La Napoli Management Issues - Assignment Example

Running Header: La Napoli Management Issues Surname: First Names: Student Number: Institution: Course Number: Course Name: Assignment Due Date: Title Report Management issues Case study: La Napoli Restaurant Table of contents Title Page Introduction 4 Situational analysis 4 Problematic symbols 5 Problem origin 7 Relevance of cross-culture theories 10 Recommendation 11 Developing recommendation effectiveness 13 Bibliography 15 Introduction In the world of doing business, culture is a very critical factor. When people from diverse cultures transact business, they will only be able to create economic sense if they can manage to create and fulfill profitable relationships that exit among them by ensuring that all levels of all relevant cultural differences that emerge during the process are reconciled to create value for their businesses (Ward, et al. 2008). In other words, cross-cultural development is a collective programming that is designed by a manager, company or country in order to distinguish one group from the other in terms of culture as a way of creating a reconciling point with different cultures. According to (Browaeys and Price, 2008), culture is “the way in which a group of people solves problems and reconciles dilemmas”. The primary objective of this report is to discuss managerial problems that are facing La Napoli restaurant and their main causes that will be used by the board of directors for decision making. Situational analysis The ‘La Napoli’ restaurant is situated in Hong Kong China. The restaurant is one of the international retail hotel outlet owned by Tom Brown under the well planned and established middle level restaurants in the Special Administrative Region (SAR) of Hong Kong. The restaurant was formally established in 1995 after Luigi Comprio Managed to convince Chris Parkes of the venture and it is viability within the city of Hong Kong. The primary objective of the initiative was to provide the Italian cuisine for the residents of Hong Kong. Luigi Comprio had development this idea after spending some quite amount of time of his career as a chef and after having been accorded with the accolade of the ‘Master Chef’. Camprio had gained some vital experience of the hotel industry in the city after numerous trips to Hong Kong with his wife who is a Vietnamese. That is when he came to encounter with the opportunity of starting an ‘authentic’ Italian restaurant in the city. After carrying out some substantial informal market research he came to find out that there was a market gap in the city. Problematic symbols Problematic symbols refer to those parameters that can be used to tell whether an organization has got any challenges that face it is management. The ability to identify these symbols is the first and most important way to recognize the fundamental problems that face the organization and thereby design the appropriate measures that can be used to manage them (Tjosvold and Leung 2003). According to the ‘La Napoli’, a number of problematic symbols have been demonstrated which reflect the underlying problems and they include: 1. High employee turnover High employee turnover is one major feature of discomfort at the current working place. It is very rare for an employee who is satisfied and whose are provided to leave his employer for another company (Watson et al 2002). According to the company for the first year of operation, it was quite clear that a number of employees who had joined the business and had left view weeks later. By the end of the year, the top management team comprised of numerous new faces. Some of the employees who had left the business included David, Hans and Peter who were in the management team. 2. Decline in revenues The same report also indicated that the business revenues had continued to depreciate. This is due decline in the total sales and demand for the business’ services (Silverthorne 2005). Throughout the year, the business had continued to record low number of customers who were eating from the hotel and even those who walked in did not spend the amount expected. This problem was attributed to low quality and half baked foods more especially the traditional cheesecake. It was found that the recipe that was used to prepare it was not being done properly and the resultant was low quality cake with breadcrumbs with many parts remaining too hard. 3. Lack of collectivism In the business there is no teamwork for a common goal. Collectivism is cross-cultural practice where people with different interests commit to work together to achieve a common goal (Watson et al 2002). However, at La Napoli, this is not case. We realize that Camprio is working parallel with the rest of the team members. This seen especially when he hired Angela to join Peter who was the assistant manager without involving. On the other hand we also Peter the process of interviewing the new applicants without the support of any other members. In an ideal situation, team-work means consultation and continuous support of colleagues at work place. 4. Poor organisational structure The organizational structure is an important tool for management. It ranks individuals and defines the responsibilities of each and every employee accordingly. With a proper organizational structure, there is little conflict among employees since issues that pertain overlapping of functions are significantly reduced (Mead 2005). However, according to the La Napoli, the situation is quite different; the manager who is Camprio is in constant conflict with the assistant managers by doing some of the functions that are not his. A good example is demonstrated when Karl difficulties to determine whose orders he was to follow between the Peter and Camprio even though he was under Peter. Problem origin Employee recruitment and management Employee recruitment and selection is a very important process in any organization. This is because it determines the kind of staff the company is using to deliver its services. Product awareness and service knowledge are some of the important aspects an employer is expected to look for during recruitment. This is so importance because it is the individual performance will add up to the overall success or failure of the business (McSweeney 2002). Taking a view on the culture that is being used by the management to hire employees who work for ‘La Napoli’ restaurant we find that the process is less formal and it was more of referral where the already existing employees would propose names of the people whom they know and they feel can deliver. This has been clearly from the establishment of the management of the Restaurant whereby Camprio who was the initiator of the project was appointed the head without giving much consideration into his abilities (Silverthorne 2005). The same criterion was applied to the rest of the team members. Even though it can be argued that this was to beat the timeliness, still it does not hold especially when evaluating