This report discusses the issues of high staff turnover faced by The Imperial Hotel and provides solutions to overcome them. It also highlights the importance of effective management strategies and theories in improving employee satisfaction and productivity.
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Individual Report - Imperial Hotel
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Table of Contents INTRODUCTION...........................................................................................................................1 MAIN BODY..................................................................................................................................1 Analysis of the problem.............................................................................................................1 Solution to the problems.............................................................................................................4 CONCLUSION................................................................................................................................6 CONCLUSION................................................................................................................................7 REFERENCES................................................................................................................................8
INTRODUCTION Management of individuals involves managing day-to-day activities of individuals those who are operating their roles and responsibilities within organisational premises for a common purpose. For this, human resource department play key essential role to recruit, select, motivate and provide regular training and developing courses to people (Haque, Fernando and Caputi, 2019). This department is also concernedwith resolving issues and problems prevailing in organisationalworkplacestructureinordertoensureaccomplishmentoforganisational objectives and goals with great efficiency. Present report has been conducted on the case study of The Imperial Hotel,this entity is operating their functions as a well-known international branded chain of hotels in 4 start range. Hotel is offering wide range of high expectation facilities and services of their customers. There are different type of facilities that hotel is providing that include 500 bedrooms, 12 conference rooms, 3 bars and 4 restaurants etc. It has been evaluated that entity is facing issue which is mainly related to “ high staff turnover with 80% of the staff leaving within the year”. In order to overcome this Peter Farnsoworth new general manager decided to plan formative strategy which is being discussed in this report. MAIN BODY Analysis of the problem According to the case study evaluation, it has been evaluated thatThe Imperial Hotel is facing with the problem of high staff turnover within the year. This is mainly high in hotel sector because oftemporary nature of employment. In context to the Imperial hotel entity is mainly affected with this issues in the front line staff segment, this mainly due to unsociable working hours, aggressive management and supervisory styles, lack of regular and proper training, proper level of pay, less opportunity for bonuses and promotion, the high cost of travelling to work in central London and difficulties in getting transport home at night and more. Due to all these adverse factors entity is facing with high level of staff turnover that directly increases entity staffing budget. Thus, it is essential for management of hotel to overcome this issue as it lead towards decreasing employee lack of commitment and job satisfaction, creating stress and decreasing overall work performance. Mentioned below brief overview of problem that is facing by respective organisation is being evaluated: 1
Less opportunity for bonuses and promotion: It is one of the crucial factor which is contributing in high staff turnover. It has been evaluated that maximum number of individuals have higher expectations for promotion and bonuses as they see this as their growth opportunity (Hoffman and Burks, 2020). Thus, ineffectiveness or less opportunity of this element lead towards increasing dissatisfaction among workers for their job. In terms with the Imperial Hotel, this has been evaluated that this factor is continuously increasing rate of staff turnover which is affecting performance efficiency of entity in respective industrial sector. Lack of regular and proper training: There are different type of roles and responsibilities that are required to be undertaken by individuals operating their services in hospitality industry, as they are directly connected to customers. Thus, it is essential for organisations operating their operations in this sector to offer regular and efficient training and developing sessions to new and existing employees in order to make them compatible with organisational job role. Lack of proper as well as regular training is affectingthe Imperial Hotelemployees performance as they face difficulties to perform their role as expected by entity. It increases sense of stress and frustration among them that automatically lead towards high turnover. Ineffective communication: Communication play most important role especially in hospitality sector as it has been identified that employees in this segment are having direct connection with customers. In this, if there is lack of communication prevails between top management and lower level of company then it can affect number of operations of company such as unclear roles and responsibilities, lackofknowledgerelatedtoorganisationalgoals,vision,missionandobjectivesetc (Kurniawaty, Ramly and Ramlawati, 2019). Inefficiency in communication also have significant impact upon customer expectations. Unhealthy working environment: Hospitality industry mainly deals with unhealthy workplace environment due to long work hours, number of job responsibilities on one individual, ineffective training and many other reasons. Along with this, aggressive competition in this sector also play crucial role in unhealthy working environment. This is affecting productivity level of employees, further it has been 2
