HRM for a new Hotel
The Headrow Hotel is a much-loved local landmark in Leeds city centre and was first opened in 1904 by the York family, with its location being ideal for the local business community and booming nightlife.The directors have recently decided to make major changes to the hotel by advancing it from a 3 to a 4-star status over the next twelve months.This specific objective will involve a more professional approach to the hotel’s operations with drastic alterations being made to the current old- fashioned standards of service through the addition of a Human Resource Manager.
By employing this particular member of staff they hope to first identify, then address the hotel’s present human resource issues as well as the concerns they may face upon progression of the hotel; and to produce appropriate recommendation strategies in order to resolve the hotel’s HR issues.
This will be carried out through the adaptation of relevant theory, principles and practices that will be presented in a report format to the hotel’s board of directors. 1. 1 Context The hospitality industry is certainly a profitable place, especially for businesses that follow the golden rule of “the customer is always right”.
However, with customer service being such a significant part of the customer’s experience when staying in any modern-day hotel, there is always a possibility that the service is not fully satisfactory. Hotel clients have the potential to complain about almost anything in terms of the service they receive; such as the size of the toilet seat or the smell of the dining area. This can have massive impact on the hotel’s reputation if the customer then decides to create bad word-of-mouth advertising to their friends and family.
Good reputation is paramount for hotels that want to increase their market-base and ain more regular stayers, which can prove difficult if staff do not contribute to helping the customer’s overall experience. Therefore keeping a good image is imperative for any hospitality company; with friendliness, good service, efficiency, organization and professionalism being the key to success in this industry. Competitors can also play a huge part in determining how well its rivals do. Hotels that are specifically placed in a city centre can face a great deal of competition.
Not only must they compete with their rivals on price, but also on customer experience and satisfaction. This involves hotels ensuring that they have the correct facilities as well as the right employee allocation roles in order for them to maximise profit. A strategic and coherent approach to the human resource issues should be integrated into the corporate strategy of the business as in this case successful people management is essential tor the business is to survive in an industry where statt unquestionably the most valuable resource. 2. Current Problems Currently the Headrow Hotel has numerous problems in terms of its internal environment. First and foremost, its reputation has slowly deteriorated over recent ears, primarily due to its decline in standards of service. Secondly, the working conditions for staff have been generally regarded as poor, with low wages and unsociable working-hours also contributing to the hotel’s existing rate of 30% of staff receiving the minimum wage. This, among many other reasons, such as customer complaints and suspected thefts, has certainly had an effect on the hotel’s staff turnover, which was 56% in 2011.
Another major concern for the hotel is its lack of training and development opportunities for existing employees, which has also had a negative effect on the hotel’s dismissal rate. Appraisals take place annually, although they are not linked specifically to a structured performance pay scheme unless your role is of a supervisor or above; instead performance bonuses are decided separately by the York family, who have previously handled all staffing issues.
All these problems must be addressed whilst keeping the interests of the corporate strategy at the forefront of the hotel’s ambitions. 2. 1 Future Problems In addition to all the complications that the hotel faces, there are several new potential problems that can arise upon upgrading the hotel to a 4-star status. With the added extras of a health spa and swimming pool comes the requirement for increased workforce and skill sets in order to deal with all the new refurbishment adjustments.
New staff must be employed and trained by the hotel to handle the redecoration and refurbishment that is to take place, and the increased skills that will be mandatory for staff who are operating in precise areas i. e. specialised training for spa staff. Another possible problem is the customer complaints that the hotel could receive. With most of their complaints being related to staff it is central for the Headrow Hotel to ensure they attract, train and retain their staff decorously so that everyone is satisfied with their role, and even have someone who they can report their own individual workplace issues to.
Failure to attract the right staff who are devoted to their Job could result in a further decline in the hotel’s reputation, hence it is crucial that the Headrow Hotel adopts the appropriate policies that match the services needed from new employees. 3. 0 HR Planning When producing a HR plan it is vital that the integration of the design matches the corporate strategy of the business and that the objectives are in correlation to the ime scales specified. In this case, qualitative methods should be applied.
With the selection of specific employees in roles that match their specific skillset e. g. a qualified beauty therapist operating in the health spa department and a lifeguard operating in the swimming pool department. However employees, if not already qualified or new to technology advances, could take time to achieve their optimum output, resulting in a slower work-rate which could harm the hotel’s overall output. It would therefore be advisable for the hotel to expand its workforce by hiring employees that already possess the skills needed to perform in their Job.
