Organizational Culture and Turnover in the Hospitality Industry

Abstract

This case describes the critical intersection between a hospitality corporation’s organizational culture and turnover rates for its unit-level General Managers (GMs). The corporation is committed to applying triple-bottom-line principles (People, Planet, and Profit) throughout its properties, however, it has struggled to implement this vision at the hotel unit level effectively. The dilemma is that a dramatic increase in GM turnover has occurred in the last year. A hired consulting firm determined that this has created operational disruptions and unsatisfactory adherence to the organization’s cultural values across its units, particularly its triple bottom-line initiatives. It is now up to the organization at the corporate level, specifically the Director of Human Resources, to determine a solution that will reduce the high GM turnover rate in the short term and ensure the implementation of the organization’s vision and culture at all levels of its hospitality organization over the long term.