west indies yacht club resort: when culture collides
DESCRIPTION
Cross Cultural Management analysis: American VS British Virgin Island peopleTRANSCRIPT
WEST INDIES YACHT CLUB
RESORT: WHEN CULTURE COLLIDE
Gaetano D’Imprima ID- #35129755-8
Agenda
A. Introduction B. Questions
1. Framework and Problems 2. Managerial behaviour 3. Recommendations
C. Limitations
What are we talking about?
BVI
36 islands 16 inhabited
Tourism
1950-70 Traveling elite
1970à Bareboat charters (much
more affordable)
Facilities:
Smaller mid-scale to upscale
hotels
Airport problem
RESORTS Biras Creek Drakes Anchorage Little Dix Bay
Resort Peter Island Yacht
Club
Rooms 34 12 98 50
Facilities
1 restaurant, 3 tennis court, private beach with bar, small marina, several miles of nature trails.
1 restaurant Anchorage for charter boats Hiking trial 3 sandy beaches
1 restaurant Small boats, water-skiing Snorkelling Diving
1 restaurant Marina Beach
Price (per night) 395%-695$ 400$-600$ 480$-1000$ 395$-525$
Expatriates 3 year contract Oversaw operations Rotate every 2-3 year within the group
Managed by expatriates
Value for customers Limited activities Water sports Limited activities
Upscale hotels in the BVI
West Indies Yacht Club Resort " 1964 Kimball family fall in love with the place.
" place with 5 cottage and a pubà " Dubois ecology and weirdness
" 1973 after several visits Kimball " want to buy a small property " buy the whole property " Differentiate the resort: Bungalow and sailboats
" 1987 Sandy Point Resort management contract " Enlarge the resort and its facilities
" 1990 Fully operational water sports oriented
" OCCUPANCY PROBLEMS (-40à60% off peak)
" REWARDS by magazines (CONDE NAST)
KSF " Eco-conscious and comfortable place for travellers
" Try to maintain the natural shape of the resort
" Differentiation " Watersports, sailining, fishingboats
" Successful marketing strategies " TARGET FAMILIES
Key Issues WEST INDIES YACHT CLUB RESORT
Rooms 96
Facilities Marina with all water sport facilities 2 restaurants Natural trials Fuel dock beach
Price (per night) 390$-595$
Value for clients Water Sports
" Competition " Other resort start having watersport
" Labor Cost (regulations) " Talk later
WIYCR
What are the problems that Johnson and the resort currently face?
Which problems are potentially related to cultural differences?
What local government regulation and policies limit WIYCR management options?
What theories of motivation might explain why BVI employees seem to be different than US employees?
Questions I part Framework and Problems
Problems that Johnson and the resort are currently facing
Expatriate managers’ turnover
Customer satisfaction
Misunderstanding
between local and
expatriates staff.
• 6 expatriates managers had been hired and quit in just 2 year.
• A deeper analysis of the case shows that the former managers used to manage areas in which they have to stay strictly in contact with local employees.
• the number of guests complaining about the low level of service, provided by almost all the staff operating at the resort, had increased drastically (from 10 per week to 30 per week
two categories of employees use to work in a different way and where not able to collaborate. This problem makes the resort a very hard place where to work for both sides.
• Power distance is the level of acceptance by a society of the unequal distribution of power in institutions àLOW/LOW
• Uncertainty Avoidance is the extent to which people in a society feel threatened by ambiguous situationà HIGH/LOW
• Masculinity refers to the degree of traditionally masculine value (assertiveness, materialism and lack of concern for the others) that prevail in a society. The fundamental issue here is what motivates people, wanting to be the best (masculine) or liking what you do (feminine). MASC/MASC
• Individualism is linked to the tendency of people to look after themselves and their immediate families only and to neglect the needs of society. COLLEC/INDIV
• Informal relationship • accessible superiors • “coaching leaders”
Power distance (LOW)
• they don’t want to take risks • non-decision making” style • role of regulation
Uncertainty Avoidance (HIGH)
• Different elements than money drive their motivation
Masculinity
• Extended relationships • Group first
Collectivism
Cultural Differences
• Similar to the Carribean but in the case
Power distance (LOW)
• They want to take risks • Strong decision taking style • Achievements first
Uncertainty Avoidance (LOW)
• Money • Promotions • Career
Masculinity
• Family • Individual first • Achievement
Individualism
NOTE
BVI Labor law
Limited number of work permits + Promote local if possible • Linked to the high level of
illiteracy it leads to the possibility of not-well educated staff
No lay-off during slow seasons • Higher Labor cost (not in
term of wages but retention)
Restricting firing conditions • Compensation system
problems: • Rewards
Firings Uncertainty avoidance
VACTIONS Less time for expatriates Paid by offshore companies
people are not truly rewarded according to their performance and they can’t be fired if they don’t work. Local employees, who are uncertainty avoidance, feel save and they are not motivated by money or promotion by themselves. They know that they will get more money within time, putting the same effort or eventually not working at all
MORE INEFFECTIVE HR
Culture and problems
Expatriate turnover
Management style doesn’t fit with local.
