Regency Grand Hotel Case Study

2913 words - 12 pages


Introduction to the Regency Grand Hotel the Hotel is among the five star hotels in Bangkok, established by local investors. The ownership of the hotel was later transferred to the American Hotel Chain. John Becker a man with a good history in organisational management became the General Manager. Becker introduced an empowerment strategy as an aspect that would increase employee motivation and satisfaction. The practice reduced the bureaucratic governance that was embedded in the past management. The employees were now able to get involved in decision making, creativity, and innovation. Interaction with top management was also encouraged. Becker's policy however did not ...view middle of the document...

• The Hotel also faced the challenge of social emotional conflicts among employees.
• Contingencies of power such as source of power were not clearly outlined.

These issues resulted in high levels of stress, absenteeism and turnover.

Communication and Culture:
Communication and Culture Prior to the take over, The Regency Grand was Thai owned and operated. While weighed down by the internal processes the census was one of understanding and fitted in within the cultural bounds.
The American conglomerate conducted little research into the culture as reflected by Becker’s appointment and utilization of predetermined strategies ill-suited to an already successful business. English is becoming the common business language in Thailand (Chakorn, 2006). Verbal and written communication differs greatly between the two cultures, amplifying the need for Active listening.

Leadership styles
In cultures with large power distance such as Thailand, subordinates feel more comfortable with autocratic leaders and Regency had a history of autocratic leadership where employees always following instructions of their manager in hierarchy. Becker change initiative, however, introduced democratic leadership to Regency through the empowerment employees. This major change in leadership style would clearly be difficult for Regency hotel staffs that have less experience in not following orders and handling the situations themselves.

Implementation of organisational change:
Implementation of organisational change in times of change within an organisation, it is essential for the management team to ensure that employees are actively involved in the process of change. Becker introduced his new policy to the directors of the organisation. He however, found himself all alone trying to implement the empowerment practice. Involving employees in the decision making initiatives is crucial. The purpose of this is to make them feel part of the organisation (Lynn, 2008). The empowerment criteria employed by Becker enabled assimilation of employees in the decision making process. Their contributions were however, not profitable to the organisation.


Organisational Culture and Change:
Organisational Culture and Change Organisational culture exists where a set of cognitions is widely shared by members of a social unit and comprised of fundamental assumptions, values, behavioural norms and expectations, and larger patterns of behaviour (O’Reilly, Chatman & Caldwell, 1991). Employees at the Regent had an organisational affiliation to the Hotel, adding to the organisational culture. O’Reilly, Chatman and Caldwell (1991) indicate that individuals will choose roles, occupations and organisations based on congruency with their own values. Organisations tend to recruit individuals who are likely to share their values. When Becker implemented changes in job roles and organisational structure, without maintaining a congruency in values, this may have lead to...

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