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Human resource management case study of all star hotel
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1.0 Introduction
The hospitality industry is undergoing and evolving radical changes globally. This industry is normally described as a “people business”, which is the business between the employees who produce the products or services and the people who pay and consume them. Each year, the hospitality industry generates billions of money and provides lots of work opportunities and new career to people with different backgrounds. Though it offers all these benefits, the hospitality industry is the highest turnover service industry. In this industry, 70 percent annual turnover is a typical phenomenon. The importance of retaining valuable employees becomes the hospitality managers’ priority as it may impact on the operation in several areas, including consistency and quality of service (Emmanuel, 2014). Therefore, it is inevitable that we have an understanding of the issues so that we can find a way to remedy problems on the horizon.
This report seeks to analyze the importance of staff retaining through two parts, the factors affecting staff retention and the impacts of staff retention. To retain employees, the report also offers some recommendations and finally, a conclusion will be given.
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If Companies fail in hiring talent workforce for the company, it may lead to horrible consequences because other companies may exceed them in the strategic human resource management. For human resource managers, the major is to retain and develop employees strategically. Nowadays, many researchers have realized that it is more useful to focus on staff retention factors rather than working on the reason why they leave.
2.1.1 Recruitment and
Moreover, the company has placed great significance on open and honest communications with the employees on many levels. Even more, leadership expected a plan that would utilize all human assets in a way that would support the organization’s attitude in servicing customers and employees. As such, they found it important to centralize the staffing initiative in order to maintain the unique corporate culture created in the beginning. Every one of these strategies would be focused on centralizing staffing, brining in the best possible employees, and retaining each on a high
Lengnick-Hall M.L.; Lengnick-Hall, C.A.; Andrade, L.S.; Drake, B. 2009. “Strategic human resource management: The evolution of the field.” Human Resource Management Review, 19, pp. 64-85.
Human Resources practices retention for the massive cost and time taken it has to replace and hire new employees. Hiring has such a high cost for the facts of ensuring all new employees meet the expectations and requirements for a business. Not only do new employees have to meet the company’s expectations but also pass employment tests, physical exams, and background checks (Nickels (290-346). They also consider consumers habits and help form solutions to meet the businesses and consumer’s needs to keep up the company up to date. (Alper (112-113). Human resource personnel also help companies evolve with new innovations. Human resources help establish future labor by helping the companies find employees that meet the new requirements. Human resources personnel also forecast future requirements for organizations that way they can ensure trained people will be on hand for the organizations (Nickels (290-346). “In the future, human resource management may become the firm’s most critical function, responsible for dealing with all aspects of a business’s most critical resource: people” (Nickels (290-346). Human resources not only has a future of importance, but its past shows its importance now. From being responsible for only one department to being in many and still predicted to grow to being in charge of many more
This case study was about the president of Bubba Gump Shrimp Company, a restaurant chain specializing in seafood, whose practice structure and secret to success was to have and maintain minimal management turnover. In fact, his focus on turnover was so successful that he did not have a general manager leave for 3 years, and he has decreased management turnover from 36% to 16% in 2 years. The motivation of an organization’s employees significantly affects it success. Additionally, employee turnover, absenteeism, and tardiness weaken employee productivity.
The United States is nation dependent on restaurant industry, over the past 60 years the allocation of the family food dollar toward restaurants has grown from 25% in 1955 to 47% in 2012. Bubba Gump, a young restaurant company (founded in 1996), leveraged a brand based on the Forrest Gump movie (1994). Scott Barnett, President and CEO knew his brand would gain immediate recognition. In the highly competitive hospitality industry all restaurants are looking for the competitive advantage, capturing as much of the food dollar expense. In 2001, Mr. Barnett fully understood that most new brands must differentiate themselves from similar concepts by quality food, excellent customer service and consistency across all units. (Case study: Bubba Gump Shrimp Co. 2007) He facilitated a program centered on a “culture of care and concern for people”. It the late 1990’s, Bubba Gump was facing a management retention issue and was positioned for aggressive growth. The combination did not align. We will diagnose and provide an aligning strategy for reducing management and employee turnover, as well, specify career paths for management, empowering Bubba Gump Growth.
Employee retention strategies help organizations. They provide effective employee communication to improve commitment and enhance workforce support for key organization initiatives. Retention strategies build customer loyalty by distinguishing and positioning an organization’s unique products and services in today’s crowded marketplace.
Kusluvan, S., Kusluvan, Z., Ilhan, I., & Buyruk, L. (2010). The Human Dimension A Review of Human Resources Management Issues in the Tourism and Hospitality Industry. Cornell Hospitality Quarterly, 51(2), 171-214.
