In present scenario, management plays a crucial role in order to accomplish business goals and objectives in an effective manner. Managers of business associations are liable for controlling entire workforce as they can improve their skills and knowledge. Sometimes, due to unnecessary laws and legislations employees are tend to leave workplace which can affect their productivity and efficiency of the firm (Albert and Beatty, 2014). The present assignment is based upon Imperial Hotel having 500 bedrooms; the industry is owned and managed by international chain of hotels, i.e. - Star hotels which is currently operating 25 hotels across UK. In Hotel Imperial, due to ignorance of previous general manager of the company he does not focus on managing employees' performance; it results customers' satisfaction level cannot be accomplished. Apart from this, the report is based upon the issue of high staff turnover rates of employees as 80% staff has leftover within a year. Furthermore, certain recommendations will also provides so as to boost up employee retention rates.
Analysis of the problem which is faced by Hotel Imperial
The chosen organisation, i.e. Imperial is a well reputed and established hotel in London that works under ownership of international chain of hotel named 4 star in Market. The hotel is located in London's West End which famous for providing opportunity to many international businesses with an aim to serve effectively to tourists guests who wants high standard of services. The infrastructure of the company involves 500 bedrooms with en-suite facilities as well as conference facilities for almost 1000 people. The main leisure centre is there a swimming pool, 3 bars and 4 restaurants which supports in attaining and retaining large group of customers (Anderson and et. al., 2018). In order to manage all functions and operations of hotel in systematic manner, top management has hired a new general manager Peter Farnsworth; who is an experienced manager and have worked in many reputed hotels. Apart from this, problem 4 has been considered for the entire study; that is based upon High staff turnover rates with 80% of the staff leaving within the year.
Although, it been also viewed that previous management style was not effective as various consequences are occurred in attaining and retaining employees due to lack of staff morale. It results, insufficient and low quality of services are providing to customers thus Imperial hotel is graded as lowest among star chain of hotels as per the customers' views and satisfaction level. It put a huge impact on market image of the company; here major problem is identified is high employee turnover rates cause of improper management and low employee morale (Hazen and et. al., 2014). There are different cultural people are worked in Imperial hotel, i.e. students, foreigners and local people of UK; due to low wages rate the staff turnover rates are getting raise mostly front line employees. When the staff change frequently, existing people will take time in order to create a positive team dynamics. When a group of employees work together and suddenly one is leaving and another one is coming on his/her place affect the entire working procedures and practices. The reason behind this is personality and work ethics of an individual may differ from another. On the other hand, high turn rates also put a vast impact on decision making process of the company because workers are not interested to participate in such activities (Kotler, 2011). Low employee retention can also result in de-motivation. Employees might think lack of turnover a negative due to the lack of likely promotions which influences enthusiasm. diminutive or no opportunity for advancement could indeed result in turnover as employees search for positions with new organizations offering growth and future promotion. It goes against human nature to remain sluggish, carry out the same jobs every day and not seeing any optimism for change in practice.
It also has been determined that there is a poor management of work cultural within hotel because of inadequate supervisory managerial styles. Other main reasons behind increasing employee turnover rate is – lack of proper training, unsociable working, poor wages, little opportunity of promotion, higher travelling costs as well as hurdles while getting transport for home specially in night; it is critical issue of women employees. Due to all these problems, a wide range of young staff members left the organisation and join its competitors as they are paying more with providing flexible working conditions and further benefits (Malhotra and Malhotra, 2012). Therefore, increasing staff turnover rates put a direct pressure on overall budget of the company because high cost is required to identify and recruit talented people. The need of continuously hiring new employees also increases cost of induction and training programmes. It also hinders quality of services because new staff does not know how to serve effectively; it led guests are switching off to brand which gives them more satisfaction level. It appears like a cycle which emerge and linked with staff turnover in whole organisation. The main thing which force people is decreasing job satisfaction level and lack of commitment of management as there is no job security at there. It shows attendance issues, reducing performance level employees cause of high workload and stress. Many people who have worked in Hotel Imperial are not get promoted; it reduces their morale and efficiency. However, operational bureaucracy is one of the major issue which affect performance level and productivity of the entire organisation. In Hotel Imperial another reason behind high employee turnover rates is lack of communication between management and employees which increases conflicts and misunderstanding between both parties as if employees couldn't share their issues or thoughts. Due to lack of managerial interaction of staff members reduces their interest to work effectively for accomplishment of organisational goals and objectives (McCauley, 2012).It also harm decision making process of the firm as well as quality of services which are being offered to customers. Therefore, poor quality of services customers are getting satisfied as this will also affects sales and profitability of the company.
