Funtime Employee Management - Essay Example

Introduction Funtime is a holiday complex on the South Coast of England. It attracts tourists in large numbers however it is economical for the resort is to function seasonally and hire temporary employees in peak seasons. During off season, there is a staff of 50 permanent employees. The resort has recently been facing the problem of decreased customer satisfaction which has cost the resort in terms of compensations. The problem that Funtime faces of low customer satisfaction and increasing customer complaints is primarily because of unsatisfied employees. This is because firstly the training of new employees is inadequate and secondly the relationship between the permanent employees and the temporary ones is not healthy which results in a lack of teamwork and communication (Doorewaard & Meihuizen, 2000: 39-50). Also, there are differences between the new employees and those that come again every year. Surprisingly the same work environment has dedicated permanent employees and careless temporary employees which means the environment has to be improved and the employees have to be motivated. Before beginning the recruitment program, several measures have to be taken to ensure that the new employees follow the ethos of Funtime so that customer satisfaction can be improved. To do that several theories which have been employed by other organizations can be implemented so that the employees are motivated enough to follow the rules and regulations. Another problem is the selection process for hiring the temporary employees in the work season. Funtime needs to hire approximately 450 people for several kinds of jobs including cleaning, catering, ride attendants, lifeguards and entertainers etc. however, Funtime has been experiencing problems and complaints from the customers which means that the staff that had been hired last year was not up to the standards and thus heavy compensation had to be paid because of this neglect. To improve the situation, the selection process has to improve incorporating new and innovative techniques. The strategy has to ensure the fittest is hired. As per Kennedy (2003), to do that, all employees have to be assessed including the permanent employees, the temporary employees that return and the new employees. Preference should be given to those who are team workers, who can learn a given task in the shortest given time, who have a pleasant and friendly personality, who are friendly towards new technology and those who can handle a problem situation especially with a customer. However, only a very well organized system of selection can ensure that the best personnel are hired (Guest & Michie, 2003:284-300). Making the reforms is easy however, to ensure that these reforms are consistently followed and adhered to is difficult. For this, the management has to take periodic assessment of the employees and keep a close tab on their performance and at the same time reduce their grievances so that there is a healthy environment for them to work and they willingly follow the rules and are motivated enough to work towards to objectives of customer satisfaction. As per Boxall & Purcell (2003), the traditional system of employee assessment by the managers takes away the sense of control from employees. Also, managers tend to be biased and their personal judgments affect their assessments. This has happened before at Funtime as employees working in the last season were dissatisfied with their performance assessments which in turn affected their work. Thus new methods of employee performance have to be employed to ensure that the approach has worked (Guest & Michie, 2003:284-300). Recommendations Intrinsic and extrinsic theories As Bowen (2004) claims, intrinsic theory can be used improving the relationship between permanent and temporary employees with team activities together, discussing their problems openly, helping them resolve their problems, giving them challenging work, responsibility and recognizing their efforts. Extrinsically the employees can be given bonuses, rewards and increase in pay if they are appreciated by customers. Thus according to Wright (2001) rewards will be performance based and not based on experience. McDonalds uses Target Incentive Plan to reward its employees in terms of bonuses when their performance is good. This has greatly improved performance (McDonalds, 2008). Both these motivations together will enhance productivity and make sure that employee adhere to standards set. Goal setting theory The employees can also be motivated by having employee comment cards filled out by customers and every time there is a good comment the employee may get a star. According to Wright (2001), the employees may be classified into teams like a team of cleaners, entertainers etc. The goal is to get highest number of stars by the end of every two months. The team that gets most stars will get gifts or bonuses. Anyone not adhering to the standards of the ethos will get a star deducted. KFC uses such motivation for their employees to improve their customer services in restaurants. Thus such an approach will motivate them to work towards a goal and improve their performance and reduce their turnover rate to 50% (Inc.com, 1995). Action regulation theory Another problem is that the permanent employees have more power than the temporary employees. They are dictated by them and that acts as a de-motivator affecting their performance as the action regulation theory suggests (Bowen, 2004: 200-219). To overcome this, the temporary employees should be given more decision making powers like entertainers changing the show slightly in accordance with the preference of the audience. This will make the employees more satisfied and the customers will be happy too. Five minute daily coaching All employees should be briefed about the new ethos and standards on a daily basis for about five minutes. This will ensure that the employees are reminded of the philosophy everyday. The briefs would be on company time. As Bowen (2004) claims, that way the employees would not feel their time is wasted. The importance of the ethos would be communicated to them like this and they would follow them. Resource –based theory The employees should be trained regularly incorporating the latest technology in their training. This will make them resources for Funtime as this training would be unique and would also serve as