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Human Resources in the Hotel Paris - Essay Example

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The reporter states that at best the company's compensation strategy is on par with the rest of the industry, and at worst it actually demotivates employees from giving their best, while at the same time providing salaries that are below the industry averages…
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Human Resources in the Hotel Paris
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"Human Resources in the Hotel Paris"

Download file to see previous pages The gap is one of alignment between larger company strategy of superior service and superior customer experience, on the one hand, and how the company at present compensates its employees, which does not necessarily bring out the best out of those employees (“The Hotel Paris Case”; Freedman and Kosova 1-4).
There is a disconnect between what the company hopes to achieve, which is establishing the hotel as providing superior guest services, on the one hand, and on the other hand the way the company in general just pays average wages in comparison to the industry, and in some cases pays lower than average industry wages for some of the roles. The challenge is in aligning pay levels with the crafted strategy to provide differentiated, superior hotel services to guests, in comparison to the industry level of services. This strategy is hoped to elevate company profitability and viability in the long term, but the current employee compensation strategy of paying employees just what the industry pays on average will not help the company achieve its larger goals (“The Hotel Paris Case”; Freedman and Kosova 1-4).
Tied to salaries, there is a disconnect between what the company wants to achieve, superior service, and the way the current compensation strategy pays employees the same way regardless of performance. Superior service means superior employee performance, but at present employees have no motivation or reason to perform, given that pay is not tied to the way they do their work. There are no incentives in place to reward good work. Moreover, the current pay strategy does not stimulate interest from top performers in the industry to go work for Hotel Paris, because there are no incentives to work hard in order to move ahead. The current pay strategy may have encouraged mediocre employees to stay (“The Hotel Paris Case”; Freedman and Kosova 1-4).
There is obviously a price to pay for superior service, and that price is employee pay that is on par or superior to what the industry pays. Superior pay may mean a compensation package that is superior, and not just necessarily based on gross financial pay. ...Download file to see next pagesRead More
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