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evaluated that, this element is affecting the Imperial Hotel workers efficiency to perform their roles in effective manner which is increasing level of labour turnover. Unclear Job expectation: It is essential for all organisations irrespective of their size and scope to recognize performance of employees as it enhances sense of expectations for growth and future development among employees. In addition to this, it has been identified that unclear job expectations in the Imperial Hotel also lead towards creating ineffective work place environment, this automatically affecting consumer satisfaction level. As it has been evaluated that with having unclear job expectation increases tension and stress among employees. Improper communication with manager: Efficient form of communication is backbone of employees higher productivity. It has beendeterminedthatitisoneof themostadverseissuewhichisaffectingemployees productivity level and further lead in increasing labour turnover. In terms with the Imperial Hotel, it has been determined that there is improper form of communication lies within manager and employees which results in more misunderstanding and tasks and project get delayed. This further increases long work hours, overworked and tensed workplace environment. All these factors collectively increases high rate of staff turnover in respective company. Lack of flexibility: Ithasbeenevaluatedthat,ineffectivetimeschedulinghavemajorimpactupon performance and productivity level of employees. In context with the Imperial Hotel, this has been determined that ineffective form of time management and long working hours increasing stress and frustration among employees (De Winne, Van Beveren and Vanormelingen, 2019). It is also affecting their overall level of productivity and performance level. Thus, it is essential for management of entity to ensure that they offer adequate, proper and flexible work hours to their employees as to significantly overcome issue of staff turnover. Thus, according to the above mentioned discussion it has been evaluated that the Imperial Hotel is facing with various form of issues that are subsequently impacting upon performance and productivity of whole organisation. It increases lack of commitment and low level of job satisfaction among employees. All these issues are required to be effectively overcome by management of entity in order to lower down overall ratio of labour turnover. For this 3
management by undertaking advantage of effective management principles and theories can gain successful results. Solution to the problems By taking advantage of various form of management principles as well as theories the Imperial Hotelmanagement can effectively able to overcome the issue of labour turnover in a well defined and effective manner. Mentioned below some of the certain measures and theories are defined: Employee motivation theories Bytakingsignificantuseofemployeemotivationtheoryorganisationcanallow themselves to know the factors through which they can provide effective motivation to their workers. With the implementation of employee motivation theory respective hotel can undertake advantage of different approaches through which they can effectively increase productivity and loyalty of employees at great extent. Mentioned below there is a certain employee motivation theory through which hotel can the current issue that are being facing by them: Hierarchy of Needs By undertaking advantage of Abraham Maslow's hierarchy of needs theory,the Imperial Hotel management executives can evaluate needs of employees in every category. According to maslow it is essential of an employer to fulfil needs of employees at each level in order make them truly committed towards organisational goals. It has been identified that respective hotel is facing with the issue of labour turnover and there are number of factors that are decreasing performance and job satisfaction of employees (Ekhsan, 2019). If employer fails to meet employees needs at any level then it significantly increase dissatisfaction among employees that further lead employees to find new employer with better opportunities. Further it has been evaluated that, this theory also provide significant benefit to the Imperial Hotel to fulfil each and every level of need of employees. 3 point plan to resolve the problem According to the case study, it has been evaluated thatthe Imperial Hotel is facing with the issue of “ high staff turnover with 80% of the staff leaving within the year”. It lead entity to loose their talented employees. For this, a 3 point plan is being formulated by hotel general manager though this plan entity is expected to have a dramatic improvement within 12 months. Step 1: Identify the root cause for those who leave and also for those who stay 4
