HRM and Employee Satisfaction in Hotels

This assignment delves into the importance of Human Resource Management (HRM) in hotels and resorts, specifically focusing on its impact on employee satisfaction. The document examines how HR departments ensure competitive wages and benefits, safeguarding labor requirements set by unions. It also highlights the significance of job satisfaction and organizational performance in the hospitality industry.

Running head: HUMAN RESOURCE DEVELOPMENT
Human Resource Development
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Planning and recruiting process in the organization....................................................................2
Staff turnover costs......................................................................................................................4
Forecasting demand.....................................................................................................................7
Staff positions & pay rates...........................................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................11

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Introduction
The human resource development is management of people who makes up the workforce
of an organization (Oke 2016). It includes the development of labor, skills, talent and work of the
individuals. It is the administration of employee benefits, aspects of recruitment and dismissal.
The primary focus of the Human Resource is to increase the productivity of the employee. The
development of the relationship in between the individuals in the organization depends upon this.
The human resource planning refers to the identification of the future current and human
resource needs for an organization to obtain the company goal. It is a link between the overall
strategic plan and the human resource management of the organization (Bratton and Gold 2017).
The chosen company whose human resource plan is to be developed is Japanese spa and
hotel retreat named Synelly luxury Ryokan Spa and Retreat located at a distance 2 hours away
from Sydney. The organization is a spa resort in the middle of natural hot springs and Blue
Mountains surrounded by beautiful natural scenery.
Discussion
Planning and recruiting process in the organization
In the given Spa resort named Synelly luxury Ryokan Spa and Retreat, the planning
process of the employees is divided into two parts. The parts include the plan of theemployee
relationship and the plan of the benefit and compensation. The plan of employee relationship
develops in terms of system of management and recruitment and the of the labor relationship
(Reiche et al. 2016). On the other hand, compensation and benefit plan consists of the attendance
statistics, salary structure and the incentives contributed to them (Oke 2016). The human

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resource department of Synelly luxury Ryokan Spa and Retreat consist of the HR manager,
specialist in relationship of employee, specialist of benefit and compensation, specialist of
training and development and the coordinator of Human Resource (Cascio 2018).
Employee relationship plan:
Employee forecasting and headcount planning: Taking in account the peak season and lean
season of the hotel industry, the Synelly luxury Ryokan Spa takes in action to employ two
different kinds of staffs, one is contractual employee and the other is casual employee (Bratton,
and Gold 2017). The contractual employees are full time employees who are recruited on the
basis of legal contracts (Snell, Morris and Bohlander 2015). And the casual employees are the
ones who help on coping up with shortage of staffs during the peak season in the resort.
The recruitment system:
The recruitment system is based on the description of the job, establishment and the
recruitment channel selection. In this process, the concept of the job would be introduced to the
interested candidates and a sample of the various positions is to be provided to them ( McPhail et
al. 2015). The following step shows the recruitment process in details:
Job description: The job description relies on the analysis of the job that needs to be examining
the knowledge and the skill requirements of the job (Reiche et al. 2016). There is need for a
sound communication with the various departments and understanding the various responsibility
of the job.
Recruitment channels:
The recruitment process consists of five steps. A five round selection takes place, the

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Most of the candidates who are suitable will join the resort.
On account of the industry of service in Sydney, it is characterized by low income in
the hospitality industry in south whales has to confront the disadvantages of high turnover.
A high turnover rate happens in terms of service industry especially working within 6 months.
The average level of job stability for service industry occupy 12% in accordance with the other
employees of other industry.
Moreover, the off-season and peak season factor affects the hospitality industry. Taking
the factor into consideration, recruitment channel listed below plan to be used in Synelly luxury
Ryokan Spa
 Online recruitment of Job: To post purchase and advertisement CVs via recruitments
from the website.
.
 gency ofhuman resource : to make use of resource of head hunting to find
senior
level position.
.
 Recruitment from college campus: To increase the rate of collaboration with college
and use interns to avoid redundant staff.
 Internal Introduction: this refers to the introduction internal employee with the
externals
 Newspaper: The post of job vacancy advertisement in the labor newspaper.
Staff turnover costs
The labor turnover is the ratio of the firm’s employee that leaves during a particular year.
In the given organization Synelly luxury Ryokan Spa has a rate of turnover 30.34% for operation
staffs and 38.29% rate of turnover for management staffs. This tells that and managerial staffs

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and the operational staffs experience patterns of turnover that are similar like hospitality business
in the area (Cascio 2018.). The hospitality industry has always relied on the staffs who are
casuals as a technique of obtaining both labor flexibility and for vacancy filing of the job. The
below table provides the information that more or less nearly one third of the employees in the
hotel is casuals. Trends of using casual employees has helped in the effort for training; loss of
human capital; loyalty of the company, standard in quality of product and productivity. Increase
in research is required into the practice of labor market in order to examine in detail the
organizational cost (Bratton and Gold 2017). Feedback of the HR manager indicated that casual
employees tend to have a turnover that is higher because they have many jobs in order to obtain
the level of income that is adequate.
The total staff turnover of the organization is shown in the following table:
Category of Employee Total turnover Turnover %
Managerial employees 1916 782 37.19%
Operational employees
(including casual)
8677 4348 50.64%
Total employees
(including casuals)
10506 5130 48.34%
Reasons for departing from the organization
The table shown shows the prime reason for departure of employees who are senior is
either internal transfer or resignation that is voluntarily taken. It also shows that for operation
employees, 86% resigned voluntarily. Turnover of labour is a human Resource loss. Voluntary

