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Business Management Paper Example

Part 1

Root Problem

Perishability and intangibility remain the major challenges the hotel (Ross, 1995). Services are not visible or tangible because when a customer receives a service from a hotel, the satisfaction or dissatisfaction of the customer represents the intangibility of the service. No benchmark is available to measure that satisfaction. Similarly, the concept of perishability exhibits immediate utility one gets after availing or using a service from a hotel.

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Numerous causes affect the root problem. Competition, uncertainty, and market adjustments remain the prime causes that severely affect the highlighted challenges for Cambridge Suites (Ross, 1995). The hospitality industry is not immune to external changes that severely affect all aspects of hospitality. Competition comes from within the hospitality industry where current and new hotels affect the current products and services available for the customers in the industry. Uncertainty comes from change patterns, choices, decisions, and preferences of local and foreign customers (Ross, 1995). An occupancy rate does not remain the same when these external and internal factors substantially change and affect the hospitality industry.


Various alternatives are available for the hotel. The hotel management must empower its employees by giving them more intrinsic and extrinsic rewards and other benefits. Although the new total quality management experience looks highly effective to achieve more intended results, additional efforts for the motivation of employees must be carried out. Additionally, anticipating and satisfying the expectations of customers offers another way to reduce the impact of uncertainty affecting the performance of Cambridge Suites (Ross, 1995).

Plan Evaluation

The plan looks highly effective to achieve its intended goals. Paul has obtained a loan from the Regional Industrial Training Committee (RITC) to implement the continuous quality management program and total quality management design (Ross, 1995).


Motivation remains a highly essential factor for employees (Senyucel, 2009). It is difficult for the hospitality industry to undermine the significance of intrinsic and extrinsic motivation as it affects all employees who work for the industry. Primary stakeholders also expect from their employers to satisfy their expectations as required. The gap between the expectations of primary stakeholders and hospitality employers always depends on their mutual understanding and collective work. Inner motivation is more significant for some employees than others (Laegaard & Bindslev, 2006).

Part 2


Superior employee performance remains the fundamental problem for the hotel. The Mandarin Oriental Hotel works in the hospitality industry where competition, service quality, customers’ expectations, and workplace modifications change rapidly (Marshall, Mottier, & Lewis, 2015). It is not possible for the hotel to maintain a specific hospitality management model to overcome its main challenge. It is not possible for the hotel to undermine the significance of their employees’ superior performance; however, the term “superior performance” contains various internal and external aspects that must be taken into account before changing or introducing new directions or recommendations for improving the quality of human resources (Marshall, Mottier, & Lewis, 2015, p.123). External factors also force the hotel to address the problem through developing those human resource policies and practices that are in line with the industry’s current and potential human resource practices. Internal factors also force the hotel to revisit its employment model and workplace environment. 


The problem is intrinsic not extrinsic in nature. An extrinsic reward refers to material and tangible things that are visible and motivate an employee to achieve an organizational goal (Sansone & Harackiewicz, 2000). For example, salary, perks, bonus, and other material and tangible items come from extrinsic rewards (Hartel & Fujimoto, 2015). Intrinsic rewards are intangible and work differently than the extrinsic ones (Deb, 2009).  Admiration, satisfaction, recognition, applauds, and other intangible rewards are the examples of intrinsic rewards (Wilton, 2022).

In the current case, the hotel is trying to improve the performance of their employees as they have developed and implemented a comprehensive plan, including O-Zone (Marshall, Mottier, & Lewis, 2015). The prime function of this area is to provide a special place to all employees where they can play, swim, and do other things that are essential for improving their organizational performance.

It is difficult to say that employees face an extrinsic problem because they are already receiving enough and attractive salaries and other perks from the hotel. These benefits are essential and sufficient for them; however, the hotel works in a hospitality industry where competition is high from the competitors.

The changing expectations of customers are also forcing the hotel to improve or upgrade its service quality.  It is necessary to understand the cause of a problem. When a manager finds a problem and its root causes, this outcome helps the manager to revise or change its strategy to outperform its competitors. In the current case, the hotel is facing an intrinsic challenge. And, the hotel has developed a solution to improving the performance of its employees.


The hotel has developed a comprehensive plan to improve the performance of its employees. It includes wall of fame, his and her, fashion zone, health zone, café 48, kiosk 48, mind zone, dream zone, relax zone, game area, reading corner, colleagues concierge and internet zone (Marshall, Mottier, & Lewis, 2015, p.127). This shows the hotel has tried to provide all those areas that are highly relevant for its employees to improve their performance quality.  Extrinsic rewards are relevant as they offer more benefits than the intrinsic ones. The problem with intrinsic rewards is that they do not satisfy the expectations of those employees who look for tangible and material rewards from employers.

Plan Recommendation

However, some suggestions are still relevant for enhancing the service quality of the employees. The hotel must offer extrinsic rewards to its employees. The problem with intrinsic rewards is that they do not always work for all employees. Some employees receive more satisfaction from extrinsic rewards than from intrinsic ones. In the current study, the hotel has completely undermined the significance of extrinsic rewards. A money reward program looks a reasonable way to improve the validity and efficiency of the current satisfaction model. Both must work collectively for upgrading the performance and service quality of the employees. The hotel must conduct a survey from its loyal customers as they are in a better position to highlight other services they want or expect from the hotel. 


Both cases are highly relevant for businesses. Motivation is an essential element for businesses. It is not possible for them to easily work in today’s highly competitive business environment where internal and external challenges force businesses to take more than usual steps to outperform competitors. When a business company provides an intrinsic and extrinsic motivation to its employees, it convinces the employees to put their best efforts for improving their service quality. This motivation is also essential for business companies as their employees work to achieve organizational goals.


Deb, T. (2009). Compensation Management. Excel Books.

Hartel, C.E. J.,  & Fujimoto, Y. (2015). Human Resource Management. 3rd ed. Pearson.

Laegaard,  J. & Bindslev, M. (2006).Organizational theory. Bookboon

Marshall, T., Mottier, E., & Lewis, R. (2015).  Motivational factors and the hospitality industry: A case study examining the effects of changes in the working environment. Journal of Business Case Studies, 11(3), 123-132.

Ross, G. (1995). Cambridge Suites Halifax.  Acadia Case Study Institute. Acadia University.

Sansone, C., & Harackiewicz, J.M. (Eds.). (2000). Intrinsic and Extrinsic Motivation: The Search for Optimal Motivation and Performance. Academic Press.

Senyucel, Z. (2009). Managing the human resource in the 21st century.

Wilton, N. (2022). An Introduction to Human Resource Management. 5th ed. SAGE.