Introduction to Management
Management is a very wide term which involves the whole functioning and the operations of the organization. The managerial skills and the strategies will be depicted in the report by using Imperial Hotel, London as the organization. The hotel consists of 500 bedrooms, 3 bars, and 4 restaurants and is situated in the London’s West End. Besides this, the hotel is carrying out its operation for more than 100 years. It is one of the famous hotels of UK but this time is suffering from huge employee turnover. Due to this reason, the firm is not able to function effectively. Further, the report focuses the reasons behind the staff turnover in the organization. Along with this, it will help to identify the strategies which can be adopted by the management to overcome the issues. As it has been seen that several problem arises at the time of strategy implementation so in this case, for resolving the issues, solutions have been further discussed in the report.
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PROBLEM FACED BY THE IMPERIAL HOTEL, LONDON
There are several problems which are being witnessed by the Imperial Hotel, but the most prominent among them is high staff turnover as it has been seen that 80% of the staff is leaving the hotel per year. For the service industry, it is not good as experienced employees are required by the hotel so that they can provide their guest with proper facilities as well as services (Blomme, Van Rheede and Tromp, 2010). A new general manager has witnessed that the employees are facing problems in the working conditions and due to this reason; they are switching their organization frequently. Due to this reason, the training cost of the hotel has been increased to the great extent, because they are required to recruit the new staff. As imperial hotel is one of the well known hotels so it needs to train their staff so that they can provide effective services to them. As the job satisfaction is raising among the staff it is leading to poor performance and even it is rendering pressure on the existing staff which is performing in the Imperial hotel. This staff turnover is affecting the profits and the sales of the hotel. Further, this is affecting the reputation of the hotel.
REASONS REGARDING THE CHALLENGES
By analyzing the environment of the Imperial hotel it can be witnessed that the organization is facing huge problems due to the staff turnover which overall impacting the working of the hotel. But there are several reasons due to which the problem has been occurred in the hotel. The major reason which has been analyzed by the manger is that in the hotel aggressive management style is followed which creates problem for the employees in carrying out the activities. On the other hand, another reason is their pay level; the staff of the hotel is dissatisfied with the pay structure as they believe that they are not getting paid according to the work which they are performing. In the Imperial hotel, the employees thrive for the promotion or the bonus as it is one of the motivational factor which help the employee to retain in the organization (Nadiri and Tanova, 2010). Overall, it can be said that, the driving force which helps the staff to work in the organization is missing. They are not motivated monetary or non- monetary by their superiors. Along with this, it has been evaluated that some staff which are working in the organization are part time employed so after some time they leave the organization. This is disadvantage for the Imperial hotel because they have already provided training to them and spend money in their development. Besides this, other reasons are the hotel staffs are getting problem in the transportation and even other competitors are paying them more so due to this reason, the staff are switching to different hotel for their job.
ANALYZING THE PROBLEMS WHICH WILL FACED BY THE HOTEL IN FUTURE
After discussing the staff turnover problems and the reasons behind this, the hotel will face huge problem in the future due to this issues. The expenses will be doubled because the trained employees leave the organization as the company has spent huge amount on their training. Further, the hotel has to recruit more staff which require huge amount of finance. In this case, the expenses are doubled and the outcome is not much. This affects the services of the Imperial hotel which will impact on the sales and the profitability. With the increasing competition, it will be difficult for the organization to survive in the market and develop competitive advantage (Yang, 2010). This will further impact on the reputation of the hotel. In the service industry if the goodwill of the hotel is tarnished then the customers do not chooses them for the stay. Even if the existing staffs are not satisfied with the performance then it will be difficult for the hotel to recruit the new staff because word of mouth publicity affects the perception of the individual. These are the future consequences which can be faced by the Imperial hotel if proper steps are not taken to overcome the staff turnover.
THEORIES AND STRATEGIES APPLIED TO RESOLVING THE ISSUE
There are several steps which can be taken by the organization to reduce the problem to some extent. Through the analysis it has been evaluate that there is absence of motivation in the organization which is forcing the staff to leave the hotel. The basic issue which is addressed by the Peter Farnsworth is the pay scale and the bonus. With the help of the Maslow Hierarchy theory Imperial Hotel can effectively identify the motivation factor which is required by the individual to retain the organization (Chiang, Birtch and Kwan, 2010). As with the help of the different stages, the firm can provide the facility which can motivate the hotel staff. There are some staff which needs huge pay structure, for them the fir can provide the monetary benefits. Besides this, there is some of the employee who is facing the problem of transportation. The steps can be taken by the firm to overcome the issues (Theories of Motivation, 2017).
