Human Resources Strategy in Multi Unit Service Organisations - Assignment Example

?Human Resources Strategy in Multi-Unit Service Organisations Table of Contents Table of Contents 2 Introduction 3 Purpose of the Study 4 Human Resource Strategy in Hospitality Organisations 4 Role of Multi-Unit Manager in Hospitality Sector 6 Types of Manager 10 Challenges of Multi-unit Organisations 12 Human Resource Strategy in Westin Grand Hotel 13 The Harvard Model in Westin Grand Hotel 16 Role of Multi-unit Managers in Westin Grand Hotel, Munich 17 McKinsey’s 7s Framework in Westin Grand Hotel 20 Conclusion and Recommendations 24 References 25 Appendix: A 30 Introduction Traditionally, the hospitality industry mostly comprised of small and medium organisations, often administered by the owners. It provided series of suitable services and attractions within local range. However, with respect to global perspective, the appreciation of customers and corporate effectiveness of hospitality industry started to transform during 1950s with the growth of large scale groups or hospitality chains. These hospitality chains are devoted to the long-standing business plan to global expansion, demonstrated by the numerous brands. These expansions have predictable outcomes for the organisational structure as the hospitality businesses are becoming increasingly large, multi-site corporations, regulating business operations and manipulating the supply chain from central production to arranged service distribution systems. This structural transformation resulted in a rising hierarchy of management in order to control complex network, including the selection of multi-unit managers (Goss-Turner, 1999). In present times, the hospitality sector is ruled by global brands and chains. The succeeding development of managerial structures and arrangements has been characterised by a prerequisite of ‘middle management layers’ with respect to multi-unit managers. Such managers create the level of direction instantly upon division managers and are vital interface between the divisions and the strategic hierarchy of the administration (D'Annunzio-Green & et. al., 2004). Purpose of the Study The report is intended to gain an understanding of the role of multi-unit manager in one of the biggest hospitality chains named Westin Grand Hotel. The investigation is focused on obtaining information from the employees including role of multi-unit managers, selection, training, remuneration, business and other conversion matters in Westin Grand Hotel of Munich. It also identifies the human resource strategies designed by Westin Grand Hotel for business operations. The purpose of this report is to recognise the importance of multi-unit managers in service organisations and understand their job roles and significance. Human Resource Strategy in Hospitality Organisations Traditionally, human resource was more suitably named as “personnel”. In this role, professionals are liable for recruiting, employing, compensating, program planning, negotiating, and managing collective bargaining settlements, strategy development, workers record keeping and serving as a channel for employee opinions and concerns. Role of human resource experts are expanded to include communications, training, safety, employee relations and recognition and reward programs (Rutherford & O’Fallon, 2007). Human resource strategy in hospitality organisation is directorial in nature. A nationwide tendency in human resource is to shift from directorial role to the combination of human resource in strategic planning. This drive was supported by growth of human capital or human asset in a company. Human assets can be described as talent, judgement and cleverness of organisation’s employees. In large hotel chains, human assets are regarded as one of the three constituents of organisations which include intellectual assets, customers and operational assets. The measurement of human resource strategy as competence can be identified as improvement in systems, intellectuality, dexterity, performance, assertiveness and enthusiasm (Boella & Goss-Turner, 2005). According to a study on human assets in the hotels of the United States in 2005, a “Human Capital Process Model” had been recognised. The model comprised of three human resource components which are service employees, authorised employees and loyal employees. Improving service employees necessitates training on satisfying guest prospects, suitable recruitment procedures and service based principles. Improving authorised employees necessitates training on problem solving skills, common values, standards, and aims along with a proper employing procedure and service based principles. Administrative actions that improve loyal employees comprise fostering emotional connections, treating employees honestly, satisfying employees’ prospects, and monitoring hiring procedure which choose employees with “best fit” in organisations (Taylor & Finley, 2009). Human resource strategies in hospitality sector encompass methods for matching employees’ behaviour to business strategies. According to Kearns, in hospitality industry, employees are viewed as expenses/assets and competitive advantage. When employees are viewed as competitive advantage, human resource