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Business Case Study - Regency Grand Hotel

Problems such as back-stabbing and unsupportiveness increased. Some of local and international media propagated against their progress and called Regency Grand as "One of Asia's nightmare hotels.".
             Problem categorization:.
             The major problems which destabilized American style of management are as under:.
             Cultural Issues: There was a sudden change in management style. There was a huge power distance between Thai management and employees. The US management focused on individualism rather than collectivism.
             Social Issues: The US management had lack of local knowledge. The new management had little or no relationship with the employees. The supervisors and employees had a communication gap.
             Empowerment Issues: The US management failed to specify the Job Description of the employees. The employees lacked responsibility. There was no proper system of employee performance. There was high turnover and absenteeism.
             Leadership Issues: US management lacked a proper organizational structure. The policies and procedures were not suitable for the employees. The leaders were not task oriented. There was a sudden bureaucracy reduction. The employees failed to understand the major and minor issues.
             Recommendations and Solutions: The vision, direction and policies should be explained to the employees. It will lead to better understanding of the organization's purpose. The US management should develop cross cultural awareness and knowledge of Thai culture. The new management will understand the behavior of their employees well and can help motivate them. This might make Becker feel challenged of his previous style of running an organization.
             Transformational and task oriented leadership style should be adopted by the new management. It will lead to more productivity. It also might confuse the Thai employees. Conduct meetings with staff and managers on regular level to gain their trust. It will help the employees to work selflessly for the organization's benefit.


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