Premium Essay

Grand Regency Hotel

In: Business and Management

Submitted By cat722
Words 1416
Pages 6
Introduction

“Introducing the practice of empowerment so as to replicate the successes that John Becker had achieved back home (McShane & Sheen, 2012)” did not occur as intended with the Regency Grand Hotel. The series of events that occurred thereafter led to deterioration and poor overall performance (McShane & Sheen, 2012).

Incorrect implementation of empowerment is clearly the underlying cause for the hotel’s recent performance, which is explained by the Expectancy Theory of motivation and Dissatisfaction Model.

Problem

Empowerment was too quickly placed in action without the consideration of culture differences and previous working ethics. This led to hotel performance failure because of employee dissatisfaction. The Dissatisfaction model (Exit-voice-loyalty-neglect) explains how employees had responded to job dissatisfaction (McShane & Steen 2012). The Expectancy theory of motivation complements the previous theory in explaining how employees worked towards a particular outcome (McShane &Steen, 2012).

Analysis

“After meeting with the managerial team at The Regency Grand Hotel, Becker was pleased with the response from the managerial staff and was eager to have his empowerment plan implemented (McShane & Steen, 2012).” Managers in this meeting expressed loyalty (Dissatisfaction model) by merely accepting the current conditions and waiting for the problem to work itself out (McShane & Steen, 2012).

Empowerment encourages employee autonomy, decision-making, and innovation; all of these being opposite ideologies to the bureaucratic management system the hotel were used to. “In the past, the Regency had emphasized administrative control, resulting in many bureaucratic procedures throughout the organization (McShane & Steen, 2012).” By placing more power in front-line employees, managers that previously held the decision-making power lost...

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