The Current Position
To begin with, it is essential to analyze the organizational purpose of the Georges Hotel at first in order to determine its current position. Evidently, the mission, vision, and values of the business are closely interconnected, and one of their most critical elements is the concept of family. All executives and most employees are related to varying degrees, and it significantly influences the way they perceive the organization and its future in general. Jeff, Chad, and Cindy decided to equally emphasize the guests of the hotel and its employees in the mission statement. In addition, both Jeff and Cindy note that they have to preserve the value of family while building the new hotel. Therefore, it may be concluded that the mission, vision, and values of the Georges Hotel revolve around the intimate relationships of its executives and employees. However, they also focus on the idea of providing exemplary service and pleasant experiences for their guests. The organization’s CEO, Jeff, fully realizes that such an approach is vital in the hospitality business and practices it on his own with maximum enjoyment.
Furthermore, a SWOT analysis is a useful framework for analyzing the strengths, weaknesses, opportunities, and threats of the Georges Hotel. First, the organization has its strengths and weaknesses, which should be clearly outlined. On the one hand, it provides excellent service and has a solid reputation, and these strengths attract loyal clients, as well as new guests. The brothers, who had been familiar with the hospitality business since their early childhood, established the hotel using their profound experience. Due to these reasons, it has always been profitable and never suffered any financial problems. Besides, the organization’s employees keep good relationships, as they are either relatives or friends. On the other hand, the Georges Hotel has serious weaknesses, including employees’ and executives’ incompetence, absence of formal structure, and numerous managerial issues, ranging from decreased performance levels to the lack of feedback. Unfortunately, Cindy, the Director of Human Resources, did not have any management or HR experience before starting her work at the hotel. However, she and Jeff lead the organization now, and the inadequacy of her knowledge prevents her from effectively solving managerial issues.
Second, the Georges Hotel currently faces various opportunities and threats. For instance, it can become a multiunit organization by building a new hotel near the riverfront section of Chicago and expanding across major cities across the United States. It can also improve guests’ experience by implementing different innovative ideas and attracting more clients by building an online presence. In contrast, family conflicts within the organization and new competitors gained through the potential expansion are possible threats. Moreover, the executives may fail to build the new hotel successfully because of multiple managerial issues. The organization may suffer financial losses and waste its identity in the process instead. It may lead to adverse consequences, including closing the business.
The Issues
The most serious issue the Georges Hotel must deal with now is undoubtedly the politics of nepotism, the question concerning the next CEO, and managerial problems. The practice of hiring by referral relatives and friends may have its benefits, though it evidently causes a multitude of challenges. Cindy clearly understands that the organization cannot successfully extend if it will continue to practice this approach solely. She notes that some employees are convinced that they have a job at the hotel for life, as they belong to executives’ social networks. Hence, the issues of decreased performance, attendance problems, and absence of discipline arise. Moreover, according to Burhan et al. (2020), “perceptions of nepotism at an organization can have detrimental consequences for that organization’s ability to attract qualified and motivated personnel” (p. 46). It is extremely relevant to the organization, taking into account the fact that its executives plan to extend soon. In general, nepotism, causing different managerial problems and scaring potential competent employees, is among the most burning concerns of the Georges Hotel.
Furthermore, there is one more issue, which may lead to catastrophic consequences if handled improperly. Jeff wants his daughter Julie to become the next CEO after he retires, while Chad and his wife Cindy are convinced that their son Michel is the most suitable candidate for the position. The current CEO believes that his daughter is better prepared and is surprised to hear about Cindy’s plans regarding her child. In fact, both Julie and Michel have enough knowledge for the post, as they studied for MBA. However, the former continues her program, while the latter has already started to work at the Georges Hotel. Undoubtedly, the executives need to approach the issue carefully as soon as possible. If they ignore it, serious family conflicts may occur later. As long as the Georges Hotel is a family business, the problem can considerably affect it, leading to the slit or even closure of the organization.
Using Data to Improve Performance and Decision-Making
The Georges Hotel is entering a period of significant transformation. Such skills as applying data to improve performance and decision-making, project management, and negations would definitely contribute to the organization’s success. They are useful for not only strategic planning but also for dealing with different managerial issues. As long as the hotel currently faces many problems due to poor administration, the management skills would certainly make a powerful positive impact. They would guide the organization throughout the process of change and help to solve managerial issues. It is evident that some leaders lack the competence to successfully incorporate the skills; thus, they need to obtain enough knowledge to expertly handle all the challenges. Alternatively, they can hire new employees or consultants who are more qualified to use data, manage various projects, and negotiate. Unless the executives gain enough experience or engage useful help, they risk poorly navigating the transition process.
Managers must produce data-driven decisions in order to make their organizations more prosperous. Evidently, data helps to identify trends and determine strengths and weaknesses. Small businesses may avoid applying it, as they fear that costs are too high. However, fortunately, there are a number of various tools available now, which can boost the data analysis process with minimal costs, technical skills, and time and effort investments. According to Mikalef et al., “data analytics should not be perceived as a solely technical challenge, but rather, an organizational one which requires fusion with the firm’s business strategy” (p. 72). It is essential to recognize that using data is a particularly complex approach, which requires much attention. Leaders need to consider different technical and organizational issues in order to get as many benefits as possible. For example, data analytics encourages managers to make reasonable decisions leading to positive outcomes. Increased employees’ performance, reduced costs, attracted potential clients, improved quality of goods and services, and obtained competitive advantages are only several results of incorporating data.
