Introduction:
The Roaring Dragon Hotel is a three-star hotel that is located in the southwest part of China. Since the 1980’s the state-owned-enterprise has enjoyed a long colorful history and reputation as on of the regions premium hotels. The at the office which is in another city. On average Mr. Wen shows up at the hotel once a month. In 2002 he decided that it was time to expand their hotel and make the jump to a five star hotel. Wen hired a consulting company to conduct an evaluation of his hotel from top to bottom. Everything from the service to the procedures was included in the evaluation. He also wanted to make sure that his employees would be able to make the jump to a ...view middle of the document...
Problem:
Guanxi was practiced in RDH for several of years. The employees that had good hotel. The management of HI decided to finish the concept of guanxi, and hired new employees on the basis of education. Many of the old employees were not happy with this decision, and they decided to quit RDH. The turnover rate was increasing and the hotel was losing its business because of this.
Wen, formerly enjoyed the privileges of being the GM. But after the appointment of Fortune as the new GM, he was not able to invite guests to RDH and give free complimentary accommodation. He started to have conflicts with the HI management and the workers also did not like the HI style of management.
The employees did not work with interest. In the working hours, they used to play cards and read news paper. Many of the Chinese managers were working on their side business and used to go their whenever got time. This non-professional attitude of the employees was affecting the performance of RDH. HI took a notice of the situation, tried to bring...