A Hotel General Manager's Reflections on Leadership

A manager who emphasizes efficiency alone sees interaction with staff as wasteful, and when one relies on title and authority, one easily becomes a boss.

The COVID-19 pandemic brought an unprecedented crisis to the hotel industry. On most days, the hotel with over 200 rooms could not sell even 10 of them, and revenue stayed below 5% of normal levels. Amid this dire operating situation, management asked for a 50% cut in labor costs.

Indonesia is not yet an economically comfortable country, and many frontline hotel staff were paid the statutory minimum wage. Monthly pay at the time was below roughly 350,000 KRW, and with service charges gone, staff hardship was even greater. Moreover, given the particular circumstances of Novotel Bogor, where a strong labor union exists, the hotel sought to survive through pay cuts without laying off a single person.

To overcome the crisis, the leader showed a willingness to lead by example. First, he decided to cut his own salary by 80%, and asked executives and senior managers to cooperate so the company could get through the difficult period together. As a result, department heads took 60% pay cuts, and general staff salaries were adjusted by 40%, allowing the company to reach its target of a 50% reduction in total labor costs.

There is no shortcut to building trust. By cherishing each person around you like family and continuing to engage with them sincerely and humanely, trust accumulates gradually like savings rather than appearing suddenly. It is necessary to practice 'self-reflection' by asking whether you have built trust within your relationships.