managers become strategic associates liable for attaining the supreme performance from them. Human resource managers view the employees as a base of strategic advantage for the company, rather than cost (Taylor & Finley, 2009). . Human resource strategies are significant for multi-unit service organisations. From the study of Hoque, incorporation of human resource strategies supported by policies can develop a culture of obligation within employees. This obligation results in successful application of strategic plans of organisation. Human resource strategies have positive impact on the performance of organisation (Taylor & Finley, 2009). According to Kim and Oh, the use of inclusive, combined strategic management technique can provide hotels with competitive advantage. The “Co-Alignment” theory depicts that if management recognises prospects that exist in market, capitalises on those prospects and assigns resources which can generate utmost value then it can accomplish sustainable competitive advantage in the industry. The success of an organisation relies on the consciousness of business environment and capability to recognise and adjust with the changes. Multi-unit service organisations can use the “Co-Alignment” model in their workforce. Due to competition for premium tourists and short lifecycle of luxury services, use of this model is suitable for managers in luxury hotels (Taylor & Finley, 2009). Role of Multi-Unit Manager in Hospitality Sector In hospitality industry, unit managers are crucial for success of individual division. Hotel chains use multi-unit management structure to control and monitor a large number of geographically dispersed organisations. The first layer multi-unit administration has ranges of designations comprising district managers, area managers and area coach. These managers are vital to the large hospitality chains because they are closest to the division and are accountable for applying standards, observing actions, creating unit teams and making a supportive working culture. The role of multi-unit managers in hospitality industry has become quite significant as the chain enlarges and employment pool shrinks. During the period of 1990s, several hospitality chains applied the policies of approving employee empowerment and other equivalent management ideas for the purpose of improving operating consequences. This resulted in significant amount of downscaling and commercial reformation in the middle management positions. The span of control for multi-unit managers augmented from below ten to fifty in certain hospitality chains. These strategies were executed on behalf of productivity, improved decision making, higher obligation and better customer satisfaction. The prominent philosophy behind multi-unit managers was to reach on the decision making quicker. The bigger span of control denotes that the multi-unit managers could not visit the hospitality chains regularly to resolve operational and human resource matters (Parsa & Kwansa, 2002). In hospitality industry, multi-unit managers have a challenging role and a mutual objective. Their business activities imitate ranges of different titles and generally are defined by the size of organisation. A hotel chain of 600 units could possess as many as 100 multi-unit managers which might be named as area managers reporting to local managers. Larger organisations require larger management layers between unit and managerial headquarters. According to Peter Drucker, the role of multi-unit managers can be termed as “the Manager of Managers” (Chen & et. al., 2007). Their roles and responsibilities within hotels are essentially to develop, train and instruct employees. They control the business performance and ultimately affect the profit through the business region. Presently, multi-unit managers have become crucial aspects in the hospitality industry. This industry is characterised by transformation and quick growth and increase of the luxurious brand. Multi-unit hospitality organisations have gained large shares of market as a consequence of their focus on reliable principles of service delivery. The market share of multi-unit hospitality organisations appears to enlarge more with numerous hotel organisations planning additional growth. A crucial role between division managers of hotels and managers at senior administrative levels is played by multi-unit managers. Apart from managing diverse brands within an area, their role is also to control group of processes in a definite brand. This has increased their terrestrial coverage leading in managers roaming larger distances to monitor operations within their brand region. A multi-unit manager has key effect on business performance, because they act as chief interface between the strategic planning levels and the front line levels. They have a foremost part in applying and upholding the company’s strategies and in certifying the honesty of the brand. Multi-unit manager should be a representative, a disseminator, and a figurehead along with devising contribution into brand and developing ideas. They must certify exceptional business performance by handling and improving teams through control. Due to growing competitiveness in the hospitality industry, the top level