Please discuss the case study, Cambridge Suites, Halifax, briefly articulate the following

elements of the case: (1) Identify the real, root problem of this case, (2) Diagnose the
fundamental cause(s), (3) Possible alternatives available to the partners, (4) Evaluate their plan
of action (decision/implementation), and (5) State the importance and relevance of the case to
the study of business. Consider the primary stakeholders’ motivations. In considering
motivations, take into account the applicable motivational concepts and theories found
in Chapter 4 of Managing the Human Resource in the 21st Century.

“Cambridge Suites Halifax opened for business in the summer of 1987 as the first all-suite hotel
property in the Halifax market area. The hotel developed the best occupancy levels in the metro
marketplace with an average room rate among the top five. In 1994, the hotel achieved an 85%
occupancy rate, a property record, compared to a Halifax-Dartmouth combined occupancy in the
area of 62% - 64%. Cambridge Suites Halifax had 200 guest suites in two basic styles. The hotel

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had 85 employees, four at the executive level, six at the department manager level, ten front line

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supervisors, and sixty-five other employees who were not unionized” (Ross, 1995).

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(1) Identify the real, root problem of this case

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The real root problem of this case in my view was the ten years cycles in which the Halifax hotel
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industry tended to grow. This was the real root problem because each new growth phase caused
market adjustments and uncertainties in market share and the Cambridge Halifax Suite being part
of the market would be affected by these adjustments and uncertainties (Ross, 1995). There was
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also the bigger problem whereby the hotel had very little direct information on guest
expectations despite the expected wealth of feedback from guests received by front-line staff.
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The Cambridge Halifax Suite, therefore, needed to take remedial measures to ensure that the
effects of the cycles did not adversely affect them.

(2) Diagnose the fundamental cause(s)

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First and foremost, we have identified the fundamental cause as the problem caused by the ten
cycles in which the Halifax industry tended to grow. The Cambridge Halifax suite did not
employ and instill principles of total quality management because it had not embraced the
initiative. Application of total quality management principles would have transformed the
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Cambridge Halifax Suite’s corporate culture to another level. Another fundamental cause was the
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fact that despite efforts for implementation of the Continuous Quality Improvement (CQI)
project, which included securing $30,000.00 in funding from the Regional Industrial Training
Committee (RITC), senior management nonetheless lacked knowledge about the processor and
was not committed enough. The implication was that the project’s progress could quietly and
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effectively be derailed by the lack of support of the key people. The lack of ample knowledge
and any disagreement on key issues, i.e. mission, values, and critical results by these key people
could also cause questioning of its success. Paul realized he had a bigger problem in that the
hotel had very little direct information on guest expectations. He knew the front line staff
received a wealth of feedback from guests but he had not been able to tap this source to date.

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 (4) Evaluate their plan of action (decision/implementation)

The plan of action included starting an effective quality management project at the hotel and
gaining the kind of short-term results essential to maintaining corporate interest and support for
the project. The goal was to embrace total quality management as a continuous quality
improvement initiative. Actions undertaken in this regard included securing funding for this
initiative and convincing the executive team about the urgent need for this continuous quality
transformation program. Though senior management approved of the quality initiative, they fell
short of the necessary knowledge and lacked outright commitment to the project. Fortunately, the
funding was secured to kick start the continuous quality improvement project. Whilst projects
were ongoing, the appointment and participation of some staff in the project were met with
resistance by the staff who felt intimidated about their appointment and participation on the
teams, as well as sitting with senior management to the problem to solve and plan. Further, the
decision to buy in frontline employees most of whom had never been involved at this level of
decision making in the past and showed some skepticism was difficult to implement. (Ross,
1995). Notably, some employees were still stuck at "what’s in it for me" or "this will pass"

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attitudes. And the decision to get more buy-in from these key people by motivating employees
to attend the project meetings by paying them to attend the meetings and some put in extra time

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on their project after regular work hours on their own time was a positive and progressive one.
The decision to reduce administrative paper consumption by 50% within three months from a

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monthly usage of 32,095 pieces of paper to 16,048 pieces of paper and implementation of other
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innovative ideas such as emphasis on implementation of paper saving simple ideas like copying
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on both sides whenever possible, to more innovative ideas like a central report registry in the
administration offices, in terms of saving money while being ecologically correct was
commendable (Ross, 1995).
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Possible alternatives were available to the partners.

