Imperial Hotel's High Employee Turnover: A Case Study Analysis

Desklib provides past papers and solved assignments. This case study analyzes high employee turnover at the Imperial Hotel.

INTRODUCTION TO THE MANAGEMENT
1

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................................3
ANALYSIS OF THE HIGH TURNOVER RATE....................................................................................................4
CONCLUSION...............................................................................................................................................8
REFERENCES................................................................................................................................................9
2

INTRODUCTION
Imperial Hotel is the 4 star of the hotel which is situated in London. Around 25 hotels the
imperial hotel is one of them. The main clients for their services are Tourists and the
international business individual. The expectation level of the customer is high for the Imperial
hotel (Balentine et al.,2013). The Imperial Hotel face many issues related to their staff. The
reputation of the hotel goes down due to its relevant staff. The images of the hotel destroy and
the top 4-star hotel goes down. As per the case study of the Imperial hotel, the discussion of the
issue regarding the problem generated in the Imperial hotel associated with the high staff
turnover and retention rate being high to near about 80% (Balentine et al.,2013). Due to the
current nature of the employment the turnover rate goes high. The Imperial hotel they hire those
employees who work for a short period of time and studying in London. The reason for the
turnover is high due to low pay (Balentine et al.,2013).
The hotel operation cost is increased because of the high rate of turnover. The utilization of the
turnover and total revenue for the hotel has been reached to 26%. Due to the high training cost
that is employees who are now in the organization has to reduce the quality of the services which
are provided to their guest. Because of poor services the hotel was loose some of its recurrent
customer (Balentine et al.,2013). After some days some of the employees have to decide to leave
their job because of poor job satisfaction. The poor job satisfactions decrease the growth of the
organization. The decrease in the ethical value will affect the employee’s turnover. This is
because of decrease in the turnover of the employees goes very high (Koontz and Weihrich,
2012). They were not able to solve the problem which was related to the high turnover of the
employee. Due to this, they have to face any problem related to the hotel. They have to invest
more money for incurring additional costs with the recruitment and training of new employees
(Koontz and Weihrich, 2012). The new general managers of the hotel Peter Farnsworth have
trust that some of the different ideas will take some action to solve the problem include offering
them some bonus and pay packages, training and performance appraisals, motivate their
employee to give a tough competition for key supervisory position and try to improve their staff
with the help of Quality Human resource practices (Koontz and Weihrich, 2012).
3

ANALYSIS OF THE HIGH TURNOVER RATE
The new general, managers have to tackle the issue of the high turnover rate for the hotel which
is located at London. This is the most important problem they have to suffer. As it is discussed
the rate of turnover at the hotel is 80% which implies to reciprocate the employment ranges to
around 800 people on the annual basis (Koontz and Weihrich, 2012). The new general manager
takes an interview to analyze the reason for their resignation. The working culture of the
Imperial hotel is unprecedented which give rise to the retention and poor performances of the
staff. The concern feature for the hotel is only turnover which give rise to the factors that are
meeting to the working hours. And then secondly the working hour of the company is increasing
due to this the turnover of the employee goes high (Koontz and Weihrich, 2012). And the
employees are unsupportable after taking this action. Due to which they are leaving their jobs.
The last one is lack of training. Some of the employees give feedback related to their
resignation. And the reason behind this is improper training and incentive bar level (Koontz and
Weihrich, 2012). The staff are not efficiently provided opportunity to gain the promotion or
rewards from the management which holds the supervisory position. The reason for the poor pay
to the employee by the hotel is that the employee will not be able to give the high traveling cost
present in central London. On the other hand in London, there are many competitive hotels are
there. They are competing with each other by offering them a higher payment and a better
working condition than the hotel (Koontz and Weihrich, 2012).
Indulgence of the staff and high turnover rates
According to D’annunzio-green (2011), they are more concern about the staff because of the
high cost of the turnover in the organization. On the other hand, the reason behind these negative
effects associated with the turnover. The main cause of the increase in cost is the high turnover
rate in the organization. For managing the high turnover rate this is very expensive in nature
(Chibili, 2017). The majority of the expenditure is associated with the recruitment of the new
employees and providing training to the old staff for the direction purpose. On the other hand,
according to D'Annunzio-green says that the manager of the company has solved the entire
problem related to their organization. The reason behind the rate of the adverse actions that are
4

