Case Analysis Of Portman Hotel

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John C Portman is the designer and developer of the Portman Hotel under whose brand name the management runs the hotel. The hotel model is to serve the niche market and set new standards by adopting the Asian standard of hospitality. Portman hotel hard bargain tactics dissuaded the unions from representing the employees. In order, to maximize the service and reduce the overhead there is a lean middle management team and more personal valets facing the guest. The hiring process selected the talented candidates with an expectation of earning extra tips with the service. A sound contract is in place to address performance, grievance procedure and a general rule of conduct. Training provided to personal valets with an expectation to consider any …show more content…
The huge effort to interview 9000 applicants gave priority to the talent rather than candidates’ values and with no career plan the hotel became a foot on the door for the employees. The flat hierarchy structure did not allow the time to engage with the personal valet and address the grievances. Without the proper set of operational guidelines, the floaters are not able to be productive as PVs. The shirking behavior of the middle management against the non-performers leads to a situation where personal valets don’t rely on each other affecting the team spirit. The lack of appreciation culture affects the morale and productivity of the PVs. The multiple job assignment and departmentalized working style create friction between the employee’s relationship resulting in chaos. American customers being unfamiliar with the concept of personal valet system did not know the appropriate tips. Consequently, the false hope of earning extra $200 tips lead to a situation where personal valets started looking floaters as threats. The organizational set up for developing long term relationship with the guest did not materialize due to the constant changing of personal valet’s assignment. The legally binding contract with two weeks of training is not sufficient to …show more content…
Michael Kay needs to clarify and reiterate the hotel’s vision and philosophy. A clear job description and a better understanding of the candidates’ values should be in place prior to the hiring of the new candidates. The competency model for measuring the KPI identifying responsibilities and penalties needs to communicate to the PVs. The introduction of the team captains collaborating with PVs will potentially resolve the staffing problem and facilitate in handling grievances. The replacement of floaters with maids for cleaning works will allow the PVs to provide better services to the guest and earn additional perks in the form of tips. PVs are the backbone of the hotel’s revenue strategy and therefore by providing training and having a career plan in place will motivate them to take additional responsibility. An employee of the month and customer loyalty program will have a positive effect on word of mouth marketing which will increase loyalty and overall profit. However, for implementing some fundamental changes in the organization, requires a high budget with enormous potential risks if the new strategy’s implementation

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