In order to do this, the hotel must first address the issue of salary pay by increasing the hourly rates to that of a more acceptable standard i. e. E6. 08/hour (El above the NMW for 21+) which would also help to attract more experienced staff. This relates to Frederick Taylor’s 1 7) theory ot money as the main motivator tor employees. Next, hours in which employees operate under should be made more flexible subject to the roles they undertake; with employees working on night shifts receiving a fraction of increased salary.
Staff turnover is critical for any hotel, especially that of a 4-star restige, which is why the focus should be on providing an exceptional service for guests which can only be accomplished by giving employees a decent wage, as well motivation and inspiration; helping to ensure that future shortages in the workforce are avoided and that the business’ ability to progress is not obstructed. 4. 0 Recruitment ; Selection Recruitment is ‘all activities directed towards locating potential employees and attracting applications from suitable candidates. (Foot and Hook, 2005 p. 63) Based on this, the Headrow Hotel must abide by the proper procedures when choosing and hiring staff. At the moment the hotel’s reputation is declining, primarily due to the service provided by staff. Not to mention, customer complaints, suspected thefts, absences and punctuality problems are all leading to a high level of dismissal. This indicates that the hotel is employing unfitting staff. To prevent this, the Headrow Hotel must review its application policy thoroughly by first altering how it employs new staff.
Below is a diagram showing the recruitment process that should be undertaken by management at the hotel: The first step involves recognising the availability of the vacancy. The second step ntails discussing the Job opening with higher management. Thirdly, there should be an analysis which sees the purpose and tasks of the Job in question. Fourthly, a Job description should be carried out by management discussing the aims, results and responsibilities expected from the position.
Next, a person specification, which includes conferring what experience and skills are compulsory for this particular role. Lastly, attracting the suitable candidates for the vacancy through an application form and then selecting which candidate will suit the role best by collecting, assessing and comparing the Job applicants. If this systematic step process is followed accurately then the hotel will undeniably help to reduce its high dismissal rate, whilst increasing customer service. 5. Learning ; Development Human resource development comprises activities that help to expand the human capital through the integration of training and individual development which overall increases the organization’s effectiveness. There have been various issues in relation to learning and development at the Headrow Hotel. One major concern is the fact that there is minimal opportunity for training and development at the hotel, which eans that staff leave to attend roles at competitors’ hotels where there are more personal development prospects.
This has had a key influence on staff turnover and can be completely avoided by implementing a simple training and development scheme, such as one that allows staff who have worked at the hotel for over two years to undergo a training programme lets them train to attain a higher, more-qualified position within the organisation; increasing general staff stability and performance. Another concern is the low employee commitment and engagement which has arose due to low Job satistaction.
The best way to combat this is through motivation ot employees to be active and enthusiastic about their Job. An alternative method mentioned earlier was to increase salary, which has a definite impact on work- performance; yet there are other ways to boost motivation. One of which is to train staff in multiple areas, helping them to manage more responsibility and feel like they have a greater impact on the company. Another method would be to recognise their work output by supporting and offering them occupational promotions based upon how well they are performing in their current role.
By viewing at the diagram below you can begin to comprehend the multiple ways in which employers can amplify employee inspiration. Some employees can also struggle to adapt to new technological factors, such as updated computer software for receptionists. Therefore it is important for Headrow to delegate the roles accordingly and re-train staff that require improved specialist knowledge. All these factors help to strengthen the labour force within any organisation by simply listening to the employees and then responding in such a way that both the workforce and corporate goals are met. . 0 Performance Appraisal A must-have for the Headrow Hotel is a consistent review of the work content, potentiality and perhaps expansion for workers. At this moment in time, there is no structured performance management scheme at the hotel; with appraisals only taking place annually towards the end of the financial year. It is also evident that there is no connection between the appraisal performance pay scheme and integration of data collected from employee evaluations.
This advocates that the management cannot identify any staff training requirements along with any possible career development, therefore preventing the hotel from evolving its workforce. The supreme applicable system to incorporate into the hotel would firstly be to hold employee appraisals more often, preferably every 4 months. This will allow management staff to analyse and evaluate each employee’s involvement within the organisation three times a year and propose any adjustments that can be made.
Furthermore, management must implement a ‘Management by Objectives’ scheme which includes setting clear objectives for the employee to reach before the next appraisal, and discussing to what extent the objectives have been achieved. The advantage to this technique is that the employee’s objectives can be beneficial to the mployer’s own strategic targets e. g. An employee working in the kitchen making sure that they get to work tlve minutes early each time to ensure the kitchen is clean.