associated with the profitability of the organization can be highly indulged (Chibili, 2017). Most
of the organization have to face any problems while recruitment, selection, and hiring process.
The recruitment, selection and hiring process cost is so expensive to give training to their
employee and the manager of the company have to pay more cost for this due to this increase the
general operation of the organization (Chibili, 2017). On the other hand, the new employee
request to the manager to pay them more as compare to the other company or as compared to the
previous employee. Few organization experienced high turnover rates will not incur the cost of
the operations as compared to the other organization (Chibili, 2017).
Due to many problems faced by the organization they hire consultants to solve all the problem
related to high turnover. The company prefers to invest their time and resource to solve the
problem instead of using the time and resources to distribute the business; they also try to
improve the performance o the company (Chibili, 2017). The moral of the employee goes down
due to the high turnover rate in the organization. The performance of the company will effect
with the help of employees moral value. The moral of the employee is decrease after seeing that
other employees are moving to another employment opportunity. The turnover rate goes high
after analyzing the low morale of the employee (Singh, and Crisafulli, 2017). When the
employees get experienced low moral value because of poor payment rates, they exit from the
organization. Due to the high rate of the turnover the organizations have to face many problems
like productivity and profitability of the organization depends on the employees or staff which is
likely to suffer as they are not provided appropriate opportunities for their relative posts. In all
the organizational it is compulsory to have high productivity and efficient among the employee
(Singh, and Crisafulli, 2017). The reason determine the level of the success attain with the
competitive advantage and managing the team performances. In the Imperial hotel, there are
relevant branches among them the one which is situated in London faces severe issues. There is a
low level of morale among the staff which will affect the performance of the organization
(Singh, and Crisafulli, 2017). Due to poor customer services, the employees prefer to retain from
such 4 star hotels and look forward to different hotels in London.
On the other hand, Banfield (2011) demonstrates that the high level of turnover in the
organization creates a pressure on the management which frustrates them. Some of the managers
spend their time for hiring the employee through recruitment and the selection process in order to
5

get the best candidate for the subtle job. on the other hand, some manager should spend their
time to solve the affairs of the new employee which is more beneficial (Singh, and Crisafulli,
2017).
Theories related to Management
The imperial hotel should use the human resource approach to management. Some of the human
resource departments argue to analyze the organizational behavior of your department. The main
focus of the organization is that they have to focus only on achieving its particular target and
objective with the help of people and with the people (Mckeown, 2016). For improving the
organizational performance the human relation approach was developed by the Elton Mayo in
1990. The management theory analyzes that most of the people are not economic-rational beings
but they are emotional. This is also finding out that most of the organization are basically based
on cooperation and not on the mechanical system (Mckeown, 2016).
The role of the human related approach in the Imperial hotel directs on
 The manager of the hotel must understand human behavior.
 The inter-personal relations among employees are understood by the manager of the
company.
This can also precedes to meet the rate of reduction of the employees in the organization. The
role of the equity theory for the employees is a great example of the management theory for the
particular case (Mckeown, 2016). The main focus is to provide the support to the staff in order to
improve their performances and for which compulsory training and reward programs are
associated. The theory can provide the best compulsion for the employees to maintain a balance
in the working spheres as well as opting for the productivity level (Mckeown, 2016). The
production level of the business is depending on the skill level, hard work, and efficiency of the
employee. From the production input, the production level of the employee is increased by salary
and benefits.
The employee gets de-motivated when they analyze that the level of input is more as compared
to the level of output (Singh and Crisafulli, 2017). This is compulsory to ensure that the
employee will get a proper pay of level and the inventories on time. For improving the level of
performance and motivation employee must have to offer a proper price that will motivate the
6

