Human Resource Management

Improving Hotel Paris – Managing Global Human Resource

Facts of the Case

- The Hotel Paris’s competitive strategy is, “To use superior guest service to differentiate

the Hotel Paris properties, and to hereby increase the length of stay and return rate of

guests, and thus revenues and profitability. “HR Manager Lisa Cruz must now formulate

functional Policies and activities that support this competitive strategy, by eliciting the

required employee behaviors and competencies.

- With Hotels in 11 cities in Europe and the United States. Lisa knew the company had to

do a better job of managing its global human resources.

Problems

1. There was no formal means of identifying or training management employees for duties

abroad (either for those going to the United States or to Europe).

2. Recently, after spending upwards of $200,000 sending a U.S. manager and her family

abroad, they had to return her abruptly when the family complained bitterly of missing

their friends back home.

Lisa knew this was no way to run a multinational business. She turned her attention to

developing the HR practices her company required to do business more effectively

internationally.

3. High performing services and hotel firms had formal departure training programs for at

least 90% of the employees they sent abroad; the Hotel Paris had no such programs.

4. Each city’s hotel operating its own local hotel HR information system, there was no easy

way for Lisa, the CFO, or the company’s CEO to obtain reports or metrics like turnover,

absences, or worker’s compensation cost across all different hotels.

Challenge

“If we can’t measure how each hotel is doing in terms of human resource metrics like these,

there’s really no way to manage these activities, so there’s no telling how much lost profits and

wasted efforts are dragging down each hotel’s performance”. Lisa received approval to institute

new global human resources programs and practices.

Solutions

1. Since 90% of the employees send abroad, either in United States or Europe, upon

interviewing employees to be hired, they should ask first why they want to work abroad

as well, because Hotel Paris is an international firm.

2. For those positions that can be transferred abroad, multi-lingual employees are needed,

and this should be check upon hiring. French and English are basic language

requirements, plus 1 or more (Irish, Italian, Polish, German and Spanish). At least the

employee is proficient in 3-language (French, English and either of the 5).

3. Employees that can be send abroad sometime in the future, they must choose the top 5

countries they want to be transferred, language proficiency is required for the first 3

countries of their choice.

4. Upon hiring for new employees, they should undergo at least 3-6-month probationary

period, by this time they should be trained, and acquire necessary skills for working

abroad including high performing services skills. During at least 3-month training, they

should be an evaluated. Once their performance qualified, they can become a regular

employee.

5. Only regular employees can work abroad.

6. The employee must have the language skills of the country that he/she will be transfer.

The Hotel Paris must provide a “Contract Agreement” indicating how long the employee
Human Resource Management
Improving Hotel Paris – Managing Global Human Resource
Prepared by: Johanna Carla C. Rivera

should work in other country and duties abroad. In case, the employee won’t be able to

finish the contract for personal reasons, he/she must return all the expenses of the Hotel

management in double amount.

7. The Hotel Paris must have an I.T. system wherein the Administrative Staff will oversee

updating the system about, purchasing, marketing and sales, accounting, turnover,

absences, worker’s compensation, etc. this should be on bi-weekly basis.

Guide Questions

Question #1

Provide a 1-page summary of what individual hotel managers should know in order to make it

more likely incoming employees from abroad, like those in the Hotel Paris’s management

development program, will adopt to their new surroundings.

Answer:

Individual Hotel manager must assist or provide the incoming employees from abroad with the

following:

 Country’s culture orientation

 Assign task to the new employees from abroad

 Welcome them in the Hotel branch and introduce them to their co-workers.

 Assign a buddy to them who will assist them for at least 2 months, the one who will

introduce those good restaurants, malls, theaters, etc.

Assists, provide or inform the following upon arrival:

 Accommodation

 Advance negotiation for employees

 Annual vacation

 Security

 Annual licensing

 Annual Salary

 Bank Accounts

 Basics, clothes, food, footwear

 Hotel’s restriction

 Cost of living

 Electricity

 Gasoline

 Dress code

 Health insurance

Question # 2

In previous chapter you recommended various human resource practices in Hotel Paris should

use. Choose one of these and explain why you believe they could take this program abroad,

and how you suggest they do so.

Answer:

Training and Developing employees

Training and Development can be initiated for a variety of reasons for an employee or group of

employees. Performance appraisal will indicate whether improvement is needed. It will

“benchmark” the status of improvement so far in a performance improvement effort. It is

important as a part of an overall professional development program.

There are typical topics of employee training:

1. Communications – The increasing diversity of today’s workforce brings a wide variety of

languages and customs.

2. Customer Service – Increased competition in today’s global marketplace makes it critical

that employees understand and meet the needs of customers.

3. Human Relations –The increased stresses of today’s workplace can include

misunderstandings and conflict. Training can people to get along in the workplace.

4. Quality initiatives – Initiatives such as Total Quality Management, Quality Circles,

benchmarking, etc.

5. Ethics – Today’s society has increasing expectations about corporate social

responsibility. Also, today’s diverse workforce brings a wide variety of values and morals

to the workplace.

6. Diversity – Diversity training usually includes explanation about how people have

different perspectives and views and includes techniques to value diversity.

7. Safety – Safety training is critical where working with heavy equipment, hazardous

chemicals, repetitive activities etc., but can also be useful with practical advice for

avoiding assaults, etc.

8. Sexual Harassment - training usually includes careful description of the organization’s

policies about sexual harassment, especially about what are inappropriate behaviors.

Question #3

Choose one Hotel Paris human resources practice that you believe is essential to the company

achieving its high-quality-service goal and explain how you would implement that practice in the

firm’s various hotel worldwide.

Answer:

I would choose Performance Management and Appraisal.

Performance Appraisals can increase productivity of the people you manage.

First is in Employee Development, the manager discusses the employee’s strengths and how to

apply them. Goals are discussed as well as plans for growth.

Second is in Employee Relations, there is the chance to find out how the employee feels about

you, the job and the company.

Third, is the Employee Motivations, a non-threatening exchange of ideas between the manager

and the employee which may help to solidify the relationship.