the relative importance of the individual contribution in the overall performance of the business. Based on his long-term experience, Camprio had informed perceptions of the kind of employees whom he wanted and whom he thought could deliver impressive services and quality foods for the customers. Camprio believed that by bringing in younger and inexperienced employees, he could be able to manage and mould them the way he wants for the betterment of the business (Mead 2005). Another reason for holding on to this believe is the ability to pay the employees low wages and therefore save for the company without taking much consideration into the performance of each and every employee. Lack of formal recruitment strategies is also demonstrated when the Camprio decided to bring in a new employee by the name Angela who he believed that would be able to perform as a hostess because of her cuteness and more so thinking that she was keen more especially to him as the boss (Mankoff 2002). This culture is further demonstrated when Peter the head of the Pasticeria was allowed to individually interview the employees who to work under him. Ideally the process of staffing is expected to start with the identification of the gap and its relative importance of the business. After identification of the vacant position, the management is then obliged to accept or decline the filling of the position depending on the prevailing conditions. The main objective of advertising the vacancy is to attract many potential employees as much as possible. Given that the La Napoli was to operate in relatively mixed environment where people from all parts of the world will get served, there is need to ensure that all customer needs are taken care off and more especially the language of communication (Holden 2002). This can be achieved through employee diversity. However, according to this situation, the advertisement was mainly done in the English language and the catchment was very small. This meant that the other employees who were not able to speak English were locked out and consequently meaning that non-English speaking customers will not be communicated to properly as ought to have been. Another cross-culture that has been demonstrated from this study is the way individuals of different genders are addressed. For example it is notable that even though the employees come from different cultural backgrounds, men are referred to as boys while ladies are referred to as women at La Napoli. Arguably this may not be acceptable to all world cultures (Schneider and Barsoux 2003). Some might agree and others may refute depending on their respective values and beliefs. This practice may look abusive to the staff who may not like it and therefore demotivating their morale for what can be a termed a simple and manageable cross-cultural practice. Gender and equality is also an important aspect of cross-cultural management. Looking at the employee combination at the La Napoli, it is clear that ladies are not recognized as equally able people who can lead the team (Berry and Ward 2006). To add on, it is still demonstrated from the study during the first recruitment of the senior management team not a single lady was appointed to join the team. This implies that the business is sensitive of cross-culture issues among employees and their particular importance when serving guests who come different parts of the world. In an organization the human resource team is expected to manage its employees by providing for their expectations. This means that the process has to take into consideration the relevant skills that a specific group of employees should have. Staff training and development is a very important aspect of human resource management which ensure that employees have got adequate skills and knowledge that is applicable to their roles. This was the major source of problems that were facing the ‘La Napoli’ restaurant. From the case, it is clear that the management team did not have a proper plan on how employee training should be done, when, how and by whom (Rugman and Brewer 2003). In the case, Camprio was the main instructor of quality in food and service delivery. Even though the intentions were good, there was an issue with time management. In different cultures, time context is regarded differently. For example in the case of China time is highly valued. This means that time wasting is not encouraged at all cost. However, from the restaurant case, we find that since there was no proper planning, time was so much wasted as training was sometimes done during normal working hours. This means that customers had to take so much time to get served while in the restaurant. This situation turned to put so much pressure on the restaurant that were expected to rise for the occasion and meet customer demands more especially on order waiting times (Berry and Ward 2006). The training programmes are intended to introduce new employees into the system by letting them know of what is expected of them and how they should go about it. The relevance of cross-culture theories It is important to not that the availability of different theories on cross-cultures is important in building the manager’s conceptualization on a given culture. The theories are especially critical when the managers are interested in expanding their business across the borders. However, several criticisms have been raised with regard to the approach that is used to study different cultures and the extent to which every aspect of culture is taken into consideration (Trompenaars and Woolliams 2003). Second, it is also important to highlight that these theories have not managed to provide quantitative data that that show that there is direct connection between business performance and the culture in a given environment (Berry and Ward 2006). According to Brendan McSweeney, the theory, developed by Hofstede on cross-culture, is not consistent and does not fully identify all the natural cultures and that in no way he has demonstrated that culture is directly related to somebody’s behavior. The research done by Hofstede (1980), Schein (1990), Trompenaars and Hampden-Turner (1993), Kluckholn and Strodtbeck (1961) and Hall and Hall (1990) has been criticised by Earley (2002), McSweeney (2002) and Søderberg and Holden (2002) who not only argue that culture cannot be reduced to view dimensions and but also question on the validity of the average scores used to represent individual attitudes (Trompenaars and Woolliams 2003) Perhaps this is because culture is composed of subcultures and only several dimensions can be used to study them. With this in mind therefore, it’s important for managers to critically evaluate each cultural element individually and come up with different management styles before considering investing in a new cultural environment (Holden 2002). Recommendations Skills and competencies As the restaurant management board of a project, there is need to have in place a variety of