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Downfall Of Roaring Dragon Hotel Management Essay

This proposal will give us a definite description for the downfall of Roaring Dragon Hotel following the change in their management to Hotel International which has failed to improve their revenue and quality specifications of their hotel. Big issue in the business was the issues between management and their workers which need to be solved to be able to progress performance and earnings. These conflicts appear between management and employees are scheduled to numerous reasons like ethnical conflicts, insufficient training, and insufficient understanding and stringent management policies. Making use of an individual management approach across all work settings across the world might not exactly succeed for motivating the employees and might not exactly yield desired production (Najera, 2008). To be able to overcome these issues the business management should develop strong marriage with employees, understand ethnic differences, provide satisfactory training, and improve staff benefits. This can help improve staff performance, employee romantic relationship, increases organization's earnings, margin, and earnings and helps in reducing turnover rate.


RDH organization's downfall HistoryThe Roaring Dragon Hotel (RDH) was one of the three legend hotels in the south-west China, which is famous express owned business (SOE), has 40 years of record. RDH had a very good reputation but the recognition of the hotel started to diminish by changing the management to Hotel International (HI). The Hotel International company acquired good reputation and recognized as suitable corporation to takeover the managment of RDH. Hotel International management needed some steps to change the policies of RDH both internally and externally in order to attain international standards that have been didn't improve quality criteria and resulted great reduction. The primary cause for this problem is the organizational issue between management and employees. The HI management failed to understand the culture and failed to develop employee trust and romantic relationship. Corresponding to Drucker et al. (1997) "the intelligence and spirit of folks at all degrees of a business to regularly build and show knowledge" ought to be the first priority to handle global competition and flourish in their domains. This knowledge sharing is lacking from HI management which created lot of new problems to business.


From early on 1960's Roaring Hotel Dragon got good reputation and experienced group of changes for surviving from highly competitive world. Being truly a SOE with 40 years long history, it was one of the region's best high quality guest office buildings for the federal government officials. The employees of RDH experienced proud doing work for a SOE business.

Cultural difference is the the root cause for increased turn over rate and reduced RDH's glory. In 2001, the government decided to give the management control of RDH to HI corporation for bettering the hotel's quality, reputation and brand name. This corporation chosen a new supervisor and replaced the existing manager Mr. Wen to second in demand, lost his power and privileges Mr. Wen increased the variations between management and employers. That is one of the root cause for loosing RDH's reputation and its own glory. So authorities decided to end the contract with HI Firm, taking over the management again by provisional government.

Due to management change and cultural differences between employees and management the hotel's reputation reduced and sustained to are unsuccessful even although contract was terminated. The issues will be rectified with good planning, trusting, training and motivating employees and taking decision better.


HI management failed to build trust and staff relationshipThe Major problem in the RDH group is caused because of the conflicts and social differences between your management and employees. This issue is clearly ignored by the HI management after it takeover RDH. "One source of conflict may happen from the section between those who give requests and the ones who obtain them: this, we'd suggest, is issues not only between employees and management, but also within management itself" (Stephenson, 1960).

Some of the major issues with HI management are listed below:

The RDH employees didn't will to work under HI's management.

Cancellation of their agreements with the Nu Fu travel organization and Loss of critical industry connections and guanxi cable connections.

Short term agreement, Reduced occupancies and desire, lay off of young employees, Uncertainty of Job security and Increasing the employee workload without paying their wages

Older employees were uneasy working under non-mandarin speaking HI's managers.

Employee dissatisfaction, loss of guanxi cotacts, and insufficient motivation triggered problems to HI management

The first occurred problem for RDH group is conflict between your KYZ Corporation and the ex - director Mr. Wen believed guilty about his privileges when he was a manager were lost and made him second in command. Chinese people had a strong responsibility and romance with individuals who they trust when compared to european culture. "Commitment to the supervisor may be particular relevance for understanding the work behavior of Chinese employees (Wang and Kung, 1999)".

The above reason made Mr. Wen to bring distinctions among employees and Hotel international management. Despite the fact that Hotel International (HI) management tried to get rid of Mr. Wen, they could not get any support from aged employees who were working with the RDH past a long time. HI failed to understand the Chinese language culture so they made whole lot changes to increase the specifications to international goals without taking into consideration the reactions from its employees.


The HI management must have focused on history of the RDH and should have respected the Chinese language culture. They should have done more research to investigate the primary cause created by KYZ Corporation. That they had very good opportunity to understand the culture and require their workers in decision making process. By respecting their employee's passions and thoughts could have improved HI's performance somewhat than making the decisions on their own.

Management should analyze the blunders and develop employee relationshipBy disrespecting older people employees and burning off the guanxi relationships they didn't build employee romantic relationship. They can have inspire the employees and develop the ethics in the employees. They didn't utilize the best use of these customer romantic relationship. Hotels also needs to consider including indirect contributors such as person to person communication, customer referrals and endorsements (Noone, B. N. , Kimes, S. E. , & Renaghan, L. M, 2003).


Management should understand cultural variations and worker opinionsHI management should make an effort to understand the culture and passions of the employees, consider their personal thoughts and opinions, build the relationship with the employees, provide adequate training, and often conduct employee opinions. The Chinese Employees who focus on their supervisors with who they employ a good romance. Management should fix conflicts with their business associates and inspire others to work together along the way of producing their motel to keep-up the global competition.

Management should provide training to stimulate employeesThe employees should try to ware of the international benchmarks which should be motivated to be able to understand their responsible of their work, that ought to be performed effectively by providing a proper training. Management should identify the ways to enhance the business like build good romantic relationship using their customers who can assist in increasing publicity. The longer romance we have with the customers is important for success of any business. Finally the management and employees should put their efforts as a team instead of moving in their individual route.

Their terminology might be the fundamental barrier between folks from many different traditions and ethnicities of the business, they ought to provide translators of different languages to be able to maintain the synchronization between employees and management.

The employees should get training by the management regarding their new plans of the business. The responses from their workers should be studied frequently to ensure their worker satisfaction. Employees should get rewards predicated on their performance, hard work, experience, and gross annual basis.


One of the greatest example would be Roaring Dragon hotel which had a successful record but later it possessed a great downfall, anticipated to which the change of management with insufficient communicational skills with its employees. Assigning new management for the hotel triggered to the downfall, because of their carelessness. The organizational success depends upon correcting their flaws and taking activities towards resolving them. So that we can avoid duplicating those problems in future. The conflicts between your management and its employees are a well-known concern in any group and needs to be rectified at the earliest opportunity. Then any group will be succeeded.

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