management have mentioned the objectives of multi-unit managers to construct a stronger commercial brand image and competitive position in the market. Top management are placing much focus on multi-unit managers being expert marketers. This signifies real move in emphasis on activities of multi-unit managers (Cockton, 2009). According to Goss-Turner, the role of multi-unit managers is mostly as an implementer of strategy, rather than developer of strategy. This is mostly a function of multi-unit managers, evidently positioned between the strategy developer and the operational front line executives. In any hotel organisation, multi-unit managers have two roles which are operational role and corporate role. The operational role of multi-unit managers comprises of development of employees, assurance of performance, business penetration, assessment of goals, decision making, planning, systematising operational activities, exploiting business prospects, collaborating with subordinates and motivating employees. From the corporate perspective, the role of multi-unit managers is to develop the organisation. The organisational development includes business progression, alliance and brand extension which necessitate application and maintenance of unconditional principles within organisations. Thus multi-unit managers often require examination, inspection and methodical control. From the viewpoint of human resource management, the characteristic of the role which seems to provide multi-unit managers the highest pleasure is their individual capability to motivate other personnel in order to accomplish higher productivity (Goss-Turner, 1999). The following figure describes the different roles of multi-unit managers in hospitality organisations: Types of Manager According to Goss-Turner and Jones, there is a typology of different attitudes to area management. They proposed an “archetype multi-unit management” tactic. It is an established model characterised by McDonald’s branded units with closely described responsibilities for area managers and is highly apt for global business growth strategies. The following figure will describe the typology of alternative approaches to area management: Multi-Brand Manager Business Manager Archetype Entrepreneur Source: (D'Annunzio-Green & et. al., 2004). According to this model, the area managers (archetype) have constricted job opportunity compared to multi-brand managers. They have high level of terrestrial density, therefore are capable of consistent visit and close control of the business operations. The multi-brand managers have several concepts. They are strongly branded and have more flexibility and diversity because more concepts are convoluted in established organisations. On the other hand, business managers are accountable for managing numerous brands and they perform under high dynamic business context with more prospects for innovative solutions and actions within board rules, strategies and objectives. The entrepreneur is liable for one concept and they are strongly branded. They have independence to improve the business and can use pioneering and suitable methods of improving business within cultural standards of the organisation. Challenges of Multi-unit Organisations Multi-unit organisations face numerous challenges in the industry. Multi-unit organisations find it difficult to maintain uniformity, because they are accumulations of different units. Thus, the multi-unit managers are required to pay attention to strategy implementation, orientation of priorities, policies and practices within highly isolated area of organisation. Multi-unit organisations need to ensure certain level of customisation instead of following standardisation. They should react with the distinctive features of local and regional markets to accomplish best results. The other challenge of multi-unit organisations is regarding the difficult duties of the managers regarding maintaining balance between strategies of commercial headquarters and real field situations (Garvin & Levesque, 2008). Human Resource Strategy in Westin Grand Hotel The human resource at Westin Grand Hotel is dynamic and tactical. The human resource management activities of Westin Grand Hotel range from training and development of employees to competitive salary and welfare packages in the hospitality industry. In reality, human resource managers in alliance with the general manager create and support the strategies for the hotel. The human resource department is liable for running all staffing, hiring, providing benefits and training and managing employee associations. It is imperious to the human resource department to ensure that the hotel is employing the best talent through planned recruitment, certifying that the talents are getting inclusive training. Human resource managers are in charge of producing a safe and dynamic work environment and act as a process implementer and change agent (Starwood Hotels & Resorts Worldwide, 2012). The multi-unit managers perform several operational activities in Westin Grand Hotel such as employees training, planning, managing business, assessing objectives and motivating the workforce for better performance. Management of talent is considered as one of the most significant