competitive edge with the increasing competition in the industry (Wright, 2001: 701-721). The University of Houston regularly trains its permanent and temporary staff which enriches their skills creating more opportunities for them and in turn giving them job satisfaction and improving their performance. Their employees are more loyal than others and enjoy their work also (university of Houston, 2008). Sharpen leadership skills The permanent employees should also be trained regularly especially on communication so that they may improve their relationship with the temporary employees. As per Dyer (1995) this will make the temporary employees more comfortable to approach the permanent employees when they have a problem. Language courses As there are a lot of foreign employees and customers, giving short courses on language would greatly improve communication between the customers and employees. Promotions and career growth The jobs of the employees should be enhanced. This way they will have more responsibility and have prospects of future growth and career advancements. They will return to Funtime next season and will make sure that they work with more dedication as they know that they could be promoted next season and there are chances of a permanent job (Dyer, 1995:656-670). Selection committee A selection committee from the HR department has to be formed. This team has to be trained rigorously so that they can assess and select the best people. As per Dyer (1995) this will save Funtime financial resources and will reduce customer complaints Recruiting agencies Since the permanent employees and the temporary employees have clashes and problems, there may be biases against some temporary employees in the HR department. Thus to overcome them and also to speed up the selection process, recruitment agencies can be hired if there is little time left. As per Verikos (2008), Hyatt Hotels recently hired a recruiting agency to expand in Asia so that their hiring becomes smooth and quick. Funtime can also follow their example on a smaller scale. Personal Interviews The easiest way of selection is by interviewing the candidates. However, previously Funtime had used just this method for selection and the results have been disappointing. Thus the interview structure has to be altered. As per Dyer (1995) the interviews conducted have to be organized and structured where identical questions are asked from those who apply for the same position. This will enable the team to compare the candidates and their scores can be maintained better thus assuring better selection (Doorewaard & Meihuizen, 2000: 39-57). Behavioral interview questions The interviews should also incorporate questions that assess the candidate’s communication skills, how they can adapt themselves to Funtime’s culture and how well they can work with culturally diverse teams. The answers to these questions should also be set before hand so that the results are comparable and selection is easier (Dyer, 1995:656-670). Work samples Assessing the candidate on the basis of actual work can be part of the selection process. The candidates should be made to do the work they are being interviewed for like live performance of entertainers etc so that the selection becomes easier (Bowen, 2004: 215-221). Also, the candidates may be asked to deal a problem situation with a customer which is simulated and if he resoles it then he should be hired. This will help the HR team to know instantly if a candidate should be hired or not. Leaderless group discussion This should be employed when repeat candidates are considered. In this method, the group should be given a problem situation like a dissatisfied customer because of bad service (Dyer, 1995:656-670). Also, as per Kennedy (2003) such a selection criteria will help in evaluating customer service, relationship building skills, communication skills and teamwork etc which are essential considering the current situation of Funtime. Peer assessment This is another important way of selection. Where the repeat employees are considered, their peers should be asked how they behave in problem situations, with customers, if they are rude or controlled etc. as per Kennedy (2003) this method will give valuable insight into the real performance of the candidate. This will also ensure that the recent problems that Funtime faces with the customers are controlled to a certain extent. Internet hiring According to Emerson (2006) large organizations like Dell and Cisco Systems use online hiring firms like Monster.com to hire employees. Funtime should also use such modes of hiring as it will cut down costs and also give the firm more candidates to choose from by reaching out to the regional market. Targeted selection To save time and at the same time have precision in the selection process, Funtime can also use target selection. This is a computerized method of selection where it is a three step process. Firstly the job in consideration is analyzed, then the candidate’s information is gathered and lastly the data is analyzed by systematic programming whereby the best is selected (World Head Quarters). This method saves time and is also cost effective. However, in the hotel business, personal interaction matters a lot thus this method should be coupled with personal interviews to give best results (Doorewaard & Meihuizen, 2000: 39-57). Check past records This is an important factor as complaints of thefts have been on the rise at Funtime. A thorough investigation should be conducted on the candidates to ensure that they have never been involved in stealing etc (Doorewaard & Meihuizen, 2000: 39-57). Organizes contests Funtime can organize contests like cooking contest, entertainment, swimming etc and thus choose the best amongst the participants among the contestants. This will save time and costs (Doorewaard & Meihuizen, 2000: 42-57). 