Case study- Imperial Hotel, London
Imperial hotel is a well-known hotel with 500 bedrooms. This hotel is owned & managed as part of the international branded change of the hotels within the 4-star market- Star Hotel that operated nearly 25 hotels in the United Kingdom. Respective hotel is situated in Heart of the London's West End, cater for the international business & tourist visitors who have great expectation regarding the service standards.
The imperial hotel provides facilities:
- Leisure centre with beautiful swimming pool
- 500 bedrooms along with end-suite facilities
- 12 conference rooms
- 3 Bars & 4 restaurants
- Conference facilities for nearly 1000 people
- There are 6 department's head- human resources and training, guest services and concierge, front of house & reception, Housekeeping, food and beverage
- Outside contractors (for management of leisure centre, specialist cleaning and for laundry services)
- There is a staff of 450 individuals (300 full time & part time)
Peter Farnsworth, (new general manager) recently take charge of the management of respective hotel. He has an experience to work as a manager within other hotel like Star city centre hotels outside the London. Organisational previous Manager had been experiencing various issues when managing the hotel. These issues are here,
- High rate of the employee’s turnover within all the department across the organisation. Annually this data is running around 80%
- Respective hotel was graded as lowest in entire Star chain in terms of the overall customers satisfaction running at rate of around 60% in the organisational benchmark grading system; overall sales in this hotel are improving,
- Occupancy in this hotel was running at the rate of 90% annually, the ordinary room rate (ARR) achieved, presently running at around £95 per room per night was comparatively low as compared to other local competition.
- Its poor performance has an adverse impact on the organisational success and profitability.
- Issue 1: Poor customer satisfaction
- Issue 2: Rate of employee turnover is high
- Issue 3: A negative work culture
- Issue 4: Inadequacy in meeting the objectives by the front office
- Issue 5: Improper maintenance of the working culture by back-of-house staff.
Issue 1: Poor customer satisfaction
Respective hotel is not capable to provide customer satisfactory services. Guest faces many issues when check in & check out. Hotel's staff are not good with the customers as they talk very rudely that give a negative experience to customers.
Issue 2: Rate of employee turnover is high
Imperial hotel is lacking in providing training to its staff due to which, its employees are not developing themselves. Apart from this, respective hotel is also not providing any promotion opportunities to its employees due to which, workers are leaving the workplace.
Issue 3: Negative work culture
General Manager & the Head of the departments within respective organization are immensely in pressure as to increase sales & also to enhance occupancy. Work culture in respective Hotel is very toxic. It has been identified that employees within respective firm are not getting a supportive working enthronement that create stress and anxiety within employees.
Issue 4: Inadequacy in meeting the objectives by front office
In Imperial hotel, staff always argue with each other that create circumstance of conflict within workplace. It crates hurdle in meeting the objective of front office as they could not perform their teaks properly. In case if its reception department unable to inform its housekeeping regarding late or early arrivals the, subsequently rooms have not been cleaned on time that lead to a negative customer experience.
Issue 5: Improper maintenance of the working culture by back of house staff
Within imperial hotel, a proper staffing of its housekeeping department is always creating challenges as respective hotel is unable to maintain a proper hygiene. Therefore, guest have to face many problems. Apart from this, respective hotel is also not able to provide the staff accommodations.
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- Discuss the issue's likely cause firm operational and management perspective.
- Put forward 3 points to resolve this issue specifically in term of improving service, quality, operational efficiency, staff morale and productivity in order to make the organisation financially sustainable
- justify your answer with operations and management principles and theories.