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Executive summary

Crystal Pool Resort is one of the new acquisitions of the Western Pacific Hotel Chain or WPHC.
It is an existing functional business entity. The analysis begins with a discussion into the
structure of the organization. Furthermore, it moves on to the discussion of the issues facing
human resource management (HRM) – staffing, employee hiring, training, motivation,
assessment and welfare.

There is also a discussion of the strategic HRM plan that the organization can follow. In brief,
the objective of WPHC should be to fine tune and revamp the existing HR system at Crystal Pool
Resort to ensure the resort meets international standards and grows as a business. The discussion
moves on towards the recommendations which will enable WPHC to revamp the HR system at
Crystal Pool Resort.

Detailed discussions on different topics include such as: the role of administration, selection and
recruitment, compensation packages, employee welfare, training, development and relations;
performance appraisals and health and safety were given due consideration throughout the
recommendations. This is followed by a conclusion which seeks to highlight the important facts
discussed throughout the case study.
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TABLE OF CONTENTS

1.0 Introduction 3
1.1 Background 3
1.2 Aim 3
1.3 Scope 3
2.0 Human Resources Management 4
3.0 Discussion 5
3.1 Structure of crystal pool resort 5
3.2 Perceived Weaknesses 5
3.2.1 Staffing 6
3.2.2 Employee hiring process 6
3.2.3 Training and Development of Employees 7
3.2.4 Employee Motivation 8
3.2.5 Employee Assessment 8
3.2.6 Provisions for employee welfare 9
3.2.7 Role of Administration 9
4.0 Recommendations
4.1 Strategic HRM Plan 10
4.1.1 Recruitment and Selection 10
4.1.2 Employee Motivation 11
4.2.1 Compensation/Wage 11
4.2.2 Employee Welfare 11
4.2.3 Employee Relations 12
4.2.4 Training and Development 11
4.2.5 Performance appraisals and Record keeping 12
4.2.6 Occupational Health and Safety 12
5. Conclusion 14
Reference list 15
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1.0 Introduction

1.1 Background

Crystal Pool Resort is one of the new acquisitions of the Western Pacific Hotel Chain or WPHC.
It is an existing functional business entity. The analysis begins with a discussion into the
structure of the organization. Furthermore, it moves on to the discussion of the issues facing
human resource management (HRM) – staffing, employee hiring, training, motivation,
assessment and welfare.

1.2 Aim

The aim of this paper is to analyze the Crystal Pool Resort and the way in which proper human

resource management can be used to overcome the human resource problems presented in the

case. Its will aim to use different human resource tools and techniques taught and apply it to the

given scenario.

1.3 Scope

The scope of this report is limited to the analysis and the recommendations proposed in the

report. None of the proposals should be considered in their literal meaning i.e. they should be

carefully scrutinized before they can be practically implemented. Furthermore, the

recommendations proposed are limited to the knowledge available in this case. Additional case

information would probably lead to the recommendations being more appropriate.

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2.0 Human Resources management

HRM or human resource management is a field set up to deal with the human factors in the

working environment. A company’s main objective is to service its customers to make profits.

The direct correlation of customer satisfaction to financial gains leads to the emphasis on an

improved final product. Dessler, Griffiths and Lloyd-Walker (2004) believe that the aspiration of

providing better goods and services has helped organizations to develop a system which

identifies the satisfactions of the final customer,and the buyers or consumer depends on the

satisfaction of the internal customers, the employee.

It is therefore, imperative to be able to work towards the development and improvement of the

employee motivation and enthusiasm, so that it directly translates into business advantage

through customer satisfaction. Armstrong (2006) argues that a suitable working environment, the

effort a worker puts into his job, the skill factor all such aspects and others lead to the

development of the HRM to manage and improve the employed working force.
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3.0 Discussion

The new acquisition of Western Pacific Hotel chain or WPHC, the Crystal Pool Resort is a

functioning business entity. The takeover requires a detailed analysis of the current running

status of the resort.

3.1 Structure of crystal pool resort

The management structure of the resort is set up with a general manager supervising the running

affairs of the resort aided with individual departments led by managers forming the line

management. According to Robbins (2004) the workers came under the line management. The

hierarchy at the resort is defined in this way and there is no autocracy. The managers and the

general manager have the same relationship: no manager is given a higher status than the rest of

the managers. According to Robbins (2004) believes that this type of organization displays a

great deal of uniformed and vertical hierarchical model.

