Roaring Dragon Hotel Case Study
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…
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 …show more content…
Relations among people, mode of activity, time, space and human nature could have been analyzed. Culture at RDH was highly collective and required teamwork and placid communication. The latent qualities of HI were capable enough to wonderfully rescue RDH from the massive dropping. To work together towards advancement, it is required to understand each other’s shared interests and differences. The new norms could have been tailor-made to bring gradual changes in the existing culture. If HI made cultural connection with RDH at an early stage, it would have been easy for both the parties to empathize with one another and work together towards progress.
Instead of being rigid and trying to get rid of guanxi, HI could have taken advantage of strong guanxi for the benefit of bringing in more business. HI should have realized the fact that guanxi was the homogenous bedrock on which RDH was exercising.
A further centerpiece of any company is its human resources. HI should have valued RDH employees and comprehensibly communicated to them of its new reforms. Involving employees in discussing the reforms would have motivated them and HI would have got some great ideas worthy to the organizational culture of