It is a crucial step in which entity is required to determine root cause cause of high employee turnover before undertaking any actions. For this interviews can proves to a significant measure through which company can uncover various reason that made employees leaving their job. It lead management of hotel to craft strategies and measures through which they can overcome the issue in effective period of time. Step 2: Implement a flexible approach based on the frustration of the employee After undertaking process of identification of issue management can effectively address major issues that are making employees to leave. This step allow entity to implement various approachesto retain employees. It has been evaluated that,the Imperial Hotel management by providing career opportunities to employees can make them learn about different roles and area of entity (Stamolampros, Chalvatzis and Buhalis, 2019). It will significantly increase interest among employees towards entity. Along with this, management is also required to take use of review system in order to tell employees about their level of contribution in their current job role. In addition to this, it has been evaluated that by adding new responsibilities, sculpting and higher targets and explaining to employees that how their contractors can lead them to higher pay can aid entity to maximise opportunities for employees.Along with this, by offering adequate, effective and additional training facilities to employees and offering employees with flexible schedule can also benefit the Imperial Hotel management in many ways to retain employees. Lastly, with having effective reporting structure and strong communication networks can allow entity to ensure lower level of employee turnover. Step 3 : Give Time to Most Valuable Employees It is essential forthe Imperial Hotel to engage their senior leaders and executives with entity most valuable employees in the form of informal Q&A, mentoring and coaching can lead toward increasing interest and sense of belongingness and valued among employees. It will also aid entity to identify issues and problems that are being facing by employees that further enhances company to undertake prior measures for improvement. 5
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CONCLUSION As per the above mentioned report it has been concluded that human resource department is holding key essential responsibility to solve issue and problems that are hampering smooth operations of entity. As these issues or problems are having great tendency to lower down overall sales and profitability index ration of company badly. It has been evaluated that some of the issues such as ineffective form of communication, lack of flexibility, unclear job expectations, unhealthy workplace environment etc. can adversely affect performance level of employees on continuous basis that further lead towards decreasing overall productivity margin of entity. In this, it is essential for manager to overcome all these issues by taking advantage of formative management theories, strategies and plans as to increase workplace efficiency of entity. In addition to this, it has been evaluated that with the presence of all these issues company can not only reduce their profitability growth but can also lead towards affecting their positive brand image in respective industrial sector. Thus, it is essential for manager to implement effective plan, strategies and management theories to overcome these issues with great effectiveness and enhanceoverallprofitabilityandproductivityinfeasiblemannerwhileassuringhigher profitability and productivity. 6
REFERENCES Books and Journals Haque, A., Fernando, M. and Caputi, P., 2019. The relationship between responsible leadership and organisational commitment and the mediating effect of employee turnover intentions: An empirical study with Australian employees.Journal of Business Ethics,156(3), pp.759- 774. Stamolampros, P., Korfiatis, N., Chalvatzis, K. and Buhalis, D., 2019. Job satisfaction and employee turnover determinants in high contact services: Insights from Employees’ Online reviews.Tourism Management,75, pp.130-147. Ekhsan, M., 2019. THE INFLUENCE JOB SATISFACTION AND ORGANIZATIONAL COMMITMENTONEMPLOYEETURNOVERINTENTION.JournalofBusiness, Management, and Accounting,1(1). De Winne, S., Marescaux, E., Sels, L., Van Beveren, I. and Vanormelingen, S., 2019. The impact of employee turnover and turnover volatility on labor productivity: a flexible non- linear approach.The International Journal of Human Resource Management,30(21), pp.3049-3079. Carter, S.P., Dudley, W., Lyle, D.S. and Smith, J.Z., 2019. Who's the Boss? The effect of strong leadership on employee turnover.Journal of Economic Behavior & Organization,159, pp.323-343. Kurniawaty, K., Ramly, M. and Ramlawati, R., 2019. The effect of work environment, stress, and job satisfaction on employee turnover intention.Management Science Letters,9(6), pp.877-886. Gjerløv-Juel, P. and Guenther, C., 2019. Early employment expansion and long-run survival: examining employee turnover as a context factor.Journal of Business Venturing,34(1), pp.80-102. Hoffman, M. and Burks, S.V., 2020. Worker overconfidence: Field evidence and implications for employee turnover and firm profits.Quantitative Economics,11(1), pp.315-348. 7