human resource aspects of Starwood Hotels including Westin Grand Hotels. It is viewed as human resource priority with respect to employee retention and succession planning. Every employee is provided with the opportunity to access individual profile and uphold on-going professional development information. As a part of human resource appraisal, the human resource managers officially converse with the employees about their career plans and accordingly appraise the next job position for the employees (Service Sector Training in European Employment Practices, n.d.). Westin Grand Hotel provides competitive salary and welfare packages in order to motivate the employees towards high performance. The motivational strategies of Westin Grand Hotel include providing advantages to the employees such as hotel savings, discounted meals, product deals, and partner discounts among others. Furthermore, the hotel also provides rewards and recognitions as a part of its motivational strategies. The theory of Rutherford and Fallon is suitable in the business environment of Westin Grand hotel. The human resource department plays a significant part for making a culture of cooperation and enjoyable working environment in Westin Grand Hotel. Westin Grand Hotel develops several collective and team building functions in order to create continuing relationships (Starwood Hotels & Resorts Worldwide, 2012). Human resource department needs to amend their staffing and selection approaches in order to achieve correct profile of the behaviour and attitude of job candidates. Thus, Westin Grand Hotel concentrates more on employee attitudes and provides them training in order to transcend them to the ‘5 star level’. The hotel welcomes employees with diverse workforce with respect to different race, gender and age. In order to enhance the talent of employees, Starwood Hotels use the “Cornerstone Learning Platform” which helps to train the employees internationally (Cornerstone OnDemand, 2008). Appropriate training strategies are vital for Westin Grand Hotel to maintain uniformities in services and improve experience of customers at every aspect. The Cornerstone training approach helps to support general business objectives and generate productivities within organisation. In order to continuously improve the human resource activities, at Westin Grand Hotel, Starwood had developed new training program named “HR Academy”. It is a practical merit program which drives administrators and human resource managers into their role as business associates (Starwood Hotels & Resorts Worldwide, 2012). The Harvard Model in Westin Grand Hotel Westin Grand Hotel follows Harvard Model of human resource strategies to make employees consistent, capable and cost effective. Human resource movements are used for staffing; selection and reward system are used for employees’ motivation. Westin Grand Hotel uses best employees, which is suitable for operational effectiveness. The following figure will describe the HRM cycle of Harvard Model: Source: (Ivo, 2006). Role of Multi-unit Managers in Westin Grand Hotel, Munich In order to recognise the role of multi-unit managers in Westin Grand Hotel in Munich, a series of interview has been conducted with the employees. The questionnaire is developed by using closed-ended questions because it can provide the requisite information for understanding the tasks of multi-unit managers in Westin Grand Hotel of Munich. From the findings of survey of the first question (refer to Appendix: A) on Westin Grand Hotel in Munich it has been found that the top most significant roles performed by multi-unit managers in the hotel regularly is auditing, material management, convention and direction, instruction and training and hotel development activities. Furthermore, the multi-unit managers are also liable for managing the costs, monitoring the performance of employees, recruitment of employees, supervision of employees, promotional activities, revenue management, banking and management of wages. The following figure describes the five most important activities of multi-unit managers in a typical day: The findings of second question (refer to Appendix: A) signify that there are limited procedures for measuring the effectiveness of human resource strategies in the Westin Grand Hotel, Munich. More importantly, the findings of third question (refer to Appendix: A) revealed that there are considerable emphasis on the managerial control over the performance of employees. The primary aim behind high level of managerial control was to develop the productivity of employees and performance of the organisation. With respect to management of sales (in fourth question) (refer to Appendix: A) in different seasons part-time employees are used in Westin Grand Hotel. In order to control the variation in weekly sales, the employees are provided with overtime opportunities. Use of part time employees denotes flexible human resource practices in Westin Grand Hotel of Munich in order to deal with the business situations. The fifth question (refer to Appendix: A) was developed to understand the strategic concern of multi-unit managers in Westin Grand Hotel of Munich. Findings depict that service quality is considered as the most important