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Roaring Dragon Hotel Case Solution

Solution Id Length Case Author Case Publisher
2432 2006 Words (7 Pages) Stephen Grainger Ivey Publishing : 908M04
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RDH was performing poorly in financial terms which is why HI was given the contract of restoring the profitability of the hotel. As the HI management took over the company, they brought about changes resulting in employee firing and changing the organizational culture where the focus was shifted from employee satisfaction to solely hotel profitability. The change vision was not clear and talented employees resigned from the hotel ass HI management would impose its strategy on the staff without accounting for their motivating drivers. With huge firing and low sales revenue of RDH after the management takeover given the differences in culture between the hotel management and the staff, the position of hotel further deteriorated after which it was decided the HI would give back the control of RDH to the Chinese government through the Termination of Management Agreement.

Following questions are answered in this case study solution

  1. Could the management of the HI team have been more culturally sensitive and was its strategy correct to achieve its goals? Explain.

  2. Could Tian Wen, the former general manager, have been used in a more advantageous way? What did you think of the management practices?

  3. What did you think of the training? Was it enough time? Why or why not?

  4. How could the communication between the international managers and hotel employees have been enhanced?

  5. What benefits would have been demonstrated if a performance management system was in place?

  6. Was HI's redundancy process appropriate or could it have been done in a different way? Are there any suggestions you have to make this process more effective? Connect it to a performance management plan and appraisal system that would be beneficial.

Case Analysis for Roaring Dragon Hotel Case Solution

1. Could the management of the HI team have been more culturally sensitive and was its strategy correct to achieve its goals? Explain.

After analyzing the case, I think the HI team could have been more culturally sensitive when managing the operations at the Red Dragon Hotel. The HI team did not assess the culture prevalent and instead imposed its practices by completely altering the employee dynamics with the vision of increasing the overall efficiency and the productivity of the staff. Initially, the strategies undertaken at Red Dragon Hotel were focused on ensuring employee satisfaction and happiness. It is for this reason the employees felt more secure in their jobs as they were working in great working condition and had a good compensation package as compared to jobs in other organizations with the same roles. When HI took over as the management of the hotel, they brought in a very harsh working environment where the employees were served with short term three months contract and then they were terminated at the end of their contract creating a high sense of insecurity throughout the organization. Where previously, the employees would eat together, HI came up with a new meal roster where employees would have their lunch alone, as a result the environment in cafeteria also got gloomy. As employees did not interact with each other and did not have fun, their satisfaction level declined. Also, the old staff who was not very much educated could not cope with the fast and demanding pace of their new job roles as well as it got difficult for them to follow instructions given by Non mandarin speaking managers. The employees could not connect with the management as there was a language barrier given the different culture. This further added up to their dissatisfaction levels. Hence HI management could have been more culturally sensitive by having mandarin speaking managers on the floor to instruct staff and by gradually bringing about changes by providing employees with adequate training level and keeping them in loop throughout the change process so that they accept the change wholeheartedly. 

2. Could Tian Wen, the former general manager, have been used in a more advantageous way? What did you think of the management practices?

In my opinion, the former general manager, Tian Wen could have been used in a more advantageous way. Because he was with the hotel for a long time and had come with many policies that favored the staff and employees, he was obviously liked by the staff and is assumed to have a higher level of influence on the, Also, they shared the same cultural background which allowed him and the staff to deeply connect with each other. Also, Tian Wen was well aware about the hotel culture and the essence of guanxi connections which was not realized by the HI management as they took control over the hotel.

I do agree with the fact that the practices used by Tian Wen were not very good as he was just focused on the wellbeing of the staff even if they were not that efficient or productive. It is for this reason there was hardly any concern for delivering exceptional quality standards to the customers as the employees would still get good compensation even if the hotel would not be performing financially well. Tian Wen, however, could have altered his practices that would have resulted in positive value generation for the hotel. If he would be the one leading the change in the Red Dragon Hotel, there is a possibility of less resistance from the end of the employees as they would not feel threatened by Tiam Wen due to his positive reputation among the employees. Like HI management introduced a meal roster for the staff, which was more like schooling them, Tiam could use his influencing charisma to make the employees understand their need to evolve to compete in the current market conditions and how they would be gradually changing the work environment with each employee having a greater degree of responsibility. This way the employees would have taken accountability which would have improved their productivity and ultimately enabled Red Dragon Hotel to meet the quality customer service standards.

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