Downfall of the Roaring Dragon Hotel Management - Role of Organizational Culture

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Downfall of the Roaring Dragon Hotel Management - Role of organizational Culture

13-Feb-15

Sullivan University

Dr.Venkateswara rao Penugonda

MGT 510

Instructor report:  Venkateswara,

This assignment showed a 57% similarity to other work, including a 51% match to a paper previously submitted to Sullivan University thus indicating that it was plagiarized. Additionally, the material that was shared among submissions had no in-text citations indicating where the material was derived from. You will receive no credit for the submission, and I encourage you to ensure that work submitted on all future assignments is yours.

Dr. Merrifield

Executive Summary

 This proposal provides several specific differences in “organizational culture” between the Roaring Dragon Hotel (RDH), a state owned enterprise (SOE), as well as one of the original three star hotels started in the 1950s in south-west China (Grainger, 2008) and the Hotel International (HI), a western international management organization.

 RDH hand over to the Hotel International for the purpose of modernizing and improving quality. The glory of the RDH started to fade due to various conflicts and cultural differences between HI management and employees. This proposal recommends that the HI management should give higher priority to understand the culture and resolve the conflicts with the Nu Fu travel agency, Guanxi networks to regain the reputation and keep-up the global competition of the RDH.

Introduction: A long colorful history and reputation

The Roaring Dragon Hotel (RDH), a state owned enterprise (SOE), was one of the original three-star   hotels in south-west China. Since the early 1950s it had enjoyed a long, colorful history and reputation as the region’s premium guesthouse. To  staff  the hotel,  employees  were  usually  transferred  in  from  other  SOEs and  government  departments primarily on the strength of their Guanxi networks or contacts. Having secured employment, RDH employees felt excited and very proud.[pic 5]

      In  2000,  the  Chinese general manager  (GM) Tian  Wen’s        management practices a good organizational culture with  minimal  concern  for  the  development of  the hotel’s  business. Employees’ jobs   were secure with the easy work, neat uniforms, complimentary meals, health cover, accommodation and fringe benefits for employees made the hotel an attractive and respectable place of work.

Background: Government negotiations with                                                                                                      International management

 RDH’s planned economy  management  processes  were  not changing with the slowly  developing market  economy and  there  was  minimal  concern  for generating profit or delivering quality standards of service. In 2001, the provincial government decided to hand over the RDH to the Hotel International (HI), a western  organization  with  the  right  international  reputation,  credentials  and  brand  name , for the purpose of modernizing and improving quality standards of service.  In 2002, HI has taken over the RDH and the GM position of Wen, was changed by the new GM, Paul Fortune.[pic 6]

Problem: Organizational culture

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                    Fig1: Problems of HI management

HI management failed to build trust and employee relationship. The Major problem in the RDH organization is caused because of the conflicts and cultural differences between the management and employees. The RDH employees did not will to work under HI’s management due to Short term contract, Decreased occupancies and motivation, lay off of young employees, Uncertainty of Job security and increasing the employee workload without paying their wages. Older employees were uncomfortable working under non-mandarin speaking HI’s managers. Employee dissatisfaction, loss of guanxi contacts, Cancellation of the agreements with the Nu Fu travel agency and lack of motivation caused problems to HI management.[pic 8]

Opportunities: Satisfied Employees & Success

Employee satisfaction and proper supervision are necessary for any organization to perform well. It was necessary to understand and appreciate cultural diversity at RDH before instilling changes. Meeting up customer requirements and employee satisfactory is mandatory to accelerate any

organizational changes. HI should have understood guanxi was key element at RDH taken advantage over guanxi in performing business rather than being rigid and ignoring guanxi. The management should have discussed the changes with the employees instead of radically implementing them. The employees would have felt motivated and also would have given ideas on how to improve the performance at RDH.[pic 9]