3.2 Perceived Weakness

The visit of the HR manager of WPHC to Crystal Pool Resort raised several issues related to the

human resources function. These issues were identified keeping into view the principles of

organizational behavior and employee motivation. There are several theories as to how

employees can be motivated and dissatisfied employees can be identified using standard

measures and comparisons. The detailed analysis of the problems identified are as follows: Like

managers are not supporting any HRM programs and the G.M is simply ordering them to do so.
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3.2.1 Staffing

The strength of staff level is an important strategic decision for any business entity. The man

power planning of the resort is a prominent issue needing to be dealt with. For example there is

an untrained employee on the front desk and high staff turnover Hyman, Mason (1995) would

argue that this type of situation may allocate that the staff level is not only inadequate but it also

points to a potential loss in employed workers. Problems such as described above have serious

detrimental effects on any company’s financial figures and staff morale. An under employed

work force hinders in attaining economies of scale as well as negatively effecting the final

product. According to Robbins (2004), high staff over turn means a direct loss in investment of

time and money in training and development of the work force.

3.2.2 Hiring of Employees

The recruitment and selection of employees requires a thorough analysis of the job Ichniowski

and Olson (2006) suggest that when the major work force is hired off the local community,

workers come into the workplace with minimal formal skills. The employment at the Crystal

Pool resort represents a completely different picture. Lack of Qualified staff for life-saving or

pool testing, hiring people with minimal formal skills in the food and beverage department and

the sole criteria of hiring good looking waitresses show that the management at the resort pays

little attention to the recruitment of employees. Mathis and Jackson (2006) suggest the factor

behind such practice can be the issue that the resort is situated 200km from the nearest major

town so the only source of labor is the local community. In addition, the majority still at Crystal

pool resort come from the local area.

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3.2.3 Training and Development of the Employees

The efficiency of a system depends on the ability of all the factors working in harmony, or as it is

stated “a chain is as strong as its weakest link”. Complete customer satisfaction depends on the

quality of time spent at the resort which is easily ruined or affected by negligible mistakes on

part of the work force. So the importance of a high quality work force cannot be stressed upon

enough. However the current situation at the resort depicts extensive issues to be dealt regarding

employee expertise. The single day on job training carried out to train the house keeping staff an

absence of a human resources program, orders from general managers by-passing the line

management regarding employee training, and finally a lack of a long term training initiatives

means that the workers at the resort do not have the required skill and knowledge to do their job

properly. Potterfield (2007) suggests that using untrained staff. That indicates a lack of

professionalism.

According to Potterfield (2007), the presence of all such issues start with a non cohesive

management system where the top management over rules the line management and leads to an

environment where each department looks out for itself and resists the short term loss of letting

go the employees for training and development programs. The issue of high staff turnover is

raised again to objectify the cost benefit of such training programs. Therefore the effectiveness

of such training programs is at stake and it should really be pondered upon as to whether they are

actually playing a significant role in retraining the workforce at the resort or it is not so

influential and appealing to the workforce members who attend it.

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The importance of training and development cannot be undermined. Training and development

empowers employees and brings them more closer to the organization. Funds spent in the right

direction and on the best employees ensures greater productivity and loyalty in the long run.

3.2.4 Employee Motivation

Meredith, (2004) believe that employee motivation is another important factor to attain the

maximum possible performance form the working force. An established fact to get the most out

of workers is to pay them a satisfactory wage, enough to keep them focused and energized to

perform better. In Crystal Pool Resort the employee motivation appears to be low with high staff

turnover. The series of frequent presentations and pep talks by the general manager to the

employees shows that the management looks towards employee motivation but such sessions are

conducted over various topics unparallel to line management hence losing their core benefit.

