Metrics

8. For the following case titled Sleepless Nights at Holiday Inn (published in Week and adapted here): a.

Identify the problem

b.

Develop a theoretical framework

c.

Develop at least four hypotheses.

Business

Sleepless Nights at Holiday Inn Just a few years ago, Tom Oliver, the Chief Executive of Holiday Hospitality Corp., was struggling to differentiate among the variety of facilities offered to clients c lients under the Holiday flagship – the Holiday Inn Select designed for business travelers, the Holiday Inn Express used by penny pinchers, and the Crowne Plaza Hotels, the luxurious hotels meant for the big spenders. Oliver felt that revenues could be quadrupled if only clients could differentiate among these. Keen on developing a viable strategy for Holiday Hospitality which suffered from brand confusion, Tom Oliver conducted a customer survey of those who had used each type of facility, and found the following. The consumers didn’t have a clue as to the differences among the three different types. Many complained that the buildings were old and not properly maintained, and the quality ratings of service and other factors were also poor. Furthermore, when word spread that one of the contemplated strategies of Oliver was a name change to differentiate the three facilities, irate franchises balked. Their mixed messages did not help consumers to understand the differences either. Oliver thought that he first needed to understand how the different classifications would be important to the several classes of clients, and then he could market the heck out of them and greatly enhance the revenues. Simultaneously, he recognized that unless the franchise owners fully cooperated with him in all his plans, mere face lifting and improvement of customer service would not bring added revenues.

Problem Statement: How can brand awareness be brought about to increase the revenues of Holiday Inn?

Theoretical Framework Only after Oliver has understood how the different classifications would be important to the three classes of intended clients through survey data, can a meaningful

theoretical framework be developed. But, based on what information is currently available, the following framework can be attempted. The nature of the building facilities, how the buildings are maintained, and the quality of service provided  – the three independent variables  – would differentiate the three distinct types of Holiday Inn facilities and increase brand awareness among the users. The better the buildings, the better their maintenance, and the more differentiated the services provided, the greater will be the perceived differences in the three types of Holiday Inn facilities by clients. However, if the Franchise owners do not cooperate in highlighting these differences to clients, no amount of the improvements made in the independent variables will help to increase the brand awareness. It i s only when the Franchise owners actively promote the idea of differentiated facilities- the moderating variable – can the brand awareness be increased, and as a consequence, the revenues.

Hypotheses 1. The more differentiated the building facilities, the more the brand awareness. 2. The more differentiated the maintenance of the facilities, the more the brand awareness. 3. The more differentiated the services to the clients, the more the brand awareness. 4. Differentiated building facilities, maintenance, and service will influence brand awareness only if the Franchise owners cooperate and actively promote the idea of differentiation. If they don’t, no a mount of differentiation of the three independent variables will help clients to understand the differentiation (increase brand awareness).

Exercise 4.13 Problem Statement How can the job performance (output) of the employees be increased through enriched jobs and rewards?

Theoretical Framework Job performance is the main variable of interest since the production manager is interested in increasing the output levels of employees. Job performance is, thus, the dependent variable. Job enrichment and rewards are the two independent variables which directly influence performance through the intervening variables of motivation and satisfaction. However, the valence of rewards to the recipient moderates the relationship among rewards, motivation, satisfaction and performance. When the jobs done by the workers are such that they are more challenging and utilize all the skills that the workers have, then the workers will be both satisfied that they are able to use the skills they possess, and be motivated to engage in work behavior. When employees are thus motivated and satisfied, their performance levels will be high. Also, motivation and satisfaction will mutually influence each other. That is, when satisfaction is high, motivation will be high, and the higher level of motivation will, in turn, increase satisfaction. Thus, the two will mutually influence each other, and both together will influence performance. If, on the other hand, the job is dull and repetitive, employees will not derive any satisfaction at the workplace since they will be bored, and their inclination to engage in work behaviors (motivation) will be low. When employee satisfaction and motivation are low, their levels of output (performance) will also be low. Increased rewards will also offer employees both satisfaction and motivation, because employees will know that the effort put in by them is recognized and rewarded. This increased satisfaction and motivation will spur them on to perform even better since they will now have more zeal and enthusiasm. However, the relationship between

increased rewards and the intervening variables of motivation and satisfaction will hold good only for those who desire and value the rewards dispensed by the organization. Those recipients who do not find the rewards valuable or desirous will not be turned on by the rewards, and their levels of satisfaction, motivation, and performance will not be enhanced. The valence of rewards thus moderates the relationship between rewards and the intervening and dependent variables.

Hypotheses HA1: If the job is enriched and utilizes all the skills possessed by the employee, then employee satisfaction will be high. HA2: If the job is enriched and utilizes all the skills possessed by the employee, then employee motivation will also be high. HA3: There will be a positive correlation between satisfaction and motivation. HA4: Greater rewards will influence motivation and satisfaction only for those employees who find the rewards valent; not for the others. HA5: Satisfaction and motivation will positively influence performance. HA6: The more enriched the job and the greater the skills utilized by the job, the higher the level of employee performance.

Exercise 4.14 Problem Statement How can minority women be retained in organizations?

Theoretical Framework Retention of minority women is the main variable of interest to the study, and hence, is the dependent variable. The independent variables that are likely to explain the variance in the retention of minority women are: (a) influential mentors willing to help, (b) informal networking with influential colleagues, (c) role models, and (d) high visibility projects. The intervening variable is satisfaction. When influential officials in the system are willing to serve as formal or informal mentors minority women can learn the ropes for progressing in the organization. When women can network with influential colleagues, they will learn a lot about the political system of the organization and know where and when there are opportunities to advance. Role models help women to emulate the characteristics necessary to climb the ladder of success in the system. When women work on high visibility projects, they attract the attention of those in power and are likely to be promoted to higher level positions.