Effect of the Traditional Practices on Modernization

Effect Of The Traditional Practices On Modernization: Roaring Dragon Hotel (RDH) and Hotel International (HI)

Executive Summary

In this paper in working the proposal for smooth transition of organization from tradition workspace culture in case of Roaring Dragon Hotel (RDH) and Hotel International (HI). I will address major issues which effected the modernization of the one of the largest and famous hotel in southwestern china. (Grainger, 2008).

Transition of the well establish and tradition organization from the routine style of the work culture is difficult and required well understanding of local sentiment and cultures, transition can successful when respect is paid to local work culture and making the people to realize need of the this transition and make transition working together. In case of RDH well established and well reputed hotel which had tradition and local custom kind of the work culture. When the HI tried to modernize RDH irrespective of the employee’s interest and without knowledge of the workflow of the hotel caused failure (Grainger, 2008).

Introduction: Modernization of RDH

The RDH is famous and one of the original three start hotel in southwest china is a state owned enterprise (SOE). Employees are working for long time with hotel and new employees are transferred from other SOE, by following guanxi connections. Work culture is grounded to more toward native work culture, with lazy managers, unorganized work manners, unprofessional employees. State government decide to modernize the hotel and they hired HI to implement the modernization (Grainger, 2008).

Work environment was more relaxed and casual, with more benefits and less stressful workload compare to other organization, and more leisure time for worker to relax and even some manager are running private business by leaving the work place in mid of the shifts. With market economy slowly growing in china doesn’t concerned the RDH management in fading reputation and slowing profits, still management doesn’t want to practice new work culture, nor think how to improve hotel in growing competition. In 2000, Provisional government realizing the concern over RDH and declining the popularity and profit, decided to modernize the hotel and starting searching for well reputed and experienced international management for modernization of RDH. After deep research they decided the Hotel International is best choice for implementing this process. In 2001, after series of agreement they appointed HI to take over the management from 2002 (Grainger, 2008).


Background : Knowing market is Important

China is one of the largest and fastest growing economies in the world, it is experiencing a great deal of change in the management style and organization culture (Yipeng, Woywode &Yijun, 2012).

Provisional government realizing this fact and concerned about the declining quality and profit, hoped that appoint international reputed and experiences HI can bring modernization in to RDH (Grainger, 2008). Paul Fortune GM of HI has appointed for implementing the modernization of the RDH, after taking up management from SOE in 2002 (Grainger, 2008).

Problem: Making Connections

Fortune realized in modernization of RDH involve massive change in the current work practices, educate the employees for regulated work environment, increase the professionalism in the workplace and takeout the irregularity in the employees day to day activities. Major change he proposed to sidetrack the guanxi hiring process by introducing two month training and hiring process and reducing the staff size as demolition of part of hotel decrease the serviced rooms in hotel which caused over staff (Grainger,2008).

This actions without proper understanding the local traditions and belief had cause dissatisfaction among the employees caused in decrease in productivity from employees. Failed to retain longtime customers further decremented the profit caused the shortage of money (Grainger, 2008). In the transformation influenced by culture may cause the misinterpretation among the management and employees being with the organization long time and well incorporated in current organization culture (Yipeng, Woywode & Yijun, 2012).

Guanxi rooted deeply in to RDH, which in positive side increase the satisfaction rate in employees and kept trust in the organization. Guanxi “refers to personal ties between individuals as well as to an individual’s whole network of personal relationships” (Olwen & Hwang, 2013). According to Bedford and Hwang guanxi play key role in career success, because it improve ability to maintain connection in and out of a circle which ultimately increase circle and contact with resources needed for development (p1). In case of the Guanxi this connection are ignored which broke the relationship factors (Grainger, 2008).

Other factor which effect in this transformation is trust. While cutting down the resources, employees were mentioned about their termination after leaving the workplace, thinking they may steal the property of RDH in angry (Grainger, 2008). This broke the trust factor between the management and employees who are working trustfully for year with RDH.

Opportunities: Future is important

HI had started the implementing the modernization for change the status of the RDH with current reputation and putting it in to future economic market. It focused on the improving in long term prospective, it motive was exactly the RDH needed but failed to see the consequences while this implementation. It made strict work place but lacked the motivation (Grainger, 2008). It had seen the negative effect of the guanxi, but it forgot see the positive side. While the factor of globalization coming in to picture connection play major role in flow of knowledge the across which help in the growing not only one domain but in all the prospective domain (Xiaoying, 2013). If you consider case of guanxi in RDH if it had utilized in efficient way it would have increase the reputation of the RDH across the globe.

Recommendation: Communication, Teamwork, Leadership

Communication is key factor is any organization. When we come across cross culture migration like case study of the RDH, it is important that the continuous communication is establish between the low level and high employees, where in this case it is lacking. Poor communication creates a gap vacuum between the layers and cause the breakage in the flow (Malcolm & Pegg, 2012).

Utilizing the current guanxi process and building from the strong is important, in concept the guanxi builds strong relationship between the individual’s breaks the barrier in the teams and bring everyone in to one roof. Guanxi serves as median team building and access to other group with strong relationships “Guanxi should play a critical role in influencing team interaction processes and members’ effectiveness” (Chou, Cheng, Huang & Hung-Yueh, 2006).

Leadership is other factor which is lacking the RDH case. RDH lack proper leadership which is ready take up the responsibility, they took the things for granted. RDH required an authentic leadership who have “self-awareness, internal regulation, balanced information, authority, relational transparency” (Kinsler, 2014). A strong leader who can integrate his idea in to present system, able to express and pass the message strong across the organization and taking barrier away (Kinsler, 2014).

Conclusion: Understanding

Understanding the process is important part, making every one understand the process is challenge task and important task. HI need to understand the importance of the interpersonal connection and utilize them to benefit of the RDH rather than pushing out. As Guanix is rooted deep in to the Chinese culture it can’t be uprooted in a short span (Liu, Woywode & Xing, 2012). HI need to incorporate the connection in and out circle.


Bedford, O., & Hwang, S. (2013). Building Relationships for Business in Taiwanese Hostess Clubs: the Psychological and Social Processes of Guanxi Development.Gender, Work & Organization,20(3), 297-310. doi:10.1111/j.1468-0432.2011.00576.x.

Grainger, S. (2008). Roaring Dragon Hotel. Western Ontario, Canada: Ivey Publishing.

Hill, M. L., & Jones, P. (2012). Measures and Metrics Shape and Sustain a Cultural Change Initiative in a Global Research Division.OD Practitioner,44(4), 34-41.

Kinsler, L. (2014). Born to be me…who am I again? The development of Authentic Leadership using Evidence-Based Leadership Coaching and Mindfulness. International Coaching Psychology Review, 9(1), 92-105.

Li-Fang, C., Bor-Shiuan, C., Min-Ping, H., & Hung-Yueh, C. (2006). Guanxi networks and members’ effectiveness in Chinese work teams: Mediating effects of trust networks.Asian Journal Of Social Psychology,9(2), 79-95. doi:10.1111/j.1467-839X.2006.00185.x

Qi, X. (2013). Guanxi, social capital theory and beyond: toward a globalized social science Guanxi, social capital theory and beyond: toward a globalized social science.British Journal Of Sociology,64(2), 308-324. doi:10.1111/1468-4446.12019.

Liu, Y., Woywode, M., & Xing, Y. (2012). High technology start-up innovation and the role of guanxi : an explorative study in China from an institutional perspective.Prometheus,30(2), 211-229. doi:10.1080/08109028.2012.661558

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