concern for multi-unit managers in Westin Grand Hotel, Munich. Therefore, majority of money invested on training of employees are allocated to improving quality based activities. The sixth question (refer to Appendix: A) was aimed for recognising the working style of multi-unit managers. The reactions of employees suggest that multi-unit managers are generally obscure; however, they are highly alterative, instinctive and are always prepared for undertaking action in every critical situation. The seventh question (refer to Appendix: A) was developed to recognise the role performed by multi-unit managers with respect to employees. From the findings, it has been found that multi-unit managers play a role of coaching rather than controlling and mentoring role in order to develop employees. The eighth question was developed to recognise the major corporate role performed by multi-unit managers in Westin Grand Hotel, Munich in order to develop the organisation’s business. Majority of respondents depicted that multi-unit managers implement the strategies developed by the top management. Furthermore, the respondents also depicted that multi-unit managers handle the activities related to managing the brand by representing as a face and representative of the company. The objective of ninth question (refer to Appendix: A) was to recognise the way applicants are selected in Westin Grad Hotel in Munich. From the interview survey, it has been found that the emphasis is given on appropriate attitude of employees while selecting rather than technical skills of employees. Several behavioural tests are developed by managers to recruit in non-managerial position in the organisation. Finally, from the finding of tenth question (refer to Appendix: A), it has been found that there is lack of appropriate training for multiunit managers in the Westin Grand Hotel, Munich. McKinsey’s 7s Framework in Westin Grand Hotel The 7s framework of McKinsey is a value oriented management model which is applied in certifying that all components of the organisation function in synchronised way. McKinsey had developed seven independent factors of organisation which are categorised as ‘hard’ and ‘soft’ components. The hard components are strategic part and soft components are cultural part of organisations. Hard components are comprised of strategy statements and the soft components involve people such as clients or employees in organisation (Smith & Siguaw, 2010). The 7s Framework of McKinsey with respect to Westin Grand Hotel is as follows: Shared value Shared value denotes the fundamental approach of the organisation. It is a blend of central value and central purpose for which the organisation strives for. Central value is the vital guiding codes and policies and central purpose is the specified business goals of organisation. In Westin Grand Hotel, Munich the mission statement is to consistently surpass the customers’ prospects with respect to products and services. Westin Grand Hotel attempts to generate an experience which is approaching to the requirements of customers. Westin Grand Hotel consistently denotes the “Westin Guest Experiences” (Starwood Hotels & Resorts Worldwide, 2011). Strategy In broader perspective, strategy is setting commercial objectives and then describing the steps required to accomplish them. According to Michael Porter, the core of strategy creation is surviving in the competition (Glowa, 2001). The objective of Westin Grand Hotel is to become one of the leading hotel brands. Westin Grand Hotel hopes for accomplishing the objectives through on-going expansion of the business operation and careful pursue of opportunities. Westin Grand Hotel has almost more than 170 hotels and resorts in above 36 nations (The Westin Grand, Berlin, 2011). Structure The structure denotes the way a company is organised. Westin Grand Hotel has functional structure. It has different departments for different functions such as human resource department, marketing department, financial department and corporate social responsibility among others. Systems The word ‘system’ refers to the practice and process for gaining competitive advantage, which exist within an organisation. Westin Grand Hotel has several factors in its system. It has different training systems, recruitment systems, reservation systems and payment system among others. Skills In McKinsey’s 7s structure, skill denotes the individual competencies or leading qualities that differentiate an organisation from other competitors. Westin Grand Hotel has numerous skill advantages. Westin Grand Hotel has innovative revitalising experiences such as heavenly bed, bath and spa. Besides, the hotel has unique design structures which are impulsively personalised to satisfy the market demands (Starwood Hotels & Resorts Worldwide, 2012). Staff Within the structure of McKinsey’s 7s staff denotes the quality of employees. Westin Grand Hotel has numerous advantages with respect to employees. It has supreme customer service and is regarded to be among the top five hotels in Germany (JVC Consumer, 2009). Westin Grand Hotel has qualified service managers who handle the phone calls and visitor communications in different languages in order to provide better service. Seemingly, Westin