The senior management at Hotel Co., a large hotel in Singapore employing some 243 people at any one time, have recently introduced a computerized system that has fully integrated all aspects of customer service. The hotel’s clientele are primarily Western business travelers and their families, and many of these are now able to make their own hotel bookings online.

While all customer-facing and support staff have been fully trained in the more technical aspects of accessing and operating the system, this major change has impacted on staff in a number of ways that senior managers had not anticipated. First, staff who previously worked closely together even though they were formally part of different teams no longer have any reason to work together or to interact during the normal course of their work. This has caused a degree of disharmony and disappointment among some members of staff, particularly those who have been employed by the hotel for some time. Newer members of staff are also finding little reason to engage with their colleagues in any sustained way, as most forms of interaction and communication can be carried out electronically. Second, members of staff who have worked for the hotel for some time and had been happy with the old ways of working have resented not only the change itself, but also the way in which it has been introduced, with limited communication, consultation or explanation from senior management before, during or after the introduction of the new system. Third, the electronic booking system means that hotel guests can now book direct and request specific items for their room such as a room-service meal or even a particular type of pillow on their bed upon their arrival. However, as the system is relatively new and in the early stages of implementation, the hotel’s staff are finding that they often have to intervene to correct or amend particular arrangements.

Hotel guests are reporting that their rooms are not entirely what they expected when they booked, and particularly front-line reception staff are finding that they have to increase the effort they put into providing a high-quality customer service. In recognition of some of the difficulties they face, the hotel’s senior management team have enforced strict guidelines on uniform and grooming in order to convey a professional image of the hotel at all times. All staff have also been required to attend a one-day training course at which the ‘3 S’s’ of effective customer interaction are reinforced: ‘smiling, sincerity and service’.

Question

1 Why might Hotel Co., following the introduction of the new ICT system, be described as an ‘emotional cauldron’? What does this mean – for staff, for senior managers and for customers?
2 What key aspects of managing change at Hotel Co. did senior management overlook?
3 What impacts has this had on staff, and on customers?
4 In addition to the additional training courses they are offering, what measures might be introduced to address some of the difficulties the organization faces in this current situation?