Premier Inn: Impact of Workplace Culture on Organisational Efficiency

This report examines the workplace culture of Premier Inn, a UK-based hospitality organization, and its impact on organizational efficiency. It begins with a background of the company and introduces environmental analysis tools such as PESTEL analysis, SWOT analysis, and Porter's Five Forces model to identify factors influencing the business. The report evaluates external and industry analyses, highlighting key drivers of change like government regulations, technological advancements, and shifting customer preferences. An investigation into the company's culture is conducted, relating the organizational culture to financial and non-financial performance. Ethical dilemmas faced by the company are explained, and recommendations are provided to enhance workplace culture and improve organizational efficiency. This document is a valuable resource for students, and similar solved assignments and study materials are available on Desklib.

Workplace Culture and
its impact on
Organisational
Efficiency

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Background of company..............................................................................................................1
Environmental analysis tools.......................................................................................................2
Evaluation of External Environmental Analysis and key drivers for change..............................2
Evaluation of Industry Analysis and key drivers of change........................................................5
Investigation of culture of company with evaluation of analytical tools and cultural web.........7
Relation between organisational present culture and organisation financial and non financial
performance.................................................................................................................................8
Explanation of ethical dilemma and 2 dilemmas.........................................................................9
RECOMMENDATIONS...............................................................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES .............................................................................................................................12

INTRODUCTION
Work culture refers to environment which is surrounded employees all time. Workplace
culture refers to shared values, attitude, belief system and assumptions share by people working
in an organisation (Al-Henzab, Tarhini and Obeidat, 2018). These culture are shaped with
upbringing of individual, culture and social factors. In an organization leadership, management
influence, strategic direction create influence on people on huge context. Positive culture at
workplace helps to improve teamwork, increase productivity, enhance morale and efficiency and
also increase retentions of employees at workplace. It also helps to enhance job satisfaction,
work performance, collaboration. Good workplace culture helps to create environment which
helps to reduce stress of employees. This helps to improve engagement of employees with work
which helps to improve efficiency of employees working in an organisation. It also employees to
be more involved in enterprise and share their views with their seniors.
This project report includes study of Premier Inn which is a hospitality organisation
providing their service in different locations. This organisation is established in the year 1987 by
Whitbread in UK. This project report includes discussion of background of company and
introduction of environment analysis tool in order to identify various factors to be create impact
over business. Firm conduct various types of analysis including porter's five forces model,
SWOT analysis and PESTEL acommunications campaign to promote a product or service as
agreed with your tutor.nalysis. It includes identification of various change drives of company on
basis of using environmental analysis tool. Moreover it also include investigation of culture of
organisation and relation between present culture of organisation. In this, explanations of ethical
dilemma is also included of company.
MAIN BODY
Background of company
Premier Inn is one of UK based organisation which is established by Whitbread in the year 1987.
This organisation has around 72000 rooms as well as 800 hotels which is providing their services
on different location like suburbs, city centre, airports (Bacq and Eddleston, 2018). Company is
providing luxury services to their customers and also providing Twin locations. There are
various competitors in market like Marriott hotel, Holiday inn, Hilton hotel which are providing
competitions to this organisation. Company is also offering food and beverage services to their
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customers and also having friendly employees which make customers to feel friendly
environment.
Environmental analysis tools
Environment analysis tool refers to a strategic tool which helps to identify various internal and
external factors that may create impact on performance of organisation. This analysis helps to
assess both threat and opportunity of business which helps in decision making process
(Bevilacqua, Ciarapica and De Sanctis, 2017). With this tool managers of business can align
various strategies with environment of firm. There are various change take place in business in
which some factors are beyond control of business. It is important for a company to identify
these factors. There Are various tools used by business in order to identify these factors and
these tools includes PESTEL analysis, success factor analysis, scenario planning, SWOT
analysis, Porter's five forces model and many more.
