Roaring Dragon Hotel Case Study

773 Words 4 Pages
The Roaring Dragon Hotel was a three star hotel in the south-west of China. It was a famous enterprise which was owned by the state and 40 years of history. Roaring Dragon Hotel had a good reputation but started fading as there was a change in management to Hotel International. This organization had a good reputation and suitable enough to buyout the management of the Roaring Dragon Hotel. After the takeover, Hotel International took steps and changed the policies both internally and externally to meet the international standards. However, they failed to improve it and as a result they faced a great loss. The main reason behind this was the conflict between the employees and the management. The organization that took over the Roaring Dragon …show more content…
In 2001, Hotel International was given the management control of the Roaring Dragon Hotel to improve its quality, brand and reputation. Hotel International replaced Mr. Wen the existing manager who lost all his powers and privileges with a new manager. Mr. Wen had brought up the differences between the employees and the management. As this was one of the main reason for Roaring dragon Hotel to lose its reputation. Therefore, the government ended the contract with Hotel International and took its management by the provisional government. Even though Hotel International’s contract was terminated, the reputation continued failing. This could only be corrected with good planning, training, employee motivation and effective decision …show more content…
Some of the major problems included, Roaring Dragon Hotel employees did not want to work under the Hotel International’s management. Cancelling their agreements with Nu Fu travelling agency, loss of guanxi connections and industry contacts, laying off young employees, increase in employee workload without any payment, uncertainty of job and lack of motivation, old employees found it difficult to work with non-mandarin talking managers were few of the other problems. The other reason was that Hotel International did not get support from employees when they wanted to remove Mr. Wen. They failed to understand the culture of Chinese and started making improvements to meet the international standards without any considerations from the older employees.
The management of Hotel International should have respected the Chinese culture and put some focus on the history of Roaring Dragon Hotel. They should have analyzed the root cause by KYZ Corporation. They should have included their employees in the process of decision making. This would improve Hotel International’s performance rather making their own decisions. Management needs to plan on building employee relationships. By disrespecting the culture and the old employees they failed to do so. They also need to motivate their

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