Cultural Difference Essay

2258 WordsAug 29, 201210 Pages
Introduction: The Regency Grand Hotel is one of the most luxurious and reputed hotels in Bangkok, Thailand. From the very beginning, it was operated under local (Thai) management and it has been able to achieve its goal i.e., business profitability and greater customer satisfactions and loyalty. The staffs were even well compensated. All the hotel staffs were provided good welfare benefits, above market rate salary and immense job security. Moreover, they were being taken well care of under Thai leadership. However, the situation drastically changed after the hotel being acquired by the American company under American management. The case study represents what are the changes happened when the management were changed specially due to immense cultural differences in a big organization. Later, upon considering the circumstances, some recommendations are discussed to overcome the prevailing problems. Background: At the beginning of hotel inception, all the employees were bound to follow the office decorum set out by the local management. Moreover, employees have always worked according to managements instructions. If any problem occurs they have to wait for the instruction from the top management. They were always been discourage to take any kind of decision making above management. Hence, they were afraid to be innovative and risk taker which made them reliable to the mangers. Thus, the official work went smoothly with minimal number of conflicts. However, the new manager Becker changed the policy specially giving the lower level staff’s empowerment for why employees were able to get involved in decision making, creativity, and innovation. Unfortunately, in reality Becker's policy did not improve the performance of the organization rather it drop down overall performance of the organization. More importantly literally there was no chain of command or control

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