Grand Hotel has productive working environment which motivates employees to enhance productivity. Style Style denotes the pattern of activities within organisational members particularly the managers and the team regarding how they are perceived within organisation. On the basis of above observation, it can be depicted that the style of Westin Grand Hotel is innovative, interconnected, competitive and team-oriented. Conclusion and Recommendations With the increased growth of hotel chains, the requirements and importance of multi-unit managers have increased rapidly within organisations. Multi-unit managers need to play several roles for maintaining performance of hotels. They are responsible for interpreting the corporate strategies into actions. With increase in number of hotels and increased competition, Westin Grand Hotel needs to enhance the strategic value of human resource in order to maintain its position in the market. With large number of duties and responsibilities, the multi-unit managers need to provide appropriate training which can express their duties, roles, purposes and position in organisation. Westin Grand Hotel, Munich is unsuccessful to define the responsibilities of multi-unit managers and there are no continuous training programs for improving their performance. Therefore, Westin Grand Hotel, Munich needs to develop training programs for multi-unit managers in order to attain successful execution of operational tactics. Human resource strategies are significant contributors to the success of an organisation. The Westin Grand Hotel can improve the performance by developing career management tools in order to manage the career of employees and guide them in important career decisions. Besides, Westin Grand Hotel, Munich has lack of reliable tools which can analyse the performance of human resource strategies. Therefore, the organisation needs to develop a common tool and mechanism which can evaluate the efficiency of human resource strategies implemented in the organisation. References Boella, M. & Goss-Turner, S., 2005. Human Resource Management in the Hospitality Industry. Nelson Thornes. Chen, J. S. & et. al., 2007. Proceeding of the First Hospitality and Leisure: Business Advances and Applied Research Conference. Indiana University. [Online] Available at: http://www.i-chlar.com/Proceedings.pdf [Accessed March 13, 2012]. Cockton, J., 2009. Case Study: Multi Unit Managers in the Hospitality Industry. Managing Marketing Teams. 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Human Resource Management Journal, Vol. 9, No. 4, pp. 39-57. Garvin, D. A. & Levesque, L. C., 2008. The Multiunit Enterprise. Harvard Business Review. [Online] Available at: http://hbr.org/2008/06/the-multiunit-enterprise/ar/1 [Accessed March 13, 2012]. Ivo, A. M., 2006. Best Perspectives to Human Resource Management. African Centre for Community and Development. [Online] Available at: http://www.africancentreforcommunity.com/articles-Dateien/Best%20Perspectives%20to%20human%20resource%20management%20by%20Arrey%20Mbongaya%20Ivo.pdf [Accessed March 13, 2012]. JVC Consumer, 2009. Digital Signage for Westin Grand. Press. [Online] Available at: http://www.jvcpro.eu/jpe/video/article.1032.html [Accessed March 13, 2012]. Parsa, H. G. & Kwansa, F. A., 2002. Quick Service Restaurants, Franchising, and Multi-Unit Chain Management. Routledge. Rutherford, D. G. & O’Fallon, M. J., 2007. Hotel Management and Operations: Fourth Edition. John Wiley & Sons. Starwood Hotels & Resorts Worldwide, 2012. 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[Online] Available at: http://www.stepproject.eu/download/4.pdf [Accessed March 13, 2012]. Smith, R. A. & Siguaw, J., 2010. Strategic Hospitality Leadership: The Asian Initiative. John Wiley and Sons. The Westin Grand, Berlin, 2011. Tour De Force: The Westin Grand Berlin Scoops Up The World Travel Award For The Second Time Running. Press Release. [Online] Available at: http://www.theberlingrandhotel.com/pdf/TheWestinGrandBerlinTravelAward2011.pdf [Accessed March 13, 2012]. Taylor, M. & Finley, D., 2009. Strategic Human Resource Management in U.S. Luxury Resorts—A Case Study. Journal of Human Resources in Hospitality & Tourism, Vol. 8, No.1, pp. 82-95. Appendix: A Questionnaire for Interview 1. What are the five most important tasks multi-unit managers do every day? 2. Is there any accepted methodology for measurement of effectiveness of human resource strategies in organisation? Yes No 3. What is the level of managerial control? High Low 4. How multi-unit managers deal with variation of operations in different seasons? a. Employing part –time worker b. Applying overtime c. Temporary contracts d. Others 5. What are the strategic concerns for multi-unit managers? a. Service quality b. Cost c. Reliability d. Accurateness 6. What is the working style of multi-unit managers? 7. What operational role is performed by multi-unit managers to develop employees? a. Coaching b. Mentoring c. Controlling 8. What is the major corporate role performed by multi-unit managers to develop organisation? a. Brand management b. Talent management c. Strategy implementation 9. How the unit managers are selected? 10. Are there appropriate training for multi-unit managers? Yes No Read More