Evaluation of External Environmental Analysis and key drivers for change
PESTEL Analysis:
PESTEL analysis is one of external analysis that is used to identify factors which are
present outside business. This analysis includes identification of Political, legal, economical,
technological, social and environmental factors. It is one of simple framework which facilitate
understanding of business environment (Brock and Von Wangenheim, 2019). This tools helps in
encouragement of development of strategic thinking and also in anticipating future business
threats to minimise its impact. Some of factors of PESTEL analysis tools of business of Premier
Inn are as follows:
Political: Political factors are those which are concerned with interference of government
in a country. It includes various component like government stability, trade barrier, tax laws and
many more. There are various factors in external environment which create impact on business
like Brexit due to which government of UK has made various changes in rules and regulation
which mat effect operation of Premier Inn Hotels. In situation of Covid-19, business of Premier
Inn also affected as government has put restriction over people by introducing lockdown in
country. They also has put restriction over travelling of people to other country which create
negative impact for business of Premier Inn hotels.
Economical: Economical factors are those factors which includes includes growth of
economy, interest rate, inflation rate and other factors. These factors are important for business
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as it create impact over cost of company. Premier Inn is one of organisation which is hiring
employees from different UK where there are high wages rate which increase cost of company
but at same time, it also provide skilled employees which helps in increasing productivity of
company. Due to covid-19. This provide opportunity and threat both for company. Growth rate
in UK is also high which increase purchasing power of people. It provide sufficient income of
people of UK to buy service of Premier Inn.
Social: Social factors are those factors which includes various factors related to culture,
belief, values and other demographic factors. These are various social factors which create
impact over business of Premier Inn includes easy accessibility, security, customers feedback,
quality standards, values rate of rooms (Alsharo, Gregg and Ramirez, 2017). People of UK are
more likely to involve in travelling and tourism. This helps business to sell their service to
people who are ready to buy these products dan service. But due to global pandemic situation,
people has change their preferences and try to avoid such activity which may increase risk of
diseases.
Technological: Technological factors are those factors which includes advancement of
technology, technology innovation and other factors. Technological factors is one of important
factors as it provide competitive advantage to a business and create barrier on entry of other
business. Due to covid-19 situation, business is increasingly using technologies which helps to
avoid physical contact for providing protection to customers from spreading disease. Premier Inn
is using various technology in their business as they are providing various digital mode of
payment to their customers and also offering online reservation for their costumers in order to
provide convenience to their customers.
Environmental: Environmental factors are those factors which includes pollution,
climate condition, changes in weather. These are important for tourism industry as people travel
to different place as per suitable weather for that country (Brougham, and Haar, 2018). Business
should not provide any harm to environment as people are avoiding to buy products of that
company. There is increasing awareness related to environment in people of UK and Premier Inn
hotel is not providing any harm to environment which create good image of company in minds of
their Customers.
Legal: Legal factors are those factors which includes various laws and regulation in an
organisation. These laws includes discrimination law, health and safety, workplace safety law,
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tax laws and many more. There are various laws implemented in UK which is to be consider by
business of Premier Inn while carrying their operation in UK. Company is following all tax laws
and paying tax on time which create good image of company in millponds of government and
reduce chances of interferences of government in operation of business. Company is also
following workplace safety laws as Premier Inn is maintaining safety and cleanliness in their
hotel and near area of their hotel. They are also arranging necessary equipment in company
which helps in maintaining safety.
Drivers of change:
There are various drivers of change in an organisation which speed up change in
company. There are vaporous factors which are drivers of change and it is important for business
to identify these factors. Some of drivers of change fro business are as follows;
Government regulation: Government is imposing various regulation on people in order
to protect them from spread of disease For this they are putting restriction in travelling and
tourism activity as there are various travellers came from different countries (Caruso, 2018). By
coming in contact of these people, risk of disease may increase and in order to protect people
from diseases, government put various restriction over business and people. To make business
function even in this restriction of government, Managers of Premier Inn required to implement
changes in business.
Technological advancement: Technological advancement is another driver of change.
As with advancement of technology, business needs to implement change in their organisation. It
also helps to bring innovation which provide competitive advantage to company and also helps
to reduce cost of company. Due to technological advancement, business of Premier Inn needs to
implement change in their organisation as it helps to avoid physical contact in their organisation
and also helps to increase satisfaction of their customers.
Changes in preferences of customers: Preference of customers are changing in this
changing world. In order to provide satisfaction to customers and fulfilling their demand,
changes is important (Côrte-Real, Oliveira and Ruivo, 2017). Changing preference of customers
create pressure on business to implement change as it may create negative impact on profit and
marketing share of company. Changes to be implement by any business on timely basis as
competitors of company may take advantage of this situation. Changing preference of customers
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to avoid physical contact may create impact on business of Premier Inn, so it drive change in that
organisation.