Moreover, data analytics would definitely significantly influence the management of the Georges Hotel. On the one hand, the executives may be reluctant to adopt it because of technical and organizational challenges. However, taking the first step by starting to track employees’ performance or guests’ experiences is likely to make a positive impact. The Georges Hotel has numerous managerial issues, which may be effectively handled by manipulating data. For example, Cindy may analyze workers’ attendance and achievements, making certain conclusions. They will help her provide relevant feedback and adopt new policies to increase productivity and service quality. Besides, Jeff and Cindy plan to build the new hotel, and this process will definitely involve enormous expenses. Hence, reducing overall costs and improving profitability using data analytics are essential steps to go through the transition without major financial issues. It is evident that the Georges Hotel must start to use data to improve decision-making and performance now, as it should be ready to become a multiunit organization processing much more information in the future.
Project Management
Project management skills include a wide variety of hard and soft skills, which require much knowledge and practice at the same time. Leaders must acquire them in order to adequately handle various projects and rule organizations in general. Project management skills involve budgeting, planning, scheduling, leadership, and communication. Most managers are better in one area of project management than another, and they need to determine their strengths and weaknesses to employ help if needed. According to Barlow et al. (2016), “the increased effectiveness of an organization’s project management approach will help increase the likelihood of achieving desired results within a set timeframe and budget” (p. 132). It is vital for all firms despite their area, as both processes of developing products and entering new markets require particular knowledge, experience, and abilities. Unfortunately, some poor leaders cannot manage budgets or deadlines appropriately, and they always lead their organizations to failures, such as financial losses and damaged reputations. Executives need to be good at project management to achieve the most favorable results.
Project management skills are extremely relevant to the Georges Hotel, as it enters a period of considerable transition. Building the new hotel is an incredibly large project, which requires much time, effort, and dedication. Jeff and Cindy need to demonstrate effective leadership and guide their employees. Even though the organization faces some managerial issues, strong project management skills will help it deal with the challenge. Jeff should endeavor to concentrate on the project without getting disturbed by secondary problems, as he, along with Cindy, will manage the building process on their own. Undoubtedly, the executives lack consultants and competent employees to successfully administer tasks, costs, timelines, and teamwork. Additionally, the project offers numerous opportunities and threats at the same time. Strong management skills will push the leaders to make the most of the former, while poor ones can lead to the latter. Therefore, the skills would largely contribute to the organization by facilitating the process of building the new hotel and seizing all the excellent opportunities.
Negotiation Skills
In business, negotiations occur every day, both formally and informally, with employees, as well as partners. Undoubtedly, negotiation skills are among the most important management skills in the modern world. Every leader should possess them in order to effectively deal with daily interactions and formal meetings. Turner and Endres (2017) emphasize that strong negotiation skills are an important personal quality of business executives, contributing to sustainability and growth. The reason for it is that they have to negotiate various issues with their colleagues, ranging from promotions and salary increases to obtaining new properties and beginning cooperation with other firms. Leaders can positively affect their organizations by knowing how to communicate successfully, reach an agreement, and get equal benefits for each party involved. Strong negotiation skills help to build better relationships, resolve conflicts, and determine the best solutions. Therefore, managers working in various industries must pay more attention to the skills and work diligently to develop them.
Jeff and Cindy will certainly need strong negotiation skills to navigate throughout the transition process and deal with serious managerial issues prevailing in the Georges Hotel. First, they will need to negotiate with numerous individuals, such as employees, suppliers, and partners, while building the new hotel. The skills will help them to make the most of each interaction with minimal costs and maximum advantages. Building a good relationship is also crucial for every organization, which is going to become multi-unit. Second, the questing for the next CEO has to be carefully negotiated by Jeff and Cindy, along with Chad, to equally satisfy each side. The issue is extremely complex and requires both parties’ ability to reach an agreement considering each other’s interests, desires, and concerns. Third, Cindy notes that the hotel’s informal structure should undergo some changes; thus, she and other executives have to negotiate their motives, approaches, and potential outcomes of the process with the employees to avoid resistance.
References
Barlow, A., Barlow, C. G., Boddam-Whetham, L., & Robinson, B. (2016). A rapid assessment of the current status of project management skills in the conservation sector. Journal for Nature Conservation, 34, 126-132. Web.
Burhan, O. K., Leeuwen, E., & Scheepers, D. (2020). On the hiring of kin in organizations: Perceived nepotism and its implications for fairness perceptions and the willingness to join an organization. Organizational Behavior and Human Decision Processes, 161, 34-48. Web.
Mikalef, P., Boura, M., Lekakos, G., & Krogstie, J. (2019). Big data analytics and firm performance: Findings from a mixed-method approach. Journal of Business Research, 98, 261-276. Web.
Turner, S., & Endres, A. (2017). Strategies for enhancing small-business owners’ success rates. International Journal of Applied Management and Technology, 16(1), 34-49. Web.