Business Report: HRM Challenges and Strategies for Royale Foods

This business report analyzes the HRM issues faced by Royale Foods, a restaurant in the hospitality sector. It identifies key challenges such as employee retention, health and safety concerns, lower productivity, and lack of employee engagement. The report explores the impact of these issues on the company's performance and brand image. It then proposes strategies to improve HR processes, including training programs, team-building activities, and the implementation of HR policies related to direct wages, anti-discrimination, and health and safety. The report also includes an implementation plan with associated costs and responsibilities, alongside a risk register to assess the severity of various HRM risks. The report concludes by emphasizing the importance of addressing employee retention to solve other HRM problems, and satisfy customers. This report is available on Desklib, a platform providing past papers and solved assignments for students.

Business Report

Executive summary
Business report is an evaluation of issues which company face and it plays an important role in
identifying issues and improving performance. HRM issues like health and safety, increasing
staff turnover rate create several other problems and barriers in accomplishing goals. HR policies
and processes like health and safety act, anti discrimination act also play an important role in
solving all problems. Risk analysis also helps companies of hospitality sector in decreasing risks
and meeting vision.

TABLE OF CONTENTS
Executive summary.....................................................................................................................2
INTRODUCTION...........................................................................................................................1
Primary HRM issues in Royale foods.........................................................................................1
Improving delivery of HR processes at Royale foods.................................................................2
Implementation plan including costing and responsibilities.......................................................3
Risk register to identify main risks at Royale foods....................................................................4
CONCLUSION................................................................................................................................6

INTRODUCTION
A business report is an evaluation of specific issues and financial operations elated to the
performance of business (Lim, Chalmers and Hanlon, 2018). This present study is based on
Royale food that provides qualitative food to customers and attracts them. This study will discuss
some HRM issues which this restaurant is facing such as: employees’’ turnover, employees’
engagement, health and safety and others. Further it will discuss some strategies or HR processes
which can help company in solving all problems. Lastly, it will discuss risk analysis and
intensity of different types of risks which help hotel in developing strategies.
Primary HRM issues in Royale foods
Hospitality sector is mainly responsible for satisfying customers’ needs and for that they
require providing qualitative products and services to them. For satisfying customers it is
important for them to satisfy employees but there are several HRM issues occur at workplace of
Royale Foods that create several barriers. Some main HRM issues include: employee retention,
productivity, health and safety and employee engagement. Some common issues which create
several problems for Royale foods include:
Employees’ retention: Hospitality is one of the main sectors that face problems in retaining
employees due to workload and pressure of satisfying customers at all stages. There are several
external environmental factors that lead to employees’ turnover such as unequal pay, lack of
motivation, work load, uncertainty, environmental factors like Covid-19 and others. Employees
have to deal with different behaviours of people and customers and sometimes negative
behaviours affect their performance and lower their morale. It leads to high turnover and affect
image of the company (Moore and Brannen, 2018). So, it can be said that employees’ turnover is
one of the main HRM problem which Royale Foods is facing.
Health and safety: Health and safety is other main HRM issues which Royale Foods is facing.
Employees at this hotel are less likely to stay at workplace because of increasing risks of health
and safety. Hospitality is the main sector where employees have risks of accidents, injury and
others. Due to lack of implementation of health and safety policy at workplace, employees are
less likely to prefer work at hotel. Nowadays due to Covid-19 situation, employees feel unsafe as
1

they have to deal with several people and it increases risks of safety and getting affected. It
lowers productivity and increase staff turnover rate.
Lower productivity: It is found that health and safety and due to increased workload,
employees are less likely to stay with the company which increases staff turnover rate. This
increasing staff turnover rate lowers overall productivity of hotel. It also creates problems in
taking advantages of competition and becoming the market leader. Customers prefer to buy
products and services of those hotels and restaurants that have improved image in the market but
due to increased staff retention and poor productivity, it affects image of the hotel (Sheehan,
2019). So, it can be said that it is other main HRM issue at Royale foods which it needs to be
focused and improve for accomplishing goals.
Employee engagement: It is found that Royale foods are trying to satisfy their customers but
due to lack of team working and training employees have poor relation with each others. This
poor relation and biased behaviours of leaders towards some employees create problems in
engaging employees. Poor employees’ engagement affects productivity and overall performance
of the company.
So, from the above discussed all problems which Royale foods is facing, it can be said
that it is affecting their productivity and brand image and performance. Due to all of these, it is
also facing problems in taking competitive advantages and making an effective image in the eyes
of customers (Johnson, R.D., Lukaszewski and Stone, 2016).
Improving delivery of HR processes at Royale foods
In the context of hotels and restaurants it can be said that it is fast paced businesses
whose main responsibility is to satisfy customers and employees as well. HR plays a vital role in
this sector for employing recruiting, selecting skilled workforce, providing training to them in
order to improve their knowledge and skills. But it is found that a Royal food is facing several
HRM issues which are creating barriers in accomplishing goals. But with the help of effective
strategies and HR processes it can improve delivery of their products and services. Some
effective HR processes include:
Training: It is found that due to workload employees are leaving hotel or restaurants which
affecting image and productivity of hotel. So, it can be said that by providing training to all
employees, manager of this restaurant can increase skills and knowledge of employees (Sheehan,
Grant and Garavan, 2018). It can make employees able to provide better and qualitative services
2