Evaluation of Industry Analysis and key drivers of change
Porter's five forces Model:
Porter's five forces is defined as the systematic framework that is used in organisation for
analysing five competitive forces that provides shape to industry and also facilitates to determine
various weaknesses and strengths of industry (Jones, 2016). Premier Inn implement the model in
order to identify industry's structure for developing corporate strategies. It is applied in every
segment or portion of industry to analyse the competition level in respective industry an d
enhances organisational profitability ratio as well as maintain effective positioning of
organisation in industry. Forces of respective model influences overall decision-making
procedure of organisation. This model focus on external and internal factors of organisation to
know how organisation compete to get profitability and maintain positioning in market. Factors
of Porter's five forces are mentioned below:
Threat of new entrants: As company's power is getting affected by the new entrants in
the market. As Hospitality sector is growing at very fast rate and government also encourage the
sector so, threat of new entrants is high for Premier Inn. There are huge investment is required
and high entry barriers are established in the industry. If the industry contains less time and cost
to enter in market than it fascinates more new entrants and weakened the competitiveness and
positioning of Premier Inn. There are various rules, regulations and long legal procedure is
fulfilled by the organisation to enter in new market that some where restricted new entries and
help respective organisation to maintain its positioning.
Competitive rivalry among industry: Competition is depends on number of
competitors in market and their power or abilities to undercut organisation. There are high
competition is found among the industry that directly impacts on market positioning of Premier
Inn. Positioning of Premier Inn is getting affected by the number of competitors and their
products and services that they are offer (Macke and Genari, 2019). Due to higher competition,
respective organisation price margin as well as switching cost of customers is low. High
competition in industry impacts of Premier Inn performance and profitability ratio efficiently.
Respective organisation provides better quality products and services to their customers for the
purpose of differentiating organisation form other competitors. Respective organisation develop
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effective strategies and policies to deal with competitors and maintain its differentiated
positioning in market.
Threat of substitutes: Similar products and services that are provided by other
organisation create threat for Premier Inn. When close substitutes are available in the market,
then it creates various options for customers to purchasing products that weakened organisational
positioning (Mazzei, Flynn and Haynie, 2016). For Premier Inn threat of substitute product is
high so it becomes important for organisation to provide better quality and quite differentiated
products to customers to satisfy their needs and demands and create low room for substitutes.
The threat of substitute are depends upon competitors in industry and switching cost.
Organisation provides quality services to their customer that attracts them towards organisational
products and services and maintains effective positioning of organisation in competitive market
place.
Bargaining power of suppliers: Bargaining power of suppliers is a factor which focuses
on how suppliers drive cost up of their inputs. Impact of this factor is depends on numbers of
suppliers available in this industry, uniqueness of their supplies, cost of company to switch
suppliers and others. If there are only few suppliers in industry, than there is high bargaining
power of suppliers but if there are numbers of supplier present in industry than suppliers has less
power of bargaining. Premier Inn is one of organisation which offering their products and service
in hospitality industry. There are various suppliers present in this industry which provide
necessary supplies like bedsheets, electronics, towel, soaps and other necessary things.
Bargaining power of buyers: Bargaining power of buyers is another important aspect
which include ability of customers to drive prices offered by company at low. This customers
bargaining power demand on numbers of customers business has and significance of each and
every customers and cost of company to find new customers (Parke and Seo, 2017). If company
has less customers, than customers of company has high bargaining power as customers can
negotiate with company to reduce their prices. Premier Inn has large customers base, that mean
their customers has less bargaining power. Company can offer high prices for their products and
service in market as there are large customers base.
Change drivers:
There are various change drivers to be identify on basis of porters five forces model.
Some of these drivers of change in Primer In hotel are as follows:
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Competition: Competition is one of aspect which drive change in an organisation. With increase
competition in market, various market players are adopting different changes in order to attract
new customers and increase their marketing share (Rahimi and Gunlu, 2016). Premier Inn Hotel
needs to adopt various change in their organisation which provide them competitive advantage in
market and also helps in increasing their profitability share.
