MGMT861: Managing Organisations and People - Trouble in Paradise - Management Assignment Help

Assignment Task:

Life at a large upmarket resort on the Pacific island nation of Nikau has changed for the staff since the hotel was recently taken over by a Singapore-based chain from its previous owners, a British hotel company. The hotel has been renamed the Paradise Hotel in line with the brand of the new company. The local hotel employs staff from many countries, with most of the lower-skilled jobs performed by the local inhabitants, and most of the management positions, until recently, were held by white staff, including New Zealanders and Australians. The General Manager and Food and Beverage Manager, both from France, have left, as have the Facilities Manager and Head Chef, who were Austrian. The hotel has been struggling to break even since the economic slowdown and 20% of the staff had been laid off by the previous owners only two months before they sold the hotel. They were given a month’s notice but no redundancy pay, as that was not part of their employment contracts. Pay rates are considered above average for the South Pacific and leave provisions for expatriate (overseas) staff are generous.

Social interaction among staff tends to be divided into national and ethnic lines. The white stuff, who mostly speak French, German and English, often congregate around the small staff swimming pool, play golf and tennis, eat together when off-duty and periodically undertake trips to the capital. The employees from India, Sri Lanka, Vietnam, Korea, and China also tend to stick to their own groups, while the few employees from Samoa, Fiji, Tonga, and the Cook Islands usually mix among themselves and occasionally with the other staff.

Sammy Chan, the new General Manager, arrived in early February with an excellent reputation for managing hotels in Malaysia, France and New Zealand. He is 41 years old and speaks six languages. He went to school in China, a university in the USA and hotel school in Switzerland. He believes that only the best staff can achieve the highest standards but they must also be empowered to do their jobs to the best of their ability. Respect for people and teamwork are other strong values.

(MGMT861) - Two new managers have joined Paradise Nikau, a Food and Beverage Manager, Raj Singh, who has had many years’ experience in Florida and the Bahamas, and Silas Umaga, the new Facilities Manager, who has had no hotel experience but had been property development manager at a New Zealand university. A new human resources manager will join the company at the end of March. 

On reviewing customer satisfaction survey forms over the last year Sammy has concluded that the hotel is not living up to the motto of the Paradise company: “World-class service is guaranteed at the Paradise Hotel.” Some guests have complained that beds are not made up till mid-afternoon, dates of bookings are often inaccurate, the quality of food and service in the hotel’s restaurant is no better than average, despite the high prices charged, and the sports and recreational facilities are in poorer condition than many mid-range resorts.

The new owners are investing several million dollars to upgrade the resort and renovations are planned for the swimming pool, tennis courts and golf clubhouse. An upgrade of the hotel’s information systems will also be implemented. In line with other Paradise hotels, new human resource policies, including a performance management system, salary increases based on performance and reduced annual leave will also be introduced. A new focus on the use of social media to promote and improve the Paradise Hotel in Nikau will be implemented. 

In mid-February, Sammy is holding his first meeting with the senior management team, which, in addition to the two new managers, comprises Betty Kwon, the Accommodation Manager (responsible for bookings and bedroom facilities), Greta Schmidt, the Finance and Administration Manager, and Billy Timu, the Sport and Entertainment Manager. After explaining his background and personal management philosophy, Sammy outlines the new company’s mission, which emphasizes quality, pride and humility. He then explains what Paradise expects of its staff. He notes that the staff has rendered some excellent service in the past but that some things will need to change. The company has to return to profitability, the quality will have to be raised and individual performance will be tracked. He outlines the renovation program, the upgrading of the IT system and the new HR policies. These announcements immediately cause an animated discussion.

“We have always had six week’s leave, now it will only be five,” says Greta, “and this is important for those of us a long way from family and friends at home.”

“I quite understand”, Sammy replies calmly, “but we have to have the same leave provisions as the other hotels in the group. And note that although salaries here are higher than in most hotels in our group, we certainly are not going to lower them. And with the new pay-for-performance system salary increases will be on merit, which means all of you, and your staff will be able to benefit.” 

Raj remarks, “I have only been here a few weeks, but there is one thing I have noticed, the staff seems to stick together on racial lines. This is quite different from where I have just come from in the Bahamas. Why is that?”

There is an uncomfortable silence, eventually broken by Sammy, who says, “Well, perhaps that is something that also needs to change. Look, folks, change can be difficult, we all know that, but let us work together to develop a great hotel for guests and a great place to work. It will take time. I have the greatest faith in all of our staff to deliver results. From now on we will meet every Thursday at 10 a.m. to discuss plans, report on progress and share ideas.”

(MGMT861) - At the next senior management meeting, Sammy opens with, “Right, folks,” we are expecting a big crowd for the Easter holidays and we have to make sure everything goes well. Nothing but the best will do for our guests.” He then proceeds to ask for reports from the management team. 

Billy, known for his sense of humor, quips, “My lot is simply the best, or maybe they are just simple. Don’t worry about us, will make sure things swing.” 

Betty grunts, “Yes, but they spend most of their time swinging in the hammocks, while we get on with the job. Our department does all the boring and hard work and we get no recognition. Many complain they only work here for the money.”

“Try mowing lawns in 35-degree heat,” says Silas, “or fixing the generator. The damn thing broke down yet again. We can’t keep on fixing it. When can we get a new one?”

