Moscow Aerostar Is a Hotel

Moscow Aerostar is a hotel which was opened thanks to a joint venture between a Russian airline and a foreign multinational company based in Nova Scotia. Any business made abroad comes with various issues, but in this particular case, the IMP Group Limited came across difficulties it did not expect. Most of them arose from cultural differences and not having a method to perfectly overcome them.

One of the problems that the Aerostar faces is represented by the large number of expatriate managers. The initial plan was to use managers who were not Russian, because they had a better understanding of he western way of doing business. In time, these managers were supposed to be replaced by Russian managers. However, instead of diminishing, their number increased after a period of two years time.

A second problem that the organization should take care of as soon as possible is represented by the attitude of the employees towards work. A simple cold may become a factor important enough to make one take three weeks off from work. This situation is supported by the existing legislation, but also by the mentality of the employees, mentality which has been influenced by the previous work standards and conditions.

The predisposition of the staff members to take medical leaves reflects the fact that they want to take things easy. This may make it difficult for the managers to do their jobs well, or put them in a crisis situation, having to find substitute personnel or other solutions.

A third problem that the Moscow Aerostar hotel faces is represented by the large number of employees it needs. Although initially a certain number of staff members had been planned, the difficulties that the management team met when having to perform high standard services led to hiring extra personnel. This is a problem because the same quality services are provided by the competition with fewer human resources (which means fewer costs and less time invested).

All the problems which have been mentioned above make it more difficult for the Moscow Aerostar to function efficiently and efficaciously than under normal conditions. The hotel manages to provide high-quality services. It has been rated as a four star establishment and is satisfyingly full almost at all times. Nevertheless, the hotel management needs to invest amounts of time and money which are larger than in the case of the competition. And this is not without consequences.

One of the issues that the hotel faces is represented y the large number of expatriate managers. One of the plans that were initially made consisted in reducing the number of the expatriates as time went by. However, things did not go as planned.

The reason for this situation is to e found in the difficulties that the management staff stumbled upon regarding the staff. Since the need for more managerial staff members was felt at a certain point, it seemed natural to ring in more expatriates.

The core problem is to be found in the mentality of those who decide who are the persons best fir for these management positions. The differences between the Russian perspective upon business is different compared to the western one, which is understandable if one is to take into consideration the political environment and the social and cultural conditions. The western managers want to bring western quality to the services which they provide, and in fact the hotel is perceived as such. The mistake is to believe that local managers do not have what it takes in order to reach these standards.

However, the situation is not as it seems. There may be very talented Russian managers, who have studied abroad or have studied in Russia and have experience within the local business environment. From this point-of-view, they have a better understanding of how things work and which are the best ways to reach the desired purposes.

A further problem that the Aerostar hotel faces is represented by the attitude of the staff members towards work. And here there are more aspects to be discussed, starting with the easiness with which personnel members take days off and finishing with the strong make up that women tend to wear at work.

These issues occur because they are based on a local way of thinking. People act according to their mentality, to the values and beliefs that they have. This set of values and beliefs has been created in the context of a communist regime which imposed strict rules. People have gotten used to certain work standards and rules and they respond to the new situation accordingly, even if they should do differently.

In addition, they have a different perspective upon the whole concept of what they are supposed to e doing. The fact that they did not understand the meaning of the word "service" is more than relevant as an example of how they think. The problem here is how to find a suitable means of communicating. The Russian staff members are not less intelligent than the western employees for example, they are simply not accustomed to the western perspective upon work and business.

A further issue that the Moscow Aerostar faces is represented by the large number of staff members. Having a numerous staff implies more expenses and more time invested in training as well as additional difficulties in achieving a perfect coordination of all tasks.

The Aeorostar has ended up in this situation because the initial crew was not made capable of solving the tasks it was meant to do at the levels of quality that the hotel required. Instead of insisting more upon education and training, the hotel management decided to ring in more people.

This may have allowed it to avoid an early crisis situation, but it did not solve all the problems. On the contrary, it brought about other complications.

Another foreign company which has made business in the Russian environment and has done it successfully is represented by McDonald's. The Aerostar is a hotel, things are not exactly the same, but looking at the big picture, there are two foreign companies trying to make their way into Russia, and one of them is more successful than the other. There are various reasons for which the situation is like this.

One of the reasons for which McDonald's does not have the same staff problems as the Eurostar is represented by its Human Resources policy. The company regards all the members of the staff, regardless of the level of their responsibilities, as a family.

There are numerous things which help create a pleasant atmosphere at work and this stimulates people. One of these things is that everybody calls everybody by their first name. this establishes a relation of equality among them, which contributes to an open communication.

A further helpful element is represented by the uniform. All the members of the restaurant's personnel have to wear the McDonald's uniform. And they do it with pleasure. One of the factors contributing to the creation of this situation is represented by the fact that the uniform creates a feeling of belonging (to the big McDonald's family) and a feeling of equality. In addition, the uniform contributes to the creation of an identity.

Another reason for which the McDonald's restaurant seems to be functioning very well is to be found in the criteria of selecting its personnel. The company decided to recruit young people aged 18 to 27 and they did this for a specific reason.

For most of them, this was their first job, it was McDonald's teaching them the basic steps, the very way to fulfill their tasks and, more importantly, to conceive them. Unlike the members of the staff working for the Eurostar, who had already had work experience and were accustomed to certain work rules, the young people that McDonald's was taking into consideration were learning everything from zero.

An additional actor which contributes to the efficient functioning of the McDonald's restaurant is represented by the numerous activities which are organized in order to stimulate the members of the staff. Among them we can mention the weekend trips or the competitions which are organized on a periodical basis. This contributes to strengthen the feeling of belonging to a family and supports the development of deeper relationships between the staff members, turning them into a team.

The recruiting policy is another element of great importance which needs to be taken into consideration when discussing the efficacious functioning of the McDonald's restaurant. The company placed a single add and had a bout 27.000 responses to it. The extremely large number of respondents allowed it to select the ones who had the strongest motivations and who were the most energetic and most dedicated.

The fact that there were so many people who wanted to work here and only a limited number of positions created a fierce sense of competition and the one to get the biggest benefits off this situation was the company. Creating such a competitive environment had other positive consequences. These are to be found in the fact that those who got hired felt really proud of themselves and considered themselves as part of the best. This mentality certainly supports the manner in which the restaurant functions.

The fact that McDonald's does not have serious problems with its staff is Russia is supported by other elements as well. One of them is represented by the policy according to which all the McDonald's restaurants must function in the same manner and provide the same quality products and services, no matter the country they are located in.

This means that the people who are recruited in order to manage these restaurants must know more or less the same things and have more or less the same attitude to business. The company achieves this by sending its managers to the same universities in order to study and acquire the needed experience in this area. Such was the case with the four people selected to be managers at McDonald's Russia, who were sent to the McDonald's Institute of Hamburgerology in Canada in order to study there for a period of five months.

The lack of serious problems with the staff members derives from the efficient Human Resources policy that is in use. One of the most important aspects regarding this policy is represented by motivation. And McDonald's has found an extremely important way of motivating its employees through very big wages. The financial motivation has always been important, regardless of the geographical and cultural location of the people. Earning almost three times more than the average salary is a big thing, especially in a post communist country.