Power distance + Indivividualism
Customer satisfaction
Employees management and compensation system
Motivation
Conflicts between local and expatriate staff
Cultural collision
Individualism vs Collettivism
. They came from the US and managed locals in the same way they would have treated Americans. The way they give orders, the feedback they expect to receive and the way they motivate local employees was a result of their personal background, especially linked with the American individualistic culture. This management style doesn’t suit the local.
The current compensation system also play an important role because it’s not good to motivate local staff
the two different cultures’ collision
Motivation theory
Self-actualization
Esteem
Belongingness
Safety
Physiological
" Humanistic Theories of Motivations: People have strong cognitive reasons to perform various actions
This is illustrated in Abraham Maslow's hierarchy of needs, which presents different motivations at different levels.
Maslow's hierarchy of needs is the representation of westerner society so in the case it could be seen as the way the Americans are motivated: they will reach their climax when they will be able to fulfil their self-actualization needs, thanks to promotions, more salary
Caribbean Pyramid of Needs
Belongingness
Self-actualization
Esteem
Safety
Physiological
Caribbean people have the same needs, but the hierarchy seems to be completely different. At the top of their pyramid, belongingness needs are the most important.
This has a very strong impact on the motivation, making the resort compensation system as ineffective. It has been created for people who want to satisfy self-actualization needs, so it is not the right way to motivate people who want to fulfil other kind of need (friends, family, group identity).
The regulations, with the “difficult to fire” mode, also help the system to be even more ineffective.
Several example of managerial behaviour are provided in the case. Which behaviour seems to be inappropriate regardless of cultural context? Which seem to be ineffective due to the resort cultural context?
Why is Lucas having such a difficult time with his staff?
BVI employees, especially those in Water Sport Department, don’t seem to be motivated by tips. Why do you think this is so? What alternative arrangements might be made?
Does the fact that Kimball, Johnson and Fitch work from the United States have any potential impact on local employees?
Things are not all bad at WIYCR. Who are the expatriate managers who seem to be effective and why are they effective?
Questions
Part II Managerial Behaviour
WIYCR Managerial Structure
Chicago office President
General manager
Operations Level, Accounting &
Finance Property manager
Rooms Division Manager
Front desk Housekeeping
Food & Beverage Director
2 Restaurants and Commissary
Waterfront director
Watersports Director
Marina director Engineering Department
Marketing and Special promotions
Director
Chicago office
US
Joe Kimball
US
Jim Johnson
USàUS/BVI
Operations Level, Accounting &
Finance
Kent Mawhinney
USAàBVI
Kristin Singiser
USAàBVI
Front desk Housekeeping
Steve Lucas
USAàBVI
2 Restaurants and Commissary
VACANT
Enrik Harrigan
DominicanàBVI
Nick Smith
USAàBVI Engineering Department
Tom Fitch
US
Johnson’s main intervention area
Chicago office
US
Joe Kimball
US
Jim Johnson
USàUS/BVI
Operations Level, Accounting &
Finance
Kent Mawhinney
USAàBVI
Kristin Singiser
USAàBVI
Front desk Housekeeping
Steve Lucas
USAàBVI
2 Restaurants and Commissary
VACANT
Enrik Harrigan
DominicanàBVI
Nick Smith
USAàBVI Engineering Department
Tom Fitch
US
“Real” main intervention area
NO Communication
After reading the case
Johnson • Lives in the US • Speaks only with top managers • Stays in his office • Should be the bridge with Chicago
Lucas • Individualistic American • Not a coaching leader • Doesn’t build relationships • Complains too much
Harrigan • Non-decision maker • His subordinates want day by day goal • He has no supervision
Fitch • Rarely on place • Cannot understand resorts’ truly capabilities
and potential.
