Executive Summary on WIYCR

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This report examines the issues occurring at West Indies Yacht Club Resort in British Virgin Island between expatriates and local employees. The report focuses on high expatriate turnover and tension between expatriate managers as the root causes of the management crisis. The mismatch of management styles can be explained by cultural differences in power distance and individualism, causing conflicts during communication. The report suggests that the company needs to foster mutual understanding and communication to establish connections and positive colleague relations. The priority should be to address the unfinished business before making other moves to bring the company to a higher level.

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The purpose of this report is to examine and analyze the ongoing issues occurring at West Indies Yacht Club Resort in the British Virgin Island (BVI) between expatriates and local employees, utilizing Hofstede’s cultural dimensions theory. The challenges faced by senior officials include a high turnover rate among expatriates, tension among expatriate managers, an increasing number of guest complaints, and low employee motivation. This report specifically focuses on the first two issues as they are significant causes of the overall management crisis. From the perspective of native workers, it is not uncommon for expatriates to come and go. There are instances where some expat managers only work during peak seasons from December to July before returning home without ever coming back. Over a span of two years, there were six manager hires who subsequently quit, resulting in a notable turnover rate among expats. This turnover rate has created a cycle fueled by distrust between locals and foreigners. One key factor contributing to this cycle is the mismatch in management styles due to cultural differences in power distance (BVI:78;US:40). Most expats originate from the US and manage locals using methods intended for Americans. Through conversations with local employees, it became evident how power distance impacts management styles. One employee mentioned that operations ran more smoothly when Bill was present.He provided clear instructions for the day’s tasks, which we followed. However, there is frustration among staff members due to ineffective communication and a high turnover of senior officials, leading to inconsistency in strategies and impacting performance. Furthermore, labor laws in BVI require proper evidence for termination, putting pressure on prioritizing local promotions. These policies contribute to managers dealing with underqualified workers and increased tension between both parties. It is worth noting that Steve Lucas is the fourth food service director in the past two years and lacks prior work experience outside of the U.S., which has cultural implications.

He mentioned that although he enjoyed building friendships with customers in the resort, he preferred to maintain a separation between business and pleasure with his subordinates. His belief in “doing whatever it takes to succeed” indicated that he came from an individualistic society. According to Hofstede’s perspective on the differences between individualist and collectivist societies, this caused conflicts in communication due to differing mindsets. As a service provider, it is crucial to have positive relationships with colleagues in order to create a pleasant working environment and satisfy all parties involved. The company needs to establish connections through increased communication, such as organizing gatherings, to promote mutual understanding in the resort. Culture collision is a growing concern for many companies, including WIYCR. Although the root cause of the four main problems may not be related to qualifications, it is essential to prioritize cohesion in order to maintain good working relationships. A negative working relationship can lead to counterproductive work and employee dissatisfaction, resulting in increased tension and high turnover rates for expatriates. The company should focus on resolving these unresolved issues before taking further steps towards improving and advancing the company.

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