BUHRM 6936, Strategic Human Resource Management
SEMESTER 1, 2014. ASSESSMENT TASK 1: CASE STUDY
Student Name: Baihan CHEN
Student ID: UB30081390
Due Date: 24/8/2014
Q1. TAKING ACCOUNT OF THE ORGANIZATIONAL CONTEXT, WHAT ARE THE PARTICULAR HUMAN RESOURCING CHALLENGES OR ISSUES THAT WILL NEED TO BE ADDRESSED IN SETTING UP A NEW HOTEL OF INTERNATIONAL FIVE-STAR QUALITY?
In this case, the operating environment for Elite Hotel run in Azerbaijan is like that it is a newly independent republic country which formerly part of the Soviet Union and situated between Iran and Turkey. It is a lowly economic developed country but recently Western oil companies are looking for inward investment in the development of its oil and gas industry in this country. Therefore, there are plenty number of clients for the hotel and the local hotel can't service these high level clientele. Thus it is worth to open an Elite Hotel in Azerbaijan. The hotel industry heavily utilizes labor for its daily operations. It is people-centric and thus HR practices are crucial to organizational success. Coupled with new regulations on labor, the hotel industry is a useful example to learn from, due to its high dependency on manpower. This answer aims to solve some of the key issues faced by the industry and specifically Elite Hotel, through which insights are derived from Elite Hotel's HRM strategies.
THE MACRO OPERATING ENVIRONMENT:
The hotel will locate at the capital city Baku in Azerbaijan. This city has a cosmopolitan reputation in an overtly Muslim country which can be defined as a traditional male dominance society. Therefore, the hotel needs to take care and show the respect to the local culture. Moreover, this city often loss its power such as gas, water, electricity during daily living. In order to maintain the high quality service and seeking to expand, the hotel need to solve this power issue at first.
2. DOMESTIC LABOR MARKET AND EVOLVING EXPECTATIONS
According to the Trading Economics (2014), Azerbaijan has a high rate of unemployment at 5.2% in 2013. Hence, there are lots of well-educated people willing to do any kinds of jobs. Due to the strong competition for labor, hotels face difficulties in recruitment and retention, especially when hotel jobs are viewed as a high level wage payment. Therefore, to hire the local employees, the hotel must consider very carefully. Furthermore, this country also enforced a curfew, so if the hotel is seeking to expand, they must obey the laws and consider about the risk about the political instability.
1. TRAINING AND DEVELOPMENT
The issue of productivity has never been more pertinent than now. Elite Hotel will have to enhance productivity from a smaller pool of labor without compromising on service quality due to challenges in employment. Training therefore is needed to boost productivity and standards of service to meet customers' expectations. In departments with peak and trough periods, training can be mixed- the waiters in the F&B Division can be trained as lobby hosts or even wine sommeliers. Another problem is that the employee may not be reluctant to be training and spend off-work hours on job-related tasks (i.e. lessons)
THE IMPORTANCE OF KEY HIRES
The importance of the first one or two hires is also a challenge. 'I have long endorsed and applied the approach of finding the one or two key candidates. These are leaders who are respected in their present positions in the market, or who may have previously worked there, relocated for career opportunities or unrelated personal reasons in another market and who may desire to return or are willing to return for the 'right' opportunity', according to Owen Dorsey(2011).
3. LOCAL VS. EXPAT
Some local candidates should be recruited since hotel may be influenced by its ownership structure which includes political or governmental factors...
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