Kimball • Old • President • Can perform his activity from Chicago
Chicago Office • More communication and integration with the
key people in the resort
Inappropriate and Ineffective managers (I)
Inappropriate and Ineffective managers (II)
Johnson, Lucas, Fitch
Most inapproriate behaviour
For local they are outsiders
Common attributes:
American people
Worked in hospitality resorts in the US
Specialists (academic training)
Parochial Attitude
Narrowly restricted in scope or outlook
Effective Managers
• “Get-his-hands-dirty” Man • every day on the field • Truly interested in all the
resort problems • always accessible
Kent Mawhinney, Property Manager
• Relationship builder • Never take things for
credit • “Bash them over the head
with it” philosophy • Her really problems are
with the HQ
Kristin Singiser, Rooms Division Manager
Cultural Approach
• Water Sport employees don’t seem to be motivated by tips, they want something else. By they way it seems that they would like to have some more money somehow (like when Down show them the tips he gained).
• But individuals do not need just money and rewards, they also need respect and interaction.
• They want to be friends, not only subordinates. For example they treat with interest the guests who had offered them drinks.
• The Watersport’s director can start saying thank you everyday if a good job is done and go drink a beer with his employees after work.
• Teamwork is also important. Employees should work in teams formed of local and expatriate staff. Instead of tips, team who perform well every day, at the end of the month will have paid days off, or will gain special holidays during their forced lay-off period.
Not challenging people and they don’t reward
“individual” initiatives Don’t believe in their
capabilities
They want respect and interaction
They want to build a friendship relationship first
No TIPS motivated
Unmotivated water-sport’s staff
Part III Recommandations
If you were Down, what short term and long-term recommendation would you make to Johnson?
What measures would you recommend that Johnson take in order to reduce the level of expatriate turnover?
What measures would you recommend that Johnson take in order to decrease the occurrence of guest complaints related to unmotivated local employees?
What measures would you take to reduce the growing gap between expatriates and local employees?
Questions
Customer satisfaction
Short term
Apologies
Discounts, special prices, special offers or prize
Long Term
Present to everyday activity
GM ‘s everyday meetings, with Room Division manager
Executives everyday meetings with staff
“Tutor” for each task group with the assignment of “call them on their duty
Talk more with the staff
Everyday explaining plan (even physically)
Continuously control plans
implementation
Check if everything is ok
Ask instantaneous feedbacks.
Thank the staff if the job is well done
“Tutor” with the assignment of “call
the staff on their duty.
Merge the Marina direction and the Waterfront direction • Control Harrigan
Small teams (2/3 people) of both
locals and expatriates
Organize parties
STAFF: Short-term decisions
Executives Staff
• Share tips • Paid days off at the
end of the month for the team
• “Special” vacations during their forced lay-off period
• Other daily prizes, such as free drinks
• INTERACTION
Especially Lucas and the watersport director
BOTH • Johnsonà
executive • Executiveà
Staff
for a total of 22 employees). Smith has to control and rules Harringan operation
Johnson
Move to the resort and live there • Bridge with US • Cross-cultural management course
Mawhinney CLO (Chief Learning Officer)
Staff Training
Cross-cultural management course
Local: Inner “Hospitality School” Train for intermediate management positions
Expatriate:
High experience in the Caribbean or poor experience in the US hospitality market Greater incentives to stay
Chief Learning Office of the Resort: responsible for formulating learning strategy and education initiatives for the local employees. His tasks can include integrating and managing training programs throughout the organization.
DO LIKE THE PROPERTY MANAGER JOB
Limitations
Little information about
BVI’s culture
Motivation
system
Values
Dave Pickering example
Worked mainly with expatriates
Any relationship built with locals
TIPS: Down vs
Dave
• When Down did it they thought he was joking and then they were willing to know how was it possible.
• When Dave did it they didn’t care and maybe considered it as “showing off”.
• Down was considered part of the group, a friend not only a colleague. • Dave had any relationship with them.
• The lack of information about how to gain respect in a culture as a leader could lead to different result from a similar behaviour provided by someone who is accepted and someone who is not.
THANK YOU