Increasing substitute: Substitute products also create threat for any business. In order to reduce
threat of substitute products in market, business needs to adopt change in their products and
services which helps to avoid threat of substitute products. Premier Inn is offering quality
services to their customers which helps them to reduce threat of substitute services in market.
Investigation of culture of company with evaluation of analytical tools and cultural web
There are various tool which helps an organisation to analyse their culture. Cultural web
tool is one among them which helps Premier Inn in this evaluation. Development and strategy in
any enterprise is influenced with its culture and environment (Schott, Van Kleef and
Noordegraaf, 2016). It crate positive impact but at sometime it also create barrier for success and
growth. Managers of company when driving change in organisation, it is difficult for them to
break systems, routine as well as structure linked with culture, politics as well as individual
relationship of organisation which is a part of deciding strategy.
Cultural web model is a tool which is introduced by Kevan Scholes and Gerry Johnson in
the year 1992. It is one of important tool in analysation and alternation of assumption
surrounding of company. It helps in highlighting specific belief and practices which is align with
culture as well as strategy of company. Scholes and Johnson has identified different elements
which is equivalent to values of organisation. These factors in content of Premier Inn are as
follows:
Stories and Myths: There are some events occurred in past of company among which
some are accurate but some are not. These events are discussed in both inside as well as outside
of company which are remembered by people and indicate value of organisation.
Rituals and Routine: It includes daily action as well as behaviour of people at
enterprise. These routine indicate expectation of employees on daily basis and what is approved
by managerial position in direct or indirect ways.
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Symbols: Symbols represent visual representation of organisation as how these appear to
individual and employees from outside company (Shamir and Howell, 2018). It consist dress
codes, office space, logos and advertisement.
Control System: There are some pathways and systems which control organisation. This
includes financial management, performance of individual as well as structure of quality control.
Organisation structure: Organisation structure refers to structure and hierarchy
designated by company. This model also includes unwritten power as well as influence exert by
some of members of company which indicate contribution towards organisation.
Power structure: This power structure is responsible for individual in company. It is
referred for only some executives and CEO, Board members and management division. These
individual create influence on decision, actions and changes.
Relation between organisational present culture and organisation financial and non financial
performance
Organisation culture refers to collection of practices, values and expectation which guide
as well as inform actions of team members. It includes various trait which make a company and
also positive culture lead organisation towards improve performance and negative culture of
company which hinder success of organisation (Swensen, Kabcenell and Shanafelt, 2016).
Present culture of Premier Inn is different from previous culture due to covid-19, situation has
change which also lead change in culture of company. There are different types of culture which
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can organisation adopt. It create impact on financial as well as non financial performance of
company.
Culture of Premier Inn helps to provide various benefits to financial and non financial
performance of company. It helps to increase engagement of employees which increase
productivity of company (Tonidandel, King and Cortina, 2018). It also motivate employees to
accept change in organisation which make it easy for managers to implement changes in
company.
Due to covid-19 culture of company has change as firm also giving permission to their
employees of doing work for company from their homes (Zaid, Jaaron and Bon, 2018). There are
some work in hospitality industry which can be done from any place but for some work, it is
important for employees to come to hotels. Some work which can be done form home includes
human resource management, accountancy work, marketing work where there are some work for
which employees needs to come to hotel including kitchen management, housekeeping, front
officer department and may more. In this culture employees are given flexibility to do work from
office and home. There is also increasing use of technology in organisation to avoid physical
contact among employees.
It create impact on financial and non financial performance of company. This covid-19
situation, increase cost of company as there is increasing needs to sanitisation of offices, use of
technology and software includes cost of installation and many others, It improve performance of
employees and make work of company faster but in increase financial cost of company for short
period of time.
Explanation of ethical dilemma and 2 dilemmas
Ethical dilemma refers to problem occurred in process of decision making in situation
where there are two options available and none of them is acceptable from ethical perspective
(Wohlers and Hertel, 2017). There are various ethical as well as moral problems occurred in any
organisation and many of which came with straightforward solutions. Ethical Dilemma create
complicated challenges which cannot be solved and finding solution to these problem is difficult
for every person. In order to solve these ethical dilemma, managers needs to adopt some of
following approaches which are as follows:
Refute Paradox: In this approach, situation is analysed careful. There are some situation
in which existence of dilemma can be refuted.
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