Employee satisfaction, employee turnover, and workplace environment are inseparably linked. Workplace environments heavily influence employee satisfaction, which directly affects employee turnover rates. When employees feel they are not being supported within their first months of hire, they will inevitably leave the company. Employees want to have the security that if they need assistance, someone will be there to guide them. Therefore, it is imperative for organizations to develop a thorough onboarding program and a long-term retention plan.
For many important and well known companies its people are most important asset. For McDonald’s this applies as well. Employees who demonstrate positive attitudes and ability of commitment strive to be number one in customer satisfaction. For this same reason, McDonalds’s restaurants focus on attracting and hiring the best and at the same time provide the best place to work. Unfortunately McDonald’as well as other companies have to experience staff turnover. Many of these reasons consist of changing careers, going back to school, leaving the area, and even new opportunities they are offered. Although, it can be very expensive to recruit and train staff to reduce turnover, McDonald’ reinforces these steps and makes sure they choose wisely and also treat their staff well. McDonald’ needs and looks for people who want to exceed and deliver great customer satisfaction service. In order for them to make sure they select the best, they must identify quality skills, and or behaviors that applicants must demonstrate in order to be hired and be part of McDonald’s family. Every position or job description has an outline of the regular duties and or responsibilities McDonald’ want their employees to follow. McDonald’ also has a person specification where personal skills and competences can be defined of each applicant.
In the past 20 years, the technology has been improving as well as the behavior of human. Another change that has been significant enough in the workforce is the generation. Since the baby boomers is reaching the retirement ages, the workforce changes its face. During the change of the pace there are many issues regarding the younger generation. Though, the unprepared new labor force brings another issues to the most company. As the new age begin, the company is struggling with the high demand of spending and low output level from the employees. This event challenges the human resource management on the search of potential employees. The consideration breed the pros and cons whether to keep, train and improve or recruit and change the force. The essay will provides the thorough exploration to oversee the positives of developing dedication of the employees. The method will be used are research and case discussion. The objective of the written report is to provide an insight of the importance of loyalty from the employees.
An organizational human resources department utilizes the hiring and firing process to meet the organization’s personnel needs. Organizational human resource departments are charged with the oversight of an organizations administration department. The practice of hiring and firing people is a process employer’s conducts on a daily basis. This process has to be done in a proper manner and not in haste. The implication that can occur from the improper hiring and firing process could and can have a positive or negative impact on an organization. Therefore, employers must carefully evaluate their decision to hire/fire individuals and its impact on the organizations’ workplace environment and others employees. Human Resource Management is important for an effective organization. In today’s organization, HRM is valuable to the organization because of increase legal complexities and its known for improvement in productivity. However, management should realize that poor human resource management could result in an outburst of hiring process followed by firing or layoffs. According to (Satterlee 2013, p. 194), “Hiring the best candidate who is also a good fit for the organization is crucial for the success of an organization, because a poor hiring decision will have repercussions across the entire organization”. Satterlee made a valid point because poor hiring could have an impact on the bottom line performance of the firm. In other words, HRM is the contributing factor to the success of the organization including motivating and maintain the staffs. The purpose to the motivation is to ensure that all employees grow to a full potential. According to (Sims 2006, p. 5), “HRM efforts are planned, systematic approaches to increasing organizati...
Due to mad rat race competition in organizations, they are inventing and enforcing new strategies in the market as well as within the company too. Hospitality industry faces several critical business challenges which in turn require organizations to build new capabilities in order to achieve targets. Some of main challenges are profitability through growth, Technology, skilled workers and employee’s motivation. Interestingly, Human resource department is playing a vital role in order to make these strategies effective and efficient. Before implementing the process, they need the important component which is analyzing the workflow and job desi...
The purpose of this report is to brief the management on the importance of employee satisfaction in achieving the competitive goals of the organization through increasing the retention of the employees.
Human resource is the most valuable and unique asset of an organization. The successful management of an organization’s human resource is an exciting, dynamic and challenging task , especially at a time when the world has become a global village and economies are in a state of flux. The lack of talented resource and the growing expectation of the modern day employee has further increased the difficulty of the human resource function.
Whether an organization consists of five or 25,000 employees, human resources management is vital to the success of the organization. HR is important to all managers because it provides managers with the resources – the employees – necessary to produce the work for the managers and the organization. Beyond this role, HR is capable of becoming a strong strategic partner when it comes to “establishing the overall direction and objectives of key areas of human resource management in order to ensure that they not only are consistent with but also support the achievement of business goals.” (Massey, 1994, p. 27)