to guests and increasing their satisfaction. When employees get training and improved their skills
then it improves their performance and productivity. It also boosts their confidence and focus on
their work. It improves overall quality of products and make hotel able to attract customers and
retaining them for the long run. So, it can be said that this HR process can decrease staff turnover
rate and improve delivery of products.
Team working: It is found that Royale food is facing problems in employees engagement and
poor relation. Increasing conflict is other main problem which affecting image of the company.
But some effective strategies like tem working can help this hotel in solving all these problems.
When employees work in a team then they interact with each others, focus on continuous
communication which improves their relation and also improves their performance. Employees
learn different new things of working and performing functions which reduces errors and
improves productivity. So, it can be said that this HR process can solve several HRM issues and
help them out in taking competitive advantages.
HR policies: HR policies like direct wage, anti discrimination, health and safety and others have
several positive impacts on performance and overall productivity of company. But lack of HR
policies and poor implementation of health and safety and other policies increase staff turnover
rate. But by implementing all these policies hotel can attract skilled workforce and make them
able to provide qualitative services to customers and satisfy their needs. When employees feel
safe and secure at workplace then employees are more likely to support company in meeting
their goals (Alfiyah and Riyanto, 2019). When employers treat their employees in a fair manner
then also they retain with the company and improve overall productivity.
So, from the above discussed all HR processes it can be said that Royal food can solve all
discussed problems which it is facing and can also take advantages of external opportunities.
Implementation plan including costing and responsibilities
Identifying problem: It is important to identify all problems with the help of external and
internal environmental analysis tools. By identifying they can select strategies accordingly.
Selecting strategy: After identifying problems like employees engagement turnover and others
it is important to select strategies which can solve all problems like implementing HR policies
and making use of HRM resources.
3

Implementing strategy: Implementation of strategies require investment for better using them
and taking advantages of all strategies (DiRomualdo, El-Khoury and Girimonte, 2018).
Strategies Cost
Employees selection and recruitment
$2,300
Salary cost incensement
Implementation of HR policies
$1,000
Training to employees $1200
Other benefits $1500
Other changes in policies $750
Risk register to identify main risks at Royale foods
There are several HRM problems which Royale food is facing. Among all of these
problems some are very serious and require immediate improvements because they are affecting
their image and overall productivity. It is important for leader of Royale food to identify the type
of risk as whether they are serious, very serious and others (Woerner and Egger, 2019). For
identifying intensity of risks they need to develop risk register and developing strategies
accordingly.
Issues Likely to
happen/serious
Less likely to
happen/less
serious to
happen
Unlikely
to happen
Description
Employees’ serious This issue is serious and likely to
4

retention happen and can create several
other problems. When employees
do not stay with the company then
it affects image of the company.
Poor image also create problems
and companies find difficulties in
attracting customers so, it is
categorized in this zone.
Health and
safety
Less likely to
happen
It is other main problem which
Royale food is facing. It is less
likely to happen and comes under
yellow zone because by focusing
on some policies employers can
improve working environment and
can retain their employees. Health
and safety is the main concern but
as compared to others it comes
under yellow zone.
Employees
engagement
Unlikely
to happen
Employees’ engagement with
company is other main issue but
still it comes under green zone and
unlikely to happen. Because when
employers give other motivations
to employees then employees get
engaged with the company.
Lower
productivity
serious Lower productivity is other main
serous problem because lower
productivity and performance of
company affect image. Poor image
of company finds problems in
taking advantages of external
5

factors and also in becoming the
market leader.
CONCLUSION
It has been summarized from the above study that employees’ retention plays an important role
in solving all other HRM problems. It has discussed some HRM problems which hospitality
sector face such as poor productivity, health and safety, employees’ engagement and employees’
turnover rate. All these problems affect image of the company and in attraction of customers.
Further it has also discussed some ways by which hotel can attract customers and solve all HRM
issues. HRM policies like anti discrimination, health and safety and other also play an important
role.
6

REFERENCES
Books and Journals
Alfiyah¹, N. and Riyanto, S., 2019. The Effect of Compensation, Work Environment and
Training on Employees’ Performance of Politeknik LP3I Jakarta. Work, 2, p.49.
DiRomualdo, A., El-Khoury, D. and Girimonte, F., 2018. HR in the digital age: how digital
technology will change HR’s organization structure, processes and roles. Strategic HR
Review.
Johnson, R.D., Lukaszewski, K.M. and Stone, D.L., 2016. The evolution of the field of human
resource.
Lim, E.K., Chalmers, K. and Hanlon, D., 2018. The influence of business strategy on annual
report readability. Journal of Accounting and Public Policy, 37(1), pp.65-81.
Moore, F. and Brannen, M.Y., 2018. The anthropological comparative method as a means of
analysing and solving pressing issues in comparative HRM. In Handbook of Research
on Comparative Human Resource Management. Edward Elgar Publishing.
Sheehan, C., 2019. Contemporary HRM Issues in the 21st Century.
Sheehan, M., Grant, K. and Garavan, T., 2018. Strategic talent management: A macro and micro
analysis of current issues in hospitality and tourism. Worldwide Hospitality and
Tourism Themes, 10(1), pp.28-41.
Woerner, S. and Egger, D.J., 2019. Quantum risk analysis. npj Quantum Information, 5(1), pp.1-
8.
7