3.2.5 Employee Assessment

Potterfield (2007) believes that employee evaluation is a very important tool to identify the work

force, the new talents and the loose cannons. A systematic evaluation system provides for a

complete picture of worker output. Such a database can not only point out the inefficient workers

but also provide a platform to improve the overall organization by improving individual

contributors; they can identify the high performers destined for higher posts and finally establish

a system where the wages set are according to the performance delivered Potterfield (2007)

Disappointingly such a system is nonexistent at the resort. The executive house keeper is not

even familiar with an evaluation program. The management has let down its responsibility. They

have been unable to establish a proper system to maintain a check on the employees, to allow
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them to know their own performance levels. Meredith, (2004) states that an evaluation system is

also an important motivating factor for the hard working employees as well as the poor

performers to improve their efficiency level and work harder to save their job.

3.2.6 Provisions for employee welfare

Robbins, (2004) suggests that the working environment for the work force is a necessity for the

work of a successful business. The employees should be provided with a productive working

environment where they are allowed to work, fulfilling their potential at their maximum output.

This function is also related to the employee welfare at the work place. The sub standard

operational system at the resort has resulted in high absenteeism and frequent work place

injuries. Ichniowski and Olson(2000) propose that this is a serious issue because if a worker does

not feel safe in his work place they will put more emphasis on the security and safeguard rather

than focus on their given task. Staff welfare initiatives are also absent at the work place – another

important motivational factor.

3.2.7 Role of Administration

The role of administration is very important for a business entity. It is the guiding force which

takes the entire business forward. The current issue with the top administration of Crystal Palace

is the irregular involvement. The administrations should take the entire team involving the line

management and the workers together. Armstrong (2006) suggests that this will be done by

delegating responsibility to the line management accountable to achieve their specific goals and

objectives, while curtailing the responsibility of the general managers to supervision.

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4.0 Recommendations

4.1 Strategic HRM Plan

The Crystal Palace resort was acquired by WPHC with a goal to align its world renowned service

level with services provided at Crystal Palace while increasing the average occupancy level at

the resort by 20%. The basic infrastructure is set at Crystal pool resort but what lacks is an

efficient work force. If the before mentioned issues are dealt with,HR function of the resort will

be able to contribute to the WPHC objectives and profit gain detailed.the business plan

arrangement will need to conciously pursue this.

4.1.1 Recruitment and Selection

The recruitment procedure at the resort needs to be refined. The addition of labor force into the

system reflects as a necessity for the company where new employees are just selected without

appropriate formal skills, which means that the resort is taking upon the responsibility of training

as its own rather than getting already trained employees and saving up on expensive

development courses. Ichniowski, and Olson, (2000) suggests that the resort requires new faces,

people with new ideals, and a change. The homogeneity of the work force can be very use full in

employee relations but workers from other towns can be brought in to bring in new

characteristics and features into the work force. Ichniowski, and Olson (2000) also suggest that

through traditional management the greater the diversity in the workforce, the better it will

perform over a period of time. This can be attributed to the fact that similar people with similar

capacities and mind frames have more or less the same performance and ability to do work.
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Ichniowski, C and Olson, C. (2000) believe that thus, when presented with newer challenges,

they are bound to all either be interested in it or disinterested in it. As stated by Robbins (2004),

maintaining diversity ensures maximum problem solving skills.

4.1.2 Employee Motivation

Employee Motivation depends on two major issues. The compensations in wage for his efforts as

well as the benefits they receive by staying with the company.

4.2.1 Compensation / Wage

This is the biggest issue facing the resort, how to keep the trained workers. So the importance of

appropriate job compensation is important to not only keep the effective working force but also

protect the business investment on the employees. Mathis and Jackson (2006) believe that labor

relations such as binding legal contracts can also be used to prevent the loss of higher skilled

labor.

4.1.2.2 Employee Welfare

A satisfied employee is the goal of an HR department. Employee welfare is a huge part of

employee motivation. To get the best out of the employee, a sentimental association has to be

developed where the employee starts to feel part of the business. The employee welfare is

overlooked at the Crystal Palace Resort. Robbins (2004) believes that it can be accepted that

arranging events to develop a stronger bonds amongst employees and the company results in

being expensive but the benefit of an emotional attachment a worker feel towards his company is

guaranteed hard work and dedication.

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4.3 Employee Relations

Nkomo, Fottler and McAfee (2004) believe that employee relations are an important factor

regarding the company’s relationship with its employees and the relationship amongst

employees. In the case of Crystal Palace Resort there is high staff turnover and absentees.

