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Problem Background and Problem Definition

Discuss about the Case Study of Pan Pacific Perth, Australia.

Overview of the company:

Pan Pacific Hotels and Resorts are the luxury hotels, resort and suites operating across Asia, North America and Oceania. The hotel is headquartered at Singapore. The Pan Pacific Hotels became the founding member of the Global Hotel Alliance and became the independent hotel brand that is spread in over 76 countries (Olafsen et al., 2015). Pan Pacific Perth is a 5 star luxury hotel in Sydney, Australia well known for the customer service and the good experience that the visitors enjoy during their stay in the Hotel.

Objectives and scope of the report:

The main objectives of the report re:

  1. To identify the major issues and challenges faced by the management of the organisation in the recent time
  2. To critically analyse the factors that hampers the productivity of the organisation
  3. To recommend better managerial implementation strategies that would improve the problems and challenges faced by the organisation.

The scope of the report is to recommend better managerial decision making to the management of the organisation that the organisation will be able to improve its business activity that in turn will help to increase the productivity and profitability of the organisation (Nie et al., 2015). In order to do so, a detailed analysis of the problems and issues faced by the organisation will be taken into account and the best suitable solution will be proposed that would eventually help in improving the present situation of the hotel.

Issues faced by the organisation:

It has been observed that the 5 start hotel is facing issues in terms of employee handling. The rate of employee turnover has increased in the recent time. Employee turnover is the percentage of workers who leave an organisation and are replaced by the new employees. It results in the loss to the company because the cost of hiring of new employees is directly added to the budget of the company (Lazaroiu, 2015). If effort is made to retain the old employees and the existing employees, it actually adds to the productivity of an organisation.

Analysis of root cause:

Brainstorming cause and effect:

Fig: Cause effect diagram of the organisational issue

(Source: As created by the author)

The reasons found behind the increasing rate of turnover of the employees are related to the job pressure and lesser motivational factors like low salary or poor incentive structures to the employees. It has also been observed that the employees are not given proper leaves or enough time for their leisure (Mostafa et al., 2015). Their hard work is never paid in a proper and just way. All these instances have created the bigger problems in the organisation resulting in higher rate of turnover.

Solution Generation

Stakeholders affected:

With the decline in the motivational aspect of the employees, it has been observed that many employees leave the job that increases the rate of employee turnover. In such cases, both the internal and external stakeholders will be affected. For instance, the cost to the company has increased when it comes to hiring new employees. New employees need to be trained to improve their performance (Gupta & Shaw, 2014). This also results in more expenditure of the company. In addition to this, changes in the employees of the organisation will also result in poor customer service because hotel industry is hospitality based industry and consumers always prefer to be served the best as per their demand. Thus, increased rate of employee turnover will affect both internal and external stakeholders (Boxall, Hutchison & Wassenaar, 2015).

Shields et al, (2015) revealed a number of strategies that can be undertaken by an organisation in order to overcome the issues with employee turnover rate. It has been found that competitive salary and benefits are the primary ways of overcoming the issue of employee turnover. However, monetary benefits are not the only way of overcoming the issues of employee turnover. There are other means to tackle the distress and these can be mentioned below.

  1. Hiring the right people and removing people who do not fit: The very primary step to remove the issue of employee turnover is to hire the right people who are fit for the job in terms of every single aspect. It is important to understand the take point of each employee and understand their capability (Wallace et al., 2016). As soon as their capability is recognised, the employees are required to segregate according to their performance and as soon as they are found to be incapable of their performance, the employees need to be removed. It is very important to keep those employees who suit the need of the organisation to reduce the rate of employee turnover.
  2. Providing necessary compensation and benefits: No employee should only be given monetary benefits but there should be other means of compensation of their hard work. In doing so, it is recommended that the employees should be rewarded accordingly in terms of rewards and recognition (Call, Nyberg & Thatcher, 2015). In other ways, the employees should also be given the flexibility in their work to make them comfortable in their respective genres of work.
  3. Providing opportunities for development and growth: The employees should be assured that they have good future in the organisation that they are working for. For such cases, it is important that the deserved employees should be promoted to a higher designation. This gives them the feeling that they are not unwanted and that if they work better, there is always the scope of improvement and development in the particular organisation that they are working for (Lau & Roopnarain, 2014).

Fig: Mind mapping for improving employee turnover

(Source: As created by the author)

It is expected that better management policies are to be designed that would improve the condition at the workplace and would eventually motivate the employees to work with the organisation. It is only by the means of motivating the employees by various means, the rate of turnover of the employees can be reduced (Vidyarthi, Anand & Liden, 2014). It is important to look into their perspective as well because they are the ones on which the entire work of the organisation is depended.

