Leveraging the Employee Life Cycle - Assignment Example

Individual Report: Oz Resort Case study Name: Tutor:­­­­­ Course: Date: a) Human Resource (HR) challenges at Oz Resort 1. Lack of proper consultation and communication between HR manager and the employees 2. Removal of fringe benefits and other employee allowances 3. Overworking employees with no commensurate pay 4. Poor recruitment and selection policies and procedures 5. High employee turnover 6. Disregard of employee safety, health and safety 7. Lack of training and development opportunities b) Analysis of HR problems and their impact on Oz Resort 1. Lack of proper consultation and communication between HR manager and the employees: The resort is preoccupied in cost cutting which is a desirable move. The new HR manager acted in breach of functional leadership that reigned in the resort. Employees were used to being addressed and informed of any changes or policies decisions that impact on their operations. The significance of consulting with employees was overlooked since it was regarded as waste of time and energy. Their views and opinions were not sought after. Employees understand the organization and their challenges and their input in improving their areas is possible. This happens if they are allowed to contribute to its performance and growth. Bottom up approach to communication is disregarded as the HR functions forces employees to act in a certain way which may not go down well with them. Lack of consultation leads to employee diminished interest in the organization. Many feel they are not recognized or appreciated for what they are doing. With time, the desire to make meaningful contribution to the hotel industry wanes. Employees will also hold back in their knowledge areas and deliberate sabotage of the service to customers. The reputation of the hotel will definitely skydive. 2. Removal of fringe benefits and other employee allowances: Employee welfare at Oz resort was disregarded in the recent changes. Provision of uniforms and giving access to various facilities within the resort makes employees to feel part of the organization. It also inculcates a sense of belonging and ownership. The new HR manager made employees to feel alien to the facility by only giving service but are limited from accessing the same facilities served to customers. Employees were earlier provided with free accommodation and uniforms. By demanding that they pay for these services without a corresponding increase in their salaries would mean a difficult workplace which leads to high turnover. The hotel will lose employees to rival organizations who provide such benefits to employees. The hotel will experience a high employee turnover as employees leave for greener and favorable workplace environment. 3. Overworking employees with no commensurate pay: Oz employees are being overworked to meet targets over lost revenue in terms of sales. The HR manager found it easier to burden employees to meet targets even if it means working overtime. The employee mandated hours of work has been violated. This is likely a source of fatigue and poor workmanship. The organization will suffer high increase in workplace injuries and accidents owing to tired and angry workforce. Workers rights are protected under the Australian employment laws which demands that employees work for 8 hours and which any extra hours worked is taken as voluntary and paid at double the normal working hour’s remuneration. Oz company risks facing labor laws violation and its license to operate can be withdrawn. 4. Poor recruitment and selection policies and procedures: The hotel has a combination of workforce with improper job description and disregard of skills and qualifications. It also hires at will and does not replace any exiting employees. Most of the hiring is not procedural to include advertising job vacancies, selecting based on skills, levels of education and experience relevant to the hotel industry. The ratio of permanent to temporary employees is also low. Knowledgeable employees with university education are not considered. The hotel will suffer brain drain and disobedience by juniors who feel more qualified than their bosses. Instructions and communication will be frustrated by employees who do not support their superiors. There is a possibility that employees will be a pool of friends and relatives since hiring is through personal recommendation. This kills diversity and inclusiveness of the workforce. The HR do not find the opportunity to replace employees which implies that the hotel will be understaffed. The remaining workers are forced to take up multiple jobs with little pay. This also engenders a disgruntled workforce likely to sabotage their services to customers. The hotel will have a bad employment record likely to tarnish its name and discourage many existing and potential customers. The quality of service and employee concerns will collapse due to increased internal go slows and dissatisfaction. 5. High employee turnover: This aspect becomes the hallmark of poor quality and ill treatment of employees. Workers who are dissatisfied with the way they are being handled exit the organization. Their reasons of leaving stems from poor payment, working conditions, harassment, unclear job descriptions, locked channels for promotion and training, long working hours with limited leisure time, and improper job descriptions. The hotel being a host of many of these shortcomings will definitely experience a higher employee turnover. Workers feel intimidated for working under unqualified heads with no possibility of ever rising to the top. With improper reporting procedures and failure to reward performance, the hotel will suffer. Oz hotel faces reputational risk when customers and employees are dissatisfied. Hotel customers’ complaints on laxity and neglect among employees culminate to poor service. Employees on the other hand and demoralized owing to poor remuneration. Customers will always detect the low morale of the employees since they will lack hospitality and courtesy required in the food and beverage industry. The hotel manager demands that employees work with low pay is at the brink of servitude and slavery. Employees will be forced to steal from the employer to meet their needs. This will also amount to inventory losses and revenue. 