Beachside Hotel Human Capital Dilemmathis Is A Case Of Two Competing H ✓ Solved
Beachside Hotel Human Capital Dilemma This is a case of two competing hotels, Sunrise Hotel and Beachside Hotel that are both located in a medium sized, tourism based town in the Northeast U.S. The hotels are both competing for the same set of guests, as well as the same set of potential employees. Both are budget hotels, right next door to each other, with 60 guest rooms each and a view of the beach. Sunrise Hotel The occupancy during peak season for the Sunrise Hotel is 98%, but during the winter months goes down to 65%. Joe is the General Manager of Sunrise Hotel and has been in his current position for 5 years.
He has been with Sunrise Hotel for a total of 10 years. He worked his way up at Sunrise Hotel from front desk agent to front desk supervisor, and finally to Assistant General Manager before he became the General Manager. He does a good job of screening potential employees for his front desk area of the hotel because he realizes the importance of that area of the hotel, especially in tourist areas. He also has incentives set up for excellent performance of the front desk agents and training and development programs designed to give everyone information that will help them do their job better. There is a sense of teamwork at Sunrise Hotel and that helps everyone want to do a good job .His guest satisfaction ratings for his hotel are overall excellent.
On a rating scale of 1 - 10, his hotel averages a 9. The average length of tenure of his employees is 4 years, and his current front desk supervisor was promoted from within, along with his Assistant General Manager. Because of the small size of the hotel, Joe is actually involved with all of the hiring decisions and helps to give training programs himself, along with his leadership team. The employee turnover at the Sunrise Hotel is 25% overall and that is primarily when hourly employees graduate high school or college and leave the Sunrise Hotel for a career somewhere else. The Beachside Hotel Brian is the General Manager of the Beachside Hotel and deals with a very different situation.
Brian was brought in from another hotel in the same hotel group about 6 months ago. He was told by his boss that he needed to "fix" this hotel so that it would start having better customer satisfaction ratings and more return guests. Despite the fairly high occupancy of 90% during peak seasons, the off peak season occupancy is only 50%. Also noted by his boss, the occupancy should be as good as the Sunrise Hotel. Brian has been with his hotel group now for 2 years and he came out of the accounting and finance department in his old hotel.
He has a great understanding of the numbers in the lodging industry, but has not been involved with the human resource aspects of the job. The turnover of hourly employees at Beachside Hotel is 120% and that means that Brian is constantly running the hotel shorthanded and with new employees. The Beachside Hotel has been doing the hiring through a human resource practitioner in the hotel that was put in the position because she really could not handle serving guests at the front desk very well. Mary was promoted to human resources a year ago after she had one too many altercations with the guests at the front desk. The owner of the hotel wanted to make sure that she would not make any of the other guests angry, so he promoted her to a human resources practitioner.
Since that time, she has been busy trying to keep up with hiring and she has had no time for training employees. Because she is so busy, paychecks often come out to employees late, there are no policies written down for employees to use as a guide for performance, customers are treated badly by new and poorly trained employees, and the departments of the hotel do not communicate very effectively and therefore everyone blames everyone else when things go wrong. The average length of tenure of the front desk agents at the Beachside Hotel is 3 months and the customer satisfaction rating at the Beachside is a 6 out of a 10 possible rating. Most of the front desk agents that are hired come from other hotels in the area after they quit or are fired.
Brian is not involved in the hiring for the hotel at all, and does not get involved with training and development. He spends most of his days looking at the f i n a n c i a l reports for the hotel and analyzing average daily rate, occupancy rates, and RevPAR (Revenue Per Available Room). BEACHSI D E Brian knows that he has many problems to deal with and so he goes to the Sunrise Hotel to observe things over there for a while. He sees a happy crew and talks to Joe about how he is making that happen. Joe is happy to help, but wants Brian to go back and observe his employees first and come up with ways that he specifically can help guide him.
1. Identify 4 HR functional and their processes that need to change at the Beachside Hotel to start achieving better results. Be sure to explain why. (20 points). 2. Why is Brian struggling?
Identify 3 reasons. Why is Joe so successful? Identify 3 reasons. (15 points). 3. Identify 3 Training and Development programs that should utilized at the Beachside Hotel to aid specifically in occupancy rates and turnover rates.
Explain. (15 points). 4. Is Brian’s focus on the financial performance of Beachside helping or hurting? Explain. (10 points).
Paper for above instructions
Assignment Solution: Beachside Hotel Human Capital DilemmaIntroduction
In the highly competitive landscape of the hospitality industry, effective human capital management (HCM) is critical for delivering exceptional customer service and maintaining organizational efficiency. The case of Beachside Hotel and its competitor, Sunrise Hotel, exposes important lessons about how HCM practices can significantly impact a hotel's operations and financial success. The following sections discuss the necessary changes in HR processes at Beachside Hotel, analyze Brian’s struggles compared to Joe's successes, recommend training and development programs, and evaluate the impact of Brian's focus on financial performance.
