Reference no: EM132724253

Question - J.D. Ojisama is the assistant GM of an independent (privately owned) full-ser- vice hotel with 250 rooms. The present GM, the son of the hotel's founder, has expressed an interest in early retirement; he has two children, one of whom is a department head in the property. J.D. has been approached by a management company to assume the position of GM in a 385-room property in another city. The recruiter noted the company's track record in quickly promoting its managers to larger properties with increasingly greater compensation.

J.D. believes this to be true because of the increasing number of hotel management contracts the company is acquiring. J.D. discusses the situation with his present GM who, in addition to being the boss, is also a friend. "You should do what is best for you," said the GM. "However, you have a secure position here. Your salary increases are fair, and I promise they will keep coming. Besides, you grew up around here, and all your friends and relatives are nearby. If you move on with the management company, you will have to relocate to another area. Then, what will happen later if they lose the contracts to manage some properties or are acquired by another management company? You have a good job with almost guaranteed employment here. Why jeopardize it?"

Required -

1. If you were J.D., what issues would affect your decision?

2. Why might J.D. want to accept employment with the contract management company?

3. Why might J.D want to stay with his present employer?