Oskar Case

1. How effective was the 5 Star system? Which of your identified problems in Q2 did it solve? Which new problems did it create?

Efficiency of 5 Star system can certainly be discussed and doubted, if we observe first what was changed we can possibly analyze results. When it became clear to Scott and Mene, original system does not work new plan started to be implemented. After first emotional meeting with PVs changes to the system started to take place; ending with PVs being organized into 15 teams of 5 team members. One of the advantages was seniority system, where first 3 were guaranteed 40 hours work per week, fourth 32 hours of work per week and fifth 16 hours of work per week usually on night relief. This offered some stability to the job, since other hotels did not offer similar approaches. This of course came with the promise from PVs of higher productivity.

Changes firstly seemed a success, teams were becoming homogenous and productivity and work discipline increased. For a brief period it looked like changes were efficient and morale was back on track- January 1989, zero PVs resigned.

Soon problems re-emerged, putting situation back to the previous state. Reason for this was use of 'floaters', which were the response to the seasonal increased demand and way to keep short term spikes in check. Second problem emerging was discipline, since supplies were poorly regulated, delegation and supervision was underperformed and most importantly poor performers were not dealt sharply and correctly, rather to resort to soft techniques which startled doubt in the management among PVs. Talks about strong unions appeared and slacking was present on the job. One of newly appointed supervisors commented:

'We have laundry problems daily. There's no training because we're so busy. The minibars aren't stocked. Are we causing irreparable damage?'

This is showing existing problems on the job and PVs were aware of it. Although not all was only dark- some problems seemed to be fixed. Before floaters joined the group tips were substantial. Turnover decreased; also horizontal structure was partially modified into vertical, so chain of command became more decentralized and data required by PVs more accessible. More structured approach to floor increased productivity and teams of five seemed to be working well before floaters were added. Quality of service was still of high level, but serious observable problems started to become visible even to the guests. This if not dealt with might leave serious long term consequences. Mene is certainly in position where future operations of Portman's Hotel will be affected. He is dealing with first time bigger spike in November 1988, with occupancy close to 100%. Hiring will need to be increased with people ready to assist training in the busiest time of the season.

2. What are your suggestions for Portman's