Analysis of People Management Problems and Solutions at HotelCo: A Critical Review

Assignment Title: Analysis of People Management problems and solutions at HotelCo: critical review of people management issues responsible for poor management, lack of motivation, turnover and low productivity and a systematic HR approach on how to address them.

Brief: Please see Appendix 1 (HotelCo Case study) on StudyNet for the detailed Case study (2 pages). Due to recent challenges at HotelCo, management has decided to conduct an intensive investigation into the people management issues responsible for the overall decline of this once highly service-oriented hotel and recommend intervention strategies that could result in a positive outcome.

You have been hired by the executive team at HotelCo as a prominent People Management for Tourism, Hospitality and Event Industries student for this purpose.

Your task includes:

Identify and critically discuss the key people management issues responsible for poor management, lack of motivation, absenteeism, turnover and low productivity.

Draw on Abilities, Motivation and Opportunities (Applebaum et al., 2000) and any other HR theory discuss how the people management issues in the hotel could be developed to improve business performance.

Use examples of organisations in the THEM industries to illustrate your answer.

 

 

The Dilemma of HotelCo

Introduction 

 

HotelCo is a 5-star hotel property that was constructed in the mid-2007, under a well-known global hotel brand. This brand of hotel was built to meet the growing needs of a specific tourist segment as well as the needs of the business clientele in and around the surrounding area. The location of the hotel was attractive and was experiencing a boom in population as well as attracting new housing developments and numerous commercial businesses. Notably, the location is home to a university, a community college and several high and middle schools.

In addition, the location also had an army base, few grocery stores, hotels, individual department stores, and over fifty restaurants. The location also hosts three major events annually that attract many vendors and customers nationwide. The city is close to other major cities, as well as highways, railways, and airports because of its geographical location. Thus, both international and local guests have a favourable view of the destination. Beside the major events, many visitors also travel to the destination for tourist activities, gambling, shopping, holiday, entertainment, wine and beer tasting and for higher education.

Due to the influx of traffic, along with affiliation, and high-end amenities, it is assumed that HotelCo should be poised to benefit from this market. Moreover, other than the benefit of having a relationship with a well-established brand name and image, HotelCo also enjoys numerous other benefits. These include access to viable hotel offering, competitive pricing strategies, marketing and advertising, publicity, a specific market segment, and a strong up-to-date reservation system network. The brand is also known for delivering excellent service, which has resulted in significant guest loyalty to the brand.

HotelCo launched a soft opening after the construction work was complete. New employees and members of the community were able to enjoy the facility at a significantly discounted rate. They were asked to provide feedback regarding the customer service experiences via a survey, after a brief stay. They were also requested to provide comment on the quality of the beverage and food, amenities and room service, and the service expertise and knowledge of the employees. Survey feedback indicated that the customer service received was excellent, and the quality of food and beverage was exceptional, while room service and amenities were great. Additionally, it emerged that staff were very knowledgeable of the products and services offered. 

With this, management was confident that HotelCo was off to a good start. It was concluded by management that there was not much they needed to do as HotelCo seemed to be off to a good start and had exactly what it needed to stay competitive. As a result, management became reluctant in their attitude to support the established brand even as new trends emerged in the highly competitive market.

End of the Honeymoon Stage for HotelCo 

Brief

Surprisingly, no thoughts of sustainable competitive plans and continuity for sustained growth and performance were strategically planned, as HotelCo continued to bask in its high performance and ratings.  Management believed their current situation would not change as they already had a name and a brand in the market. However, with time, it was clear to the leadership team of HotelCo that revenues and the overall profits of the hotel had started to dwindle. The leaders continued to do nothing, even though it was clear that they were experiencing threats from another brand that had plans on entering the market. 

Employees were not as happy since the hotel was not doing well. Moreover, they were never rewarded for outstanding performance, but management would not waste time to reprimand any employee when they were not meeting performance standard. Employee morale and motivation continued to suffer, resulting in staff complaints and high staff turnover. Operating cost also increased as excess funds were being spent on constantly recruiting new employees to fill positions that became available because of increasing turnover. No formal training programme was in place to help new hires as well as longstanding employees and managers to develop company-specific skills and knowledge. The productivity level of the employees reduced drastically. Moreover, there was a high level of absenteeism and an increased level of tardiness. 

Competition soon increased as a new competing hotel “DeLimit” offered more high-quality amenities and guest related services. Disgruntled employees at HotelCo were now happy employees in “DeLimit”. The hotel had a Spa, new forms of entertainment for guests, and shuttle services to many historic destinations. DeLimit had an “on demand feedback” that allows guests to text their comments, concerns and opinions and receive immediate responses. At HotelCo, conversely, guests’ complaints increased, but it was through online user-generated content. Social media became the last resort for guests, as the hotel had no direct means to facilitate guests’ complaints and comments.

Notable issues at the hotel that guests complained about were the poor customer service provided by the front office staff. Often, check-in process was very slow as fewer staff seemed to be on duty at critical times. Guests often had to wait in long queues to be helped. This was usually because the front office staff were busy doing multiple tasks. Guests would also complain about a decline in the quality of food and services as well as restaurant employees’ attitude. Guests were now warning potential guests not to have anything to do with HotelCo. Consequently, management has decided to conduct an intensive investigation into the people management issues responsible for the overall decline of this once highly service-oriented hotel and intervention strategies that could result in a positive outcome. Source: (June et al., 2019)

You have been hired by the executive team at HotelCo as a prominent People Management for Tourism, Hospitality and Event Industries student for this purpose.
Your task includes:

Identify and critically discuss the key people management issues responsible for poor management, lack of motivation, absenteeism, turnover and low productivity.

Drawing on Abilities, Motivation and Opportunities (Applebaum et al., 2000) and any other HR theory, discuss how the people management issues in the hotel could be developed to improve business performance.

Use examples of organisations in the THEM industries to illustrate your answer.

All these should be provided in 3000-word report.