Reference no: EM131134237

CASE INCIDENT 1

In 2011, a study was carried out to compare the correlation between employee satisfaction and organizational cultures. The study involved three international hotels in Cairo, Egypt: the Hyatt Regency Hotel, the Semiramis InterContinental, and the Four Seasons Hotel. The study showed that each hotel had a strong organizational culture in which core values were intensely held and widely shared by employees. However, in two of the hotels, the Egyptian culture was more apparent according to Hofstede's and Trompenaars' cultural dimensions. The level of job satisfaction of employees in the three hotels was examined in a survey. The organizational cultures of the three hotels as perceived by the employees were also identified in the same survey. In addition, the extent to which the organization was influenced by the national culture was assessed. The employee surveys were distributed equally in the three hotels.When it came to job satisfaction, the Hyatt scored the highest level of employee satisfaction, followed by the Four Seasons Hotel. Analyzing the organizational culture showed that the Hyatt combined a mix of a clan and a market culture, whereas both the Four Seasons and Semiramis InterContinental hotels had a hierarchy culture. The last section of the survey identified the extent to which national culture was present in each hotel based on Hofestede's and Trompenaars' dimensions-that is, the Egyptian compared to the American (for Hyatt and Semiramis InterContinental hotels) and the Canadian (for the Four Seasons hotel). The Hyatt and the Four Seasons hotels had more of the Egyptian culture apparent in the hotels. For example, the behavior of the employees reflected a higher power distance and more effective relationships between employees (an indicator of the influence of Egyptian culture). However, the Semiramis InterContinental adopted a mix of both the American and the Egyptian cultures. For example, it showed a high power distance mixed with neutral relations, low levels of uncertainty avoidance, and a high consideration of time. Although both the Four Seasons and the Semiramis InterContinental have a hierarchy organizational culture, the levels of satisfaction in both hotels varied widely. Thus, the effect of the organizational culture on employee satisfaction was not evident. Based on the results of the study and comparing the three hotels, it was concluded that embracing the national culture of the host country, in addition to having a strong organizational culture, had a positive effect on the level of job satisfaction of employees. Therefore, when international hotels open branches in new regions, they need to familiarize themselves with the host country's national culture, especially if they are dependent on hiring local employees. This way, they will be able to adopt many aspects of the host country's culture and will end up with "happier" employees.

Questions

1. How do the Egyptian, American, and Canadian cultures differ according to Hofstede and Trompenaars?

2. The Hyatt and the Semiramis InterContinental should have shown similar results when it comes to cultural assessment. Do you agree or disagree?