Kindred Spirits Hotel †Case study Essay

Identify and Define the Problem: Before Greta became the owner of the Kindred Spirits Hotel, there had always been a comfortable, family atmosphere, but this was turned upside down by her presence. She was cold and uncommunicative. She would yell at the employees and reprimand them in front of employees and guests. She also insisted not working the breakfast shift. This was hard on the staff because major decisions needed to be made at that time and Greta was unavailable. As well, she fired three workers to cut costs. However, the work needing to be done did not decrease, she just expected everyone to do more. This made it difficult to feed guests breakfast, check out guests, and clean the rooms before new guests arrived. Most days, new guests had to wait for their rooms. Sometimes, they left and went to other hotels. Revenues were down 18% over last year at this time and profits had decreased 25%. Greta immediately cancelled all bonuses and cut back on the benefits offered to employees. The problem is that Greta’s attitude, work ethic & style have tarnished the hotel’s reputation and operation. As a result, the workers’ morale has been diminished to an all-time low. Generate and Evaluate Possible Solutions: Greta has to do a self-reflection and adapt to the environment to which the rest of the employees have become accustomed. She needs to treat the staff with respect and to stop yelling at them. In addition, Greta needs to become more of a team player. She needs to lose the attitude that she is superior because she is the boss and pitch in and help herself. She needs to be available particularly in the morning, as that is when decisions are made and it is the busiest and most critical part of the day. Greta may also consider hiring back those employees she released, in an effort to get the work done, thus better servicing the guests. This would also improve staff morale. If she were to admit she made a mistake and were to apologize for her behaviour, she might win back some of the employees’ respect and improve morale. There is a cost to hiring back the employees, but this additional cost should be offset by an increase in bookings due to improved service. The hotel was profitable when the staff was all employed there working for the previous owner. What needs to be changed is her treatment of the staff. She should hold a meeting with the staff to explain the changes and her actions, outlining that things will be better in the future. You might say, â€Å"How fast will the benefits occur and will a positive impact be achieved?† Most of these alternatives will take effect right away, but in order to increase the revenue and profit we are looking at long-term goals. The staff should support these entire solutions listed above because no matter how you look at it, Greta has to give back to the hotel. All of these alternatives will rekindle the staff’s morale, giving them the boost they need to do a hard day’s work. The hotel will prosper once again. If Greta can’t adapt then she should sell the business to someone who can make the business a more profitable one. She might also consider promoting Greg to manage the hotel and delegate total authority to him, removing herself from the operations. The staff respect Greg and have worked well with him in the past. Greg has had plenty of experience having these priorities before – in the last two years the previous owner had left much of the management decisions up to him. This would re-motivate the staff. Choose a solution In order to successfully address the problems herself, Greta needs to recognize that she herself is the problem. She also needs to be able to modify her behaviour and attitude. If she cannot do this, a successful implementation is not possible. Problem #2 Identify and Define the Problem: The second problem is parking. The city of Stratford had had complaints from neighbours about this. The hotel only had11 parking spaces and the overflow parked on the street. The town council was debating cancelling overnight parking on the street. This would have a dramatic impact on the hotel. In two weeks there would be a council meeting and Greg suggested he attend in Greta’s place but she screamed at him saying that she was in charge and how dare he try to undermine her authority. Greg had enough. He threatened to quit and walked out of the hotel. Generate and Evaluate Possible Solutions: Greta has to resolve her issues with Greg foremost and apologize for making those remarks. Greg is well respected by the staff and has been working in this business for fifteen years, so he should have her respect too. Since Greta couldn’t make any progress with the city council and has alienated them with her remarks, she should give Greg a shot and let him speak, or discuss his ideas beforehand so she can present his views at the meeting. If Greg walks out on her, other employees might follow. It is very important that she does not lose Greg, who is a valuable asset to the hotel and her business, else her problems may escalate. Greta could call a meeting with the staff and brainstorm together. 11 spaces are not enough for their guests to park. If they are unsuccessful with city council, they could expand their capacity by renting more property, build an underground garage or designate an area for parking. One spot per employee, one spot per guest. If an indoor garage were to be built, additional expenses would be incurred. The hotel might approach the city to help cover these additional costs. To earn money back, a fee should be charged for the use of the garage. Choose a Solution The easiest and most economical solution is for city council to grant parking on the street. The best chances for this happening would be if Greg were to present the hotel’s case at the council meeting. Greta should recommend that Greg attend. If this fails, the hotel should negotiate to pay for additional parking, where the costs are passed on to the hotel guests using the parking facilities.