As one of the best performing hotels in Bangkok, Thailand, the Regency Grand Hotel no longer produced good performance in its service delivery as a result of management transition. The Hotel was taken over by an American hotel chains. The work force in the hotel was used to bureaucratic leadership where orders and procedures were followed. The new management under John Becker introduced employee empowerment which brought complete confusion as there was no clarity betweenwhat minor and major issues meant. His idea failed to deliver positive results in Thailand despite giving better results in United States. The preceding scrutiny gives an examination of the agents that led to the failure of the hotel management.



Leadership falls under four perspectives; Competency perspective, behavioural perspective, implicit perspective and contingency perspective. John Becker expected employees to be task oriented that is to stretch goals and perform the duties at hand with minimum supervision. He had a very low people oriented perspective; he did not clarify which duties to refer and which ones not to consult. The employees were used to being assigned tasks and being controlled under the bureaucratic environment. He assumed this will change automatically under his jurisdiction as he thought his method of empowering employees will produce good results.Previously, invention and individual decision making had been discouraged. The employees began consulting more and more which made Becker to get furious and instead of showing concern for the employees he shut himself off. The employees lost focus, made mistakes, absenteeism increased and the whole hotel management came falling.

Motivation and Reward Systems

The Regency Grand Hotel offered good welfare benefits, above market rate salary and a job stability assurance. Besides, the employees were assured of a good bonus which could amount to four months’ salary at the end of the year irrespective of whether the hotel made profits or not. On Becker’s appointment, he introduced employee empowerment where he expected them to go beyond the procedures and standards to attend to customersneeds. This was in agreement with expectancy theory of motivation which purports individual’s energy be directed towards characters they think will lead their desired outcome .This was expected to be a source of motivation but it failed since the employees never got satisfaction due to lack of clear guidelines. In the end the rate of absenteeism in disguise of sickness went up with the aim of avoiding duties and blame.

Group Dynamics and individual perceptions

Different people have different views in different localities commonly known as group dynamics. Therefore, John Becker found the employee empowerment in United States to be more effective in management of an organization. He failed to comprehend that the reward and motivation methods vary with the different group dynamics. Factors such as cultural difference are very fundamental for consideration by any manager. It could be that in U.S most employees want to feel the power while in Thailand they believe someone should provide command and the rest should respond to the command (Rhodes, Fincham, 2005)John Becker probably failed to analyse the employees’ personalities and perceptions before deciding on the best method of management. Besides, the staffs were completely individualized in their work. They had the notion of absenting themselves for sickness to shift blame on others in case of mistakes.

Conflict and Stress

Conflicts sprout from failure to share ideas, unutilised human resources, increase in turnover, and increase in job dissatisfaction, stress, poor worker relationship and low output (Mcshane 2010). The hotel employees had conflicts due to job dissatisfaction and lack of a good communication and worker relationship. Moreover, different beliefs and increase in interdependence of the subordinates to their superiors increased the conflict level in the hotel management.The employees of Regency Grand Hotel were repeatedly having stress because of the prologue of employee empowerment. As a result the performance of the hotel went down leading to a bad image in the public through the media. John Becker was completely distressed when an international magazine voted the hotel to be one of the Asia’s nightmare hotels.



The staff should seek clear clarification of concepts on the onset of orientation from their general manager- John Becker by what he means with the terms minor and major issues.They should form teams with the effort of achieving their goals. They should be keen on finer details and take personal effort to make consultation among each other. The employees must bear in mind that if the organization fails they will lose their livelihood. Instead of shifting blame they should take team responsibility to correct and learn from the mistakes. On the other hand, John Becker should be accommodative, i.e.  He should support and give proper guidelines to the employees because if he fails he will be failing the organization.

Motivation and the reward System

John Becker and the owners of the hotel should continue with the reward system previously used to motivate the employees towards a better service delivery. They should offer better salaries, a good bonus to innovative employees and a job security regardless of the hotel’s management. Besides performance contract should be introduced to discourage laziness and encourage creativity. Every employee will be motivated from threats of firing due to failure to deliver.

 Stress and conflict Management

The workers showing signs of stress should be immediately advised accordingly onwhether they can take a leave or seek professional help. The causes of conflicts should be dealt with immediately to avoid further build up through creation of proper communication channels in the organization. The management should strike a good rapport with the employees for them to feel in control to avoid laxity at work. In addition, the John Becker may collaborate with the subordinates on some strategies to ensure effective implementation. This can be achieved through compromising on some of the issues raised to embrace change at work place.

Resources and timing

Proper training should be conducted for the staff to enable flexibility in decision making in any environmental setting. The above suggestions should be adequately effected to avoid future surge of problems in the Hotel management.Besides, the management should apply SMART in objectives formulation. The objectives should be specific, measurable, accurate, and realistic and time bound in a alignment with the vision of the organization.


In management of an organization it is evident various factors must be put at hand for efficient performance of an organization. These comprise of employees’ welfare (Baker, 2007) and group dynamics, the leadership perspective, motivation and the reward system, stress management and conflict resolution. Thesefactors are essential towards better organizational performance. Therefore it calls for different stakeholders to rise up to the occasion and examine them keenly. Laying down proper policy and strategic guidelines is mandatory to all firms to clearly set down duties of each employee and the extent of their authority to avoid conflict of interests. Implementation and evaluation is also very fundamental towards understanding the progress of the organization in achieving its set objectives.


Baker, H, 2007, Employee training, West Sussex, Global Media, UK

Dr.Talya Bauer, BerrinErdogan (2009), Organization behaviour, Flat World Knowledge

Laurie J. Mullins (2009), Management and Organization Behaviour, Prentice Hall

Mcshane (2010), Management and organizational behaviour, Newcastle, McGraw


Peter Rhodes, Robin Fincham, (2005), Principles of Organizational Behaviour, Oup Oxford,

4th Ed


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