It is based on the business and management case study which requires critical with problem solving approach and management challenges. Undertake research and analysis.
Case study - The imperial hotel, London
The Hotel has 500 bedroom hotel, which is owned a well-known international branded chain of hotels in the 4 star market – It operates 25 hotels in the UK. The Hotel, located in centre of London’s West End, caters for mainly international business and tourists guests who wants high service standards.
- 500 bedrooms
- Conference facilities for 1000 people
- Leisure centre with swimming pool
- 3 bars and 4 restaurants
- 12 conference rooms
- 6 heads of departments- Food, housekeeping, guest service, front of house & reception and human resource and training.
- 450 staff in total
- Outside contractors
A new General Manager, Peter Farnsworth, recently taken over the management of hotel. He is an experienced manager having worked in various of the other Star city centre hotels outside London. The previous Manager, who just retired, had been experiencing a range of problems in managing the hotel, namely that:
There was very high turnover of staff in all the departments running around 80% a year mainly .
The hotel was graded the lowest in the whole Star chain in terms of overall guest satisfaction running at a rate of 60% in the company’s benchmark grading system; the overall sales in the hotel are improving,
The hotel occupancy was running at 90% for the year, the average room rate (ARR) achieved, currently running at £95 per room per night was relatively low compared to the local competition.
The poor performance is having negative effect on the costs of the hotel and the hotel’s profitability.
Peter Farnsworth to face challenges and has decided to plan a strategy for resolving the operational, management and business-related problems in the hotel.
- Problem 1 poor guest satisfaction
- Problem 2 high staff turnover
- Problem 3 negative work culture
- Problem 4 insufficient in meeting objectives by front office
- Problem 5 Not maintaining proper working culture by back of house staff.
Problem 1 poor guest satisfaction
As being undertaken in the survey the hotel was thereby rated as in the lowest graded in terms of customer satisfaction and also in the guest monthly survey GSS. Other than this when unanalyzed the main issue then seems that the guest usually complaints about the check-in and check-out issue due to long queues and waiting. The quality of rooms and the behavior of all the employees were also seem to be rude. As in terms of accommodation bathrooms, noisy air conditioning is the main areas.
Problem 2 High staff turnover covering 80% of staff members leaving in year.
There is being drawn that all the exit interviews and the issues in relation to the poor perception is acknowledged in working couture the lack of training to the regular staff and the poor pay level has made the retention level low. Young talent has left the staff and also the company due to little pay conditions.
Problem 3: Negative work culture
All the General Manager and the Head of departments are immensely in pressure as to enhance the sales and also for increased occupancy. There is seen the espoused values and the worse performance of the star group. As there is poor value of money. Work culture of the Hotel is toxic. There is less supervision in the staff members and also the work shift was driven a bit late as compared to all areas.
Problem 4 : Insufficient in meeting objectives by front office
The reception is not handling customers effectively and they are not providing 24 hours service. The reception is treating customers very badly as they are not providing effective service and not even replying the in a healthy way. Some of the reception staff having conflicts with other department. Its house keeping are not providing service as per the expectations . The conference and banquet staff have complained that they have not been provided with proper data. And there is poor formation of teams and departments in the hotel.
Problem 5: Back of house staff (Housekeeping, Kitchen, Maintenance)
The housekeeping Department of Imperial hotel is in a very bad condition as they are not able to attend the guests in a welcoming manner. The cleanliness of the hotel is also in a very devastating state as the rooms are not well clean in spite of having 50 attendants. The behaviour of Spanish attendants is very rude and impolite towards the guests who do not speak Spanish. This behaviour of the staff is bad with deteriorating condition of hotel which showcases a bad impact on the guests of hotel.
General information relevant to all problems listed
Staff incentives schemes
There are various incentive schemes to improve the productivity of employees for encouragement of staff in order to meet excellent standards of work. This includes: employees and staff of the month meeting individual performance targets within three consecutive months in department. The incentives of parties and college fees being paid in end of year.