The Regency Grand Hotel Essay
Elizabeth Ho, Prada Singapore, under the supervision of Steven L. McShane, The University of Western Australia
The Regency Grand Hotel is a five-star hotel in Bangkok, Thailand. The hotel was established fifteen years ago by a local consortium of investors and has been operated by a Thai general manager throughout this time. The hotel is one of Bangkok's most prestigious hotels, and its 700 employees enjoyed the prestige of being associated with the hotel. The hotel provided good welfare benefits, above-market-rate salary and job security. In addition, a good year-end bonus amounting to four months' salary was rewarded to employees regardless of the hotel's overall performance during the …show more content…
In the past, the Regency Grand had emphasised administrative control, resulting in many bureaucratic procedures throughout the organisation. For example, the front-counter employees needed to seek approval from their manager before they could upgrade guests to another category of room. The front-counter manager would then have to write and submit a report to the general manager justifying the upgrade. Soon after his meeting with the managers, Becker reduced the number of bureaucratic rules at the hotel and allocated more decision-making authority to front-line employees. This action upset those who previously had decision-making power over these issues. As a result, several of these employees left the hotel.
Becker also began spending a large portion of his time observing and interacting with the employees at the front desk, lobby, restaurants and various departments. This direct interaction with Becker helped many employees to understand what he wanted and expected of them. However, the employees had much difficulty trying to distinguish between a major and a minor issue or decision. More often than not, supervisors would reverse employee decisions by stating that they were major issues requiring management approval. Employees who displayed initiative and made good decisions in satisfying the needs of the guests rarely received any