commitment-free and distressed about their jobs.
However, as the management is irresponsive and unfocused, the staffs in the Imperil Hotel
have no other options but to leave. Therefore, this is evident that the incidents of poor guest
satisfaction, negative work culture and employee turnover are closely associated and
mutually correlated (Bradley, 2016).
On the other hand, through applying the Scientific Theory of Management by Taylor,
establishment of performance appraisal criteria and paying a premium for higher performance
is a scientific tactic for logic-based motivation of the employees. As argued by Balouch, R.

and Hassan (2014), this also required effective relationship between management and staff.
Considering this, Anvari et al., (2014) has stated that only performance driven
organizational culture cannot motivate for higher performance. However, the work culture
in Imperial Hotel provides excessive importance to performance only (capability of
increasing sales), which also includes working longer hours. Therefore, this has been a
serious issue where absence of motivational factors cannot develop engagement of staff,
thereby decreasing their performance level but on the other hand, the management only
emphasises on financial performance (Lee and Mitchell, 2017). This makes the
interrelationship among negative work culture, poor team performance, employee turnover
and poor guest satisfaction in the Imperial Hotel quite clear. Therefore, this is observed that
all the challenges and factors faced by the hotel are integrally associated and mutually
dependent.
3 Point Plan for resolving the problems
The following three points would help the Imperial Hotel in resolving the problems from
overall perspectives.
A. First of all, this is evident that in Imperial Hotel, the management levels of operations are
needed to be based on superior and definite management theoretical principles. Therefore,
adoption and application of an effective combination of Administrative and Scientific
Management principles would be a vital step for resetting the roots and branch of the overall
management system in the hotel. All the operational hierarchy, rules and regulations
performance appraisal and employee benefit schemes will be developed based on these
principles (Chan and Dar, 2014). This would assist in improving overall functional quality of
service, efficiency of staff and management and productivity level in the hotel.
B. Application and implementation of Equity Theory of Motivation is required in the
Imperial Hotel as lack of motivation, encouragement and involvement of the employees has
been the core challenge for the organization. The management must ensure maintaining
equity between inputs by the staff and outcomes for the staff. Thus, ensuring job security,
higher wages, salary, promotion, growth opportunity, esteem and sense of achievement
would be ensured there. This would be helpful for ensuring higher level of motivation and
encouragement for the employees and thus, development of staff morale, customer service
quality and overall productivity would be possible (Ozolina-Ozola, 2014).

Moreover, effective application of Behavioural Management Theory and Theory of
Constraints of Operations Management would help in developing cordial relationship
between employee and management along with taking precautions for resisting the possible
adverse factors affecting operational efficiency of Imperial Hotel.
C. The Imperial Hotel would ensure successful adoption of the Anglo-Saxon Model of
Corporate Governance in the hotel as this would strengthen overall involvement of
shareholders, directors and management in operations management in the hotel. According
to this specific model, shareholders in Imperial Hotel would appoint the directors of the hotel
and the Directors will be responsible for selection of managers. Thus, the entire management
operations system in the hotel would be bound to higher authority of Directors and
Shareholders. This would ensure effective establishment of necessary principles and
regulations for the management.
Therefore, by proper implementation of all these areas, the issues of quality service,
management behaviour, poor guest experience and operational efficiency of the staff might
be solved. In turn, this would ensure higher motivation and employee satisfaction and
thereby, less turnover rate in Imperial Hotel.
Conclusion
From the above analysis, this is to conclude that two main factors are solely responsible for
overall operational problems and challenges as faced by the Imperial Hotel in London and
these involve ineffective management operations and lack of employee motivation and
engagement. This has been found that in Imperial Hotel, the management has failed in
establishing effective approaches of behavioural and administrative management systems.
This has resulted in lacks of interrelationship between management and employees, negative
working culture and finally poor guest performance. The above analysis has reflected
effective association among mismanagement, lack of employee motivation, poor guest
experience and higher rate of employee turnover. Therefore, this is evident that the Imperial
Hotel is required to adopt such operational strategies that would assist it in resolving the
overall problems in best effective manner as far as possible. The hotel is essentially required
to adopt and implement the above mentioned 3 point plans as recommended for resolving all
the problems to best possible extent.

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