Changingan organization`s leader necessitates a serious commitment of timeand resources thus companies and other business ventures should nottake it lightly. We can say that change is essential, but not everymodification initiated by the administrators succeeds. Internal andexternal changes can drastically affect the effectiveness ofbusiness. Managers should make a point of critically analyzing thevariations in advance and anticipate the need for adjustments beforethe whole organization becomes a mess (Gomez, Luis, Balkin, Robert,2012)
Inthe case of Regency Grand Hotel, It was a five-star hotel that wasdoing very well until ownership changed after being sold to a largeAmerican hotel chain. The manager opted to take an early retirement.Before this, Regency hotel could provide good welfare benefits and anend of the year bonus equivalent to four months’ salary as a rewardto workers despite its overall performance. Everything changes whenBecker is appointed as the new general manager. He came withdifferent management practices that were not applicable before.Despite his success in integrating newly acquired hotels previously,the tactics did not work on this one. Failure began when he enactedthe rule of empowerment whereby employees were allowed to go beyondthe standards in service of guests. I agree that empowerment upsurgesmotivation, job satisfaction and performance but also we cannotignore the various limitations that it may pose to an organization.For instance, workers may tend to be arrogant as a result of takingthe increased confidence too far (Dasborough, 2012). One technique ofempowering staff is by sharing valuable information with themanagers. This leads to threats of confidentiality and security. Inmost cases, the workforce confuses the ability to make choices withpower to do what they want. In Regency hotel, empowerment led to lowperformance, increased customer complaints, and worker absenteeism.
Changinga leader in any business may tend to affect the motivation andcontribution of employees (Foti, Hauenstein,2015).We can’t say thatleadership changes should not take place but alternatively ways ofgiving a new manager the ability to rule and have the worker`sattention should be adopted. It is not a guarantee that Regency hotelcould not have worked just because of a new manager. The businesscould have utilized the three alternatives below that would assistBecker in great leadership.
Theold General Manager could have taken his time to train Becker so thathe would be equipped with some of the tactics employed by him.Despite how educated Becker could have been, it is apparent that theother manager had enough experience in the hotel to give guidance.One of the advantages that come with using this alternative is propercomprehension of hotels culture. The old manager has a greaterunderstanding of the existing culture than Becker considering thetime he has worked there. He could also have paved the way for thenew manager to make relationships with employees and also take himthrough the hotel rules. Even having done that, it is still possiblethat the workers would have been reluctant in trusting the newGeneral Manager (Deslandes,2014). As a result, there is a possibilitythat they would fail in following Becker’s new rules. Workers mayalso face challenges in trying to adapt taking orders from a personthey are not used.
Onanother hand, the old manager can be convinced to stay and maybe bothcould operate as assistant leaders or he could function alone withoutthe new director. Working together is a good take in achieving thegoal of an organization. Increasing his salary or giving anadditional position at a higher rank can help retain him. However, itis necessary to remark that this method can be expensive especiallybecause the hotel will have to pay either two managers or increasethe payment of old manager. But if the returns are high, it’s agood way instead of having to compensate one of them as the hotelundergoes financial loss and lose its fame. Some of the strengths ofthis alternative include almost everything would have been easy whenthe new Company took over, a formation of strong relationships withemployees and management would be at an advantage due to old managercomprehending rules and culture of staff. One of the shortcomings isthat it is an expensive undertaking as the Company has to increasethe former General Manager`s salary. It is of a high probability thatthe hotel might not change because of being managed by the sameperson for too long especially if there is no technique variation andit might also not have globe views.
Alternatively,the new General Manager could take over everything. Some strength inchoosing this option includes formation of new relationships withworkers, totally controlling the hotel and also in utilizing newideas and changes, Company may have a bright future. Nevertheless, hecould experience problems of communicating with employees, havetrouble in understanding the culture and difficulty when implementinghis rules. At times it may take time before business adapts to thenew change, but eventually, returns begin increasing.
Wecannot say that managers or employees will not be changed for anyreasons. It is the role of new managers to know how to bring successin the workplace by overcoming adverse effects (Griffin, 2014).Takingan example of Becker, he had succeeded in integrating newly acquiredhotels, and that is why he was considered fit for the job.
Dasborough,M. T. (2012). Cognitive asymmetry in employee emotional reactions toleadership behaviors. The Leadership Quarterly. 17 (2): 163–178
DeslandesG. (2014). Management in Xenophon`s Philosophy: a RetrospectiveAnalysis. 38th Annual Research Conference, Philosophy of Management
Foti,R. J. Hauenstein, N. M. (2015). Pattern and variable approaches inleadership emergence and effectiveness. Journal of Applied Psychology
Gomez,M., Luis, R.D., Balkin, B., Robert L.C. (2012). Management: People,Performance, Change, New York
Griffin,R.W. (2014).Custom management: principles and practices,International Edition, 11th Edition.