Case Study Analysis – Serenity Hotels Group
This paper will analyse the International Human Resource Management issues/challenges for the Serenity Hotels Group (Serenity) in the staffing of the Hotel Manger positions in its newly acquired chain of hotels in Thailand. Furthermore, it will make recommendations to resolve any issues identified and to facilitate the international assignment of managers.
The creation of an international division by Serenity brings with it an additional set of challenges that it has not been exposed to before in its domestic operations. Walding et al see the coordination of operations in a multinational operation organisational setting as a real challenge for Human Resource Management (HRM). Serenity can prepare for these challenges through a thorough analysis of the HRM requirements for its Thai hotels acquisition.
As the eight week timeframe for rebranding and reopening, in accordance with the Serenity’s Strategic Objectives of new ventures being opened on time, cannot be prolonged, then there are a number of strategies that must be adopted to meet this requirement. These include contracting of Host Country recruiting and the use of international assignment service companies for pre deployment preparation and resettlement in country.
IHRM Issues/challenges for Serenity Hotels
The issues and challenges that have been identified for Serenity’s international acquisition in Thailand are discussed below and relevant recommendations are made.
Whilst Serenity has decided to use a predominantly ethnocentric approach to the management of its Thai venture by deploying six Parent Country National (PCN) managers, it must be cognisant of the effects this may have such as: limiting the opportunities of HCN; a larger adaptation time for PCN managers; and disparate compensation packages. Serenity has tried to balance this approach with the hiring of three HCN managers which may be seen as encouraging to HCN employees. The advantages and disadvantages of using PCN and HCN are shown in Annex A.
The primary reason for adopting this ethnocentric approach focuses around a structural-formal focus control strategy to incorporate the existing Serenity core values and corporate culture into the new acquisition until it is bedded into the Serenity mould. It does not follow the key reasons identified in the literature of position filling, management development and organisational development. Although, a number of PCN managers saw management development as a driver for their wish to move to Thailand. Serenity sees the role of the PCN managers more as agents of direct control and possibly as ‘boundary spanners’ for the company, than as network builders, transferors of knowledge and competence and language nodes (Dowling et al, 2008).
The overall staffing choices will be influenced by a number of contextual, company and local specificities such as:
a. Contextual –Thailand’s cultural context, staff availability in both Australia, New Zealand (Aust/NZ) and Thailand, and the hospitality industry in Thailand.
b. Company – Serenity’s Thai structure and business strategy, its lack of international experience and its organisational culture.
c. Local – the strategic role and importance of the Thai operation to Serenity Hotels Group and headquarters’ need for control of the venture.
Serenity does not have an International Staffing Policy or Procedures due to its focus on its domestic markets and must establish them to provide for its future international operations. The recommended policy and procedures are at Annex B. These procedures informed the considerations for this initial deployment of PCN managers and should be used for all future international assignments.
Other staffing considerations
Other considerations to be taken into account during the staffing process are below.
Gender. No literature was...