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Regency Hotel Business Case Study



The case study is about Regency Grand Hotel, a 5 star hotel in Bangkok. It had been established by local syndicate of traders 15 years ago and was manage by Thai general manager. Regency is Bangkok's most prestigious hotel having 700 satisfied staff members. Lately, Regency was obtained by big American hotel string. Due to this the old basic manager took early old age & an American John Backer with a decade of management experience was appointed as new basic manager. Becker is a solid supporter of empowerment soon after his visit as a general director Becker implied empowerment to have success as before.


Empowerment serves as a People having the skills and the self-belief to proactively offer with issues and make the the majority of the opportunities open to them. but soon after the execution of empowerment new basic director realise that things are not going matching to his expectation because personnel of regency offer don't really know what is empowerment? Because they use to work as per their manager order in the last management they are not allowed to innovate & generate anything new, and were discourage by the older managers and in the end this they don't really want to take risk and get punished by the management but general manger in the us was employed in a empowered environment where staff has a vitality of decision making & may take minor decision independently. basically it's a cultural difference between management and personnel where is from Thailand where they believe in team work and management is from America who feels in personality they assume that they can do anything unaccompanied which was the first issue.

According to Hofstede's index


Power Distance



Uncertainty Avoidance






U. S. A





Power Distance - The magnitude to which large differentials of electricity for example between a employer and a subordinate or between an increased status and lower position are anticipated and tolerated. Autocratic behaviour by a supervisor would be much better tolerated in a high ability distance country

Uncertainty Avoidance-The degree to that your culture emphasizes concentrating on way to reduce un certainty and create stability-for example having clear written guidelines and procedure to steer action. Formal organisational procedure may be more necessary in the high Doubt avoidance country.

Masculinity/Femininity- The difference between the traditional male gaols of ambition and accomplishment and feminine orientation to nurturance and interpersonal harmony-for example the balance between seeking promotion at the job and having good relationships with others.

Individualism- In individualism culture people are most concerned about the consequences for the action for themselves, not others. They favor activity conducted on one's own or in relatively private interactions with friends. Decision are created by the individual based on the judgement he or she makes concerning that is appropriates and the average person rewards that will accures.

Other reason for the failure of empowerment is staffs don't have proper training about empowerment. They doesn't know how to use this decision making power for visitor satisfaction as well as for companies profit because they're not properly trained about empowerment.

General manager told that staffs has power to make modest decision but major decision has to be considered by supervisors but personnel was unable to distinguish between small and the major problems. It was not yet determined that what decisions can be produced by staff members? These restrictions must be defined or employee empowerment efforts are unsuccessful. In regency grand supervisor don't trust personnel to make good decisions. Workers know this and either craftily makes decisions on their own and hides their results or they come for you for everything because they don't really know what they really control. Supervisor can don't inspire the personnel for decision making. And without motivating the staff it is impossible to do empowerment properly.

From last 15 years the employee of Regency grand hotel were working under hierarchy management but all of a sudden after the introduction the new basic manager's Empowerment plan come under existence without any prior notice and any proper training to the personnel so it is natural for the personnel to resist this change because they are in habit of working according to the administrator order, these were not allowed to consider their decision or do any pioneering and it's a human trend to first resist the change some staff don't want to take responsibility of empowerment, (Bacal 1996 ) they prefer to are per the old system in which managers have to take your choice and staff has to blindly follow that order if anything goes wrong managers are there to help them out but in empowerment nobody will need responsibility if the error is determined by you and you will be the one who will shell out the dough. We can say that empowerment is not properly applied on the staff member which lead to the inability of the empowerment.


Due to inability of empowerment hotel Regency grand was losing its profit, client's and status in Bangkok. Becker thought that empowerment will help his hotel to earn more profit and visitor satisfaction. Overall Performance of the hotel commences to decline. Increase in variety of written guest claims both verbally and in written. Disgrace in the news headlines paper as one of the Asia's nightmare hotel. Criticism about service specifications of the hotel. Staffs were also not happy raise of stressed tension level among the employees. Good working atmosphere has been harshly strained. Lack of team spirits among the employees now these were against one another when flaws were created by any worker.


New general director comes with a good plan of empowerment however the way he apply it was inappropriate, followong can be some of the potential solution of the problem. They have a uncertain view that employee empowerment means you take up a few groups that address work place employee morale or security issues. The personnel should be encourage to use their decision and also to have confidence in their decision they have to provide proper training before providing them with decision authority. (Heathfield, 2000)

John Becker move from American work culture to Thai work culture that happen to be completely different from each other. IN THE US they believe in individualism however in Bangkok the believe in team work and John Becker fails to understand that. he try to impose his American work culture which prove to be a tragedy before applying Empowerment in the hotel he should study about their work culture and try to complete that communication space between him and the employees. He should be ready to accept the changes that he have to make regarding to work culture he's working for.


Empowerment is an excellent weapon to boost the decision making electric power and control quality on the list of employee but it should be implemented in an effective manner and technique otherwise whether it's not carried out properly it can eliminate the organisation just in case of Regency Grand hotel and John Becker. Becker's intension was good to implement empowerment however the way he executed was wrong.


Bannon, G, Man, v, dr. Omari, J, Pooley, R, Reed, B, White, N 2003, Mix Cultural communication, UK

Ron, C 1998, Set up empowerment: an award-winning program at the Burswood Vacation resort Hotel Leadership & Organization Development Journal, vol. 19, no. 5

Bacal, R 1996, Empowerment Troubles, Work911. com -Office, Business, Career Help, viewed 15 August 2008,

<http://www. work911. com/articles/empdif. htm>

Heathfield, S 2000, Worker empowerment, About. com; human being resource, looked at 16 August 2008,

<http://humanresources. about. com/od/glossarye/a/empowerment_def. htm>

Thomas, D, Inkson, k, 2004, Cultural Cleverness people skills for global business, Berrett-Koehler Publisher, Inc. , SAN FRANCISCO BAY AREA.

Hunt, J, 1979, Managing People At Work, cox and Wyman Ltd. Great Britain

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