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resignation is major issue that the hotel is facing. The table shows the number of employees
leaving and the reasons for a particular year.
Reasons for leaving Number of employees leaving in
the management sector
Number of employees leaving
in the operational sector
Voluntary resignation 510 369
Termination 79 252
Redundancy 15 20
retirement 6 20
Inter group transfer 141 298
Total employee leaving 751 959
The staff turnover refers to the cost of replacing the employees who have left. In the
organization, a significant cost is labor turnover. The cost of turnover for a period of twelve
month has been shown in the following table. The total turnover cost is AU$ 141, 2259. The
most significant factior that is affecting the hotel industry is labor turn over; it affects the
profitably, quality of service, and the training skills. A further proper analysis of the
management, cost, time spent in the training procedure of the new employees and its
implications should be made.
The replacement cost of the functional and operational employees in the organization for
a period of 12 months is shown.
Cost Average turnover cost per year

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Management sector AU$ 706130
Operational sector AU$ 706129
Total AU$ 141, 2259
Forecasting demand
Forecast of human capital demand is the process of estimation the requirement of the
human resource in right quality and right number for future. The human resource demand is
forecasted according to the mission and vision of the firm.
The factors that affect the Human resource forecasting of the Synelly luxury Ryokan Spa
retreat are as follows:
 Employment trends
 Replacement trends
 Productivity
 Absenteeism
 Expansion and growth
The techniques followed by the organization for forecasting the human resources demand
are:
 Managerial judgment: The managerial judgment is a very common technique in
forecasting of demand. Since the organization follows the top-down approach, the
forecasting is done in the top-level management (Bakotić 2016). The departments about
the human resource requirements give different proposals to the top-level managers for

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approval (Shields et al.2015). After analyzing the proposals the, managers come into the
conclusion and decides the future human resource demand.
 Work-study technique: Another technique used by the organization for meeting the
organizational demand is workload analysis. In this method, the pressure or the load of
the work is measured and that according to the season that is peak season or off season,
basis of the need of employees the demand is set up. The performance of the existing
employees is also analyzed on this method.
 Ratio trend analysis: the human resource demand is also estimated based on the
production level ratio and the quantity of the available workers. The ratio will help in
estimating the demand of the HR.
Staff positions & pay rates
The position of the staff is the foundation of the companies operation. It provides the
direction for the coordination and development of the company (Guest 2017). The Synelly
luxury Ryokan Spa retreat is determined to adopt the centralized approach to the structure of the
organization (Hornstein 2015). The process where the structure decides to keep the decision-
making at the top of the hierarchy. The flow of command moves from the top to the bottom. The
financial control is to be kept at the top level only.
The structure of the staffs is kelp in two segments. One is the functional segment and the
other is the operational segment. In total there are eight centers divided into the two segments
(Wong, Wong and Wong 2015). The finance, human resource, and marketing belong to the
functional center, and the food, beverages, front office, engineering and maintainace is in the
operational segment. Each of the centers has two different levels of position, that is one
management position and the other is the general position. The management position supervises

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the general ones who actually do the work. They also make efficient planning and implements
the strategies (Dudley et al. 2017). Due to less head counts in the functional department and the
operational department, the resort decides to make the managers the leaders in the functional
department. This is how the labor costs are reduced in amount.
Synelly luxury Ryokan Spa has employed the reporting mechanism from the junior position to
the senior position (Small et al. 2017). To avoid confusion and misunderstandings within the
workers and the managers, the hierarchy is well maintained.
Payroll structure along with the onus range of the staffs at Synelly luxury Ryokan Spa
and Retreat for one financial year (2017-2018) is as follows:
Job role Salary range Bonus range
Head Chef AU$49,391 - AU$79,835 AU$0.00 - AU$9,87
general chef AU$46,903 - AU$65,960 AU$0.00 - AU$5,156
Duty manager AU$44,319 - AU$62,098 AU$0.00 - AU$9,858
Hotel manager AU$44,994 - AU$89,979 AU$0.00 - AU$15,342
General manager AU$54,217 - AU$121,952 AU$0.00 - AU$28,906
Front office manager AU$47,771 - AU$70,119 AU$0.00 - AU$9,635
Cleaning and maintaining staffs AU$12,429 - AU$16,937 AU$0.00 - AU$976
Conclusion
The hospitality industry deals with the people, it makes sure that optimum satisfaction is
provided to its customers. The successful hospitality ventures prioritizes their guests and needs
experts to serve them efficiently, a role of the human recourse plays an important role in the

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hotel industry, the industry recruit good employees, train them and achieve a increased level of
service for customer. The department of human resource puts the administration benefits and
compensation. It includes the surety that the wages and other benefits are competitive with other
hotels and resorts that are similar. If the hotel industry is considered as “union shop”, the role of
the HR department is to keep a close eye contact on the supervision and the wages of the various
labour divisions and departments. This safeguards the labours from under stepping wage and the
labour requirements set by the union.

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References
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