Roaring Dragon Hotel - Analysis

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It is also shocking to see how HI (which was globally respected) was oblivious and disrespectful while dealing with redundancy and reduction in workforce. Efforts must've been made to develop trust and to show that the employees are valued and respected. Effective communication and transparency would've helped.

Before starting any project that involves wholesale changes, a lot of research, feasible studies, its analysis and documentation needs to be done. For example, along with detailed records of each and every employee, it is important to document the connections (guanxi) that each employee and manager has, so that a record of relationship exists that helps in nourishing it (and also isn't lost when the employee leaves).

An incentive system needs to be implemented to overcome the "motivation" issue. For example, when a employee uses his connections (guanxi) to attract clients, they need to be rewarded with a percentage of the profits on the deal (say 5%). The other side of the coin, there should be measures to discourage wasting time and doing tasks other than hotel work during work hours. This would motivate employees and also would minimize laziness and attrition. Along with this, fun events at work such as games and parties for socializing can improving morale and interpersonal relationships between RDH and HI as well as RDH itself.

The decision to close and demolish the old (Russian style) building was also a weird one to say the least. It should've been operational that would've provided steady income from the 2 sources (banquet or conference rooms and the middle income group). This should've helped the RDH be self-sufficient with constant source of income during the transition, without alienating existing clients.

Conclusion:

By following the above recommendations, the potential of RDH of becoming a premier hotel of International standard in south-west China could be realized. RDH could also achieve a employee base that is efficient, professional, culturally sensitive and satisfied. Along with this, the vision of the provincial government to maximize profits at the RDH and maintain its legacy can be achieved. Along with helping customers directly, even business clients such as tourism companies could use the reputation and success of RDH as a selling point as well, for mutual benefit. This success story could also boost the reputation of HI and help expand its operations in China and other countries.

References:

Grainger, J.S. (2005). Organizational Guanxi and State Owned Enterprises in South-west China

Friedman, E. ( ). 10 steps to keeping employees motivated and engaged, retrieved from: http://blog.eskill.com/employees-engaged-motivated/

J. Sterling Livingston. (1969). Pygmalion in Management