Imperial Hotel Case Study: Applying Management Theories to Problems

This case study examines the challenges faced by the Imperial Hotel, focusing on declining sales, increased employee absenteeism, and a negative work environment. The report analyzes the root causes of these problems, including improper sick leave policies, low employee satisfaction, lack of appreciation, and rigid workplace rules. It explores the impact on management and operational activities, such as increased workload and rising costs. To address these issues, the report proposes a 3-point plan based on management theories. The first theory is Human Relation Theory, which emphasizes the importance of employee interaction and emotional needs. The second is Employee Equity Theory, which focuses on balancing employee input and output to improve morale and productivity. The third theory is Administration Theory of Management, which provides principles for organized management, including division of work, responsibility, and discipline. The application of these theories aims to improve employee engagement, reduce absenteeism, and create a more positive and efficient work environment, ultimately improving the hotel's performance and culture.

CASE STUDY, IMPERIAL
HOTEL

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PROBLEM 3....................................................................................................................................3
Overview of current problem......................................................................................................3
A 3-point plan using management theories for fixing the problem............................................5
Summary of Key Proposals.........................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
MAIN BODY
Imperial Hotel Group has many branches of hotel spread throughout the entire world
operating since past 100 years. Imperial Hotel, London, located in London's West End is one
such branch out of the 25 different hotels owned by the group across entire U.K. There are 500
bedrooms, 12 conference rooms, 3 bars and 4 restaurants overall in the Hotel. In the present
report, it has been highlighted that despite this hotel being so old, the hotel s going through
decline in sales. Increased employee absenteeism and creation of negative work environment in
the company are the major problems that have been discussed in this report (Giorgi, Leon-Perez
and Arenas, 2015). Further, this report also discusses the root causes of the problems arising in
the company and their impact on management and operational activities. In this report, cause and
effect analysis has been made regarding these problems and a viable i.e. a feasible solution has
been tried to be identified. Lastly, through application of various management theories, the
solution i.e. the best possible practices adoption of which would help the management of Hotel
in improving their practices and hence develop mew managerial practices which would help in
formulating a better work culture and environment.
PROBLEM 3
Overview of current problem.
The Imperial Hotel is famous because of the world-class service that they provide and the
long time period from which they have been serving. They have achieved this reputation because
of the effective performance of their employees (Lankinen and et.al., 2017). However, at present,
there is a steady decline in the performance of Imperial and their standards have dwindled lower
than their competitors. This can be highly attributed to the fact that the employees have become
lethargic in their performance and the internal culture of the hotel has worsened. The visitors in
the hotel have complained about the management not providing sufficient worth in return of the
overly expensive charges that they take.
Also, the change in trends have led to employment off those workers who work part-time
leading to lack of any bonding with the Hotel and this has also led to increase in the employee
turnover rate. When employees do not feel responsible towards the duties assigned to them, they
tend to lower their standards and finish tasks just for the sake of finishing it. This has led to
spread of a negative culture in the company and the employees' have increased their absenteeism
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level and are taking sick leaves frequently (Giorgi, Leon-Perez and Arenas, 2015). Along with
this, employees are not using IT Systems efficiently and their standards have reduced which has
led to increase in operating costs.
The major causes for this that can be highlighted are :-
 Improper implementation of sick leave policy.
 Lower satisfaction levels and detached employee-employer relationship.
 Lack of appreciation and guidance.
 Unfriendly work environment and unfulfilled personal requirements.
 Rigid workplace rules like no flexibility in working hours etc.
 Lack of any supervision over employee activities.
 Long working hours and unrelenting managers.
 Non committing attitude of employees towards their job.
The staff of Imperial Hotel is avoiding the work environment deliberately, and they are
encouraging uninformed absenteeism by adjusting amongst themselves i.e. by covering up for
each other. The longer shifts and aggressive attitude of management has lead to employees
feeling resentful because this has increased stress levels and workload of employees.
Managerial Aspect :- There is an increased pressure on Peter Farnsworth, the newly appointed
manager as the employees are not sufficiently accounting their reasons for absence and this has
led to formation of a negative work culture. The increasing turnover ratio is also a major cause of
worry as Hotel is suffering losses doubly since the standards are also falling and costs are
increasing. Increasing strictness in the management's rules can also lead to negative impact on
the team spirit.
Operational Aspect :- Increased absenteeism has led to increase in the workload thus increasing
the dissatisfaction of employees and visitors. This has led to fall in the profits earned and the cost
has increased as the recruitment process has to be carried out repeatedly (Braithwaite and et.al.,
2017). Also, the more work that is to be completed by reducing number of employees is reducing
the quality of work. There are already 300 full time workers and 150 part-time ones and despite
these they have to hire specialist services from outside sources which is further increasing the
operational costs.