Dessler, Griffiths, and Lloyd-Walker (2004) propose that an atmosphere of goodwill has to be

established where all departments are aligned on the same side assisting each other for the

betterment of the service provided to the customers.

4.2.4 Training and Development

The importance of training and development is accepted unanimously. A skilled work force will

always provide the better goods. A major absence in the HR functions at the resort is the

reflected in a lack of trained and qualified workers. Human Resource Management, (n.d.),

Stated that once the factor of staff turnover is controlled the true benefits of training and

employee development will start to show. A trained employee will be empowered with the

correct skills and knowledge to perform his duties and tasks correctly. Dessler, Griffiths and

Lloyd-Walker (2004) believe that long term training courses need to be set up for the employees

of the resort so that they can provide the level of service linked with the WPHC.

4.2.5 Performance appraisals and Record keeping

The performance appraisal system is very important in keeping the HRM system aligned. Cotton

(1993) believes that employers need the information regarding their work force, such as which

worker is productive and which worker needs some assistance to improve. The performance

appraisal system is absent at the resort. A proper computerized or even a manual system needs to

be established through which the performances of the employees is graded annually. Such
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evaluations are needed to be stored and kept in a database or a record to evaluate the

performances. Ichniowski and Olson (2006) believes that such evaluations can allow viewing the

benefits of the training and development programs as well as individual improvements of the

workers.

4.2.6 Occupational Health and Safety

A major improvement required at the Crystal Palace resort is the health and safety record. The

current data shows that their standards are below the average level of employee safety in resorts.

Murrell Formisano and Meredith (2005) believes that when a worker gets injured on the job this

not only results in temporary loss of paid labour but also the uncertainty which springs up

amongst all employees, regarding the working conditions, the hazards they face and the question

of whether this job is worth to risk such drawbacks. Armstrong (2006) advocates that health and

safety standard of the resort needs to be improved to provide workers with a more secure

environment to work in.

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5.0 CONCLUSION

The acquisition of Crystal Pool Resort by the Western Pacific Hotel Chain is a profitable

addition to the business chain. However The Crystal Pool Resort is lacking in some obvious

HRM function’s although there can be sorted out through proper management. The improvement

in the efficiency of the working force of the resort will improve their service standards not only

bringing it up to the standards of the Western Pacific Hotel but also ensuring it are of

international hospitality standards.

The analysis of the case has been done keeping into mind the different theoretical aspects of

organizations and how they apply to the workplace. The recommendations form an integral part

of the case and present the different ways in which the situation can be handled with great

control there include improving Crystal Pool Resort will be able to overcome the deficiencies

mentioned by following the recommendations outlined previous sections and will emerge as a

high performing unit of Western Pacific Hotel.

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References

Armstrong, M 2006, A Handbook of Human Resource Management Practice. Kogan Page, New
York.

Cotton, J L,1993, Employee Involvement: Methods for Improving Performance and Work
Attitudes.Sage Publications, Frankfurt.

Dessler, G, Griffiths, J, and Lloyd-Walker, B. 2004. Human resource management. Kent

Publishers, New Surrey.

Human Resource Management. Guide to Managing a Great Workplace. [Online] [Cited:

September 18, 2008.] www.managementhelp.org/hr_mgmnt/hr_mgmnt.htm.

Ichniowski, C and Olson, C. 2000, The American Workplace: Skills, Compensation, and
Employee Involvement.Cambridge University Press, 2000,Cambridge.

Mathis, RL,& Jackson, JH, 2006,Human Resource Management,Thomson South-Western,

London.

Murrell, Kennetth L., Formisano, Roger A. and Meredith, Mimi. 2000. Empowering Employees.
Chicago : Mc-Graw Hill,Chicago.

Nkomo, Stella M., Fottler, Myron D. and McAfee, Bruce R. 2004. Applications in Human
Resource Management: Cases, Exercises and Skill Builders.Thomson/South-Western, London.

Potterfield, Thomas A, 1999, The Business of Employee Empowermen,. Greenwood Publishing

Group, Edinburgh.

Robbins, SP,2004, Organizational Behavior,New York, 2004.

Meredith,S,2004, No Fair Pay in THIS Place, Jackson Publishers, Miami.