Roaring Dragon Hotel
Proposal
By
Ridhima Agarwal
Sullivan University
Management Summary
The proposal unfolds what went wrong when HI (Hotel International) was called forth to modernize RDH (Roaring Dragon Hotel), a state owned enterprise (SOE) in South-West China. RDH was a guanxi-based hotel where social bonds were of utmost importance (Grainger, 2008). When HI arrested the declining resources of RDH, employees faced the cross culture differences trying to adapt to the novel and modern practices applied by HI. However, the success or failure of the merger between two culturally different companies lies in appreciating their differences and meeting the purpose of partnership collectively.
RDH-HI contract is a perfect example of what not …show more content…
In the Western culture, relationships grew out of deals whereas in China, deals grew out of relationships (Vanhonacker, 2004). The culturally sensitive organizational changes, which HI chose were basically to modernize RDH and make it sound globally. Thus, most employees could not adapt to the practices of HI, so they either resigned or were accustomed to ad-hoc management.
Guanxi was widespread through the length and breadth of RDH. Employees were recruited into RDH based on guanxi; primary source of business income was made through guanxi connections and discounts. Jobs at RDH were undemanding, accompanied with all kinds of employee benefits. The organization culture at RDH summoned heedless people.
HI’s meteoric introduction of radical changes shocked numberless. Once, the culture started transforming, the nonchalant did not want to muddle through the change and so applied for transfers. RDH started losing aspiring employees, along with potential business dealings with its …show more content…
Post buyout, HI wanted to bring in drastic changes in the organizational culture of RDH like transfiguring ordinary customer service into enhanced 5-star quality service, creating a set of dynamics to primarily motivate employees and get rid of Guanxi practices. Reorganization is definitely required in RDH; HI’s scheme is cent percent bona fide. Notwithstanding, HI dwindled to understand the “as-is” organizational culture, the reason for existence of Guanxi, how Guanxi helps business and the most important of all: not gauging the human element involved in the whole affair (IMD International, 2003). Without understanding the existing system, any change implemented will not generate desired results. HI brought in its successful practices from a totally different culture and applied it to RDH without any ultimate layout of adaption. By barely focusing on disciplining the employees, HI lost RDH’s exquisite business tie-ins and
Proposal
By
Ridhima Agarwal
Sullivan University
Management Summary
The proposal unfolds what went wrong when HI (Hotel International) was called forth to modernize RDH (Roaring Dragon Hotel), a state owned enterprise (SOE) in South-West China. RDH was a guanxi-based hotel where social bonds were of utmost importance (Grainger, 2008). When HI arrested the declining resources of RDH, employees faced the cross culture differences trying to adapt to the novel and modern practices applied by HI. However, the success or failure of the merger between two culturally different companies lies in appreciating their differences and meeting the purpose of partnership collectively.
RDH-HI contract is a perfect example of what not …show more content…
In the Western culture, relationships grew out of deals whereas in China, deals grew out of relationships (Vanhonacker, 2004). The culturally sensitive organizational changes, which HI chose were basically to modernize RDH and make it sound globally. Thus, most employees could not adapt to the practices of HI, so they either resigned or were accustomed to ad-hoc management.
Guanxi was widespread through the length and breadth of RDH. Employees were recruited into RDH based on guanxi; primary source of business income was made through guanxi connections and discounts. Jobs at RDH were undemanding, accompanied with all kinds of employee benefits. The organization culture at RDH summoned heedless people.
HI’s meteoric introduction of radical changes shocked numberless. Once, the culture started transforming, the nonchalant did not want to muddle through the change and so applied for transfers. RDH started losing aspiring employees, along with potential business dealings with its …show more content…
Post buyout, HI wanted to bring in drastic changes in the organizational culture of RDH like transfiguring ordinary customer service into enhanced 5-star quality service, creating a set of dynamics to primarily motivate employees and get rid of Guanxi practices. Reorganization is definitely required in RDH; HI’s scheme is cent percent bona fide. Notwithstanding, HI dwindled to understand the “as-is” organizational culture, the reason for existence of Guanxi, how Guanxi helps business and the most important of all: not gauging the human element involved in the whole affair (IMD International, 2003). Without understanding the existing system, any change implemented will not generate desired results. HI brought in its successful practices from a totally different culture and applied it to RDH without any ultimate layout of adaption. By barely focusing on disciplining the employees, HI lost RDH’s exquisite business tie-ins and