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A 3-point plan using management theories for fixing the problem.
For improving the present scenario and finding an effective solution to the persistent
problem of employee turnover and negative work culture, Peter Farnsworth the newly appointed
manager can adopt following management theories :-
Human Relation Theory :- The Human Relation theory state one basic fundamental that
organization can achieve its goals only when they understand that it can be done with people and
through people. It was developed by Elton Mayo and emphasized on importance of interaction
method, purpose, levels at the workplace amongst employees (Human relations management
theory basics, 2011). The new manger can use this theory to develop a change in the present
policies by giving not only financial rewards but also satisfying the emotional factor and needs
of their employees. When the manger will begin focus on the human aspect, then it will
automatically improve their attitude towards the Hotel. Also, understanding that cooperation is
more important in a company rather than implication of mechanical systems should be a guiding
principle for him so that working hours can be arranged as per the employees' capacity and
availability. This will reduce the absenteeism levels and increase the loyalty of the workforce.
Also, giving monetary benefits and rewards to the deserving employees can help in increasing
the satisfaction level and understanding their responsibilities thus reducing the negative culture at
the workplace (Tee, Özçetin and Russell-Westhead, 2016).
Employee Equity Theory :- This theory is based on the Human Relations approach and is
applied for reducing turnover of employees at the workplace. The employee equity theory
focuses on improving the productivity and morale by creating a proper balance between the
output level and the input level of a particular employee. The input level involves an employee's
skills, hard work etc. and output levels involve the ultimate salaries or rewards that employees
get for the work done. The new manger of Imperial Hotel can ensure that the input level is
matched with the output level so that employee is not dissatisfied with the management. This can
be done by forming proper salary and reward policy which acknowledges the extra effort put by
employees. Therefore, this theory will help in formulating proper job security, monetary
incentives and non monetary rewards that will inculcate positive and motivating work culture
thus reducing absenteeism.
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Administration Theory of Management :- This theory states 14 basic principles focusing on the
human and behavioural aspect of employees and the management (Management administration
theory, 2019). It helps in formulating an organized manner of operating and managing.
Division of Work :- Manager can distribute the job responsibilities as per the key skills and
qualifications of employees. This will enhance the efficiency and also increase satisfaction level
of employees helping them in realizing their value in the Hotel. It will reduce absenteeism and
help in appropriate distribution of work.
Responsibility and Authority :- Giving the employees more responsibility or authority will
make them realize their duties and hence reduce their irresponsible activities and nature. This
will increase their accountability and inculcate dutifulness in employees.
Discipline :- Introducing of disciplined and regulate work methods will help the employees in
improving their present behaviour and increase their interest in the present organizational values
thus boosting their morale (Casey, Riseborough and Krauss, , 2015).
Scalar Chain :- Scalar chain involves creating proper communication channels and patterns by
forming a proper hierarchical structure. The problem if uninformed cover-ups and absences can
be solved through this technique in the Imperial Hotel. This will help the employees in
identifying their immediate senior and who they should communicate to in case of problem.
Unity of Direction :- This helps the manager in formulating a workforce operating with
objectives and aims that are integrated with the organizational aims. Developing teams is one
way of minimizing the deviations.
Centralization :- Though a manager should give authority to his subordinates; yet they should
keep sufficient power in their hand ensuring that permission to take leaves should be authorized
by a proper person and such similar tasks.
Stability of Tenure :- Here, the manager should focus on ensuring their employees that their job
is secured and hence they need not fear. This helps in reducing the rates of employee turnover
thus bringing stability in the organization.
Esprit De Corps:- This principle focuses on the motivational aspect concentrating on keeping
employees motivated and making them cooperate with each other. It helps in development of
trust and creates a positive work environment (Al Haderi and Ahmed, 2015).
Some other principles included in this management theory are remuneration methods,
unity in command, equity, subordination of individual interest to organizational interest,
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initiatives and order. These three theories collectively can help in improving an employees
performance and reducing their absenteeism from the company.
Summary of Key Proposals
The management can implement the above stated three theories to resolve the current problems
and that the Imperial Hotel is facing and also minimize the effect of the other problems that the
management is facing :-
 Human relations theory will help in improving the employee engagement with the
management and motivate them by praising and rewarding according to the work
performed by them (Stefanovska-Petkovska and et,al., 2019). Peter Farnsworth will be
able to solve two problems successfully namely reducing the sick leaves taken by
employees as they will wish to come to the workplace and thus improve the negative
work culture that is being encouraged in the company. The management is well aware
that the reason of sick leave is not really sickness but lack of attachment with the work
place and unsatisfactory feeling. Hence, implementation of this theory will help in
creation of better bonds between employees and employers helping them to understand
and communicate with each other in a better way.