What’s more Headrow must include a ‘Performance Review Cycle’ within their appraisal system: This particular system follows a 4-step process. It begins by first setting the objectives for the employee to complete by analysing the employee’s role. Next, there is a conversation between the employee and interviewer which discusses the results. Afterwards, the interviewer must distinguish the strengths and weaknesses of the mployee and what action plan should be followed to help achieve their targets.
Lastly, the interviewer must converse with the employee about any opportunities for additional training and development; helping the employee to progress further in their role. By following these methods Headrow will assist in improving their staff and give them a greater sense of accomplishment within the organisation. 7. 0 Reward Management Within any modern-day business it is fundamental that employees receive commendation based on the effort and output they commit. At the moment Headrow Hotel do not display a clear link between the appraisal and performance pay scheme, with no structured performance bonus system built-in.
A lack of emphasise and acclaim on an employee’s performance can have a substantial impact on their interpretation of the hotel and incentive to work hard; which has led to staff departing to a competitor’s hotel that appreciates them more. Possible changes would be to provide employee rewards based on their productivity – as mentioned earlier, the ‘Management By Objectives’ would provide a foundation whereby the employer could recognise whether the employee was making valid contributions, and hen reward them with a direct reward, such as a pay bonus.
An extra perk would be to input a conventional pay system that sees annual increments in salary by an addition of +EO. 50 to their salary for each year they continue to work at the Headrow hotel. Finally, Headrow could correspondingly apply a Job ranking system which consists of comparing Jobs and producing a hierarchy based on the most and least significant roles; helping them to decide what salary matches what Job. All these factors will not only enhance employee satisfaction and motivation, but also help give
Headrow a competitive edge over their rivals in the heart of Leeds city centre. 8. 0 Discipline and Grievance Procedures Grievances can happen within any organisation and usually occur when there is a problem, concern or criticism from the employee; while disciplinary procedures arise when the employee does not abide by the rules set. At present the Headrow Hotel is suffering from severe staff turnover, mainly in the kitchen. This may be due to the current Head Chet’s authoritarian regime which could be viewed as gross misconduct under the ‘Employment Relations Act 2004’.
A problem like this should be dealt with immediately as it can affect multiple employees and should be done so by following the process below: Headrow management ought to initially resolve the conflict within the kitchen by means of an internal mediator that will attempt to unravel the dispute by communicating to the Chef about his existing strict techniques, and perhaps filling out a written warning. If however the problem persists, then management should consider the dismissal of the Head Chef and begin to search for a replacement immediately.
Terminating employees is a tense area for companies as rules and egulations must be firmly adhered to, otherwise the employer could face legal action against them. 10. 0 Conclusion ; Recommendations In conclusion, it is evident that the Headrow Hotel has various human resource issues; most of which are contemporary and some which are imminent as the hotel advances in prestige prominence. The greatest concerns and their solutions at the moment remain: (Problem – Solution – Resource issue) Declining reputation – Recruit more capable staff – Hotel may have to fire any current incapable staff.
No structured performance bonus system – Implement employee eview and reward system – Very time-consuming to carry out various employee reviews. Poor working conditions – New income rate and more flexible hours – Expensive financially for the hotel. Appraisal not linking with performance pay scheme – Implement performance review cycle, adjusting accordingly – Will be a time-demanding process for management. High turnover rate – Motivate employees through new reward management processes – Expensive financially for the hotel.
Little training or development offered – Implement new employee training and development programme – Could prove time-consuming to train and develop all mployees. Probable forthcoming problems as the hotel is upgraded to a 4-star status include: (Problem – Solution – Resource issue) Shortage of workforce – hire additional staff following new recruitment process – Expensive financially for the hotel. Skill shortages – Delegate roles accordingly and ensure specialist staff are properly trained – Time-consuming for management staff.
Customer complaints – Ensure correct employees are hired following new recruitment process – Time-consuming and may be hard to find the right person for the right position. Job dissatisfaction ; lack of commitment – Use new learning and evelopment programmes to motivate workers and have specialist staff they can talk to – Some employees may not agree with new procedures. Failure to attract talent – Combine new recruitment process with new salary changes and development programme – Competitors may still offer better working conditions.
As you can see, it is apparent that the solutions do have their potential resource issues; nonetheless the hotel must afford to take these risks when advancing to a higher reputational status and in order to receive a higher return rate in the future. As with any business, people are at the core of the organisation, therefore it is undamental that the precise procedures are followed by the Headrow Hotel board of directors to ensure that not only their employees are content, but ultimately their customers.
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