skills, knowledge, methodologies, that will make this new venture a success. The restaurant management board must always understand that the project will only be successful if there are special capabilities in play from the stakeholders including the board of directors, managers, employees, customers and the community in general. The main objective of having appropriate skills and competencies is to ensure that every bit of work is done not to finish but achieve the overall objective of the business which is to make the business a reality (Amaral, 2011, p 54). The other project strategies that the restaurant management team should consider to bring into board include: Getting agreements on goals Ensuring that resources capital, equipment and labor are made available at all times. Improving channels of communications. Being able to fit all pieces of work together Making sure that everyone is aware of his roles Planning Planning is an important part of the project. Plans will help determine ways in which to manage time, risks and issues, changes, quality and everything else that will be done during project execution. The plan is a description showing how the project objectives will be achieved (Silverthorne 2005). The following are some of the activities that may be included in the plan: 1. Important project information need to be collected & disseminated through; Email, Meetings, Casual conversations, and so on. This is important information will be accessed so easily in order to support communication. 2. The changes to the management requirements or scope need to be handled as a team. All changes must relate the business process. All changes need to be communicated to the Directors on time. 3. The project handling need to be in line with policies established by management always approved by a responsible official (project manager or any official to whom authority will be delegated and there is need to have a set of standards to follow. 4. There is need to have in place a quality management team that will oversee issues related with risk and quality and develop a plan that will be used to counter any eventualities. Project organization The restaurant manager need to have a capacity to track a multiple "things" (projects, people, reports, requirements, specs, etc.). This means that the restaurant management team must be organized, systematic and meticulous. The management team is also expected to keep track of the staff, progress, numerous business documents, and the flow of correct information to all people in a timely manner. Capacity to monitor and manage changes to the business (scope, schedule, features, plan, issues, etc.), and much more is an important feature of a good management team for this business. The management team determines the success of the project. Having a choice of who is to be in the project team greatly influences how to manage, develop and get good stuff for the project (Thomas et al 2008). The time and energy spent engaging and motivating the team to perform at a high level is worth all the effort. Having a well motivated team is rather strategic because good results are reflected from the good team. The vision needs to be used to mobilize the team around. Giving the team a clear picture of the expected outcome, they will feel empowered to build their own path to success (Berry and Ward 2006). Engage them in dialogue and delegation. Ask them how they feel about the business, their role, its charter, etc. Show them where their contribution matters. Listen to them, cheerlead for them, challenge them, and build trust. Ensuring recommendations effectiveness According to the classification of this complex nature of culture, it is important for the managers to understand that they are not fully exhausted because they belong to a particular cultural perspective. The whole implication of these cultures is that managers are expected to do thorough cross-cultural training as one way of ensuring that they are equipped in terms of knowledge on cultural intelligence as one way of making sure that they have the necessary competence in the international culture (Ang, S. et al. 2007). Cross-cultural training activities may take various forms which may include: attending of international briefings and conferences, reading business journals and magazines, attending lecture and business discussions, watching of different cultural films, use of field trips as well as cross-cultural simulations. The main purpose of using numerous cross-cultural trainings is to ensure that cultural intelligence is integrated with different elements of knowledge and mindfulness as well as behavioral skills. Cross –cultural competencies are well developed by managers if they can combine them with cognitive and effective learning for positive cross-cultural relationships (Hofstede 2003). The overall success of an individual in the cross-cultural greatly depends on one’s ability to reconcile different cultural experiences in order to create an environment where creativity, and innovation as well as synergy for productivity at workplace are enhanced. In addition to cross-cultural training, managers are also expected to plan and organize various strategies which may include the formulation of objectives in order to ensure sustainability of operations in different economic cultural environments. The strategies used may also include: planning, organizing, staffing, directing and controlling (Ram and Carter 2003). A good combination of cross-cultural training and other managerial strategies enables managers to move successfully through different stages of development which include: reacting to the external stimuli, recognition and appreciation of other cultures, accommodation of those cultures and finally being pro-active to different cultural behaviors. References Ang, S. et al. 2007, Cultural Intelligence: Its measurement and effects on cultural judgment and decision making, cultural adaptation, and task performance, Management and Organization Review, vol. 3, no. 3, 335-371. 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Ram, M. and Carter, S. 2003. ‘Paving Professional Futures: Ethnic Minority Accountants in the United Kingdom’, International Small Business Journal 21(1): 55–72. Rugman,A. M. & Brewer, T. 2003, The Oxford Handbook of International Business, London: Oxford University Press. Schneider, S. C. & Barsoux, J. 2003, Managing across cultures. 2nd ed. Harlow: FT Prentice Hall. Silverthorne, C., 2005, Organizational Psychology in Cross-cultural Perspective. New York: NYU Press. Successful Implemntations”, Siebel Systems White Paper. Thomas, D.C., et al 2008, Cultural Intelligence: Domain and assessment, International Journal of Cross Cultural Management, vol. 8, no. 2, 123-143. Tjosvold, D. and Leung, K. 2003. Cross-cultural management: foundations and future. Aldershot: Ashgate Publishing. Trompenaars, F. & Woolliams, P. 2003. Business across cultures, Chichester: Capstone. 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