6. Disregard of employee safety, health and safety: The hotel is situated in Townsville, North Queensland which is a fairly dry and hot country. The employees in such conditions experiences sunburns. The huts designed for employees were meant for temporary accommodation. They are susceptible to fires and overheating. Health and safety of employees will be jeopardized when the heat resistant uniforms are being bought. The laws on occupational health, safety and welfare were violated. Again, under the labor laws, the hotel will suffer dire consequences of meeting workmanship compensation costs. Numerous complaints lodged at the department of labor will mean reduced chances of the hotel being provided with license in the following trading year. 7. Lack of training and development opportunities: Employee training is essential for personal growth and honing the skills of average employees to meet the needs of the hotel industry. In service training are important and benefits employees who would like to gain more experience and exposure in the hospitality industry. Training imparts the necessary skills and expertise. The hotel suffers from poor teamwork since the hiring and selection process was not based on skill and qualifications. In spite of this, there is not attempt by the hotel to train some of its illiterate employees. Training opportunities are lacking implying that the hotel will be deficient of literate workforce required to meet the needs of different customers. The hotel will also suffer poor reputation owing to stereotyping of the hotel as repressive and exploitative. The workers deserve promotions and rewards for excellent work done. The hotel owes much of its success to employees who work tirelessly to better their employer. The hotel lacking in continuous professional development risks high turnover, as ambitious employees leave for well paying employers. c) Possible solutions to the various HRM problems at Oz Resort 1. Better and equitable employee remuneration: Employees are motivated by terms favorable to their levels of service. This should be commensurate to skills, qualifications and job description. No employee should be paid lower the minimum pay advised by the labor ministry. Employees should not paid by other elements in consideration besides the skills, qualifications and job description. Work specified should not extend to assignments that lack definition and compensation. The terms of service should be well defined at the point of employment with clear compensation for overtime and emergencies. The employees should also be rewarded with bonuses and allowances for work well done and extra duty volunteered by the employee. Rewards also be based on merit and hard work. 2. Provide for training and development opportunities: The hotel can hire a trainer or appoint lead employees to train new workers on the changing workplace. The global thinking of the hospitality industry should be based on Total Quality Management (TQM) and how best the customers can be made ambassadors of the hotel. They can be repeat, referrals or potential customers desiring to feel the popularized service of the hotel. Employees should be fine tuned and motivated through Continuous Professional Development (CPD) and also through enhancement of their Personal Development Plans (PDP). When they are trained by the hotel they will be proud and confident in their provision of services to customers. To reduce the costs of training and developing employees, the hotel should advertise for specific skills, experiences and qualifications already in the market. With this in mind, the hotel can reap the benefits of new hiring with fewer burdens. 3. Provide a favorable workplace environment: Workers desire a workplace with fewer conflicts and harassment. The resourcing manager should ensure differences between employees and their supervisors and solved within the shortest time using appropriate defined procedures. The hotel should also adopt a philosophy, vision and mission alongside good work ethics. Communication should be smooth with all employees receiving timely information regarding the bookings, accommodation, travels and entertainment of their customers. Employees deserve fringe benefits like housing, free transport especially at night and other provisions depending on the environment of the hotel. 4. Provide sound leadership and management principles: Employees would want to see a functional leadership with clear chains of authority and instructions. They should receive instructions from higher and appropriate functions which they directly represent. This top down approach should be countered with a feedback from the employees who would want to express certain views to the management. The leadership should be at the best interest of their employees as stated in their motto “People are the Key to Success.”Democratic and consultative leadership is advised where the opinions of employees are heard and addressed. With a functional structure, levels of authority should provide direction, leadership, coordination and administration. 5. Proper job evaluation and description: Every job description requires regular evaluation to determine its relevance, magnitude and compensation. With increasing inflation annually, the description of work done by an individual is dynamic. Job evaluation helps to allocate the duties and responsibilities with some pay commensurate in the real time. The hotel should for instance establish the amount of work done by a waitress, chef, house keeper and lawn attendants. They should be based on the current market rates. Payments should be based on the need to keep the best employees and also retain their long earned expertise. The hotel as it currently stands has no record of job evaluation to determine the roles of various employees and what they have in terms of skills and experiences. 6. Encourage feedback from Employees: The hotel is on record as having neglected employee opinions and views. Workers know the strengths and weaknesses of the organization and can improve only if the hotel is willing to invest in them. Through regular surveys, the management can know its weak areas and the amount of effort required for its improvement. The employees will be willing to share the weaknesses in methods, equipment, processes, and materials. It will be easier in a functional structure to address the weaknesses of employees if the management invests in better tools and methods. Oz hotel has the opportunity to reverse the lost glory by taking the feedback of customers and employers with the seriousness it deserves. The hotel chain can also learn from best practices of many global hotels. They can arrange to have Geraldine Griffin, the new hotel manager, to make a visit to well performing hotels in Sydney, Melbourne and Canberra. Success of Oz Resort is at its doorstep. 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