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Privatization of Tiger Leaping Guest House

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THE PRIVATIZATION OF THE TIGER LEAPING GUEST HOUSE IN NANJING, PRC

QUESTIONS:

1. Trust and mutual respect are important values, family businesses and cliques are still very dominant, and bureaucracy and bribery are still prevalent in the Chinese workplace. Lazy workers and an unprofessional workplace environment are two other issues that need to be dealt with in this case. Do you think the new owners should adopt a ruthless method in their human resource management takeover to encourage, modify or eliminate these characteristics among workers in order to make the workplace more market-oriented? Alternatively, can you suggest any culturally harmonious methods of making these significant changes less damaging, yet effective, especially for older employees?

2. What role has guanxi played in this business? What significant advantages did it provide the employees at the Tiger Leaping Guest House prior to the takeover and what potential assistance to Mike, Guo, Kai and Li Ping does guanxi provide to successfully complete their takeover of the organization? Are these advantages productive or counter-productive?

3. What programs would you include in the training schedule in an effort to change employees who had worked under the old planned economy SOE conditions into more dynamic employees able to operate effectively under new market economy conditions?

4. What characteristics would you advertise for when seeking new employees for the re-constructed Tiger Leaping Guest House? Why would you choose these?

5. How do the Chinese and Western systems of human resource management differ?

Solution Preview

1. Do you think the new owners should adopt a ruthless method in their human resource management takeover to encourage, modify or eliminate these characteristics among workers in order to make the workplace more market-oriented?

International Taiwanese Human Resource Management is different from Chinese Human Resource Management in several ways. For example, first Taiwanese owners when dealing with lazy workers must put a lot of management emphasis on functions and activities such as orientation and relocation of the SOE employees.

To reverse the present unprofessional workplace environment, the Human Resource department of the new 5 star hotel must be particularly responsive to the political, social and cultural environments. The new 5 star hotel operations human resource staff must also make a special effort to create codes of conduct for all the employees.
Alternatively, can you suggest any culturally harmonious methods of making these significant changes less damaging, yet effective, especially for older employees?

Alternatively, some changes less damaging that can be suggested to any culturally harmonious method to deal with the older employees, who are described as unmotivated and lazy employees, must be made to understand in a series of training and role playing scenarios with the 5 star hotel human resource departments of the elements of the new code of conduct. For example this code can consist of four central criteria, that has been used effectively by Coca Cola internationally: the criteria is (1) personal integrity, (2) a drive for results, (3) respect for others, and (4) capability.

2. What role ...

Solution Summary

The solution discusses the privatization tiger leaping guest house.

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