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As an alternative, the partners should not just have concentrated on involving all employees
more deeply and giving them various pieces of information about CQI but should have
considered deep level explanations or deep-seated training. It was important to involve everyone
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in training. Though the development of larger guest rooms with increased amenities proved very
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attractive to many types of travelers, it mainly served those in town for multiple nights of seven
nights or longer which greatly aided in building occupancy levels (Ross, 1995). However, the
hotel could also explore the development of state of the art much smaller rooms that encouraged
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more of those who would stay fewer nights. This would also contribute to saving on energy use.
The other possible alternative ways for the Cambridge Suites to remain where it was very
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competitive and not consider the implications of growth that happened in ten-year cycles.

(5) State the importance and relevance of the case to the study of business. Consider the
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primary stakeholders’ motivations. In considering motivations, take into account the

applicable motivational concepts and theories found in Chapter 4 of Managing the Human
Resource in the 21st Century.

Some of the primary stakeholders' motivation was to enable Cambridge Halifax Suite to become
a quality management company as this would provide an opportunity to move the hotel

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 operations to a new level, by employing and instilling the principles of total quality management.
It was also their ultimate goal to transform the corporate culture at the hotel, improve and exceed
the competition. They also looked at having empowered employees trusted to make decisions
that avoided customer dissatisfaction, rather than respond to it (Ross, Greg. 1995). They aimed to
ensure there was a continuous quality improvement in the Cambridge Suites Hotel. They were
motivated to ensure a reduction of wastefulness in resource usage and energy consumption. From
the Cambridge Halifax Suite case, we can see that there was a set of goals and great satisfaction
with achieving those goals as well as dissatisfaction with failure to achieve those goals. We can
also see that effective feedback seemed to lead to better employee performance. There was also a
serious commitment to the attainment of those goals. The goals set were sufficiently challenging.
These are what define the goal-setting theory. I believe the Goal-setting theory motivated the
primary stakeholders’ motivations (Senyucel, 2009). “Goal-setting theory is a theory based on
the idea that setting specific and measurable goals is more effective than setting unclear goals.
Edwin A. Locke developed this theory in 1986 in his book Toward a Theory of Task Motivation
and Incentive. In this book, Locke showed how employees are more motivated by well-defined
goals and constructive feedback and are more likely to accomplish these goals when they are

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specific and measurable. In addition to setting clear goals, Locke emphasized the fact that
employees work well when they are faced with challenging goals that they aren't completely

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certain they can achieve” (Indeed, 2021).

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This case is important and relevant to the study of business because it shows the need to set clear
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goals. It also helps us to understand the significance of the reduction of wastage costs and better
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quality of service and product are cardinal in business especially when it comes to profitability.
“In business, one desirable outcome would be profitability. Profitability does not happen without
making sales, plus correctly managing expenses. Employees prefer to know what management
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expects them to accomplish, and goals provide that direction” (Soto, n.d.). This case also
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portrays the importance of visionary leadership and commitment in the attainment of business
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goals and in motivating employees. It shows us the power of planning for the future.
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Reference
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Indeed. (2021). What Is Goal-Setting Theory? Definition, Principles, Disadvantages, and

Advantages. Retrieved on April 18, 2021. https://www.indeed.com/career-advice/career-
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development/goal-setting-theory).
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Ross, G. (1995). Cambridge Suites Halifax. Retrieved on April 18, 2021.

https://web.archive.org/web/20191027053042/http://aics.acadiau.ca/case_studies/cambridgesuite
s.html)
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Senyucel, Z. (2009). Managing the Human Resource in the 21st Century. Bookboon.com.

Soto, A. (n.d.). The Importance of Setting Goals in Business. Retrieved on April 18, 2021.
https://articles.bplans.com/the-importance-of-setting-goals-in-business.

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