Another issue is with the management style which is followed in the hotel. They believe that the supervisor is strict with them. For retaining the employees in the staff, the management and leadership style can be changed. They can follow the democratic leadership style where employee have the right to take part in the decision making process. They will feel that they are part of the organization and it will entail motivation to work in the hotel. Further, the hotel can also adopt the checklist and the weighted checklist method as in this method the supervisor can give rating to the individual (Tsai, Cheng and Chang, 2010). This will be helpful for the organization to provide incentive and bonus to the staff. This problem is faced by most of the organization but for Imperial hotel it is rising and affecting the reputation of the firm.
IMPLEMENTING THE STRATEGIES
At the time of implementing the strategies, the main work is of the mangers as they are responsible for effectively execution of the strategies which are decided by the organization. The mangers are required to have the effective managerial skills so that they can manage the policies which they have made regarding the implementation. The managers are required to follow different functions of the management so that they can execute the strategy effectively. For applying the motivational theories the mangers need to make the proper plan. As they know the situation of Imperial hotel so it will be easy for them to implement the strategy (Karatepe, 2012). At the time of implementation, they are required to use their managerial techniques. The managerial techniques consists of workforce development, as through thus technique the organization will be apply to apply the strategies by using the management functions. Besides the role of mangers, the staff members are equally responsible for the strategies which will be implemented in the Imperial hotel. For adopting the Maslow theory and changing the leadership style, it is required by the managers to consult with the staff of the hotel so that they do not become dissatisfied with the new strategies.
ISSUES FACED AT THE TIME OF STRATEGY IMPLEMENTATION
There are several issues which are required to be overcome by the mangers at the time of implementing the strategies in the Imperial hotel. The main issue which is witnessed in the hotel is the resistance of the employees. There are some staff members who resist with the changes even if it is good for them. In this case, the management is required to take the necessary step to reduce the resistance. The staff turnover is increasing, but still the manager does not agree to adopt the motivational strategies (Kara and et.al., 2013). Besides this, for providing training for development also, the top management will resist because they have invest money. So these aspects should be looked effectively so that major problem is avoided. As the Imperial hotel is adopting the democratic leadership style, it will not be easily accepted by the authority as they generally want autocratic leadership style where they can order the employees to work in the organization. Besides this, finance issue will be raised at the time of implementing the strategy because the hotel requires finance to make the changes in the organization. These are some of the issues which are required by the Imperial hotel to focus on.
MONITORING THE STRATEGIES
It is important for the organization to monitor the strategies so that if any loophole is there it can be identified. But this process can be carried out only after one to two months. The reason is that the results are shown at that time only. For monitoring the strategies regarding the staff turnover, feedback of the employees can be taken. They are the one who are leaving the organization so it is important to know that are they satisfied with the motivation theory and the changing leadership and managerial style. If they are not satisfied then implementing the strategy will be of new use (Long, Perumal and Ajagbe, 2012). In this case, it is much needed to know the feedback of the staff members. Another monitoring tactics is seeing the result as the staff turnover rate is 80% so if the ratio declines merely also then it can be said that the strategy has positive impact on the performance of the organization. Even, if the managers see employment development and the growth, then it can also be state that the training which is provided is effective.
There are still several ways through which the staff turnover can be reduced. The above strategies designed are the short term tactics which can be implemented within no time. But for resolving the problem for the long term, the Imperial hotel is required to adopt the hard and the soft HR practices which can help the staff to work effectively in the organization (Nickson, 2013). Besides this, the pay scale is required to be changed as no employees are satisfied with the salary paid to the employees. On the other hand, the organization recruits foreign national from European Union for the part time. They need to reduce these activities because the company invest huge expense in their training and they leave in short period of time which is disadvantageous for the hotel. These procedures can be carried out only at the season time when the recruitment is high.
From the report it can be concluded that staff turnover is one of the major issues which is faced by the organization. Imperial hotel is not able to provide the services effectively to the customer and this is the reason the customers are dissatisfied. To curb the issues, motivational theories and change in the management will be carried out. For implementing the strategy, the mangers are required to perform their managerial skills so that they can effectively execute the strategies. Besides this, strategies should be monitored easily so that the loopholes and the gaps can be identified and further steps can be taken to curb them.
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- Chiang, F.F., Birtch, T.A. and Kwan, H.K., 2010. The moderating roles of job control and work-life balance practices on employee stress in the hotel and catering industry. International Journal of Hospitality Management. 29(1). pp.25-32.
- Kara and et.al., 2013. The effects of leadership style on employee well-being in hospitality. International Journal of Hospitality Management. 34. pp.9-18.
- Karatepe, O.M., 2012. The effects of coworker and perceived organizational support on hotel employee outcomes: The moderating role of job embeddedness. Journal of Hospitality & Tourism Research. 36(4). pp.495-516.
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- Nadiri, H. and Tanova, C., 2010. An investigation of the role of justice in turnover intentions, job satisfaction, and organizational citizenship behavior in hospitality industry. International journal of hospitality management. 29(1). pp.33-41.