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Suggestions of above discussed problem
Due to ever dynamic nature of business environment, corporate associations are being faced several issues and problems which can harm their productivity and profitability in several ways. In order to get rid over with this problem, management should formulate several strategies and policies which supports the firm to get high competitive edge. In context of Imperial hotel, increasing employee retention is one of the major problem that is being faced by the company at present. In hospitality industry, employee turnover is one of the common problem in low paying jobs because in this amount of wages are classified on the nature of work, inequality in work hours (McDaniel and Gates, 2013). In addition to this, lack of respect of employees may also experience from their employers, other employees and customers.
To resolve this issue and function effectively, top management of Imperial Hotel has hired a new general manager who is liable for handling and controlling all working activities of the company. Peter Farnsworth has demonstrated that employees have low morale and motivation; it results they are not able to perform in well being manner. Thus, new manager is focused on improving current policies and practices so as to improve employee retention rates at workplace. In this manner, the hotel is providing numerous growth opportunities to fresher in terms of giving them career growth. The firm has organised several training and development programmes as people can learn new and innovative skills and deliver qualitative and value added services (McKenzie-Mohr, 2011). In addition to this, it also hire students or colleagues who wants to learn practical knowledge at the time of study so as to clear their basics. These people have great enthusiasm and willingness to learn new skills and implement the same within organisation. Along with this, there have to regulate a free flow of communication as employees can share all of its issues and problems and resolve the same in the best possible manner.
Every business organisation expect that its professionals or employees are fully trained and qualified but not everyone is willing to invest in such activities and maintain these credentials. Thus, Hotel Imperial is required to send its individuals at learning centre; it can also acquire ownership of several e-learning sites which enable to provide strong knowledge and competencies to staff members in specific areas. If employees have latest or new skills then it increases performance level of the firm; it led to obtain high cutting edge in a certain time period. Apart from this, new general manager of the firm is also required to determine employees who suits to the organisational cultural and create a strong bond with company. Although, such kind of environment helps in attaining and retaining people for long term period. Cultural of a business should meet all needs and wants of an individual in order to achieve high performance objectives (Myerson, 2012). In this manner, Imperial Hotel can regulate a flexible cultural at workplace which gives freedom of work to employees. Management should gives proper attention to needs and wants of employees and trying to deliver them higher satisfaction level it makes closer firm with its workforce and they will get know what management is expecting from them.
Therefore, when there's nothing wrong with someone switching jobs if management provides career advancement, look for someone who is interested in growing company rather than getting experience to take somewhere else. Administration of Hotel imperial should also organise several meetings or group discussions so as to make people aware to their job opportunities and how effectively they are performing. It can be done through by preparing a job plan and rendering necessary feedbacks upon performance of each and every individual. Below is defined further suggestion which helps in reducing employee turnover rates in Imperial Hotel: -
- Providing an opportunity to employees towards their career and personal growth can also reduce employee turnover; it will be done by organising training, educational events, assigning them challenging roles and responsibility.
- Offering feedbacks on performance level of employees and praise good efforts will lead in attaining and retaining for long term within an organisation. But for the same, general manager of Imperial Hotel should recognise employee contributions as its a crucial form of employee reinforcement. Although, every people is willing to know that their work makes a difference (Palmer, 2012).
- It is also essential for manager to provide high compensations and benefits to employees as per their abilities and skills. It is one of the effective technique to motivate or encourage employees when their above-average efforts are recognized and rewarded. On the other hand, providing bonus for every potential success of the company keeps employees' interest within an organisation.
- Apart from this, providing an attractive and comprehensive benefits package which several benefits, such as - life insurance, disability insurance and flexible hours.
- Managers also have to encourage teamwork as it will make easier organizational process. Teamwork will also improves efficiency and knowledge level of employees (Peterson, 2015).
- No matter what ideas are implemented to improve morale and create team mentality, pick a few and remain consistent with ideas rather than trying to apply too many that lack consistency.
Read Also: Measures for proper Management- Imperial Hotel
As per the above discussion, it get evaluated that Imperial Hotel is facing the problem of high staff turnover rates which is affecting performance and output level of the company in direct and indirect manner. Due to lack of managerial involvement and guidance, employees are not able to perform in well being manner. Apart from this, several issues like – job satisfaction level, unorganized training programmes and improper communication etc. intends employees to switch another organisation. Low employee retention also effects productivity and performance level of the company because loss of a well experienced and qualified employee cannot be bearable for some business organisations. Therefore, in order to resolve all these issues or problems management need to hire those people who has enough capabilities to manage all tasks and activities at workplace; it smoothen quality of services as well and increases customers satisfaction level in Hotel Imperial.
Read Also: Implementing Management Theories- Imperial Hotel
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