The Shangri-La Hotels case focuses on the challenges faced by its COO

The Shangri-La Hotels case focuses on the challenges faced by its COO as the organization�s ability to deliver high levels of service jeopardized by the reluctances of employees to effectively exercise judgment and decision-making in their interactions with customers � even in the face of formal authority and incentives to do so.

As wage competition increases, the organization faces the difficult options of (1) maintaining current wages, (2) matching wage offers and reducing staff-levels; or (3) matching wage offers and maintaining current staffing levels.

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This case explores the tradeoffs in these options and their implications for Shagri-La�s service model.

Assignment
Students are expected to perform the following:
1. Read the case carefully.
2. Summarize the potential labor shortage problem that Shangri-La Hotels are facing in China in a half page.
a. General description of the problem.
b. Causes of the problem.
3. Address advantages and disadvantages of the following options. (must be at least 1.5 pages)
a. Maintain current wages and staffing levels.
b. Increase wages and reduce staffing levels.
c. Increase wages and maintain staffing levels.
Note: Make sure to address the impacts of the options on employees, investors, and customers.
4. Choose one of three options addressed above and present reasons for your choice. (at least a half page)

Written Assignment Format
� Include a cover page
� Use double spacing
� Use 12 point Times New Roman font
� Number all pages
� Use a one-inch margin on all four sides of the page
� Include your student number on the cover page. Do not put your name on the cover page.
� Citations and a reference list must be included if somebody�s work/argument/writing was used