 The second theory that was mentioned was employee equity theory whose
implementation would basically reduce the employee absenteeism and hence solve the
issue of rising employee turnover. By giving more benefits to the employees, Peter can
ensure that a satisfied and motivated personnel is created which will increase their
dedication level and loyalty in the company (Lankinen and et.al., 2017). Thus, by
emphasizing on improving the present remuneration techniques, peter can strike a
balance in the company and hence improve the job performance and motivational levels
of their employees.
 The last theory was the administrative theory implication of which would help in creating
better structure and a more organized way of operating. Peter, the new manager would be
assisted by the implementation of this theory as this will help him in distributing the tasks
better and assigning tasks to the individuals as per their skills and qualifications (Sosso,
2017). This would also help in reducing burden and simplifying the managing process as
increasing the responsibility of employees would make them less careless and help them
in adopting those practices that are ethical and support the activities of the organization.
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This will resolve the problem of uninformed absences and reduce the operational cost of
the hotel. Application of this theory will also inculcate trust in the employees and create a
bond with the hotel thus converting the negative culture and environment at the
workplace into a positive one.
Collectively, implementation of these three theories i.e. this 3 point plan will help the
management in resolving not only the present problem but also various other problems faced by
the organization like declining quality standards, increased operational costs etc. When the
satisfaction and motivational levels of employees would increase it would help them in
improving their service provided so that the guests visiting the Hotel are satisfied more and also
the labour turnover is minimized (Restubog and et.al., 2015). Also, a better organized structure
would help in creating a more efficient employee personnel and hence problems related to IT and
reservation will be solved accordingly. When the resources will be managed in a better way,
there will be a scope of developing and training the workforce for other specialized services
which the management is currently outsourcing.
CONCLUSION
The research conducted in the above report can conclude that due to high employee
absenteeism and lack of any regulation, has led to decrease in the overall quality of the service
provided the Imperial Hotel. In the present report, the careless attitude of employee and the
unaccounted cover-ups along with increased sick leaves are the major problems that has been
discussed. This report identified the three management theories namely Human Relations
Theory, Employee equity theory and Administrative theory. Human relation theory emphasized
upon importance of satisfying the emotional needs of employees and employee equity theory
highlighted the importance of equal distribution of input and output of an employee. And the
administrative theory helped in implementing an organized and defined manner of operating so
that decisions could be made in support of the changes intended. Applying all these theories will
help in creating a motivated and dedicated employee base which would be loyal to the
management of Hotel and work towards achieving collective goals. Lastly, application of such
management theories and their implication on resolving other problems that the management of
Imperial Hotel, London is currently facing has also been discussed in this report.
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REFERENCES
Books and Journals
Al Haderi, S.M. and Ahmed, F.B., 2015. The Negative Effect of Organization Culture Could
Slow the Usage or the Adoption for the Technology. International Journal of Business
and Social Science. 6(9).
Braithwaite, J., and et.al., 2017. Association between organisational and workplace cultures, and
patient outcomes: systematic review. BMJ open. 7(11). p.e017708.
Casey, T.W., Riseborough, K.M. and Krauss, A.D., 2015. Do you see what I see? Effects of
national culture on employees’ safety-related perceptions and behavior. Accident Analysis
& Prevention. 78. pp.173-184.
Giorgi, G., Leon-Perez, J.M. and Arenas, A., 2015. Are bullying behaviors tolerated in some
cultures? Evidence for a curvilinear relationship between workplace bullying and job
satisfaction among Italian workers. Journal of Business Ethics. 131(1). pp.227-237.
Lankinen, P. and et.al., 2017. Intensity of 18F-FDG PET Uptake in Culture-Negative and
Culture-Positive Cases of Chronic Osteomyelitis. Contrast Media & Molecular
Imaging, 2017.
Restubog, S.L.D. And et.al., 2015. If you wrong us, shall we not revenge? Moderating roles of
self-control and perceived aggressive work culture in predicting responses to
psychological contract breach. Journal of Management. 41(4). pp.1132-1154.
Sosso, F.A.E., 2017. Negative involvement of the working environment in the occurrence of
cognitive disorders. Transl Biomed.8(2). p.109.
Stefanovska-Petkovska, M. and et,al., 2019. The Effects of Organizational Culture and
Dimensions on Job Satisfaction and Work-Life Balance. Montenegrin Journal of
Economics. 15(1). pp.99-112.
Tee, S., Özçetin, Y.S.Ü. and Russell-Westhead, M., 2016. Workplace violence experienced by
nursing students: A UK survey. Nurse education today. 41. pp.30-35.
Online
Human relations management theory basics. 2011. [Online] Available through
<https://www.business.com/articles/human-relations-management-theory-basics/>
Management administration theory. 2019. [Online] Available through
<https://www.kullabs.com/classes/subjects/units/lessons/notes/note-detail/4439>
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