It has to be understood that there is not only one factor that results in the turnover of the employees but there are many. Likewise, the approach to improve the condition of the organisation needs to be made in different direction so that the employees could easily relate themselves with the solutions and can be motivated. Among the above proposed solutions, the best suited solution is the incentive based monetary benefits to be given to the employees of the organisation. In this way, there will be the opportunity from the management to ask the employees to work more, given that they will be paid for the extra effort they put (Graves, Sarkis & Zhu, 2013). In this way, the various issues and problems faced by the organisation can be removed easily. In addition to this, none of the employees should be forced to do any kind of extra activity. In fact, when they will be given the extra benefits and compensation on the work that they do, it will stimulate them to work more for the company (Vidyarthi, Anand & Liden, 2014). That in turn will increase the productivity of the organisation. For the hospitality industry as well, this is the most suitable form of employee motivation technique that can be used.

Criteria A

Criteria B

Criteria C

Criteria D

Solution 1:

Motivating the employees

Better communication with the employees

Providing rewards and benefits

Providing flexibility in terms of working hour

Better rewards and recognition of employees

Solution 2:

Incentive based salary structure

Incentives to be given apart from the fixed salary

Timely appraisals of the employees

Retention bonus to be given to reduce rate of turnover

Hike in position of the existing employees

Implementation and Action Plan

Table: The decision matrix

(Source: As created by the author)

The idea of motivating the employees by providing them monetary benefits could be the best possible solution to overcome the issue. In order to implement the plan, an action plan can be set that would make it easier for the management to follow. The action is made for the coming 3 months or 12 weeks. It is expected that if this plan is followed, the organisation will be benefitted to motivate the employees.


Week 1

Week 2-4

Week 5-6

Week 7-9

Week 10-11

Week 12

Communicating the plan

Making the lists of the employees falling in different categories and communicating the same

Start of the program

Keeping a track of the entire process

Taking feedback from the employees

Make any necessary changes in required

Thinking about better solution to the problems

Table: The Action Plan to implement new program

(Source: As created by the author)

The idea for control of the plan can be done by carrying out an employee satisfaction survey among the existing employees of the organisation. This would help them to understand the present situation of the plan that has been implemented. Accordingly, certain changes can also be made on the plan.


A detailed analysis of the issues and problems faced by the organisation has been carried on in the study. It has been found that the hotel is facing issues related to the higher rate of employee turnover. It should be the part of the managerial implication to come up with better approach that would eventually help the organisation to retain their employees. With the evaluation, it has been found that the best suitable means would be motivating the employees by giving them good incentives and quality life that would make them feel wanted in their particular designation. The plan could be easily implemented within 3 months’ time. It is expected that the hotel would improve its business activities if these are followed by the team of management.


Boxall, P., Hutchison, A., & Wassenaar, B. (2015). How do high-involvement work processes influence employee outcomes? An examination of the mediating roles of skill utilisation and intrinsic motivation. The International Journal of Human Resource Management, 26(13), 1737-1752.

Call, M. L., Nyberg, A. J., & Thatcher, S. (2015). Stargazing: An integrative conceptual review, theoretical reconciliation, and extension for star employee research. Journal of Applied Psychology, 100(3), 623.

Graves, L. M., Sarkis, J., & Zhu, Q. (2013). How transformational leadership and employee motivation combine to predict employee proenvironmental behaviors in China. Journal of Environmental Psychology, 35, 81-91

Gupta, N., & Shaw, J. D. (2014). Employee compensation: The neglected area of HRM research. Human Resource Management Review, 24(1), 1-4.

Lau, C. M., & Roopnarain, K. (2014). The effects of nonfinancial and financial measures on employee motivation to participate in target setting. The British accounting review, 46(3), 228-247.

Lazaroiu, G. (2015). Employee Motivation and Job Performance. Linguistic and Philosophical Investigations, 14, 97.

Mostafa, A. M. S., Gould?Williams, J. S., & Bottomley, P. (2015). High?performance human resource practices and employee outcomes: the mediating role of public service motivation. Public Administration Review, 75(5), 747-757.

Nie, Y., Chua, B. L., Yeung, A. S., Ryan, R. M., & Chan, W. Y. (2015). The importance of autonomy support and the mediating role of work motivation for well?being: Testing self?determination theory in a Chinese work organisation. International Journal of Psychology, 50(4), 245-255.

Olafsen, A. H., Halvari, H., Forest, J., & Deci, E. L. (2015). Show them the money? The role of pay, managerial need support, and justice in a self?determination theory model of intrinsic work motivation. Scandinavian journal of psychology, 56(4), 447-457.

Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., ... & Plimmer, G. (2015). Managing Employee Performance & Reward: Concepts, Practices, Strategies. Cambridge University Press.

Vidyarthi, P. R., Anand, S., & Liden, R. C. (2014). Do emotionally perceptive leaders motivate higher employee performance? The moderating role of task interdependence and power distance. The Leadership Quarterly, 25(2), 232-244.

Wallace, J. C., Butts, M. M., Johnson, P. D., Stevens, F. G., & Smith, M. B. (2016). A multilevel model of employee innovation: Understanding the effects of regulatory focus, thriving, and employee involvement climate. Journal of Management, 42(4), 982-1004.

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