360 degree appraisal. This approach of employees’ performance assessment involves self assessment, peer reviews and upward assessment. This is a combination of three methods and thus gives a more candid assessment of the performance. As Bowen (2004) claims, since the employee is also involved in the assessment, he will be able to identify his problems, weaknesses and clarify his objectives. The review from his peer team members will make him realize the problem areas of his performance and improve his performance. Firms like Chrysler, Honda and NASA use this method of employee appraisal bringing about improvement in employee performance and relations (Emerson, 2006). Such a multidimensional feedback collected every 3 months would give a better assessment of changes in the performance of the employees because of the ethos incorporated. Management by objectives Since the ethos has set objectives for employees to work towards better customer services, MBO can be endorsed with the help of the stars system explained earlier (Sullivan, 1996: 48-58). The management can set targets as to how many stars each team should get in a month and their performance can be monitored using sophisticated management information systems on a weekly basis. Such progress would keep the team alert and motivated to follow the ethos (Batt, 2000: 540-561). Behaviorally anchored rating scale The jobs of the employees of each sector can be broken down into performance tasks. The possible range of performance is then identified and his performance if each task is marked on a bar scale (Doorewaard & Meihuizen, 2000: 39-57). Thus the employee can be assessed for each task he undertakes. The results measured on a monthly basis may show the change in the performance of the employee. This will also identify the exact area where the employee has a problem. Behavioral observation scale This method of measuring performance of employees will suit Funtime as services have to be measured. This method will not only measure performance but also their behavior and frequency of its occurrence. The questionnaire would be designed would revolve around the services they provide with scales where the employee can easily grade them and thus results may be attained (Guest & Michie, 2003:284-300). The results can be compared from the beginning of the season to the middle of the season so that the affect of the reforms made may be assessed. Customer feedback Customers are a best source to know whether the employees are adhering to the ethos or not (Doorewaard & Meihuizen, 2000: 39-57). The feedback from customers can be taken during their stay and before they are leaving so that a comparative analysis can be made (Sullivan, 1996: 48-58). Also, according to Bowen (2004), customer feedback can be compared seasonally so that improvements are more vivid. The customers can be given forms to be filled out or they may be interviewed. Customer Feedback Systems implemented Microsoft SQL Server 2000 Reporting Services that monitor real time customer service levels. BMW and Ned Bank use this thereby cutting their costs and increasing customer satisfaction level. Thus this method can also be used for effective feedback and measuring satisfaction level (Aiken, 2000). Measuring effects of training The performance of employees should be recorded in sophisticated computer systems so before training and then after training. This training would be every 3 months and the improvements due to the training program should be recorded. This would help maintain a record of past and current performances which would be measurable and help in assessing whether they are following the ethos or not (Guest & Michie, 2003:291-314). Teamwork measurement Regular training is a part of the program which would be designed to improve teamwork and relations especially between temporary employees and permanent ones and repeat employees and new ones. As per Boxall & Purcell (2003), performance and teamwork should be measured before and after these trainings every two months so that the affect of these training sessions may be known. Conclusion Funtime needs to make improve its customer services fats before its reputation is seriously jeopardized. In order to do this, it has to make internal changes and reforms fast so that it can enhance customer satisfaction and save the compensation costs. To do this it has to motivate employees enough with motivation techniques like intrinsic and extrinsic, goal and action and resource based theories etc. at the same time the selection process has to improve by having a selection committee, hiring recruiting agencies to speed up the process, personal interviews, contests, work samples, peer assessments, behavioral interviews, internet hiring, targeted selection can be done to ensure that the best are hired (Doorewaard & Meihuizen, 2000: 39-57). However, the most important thing is to ensure that the employees are following the ethos of Funtime. This can be done by regularly monitoring them with 360 degree appraisal, MBO, behaviorally anchored rating scale, behavioral observation scale, customer feedback, teamwork and training measurement etc. by implementing all the suggestions Funtime can greatly enhance its customer satisfaction and reduce employee differences so that they are motivated enough to work towards the organizational goals. References Aiken, C 2000, South African Firm Realizes 75% Cost Savings and Launches Expansion. [Online]. Accessed 18 September 2008. Available http://www.cfs-international.net/Documents/MS_CaseStudy_CFS2.pdf Batt, R 2000, ‘Strategic Segmentation in Front-line Services: Matching Customers, Employees and Human Resource Systems’, International Journal of Human Resource Management, vol.11, no. 3. pp. 540-561. Bowen, D 2004, ‘Understanding HRM-Firm Performance Linkages: The Role of The Strength of the HRM System’, Academy of Management Review, vol. 29, no.2, pp. 200-221. 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Available: http://www.inc.com/magazine/19951101/2472_pagen_6.html Kennedy, P 2003, ‘Redefining Compensation in Challenging Times’, Employee Benefits Journal, vol. 28, no.3. McDonalds, 2008, [Online]. Accessed 19 September 2008. Available http://www.mcdonalds.com/corp/career/employee_benefits/Pay_Rewards.html Sullivan, J 1996, ‘Identifying and Developing HR Competencies for the Future: Keys to Sustaining the Transformation of HR Functions’, Human Resource Plannin, pp. 48-58. University of Houston, 2008, [Online]. Accessed 19 September 2008. Available http://www.uhv.edu/hr/ Verikios , M 2008, Hyatt Hotels Adopts New Hiring Strategy. [Online]. Accessed 19 September 2008. Available: http://www.traveldailynews.com/pages/show_page/25815 Wright, P 2001, ‘Contributions of the Resource Based View of the Firm To the Field of Strategic HRM: Convergence of two Fields’, Journal of Management, vol. 27, pp. 701-721. World Head Quarters, Targeted Selection. [Online]. Accessed 20 September 2008. 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