“I am not sure if that is part of the renovation program,” replies Sammy, “The company says that it has committed a lot of money to renovate the hotel but we have to be very tight with the money. I will let you know.”

“Yeah, but what happens when there is no air-conditioning? The guests will go nuts.”

“What do you think it’s like in the kitchen?” moans Raj, “and the pressure is much greater there.”

“Hold on!” exclaims Billy, “This is not a competition about who has the most difficult job. We are supposed to act as a team here! How can we expect the staff to work as a team if we can’t do it ourselves?”

“Indeed,” replies Sammy, “I believe that teamwork is important. We need to focus on our goals and work together to achieve them. All of you are experts in your fields. It is also really necessary for everyone here to keep all of us informed about what is going on in our departments because we all have the same end result in mind.”

In the restaurant kitchen, things are heating up too. Henrik Larsen, from Sweden, had been promoted to Head Chef when the previous manager left. He swears at one of the kitchen hands, Edwin Tomato (known affectionately to his colleagues as Edwin Tomato), who has prepared a dish not to Henrik’s exacting standards. Henrik is an excellent chef but lacks essential people skills. He has also earned a nickname, one unfortunately close to his surname, but is quite unaware of it. Although tempers often flare in the kitchen when staff is under pressure, most people usually take this for granted and do not take it too seriously. Henrik, however, has made himself particularly unpopular with his rude, surly and unforgiving manner. The staff at times play practical jokes on each other. For example, the waiting staff makes up stories of how customers dislike the food. The chefs counter by telling the waiting staff they have to wait for their orders when they are actually ready. Some assistant chefs had also once hidden Henrik’s cutting knives (before he had been made Head Chef) and shown amusement at his panic and tirade. Given Henrik’s temper and his recent promotion, the playfulness in the kitchen is slowly diminishing.

“He is lucky to have got this job,” moans Georgina (‘Gorgeous’) Grant, who has to put up with plenty of ‘dumb blonde’ jokes. She said, “Although I haven’t been here as long, I was told by Kurt [the previous head chef] that I was in line for his job if and when he left. What a rip-off!”

(MGMT861) - Matters are not going too smoothly in the accommodation area either. Althea Kisi, one of the staff who cleans bedrooms, is in tears. She has just heard that her mother is seriously ill on another island but her supervisor, Gladys Nguyen, said she cannot take leave until the end of the long weekend. “You took a week’s sick leave last month, she tells her, “This is getting to be too much. We have to do YOUR work if you are not here, we can’t just temporarily hire extra people anymore.”

Bonita Davis, who overhears the exchange later goes up to Althea and puts her arm around her. “Listen, sister, I will cover for you. I was going on leave tomorrow but can wait for another week or two. You helped me a lot when I first came here. Let us go and talk to Betty.” When she hears of the issue Betty Kwon is happy with the swap, overrules Gladys and helps arrange transport and an advance of salary for Althea.

Out at the staff swimming pool, Greta Schmidt is confiding in one of the bar staff, Sean Emmons. “This place isn’t the same anymore. Too many things have changed. This new HR stuff is absurd. Apparently we will all have to set objectives and have them agreed by our managers and be monitored. Seems like there will be someone peering over your shoulder all the time. Sammy talks about teamwork and empowerment, which is fine, but why can’t you just be left to do your job? And now I am going to have to be a policewoman too.”I don’t know”, replies Sean. “Things are pretty cool at the bars. We have a lot of fun there and no-one gets on your case. And from what I have seen, Raj is not going to make waves. He listens to you, encourages new ideas, and doesn’t moan if one or two glasses break. But here is one thing I can’t get behind. This new mission statement stuff. They expect us to be proud and humble. We Aussies are loud and proud, but we can’t do humility very well. Maybe the Asians can.”

However, a conflict has arisen between Silas, Billy, and Raj over the construction of a new bar near the guest swimming pool. Billy provides a singer at the bar for several hours each day but has been told by Silas that this is not possible while the bar is being finished off, which should only take another two weeks. Billy insists that this is not Silas’ decision to make. Raj is angry that he has not been consulted since he is the Food and Beverage Manager and service at the pool bar has been disrupted by the construction work.  He maintains that this is all Silas’ fault for not ensuring that the construction was completed on time.

Out on the golf course, Isaac Mapu is sitting under a tree, smoking a cigarette. He is bored with mowing lawns, tending to the golf course and the hotel gardens, and cleaning the swimming pools. He has been working for the hotel for the past three years and longs to do something more stimulating. When he was hired he expressed the desire to be trained as a mechanic, bricklayer or electrician and was told by the maintenance manager at the time, “We will see what we can do.” Despite repeating his request on a few occasions, nothing has eventuated. He is wondering whether he should quit his job and look for a job closer to the capital, which has a well-known college that provides a range of diploma courses, some of which can be done part-time. He needs some income to support his wife and baby. Back on the tractor, he is thinking of which course would suit him best when he plows accidentally into the fence on the edge of the golf course and knocks down several meters of it, denting the tractor in the process. He is not sure how much trouble he will get into so he goes back in the early evening to repair the fence. He decides he cannot do anything about the dent in the tractor, which does not seem major, and given that others have driven it too, hopes no-one will blame him.

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