level of employee. If the level of motivation is motivated by the manager of the company then
the growth of the organization will increase automatically (Singh and Crisafulli, 2017).
With the help of the hierarchy of needs theory, employee turnover will decrease. This theory has
to see that employer should get satisfaction. This is the most important thing is that the need for
the employee increases the growth of the organization (Singh and Crisafulli, 2017).
Summary
The imperial hotel in London utilizes the human resource management approach in order to
solve the problem related to the high turnover of the employee. If the hotels have a human
resource problem that means the turnover rate is high. With the help of human resource, the
organization will achieve its goal and objective easily (Singh and Crisafulli, 2017). Peter
Farnsworth always confirms that management of the hotel needs to regularly improve the
relationship with their employee. With the help of human resource management, some of the
issues are solved. Some of the employees are not satisfied with their salary and the benefits
which they get from the organization. Due to this, the turnover rate goes high (Singh and
Crisafulli, 2017). The new general manager, Peter Farnsworth, always try to use human resource,
a method to decrease the rate of the turnover of the employee. The range of the services that are
offered to the employees helps them to focus on improving the productivity and morale of the
staff. This can help in meeting the services and support to the workers. The managers of the
company also use the hierarchy theory to reduce the turnover of the company. They also confirm
the hotel addressed the need of the employee that will cause the company turnover rate (Singh
and Crisafulli, 2017).
7

CONCLUSION
The imperial hotels face the main problem in their organization that is high turnover rate
around 80%. The reason for increasing the high rate of turnover is due to lack of opportunity
and the lack of training (Yin et al., 2015). That will decrease the growth of the organization.
The new general manager should apply the three management theories (human relations
approach, the hierarchy of needs and employee equity theory). with the help of human
resource development theory, the turnover rate will reduce. And the employee will get a
higher income, benefits, training, and possibility for growth (Yin et al., 2015). The
operational cost is reducing with the help of reducing the high turnover rate and on the other
hand, the level of income will increase. Due to this, the company will get more profit and
organizational growth will increase (Yin et al., 2015).
8

REFERENCES
 Balentine, S., Mathis, R. L, & Jackson, J. H., 2013. Human resource management.
Australia: South-Western.
 Banfield, P., 2011. Introduction to human resource management. Oxford, Oxford
University Press.
 D'Annunzio-green, N., Maxwell, G. A., & Watson, W, 2011. Human resource
management: international perspectives in tourism and hospitality. London, Thomson.
 Davies, S. J., & Hertig, C. A.., 2013. Security supervision and management: the theory
and practice of asset protection. Amsterdam, Butterworth-Heinemann/Elsevier.
 Koontz, H., & Weihrich, H., 2012. Essentials of management. New Delhi [u.a.],
McGraw-Hill
 Mckeown, J. L., 2016. Retaining top employees. New York, McGraw-Hill.
 Secord, H, 2003. Implementing best practices in human resources management. Toronto,
CCH Canadian
 Slattery, M., 2015. Key ideas in Sociology. Cheltenham, Nelson Thornes.
 Bennett, A., 2017. Imperial palace. epubli.
 Cetin, G. and Walls, A., 2016. Understanding the customer experiences from the
perspective of guests and hotel managers: Empirical findings from luxury hotels in
Istanbul, Turkey. Journal of Hospitality Marketing & Management, 25(4), pp.395-424.
 Chibili, M., 2017. Modern Hotel Operations Management. Routledge.
 Jaques, E., 2017. Requisite organization: A total system for effective managerial
organization and managerial leadership for the 21st century. Routledge.
 Kaneko, K., 2016. Nobuo Murakami, executive chef of the Imperial Hotel and
AmbroiseParé, a surgeon in ordinary to the kings of France. Journal of Orthopaedic
Science, 21(3), pp.255-257.
 Lu, L.T., 2016. A comparison of performance and efficiency in the hotel industry:
Evidence of Taipei and scenic area hotels in Taiwan. Technology, 2(3), pp.1-8.
 Singh, J. and Crisafulli, B., 2017. Case study 2: Managing customer complaints: the case
of Imperial Orchid Hotels in Thailand. In Services Marketing Cases in Emerging Markets
(pp. 35-43). Springer, Cham.
9

 Yin, P., Tsai, H. and Wu, J., 2015. A hotel life cycle model based on bootstrap DEA
efficiency: the case of international tourist hotels in Taipei. International journal of
contemporary hospitality management, 27(5), pp.918-937.
10