1. HR Functions and Processes That Need to Change
To achieve better results at Beachside Hotel, certain HR processes must be overhauled. Key HR functions that require change include:
A. Recruitment and Selection
Current Practice: Recruitment at Beachside Hotel is inefficient, with a high turnover rate (120%). The new hires are frequently those transitioning from other hotels, often with inadequate orientation and training.
Proposed Change: Brian needs to implement a structured recruitment strategy that focuses on attracting candidates who are not only qualified but also fit the hotel’s culture. Creating a positive employer brand can attract skilled candidates and reduce turnover (Guest & Conway, 2002).
B. Training and Development
Current Practice: With no formal training programs in place, new hires struggle to provide quality guest experiences, leading to bad reviews and low customer satisfaction scores.
Proposed Change: Developing a comprehensive onboarding program and ongoing training sessions will empower employees with the skills needed to excel in their roles, enhancing service quality (Bassi, 2011).
C. Performance Management
Current Practice: Beachside Hotel lacks formal performance management systems, which has resulted in poor individual performance and accountability.
Proposed Change: Implementing a performance management system that includes regular feedback, goal setting, and development plans will ensure employees remain engaged and focused on key performance indicators (KPI), directly impacting guest satisfaction (Jiang et al., 2012).
D. Employee Communication and Engagement
Current Practice: Poor communication among employees leads to blame-shifting and low morale.
Proposed Change: Establishing regular team meetings and feedback mechanisms will foster open communication. Engaged employees contribute significantly to higher customer satisfaction and retention rates (Schaufeli, 2013).
2. Reasons for Brian's Struggles vs. Joe's Success
Brian's Struggles
A. Lack of HR Expertise
Brian's background in accounting has left him ill-prepared for the human resource aspects of hotel management. This lack of HR knowledge hampers his ability to motivate and develop his staff (Kwortnik & Thompson, 2009).
B. Inadequate Employee Training
The lack of training leads to high turnover and low customer satisfaction. Without investing in employee development, Brian is unable to provide excellent service or improve occupancy during off-peak seasons (Aguinis & Kraiger, 2009).
C. Disconnection from Employees
Brian's focus on financial metrics detracts from his involvement with staff and guest experience. This disconnect breeds a poor organizational culture that ultimately affects customer service and team cohesion (Bakker et al., 2014).
Joe's Success
A. Hands-On Leadership Style
Joe's proactive involvement in recruitment and training fosters a positive environment where employees feel valued. This engagement leads to higher job satisfaction and a lower turnover rate (Zhang et al., 2012).
B. Strong Employee Incentives
Joe has established incentive programs that encourage high performance and teamwork, which are crucial in driving guest satisfaction ratings (Baker, 2014).
C. Team Cohesion
The sense of teamwork and collaboration at Sunrise Hotel bolsters employee morale, resulting in better service delivery and customer loyalty (Chen et al., 2016).
3. Training and Development Programs
To address occupancy rates and turnover rates at Beachside Hotel, the following training and development programs are recommended:
A. Customer Service Training
Implementing a comprehensive customer service program will equip employees with the skills needed to meet guests' needs effectively. Research shows that enhanced customer service training has a direct correlation with improved guest satisfaction scores and repeat visits (Bharwani & Jauhari, 2013).
B. Leadership Development Programs
Creating a leadership program for front desk supervisors aims to develop their competencies. This initiative would not only motivate employees but could also create a succession plan, reducing the need for external recruitment (Zhang et al., 2012).
C. Team Building Activities
Incorporating team-building exercises would enhance communication, trust, and teamwork among staff members. Effective collaboration among employees contributes to improved service quality and customer experiences (Li & Cropanzano, 2009).
4. Impact of Brian's Focus on Financial Performance
Brian's focus on financial performance in isolation has been detrimental to Beachside Hotel. While monitoring financial metrics such as occupancy rates and RevPAR is essential, it cannot come at the expense of human capital management. Monopolizing attention on numbers detracts from holistic leadership that emphasizes employee engagement and service quality (Kaplan & Norton, 1996).
By failing to address the human aspect of his hotel, Brian neglects the root causes of employee turnover and poor customer satisfaction, which ultimately undermine the financial health he seeks to improve. Thus, a balanced approach where financial goals align with employee welfare is necessary for lasting improvement (Harter et al., 2002).
Conclusion
The case of Beachside Hotel emphasizes the significance of effective human capital management within the hospitality industry. For Brian to replicate the success of Sunrise Hotel, he must transform key HR processes and cultivate a culture that prioritizes employee engagement and training. By doing so, he can enhance customer satisfaction, reduce turnover, and ultimately improve the hotel's financial performance.
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