Strategic HR and Employee Management at East Bay Resort: Case Study

This case study examines the challenges faced by East Bay, a coastal resort in Hong Kong, focusing on employee satisfaction and high turnover rates. It delves into the current situation, business problems, and the role of Human Resource Management (HRM) and Strategic HRM (SHRM) in addressing these issues. The report highlights the importance of HRM policies, including clear communication, fair treatment, training programs, and motivational tools. It contrasts HRM and SHRM, emphasizing the significance of SHRM in aligning HR practices with organizational strategies. The study recommends HR policies such as formal employee induction programs, employee recruitment, and talent management initiatives. It also explores the psychological contract, including competitive pay, fringe benefits, staff training, and job security, to increase staff motivation. Finally, it suggests changes to the corporate structure to improve employee satisfaction and retention, offering a comprehensive analysis of the East Bay's challenges and potential solutions.

CASE STUDY

Executive Summary
The present report is based on understanding HR prospective and practices for
employees' satisfaction. However, significance of Employment Law and HR practices are
introduced to reduce employees' turnover ratio for East Bay entity. Including this, contrast of
human resource management and strategic HRM is described that affects employees'
performance. In addition to this, HR policy and its implementation is determined for recruiting
new workers and creating effective environment at workplace. However, different practices and
legislation are provided by staff motivation through this case study. Therefore, different
recommendations are provided to solve case study of East Bay regarding employees' satisfaction
and their protection.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
1) Current situation of the company............................................................................................4
2) Business problem....................................................................................................................4
1 HUMAN RESOURCE MANAGEMENT....................................................................................4
1) Human resource management (HRM) policies......................................................................4
2) Importance of Strategic Human Resource Management (SHRM).........................................5
3) Human Resource Management and Strategic Human Resource Management......................5
2 RECOMMENDED HR POLICY ................................................................................................6
1) Formal Employee Induction Programme................................................................................6
2) Employee Recruitment...........................................................................................................7
3) Employee Talent Management...............................................................................................7
4) Analysis of Talent Management Programme.........................................................................7
5) Employment Law....................................................................................................................8
3 EMPLOYEE DISSATISFACTIONS...........................................................................................8
1) Employee turnover..................................................................................................................8
4 PSYCHOLOGICAL CONTRACT...............................................................................................8
1) Competitive Pay......................................................................................................................9
2) Fringe Benefits........................................................................................................................9
3) Staff Training..........................................................................................................................9
4) Job Security...........................................................................................................................10
5 BENEFITS ASSOCIATED WITH INCREASED STAFF MOTIVATION.............................10
6 CHANGE TO CORPORATE STRUCTURE............................................................................10
CONCLUSION..............................................................................................................................11
REFERENCE.................................................................................................................................12

INTRODUCTION
1) Current situation of the company
In recent time, East Bay; a coastal resort of Hongkong is struggling to attract visitors and
economic crises. Due to this reason, it converted into receivership in which custodial
responsibility for property of others transfers to receiver. It is helpful to reduce remedy of
financial issue and creating balance of the entity. However, in the present case study, receiver is
planning to improve organisation's performance and reducing issues for proper management and
improvement effectively. In this regard, different HR practices and policies are to be described
for employees' protection and reducing large scale of turnover Alfes and et.al., (2013). Including
this, various strategies are to be introduced for improvement in working efficiency of staff and so
on. Along with this, benefits to increase staff motivation and changing corporate culture can be
explained through this assignment.
Management group is going to conduct interview with three general managers related to
receivership of entity and implementing strategies for recovery of organisation. However, for the
purpose to run hotel entity more efficiently and developing its operations, different tools are to
be used. Including this, recruitment of new applicants and improving hotel entity's quality
services effectively.
2) Business problem
East Bay is facing problem of high turnover of employees and lack of fund to operate
further operations. Therefore, it got receivership because of decreasing in providing services and
declining profit in all of its three hotels. In this regard, East Bay council get succeed to attract
grants for building new purpose-built and, state of art but it was considered to too late
(Armstrong and Taylor, 2014). However, due to declining sales and decreasing in profit, Jack
admitted defeat and put his organisation into receivership.
1 HUMAN RESOURCE MANAGEMENT
1) Human resource management (HRM) policies
Under these policies, varieties to rules and regulations are presented to manage
employees and guidelines for supervisors and manager of the entity. As per the given case
scenario, it is recognised that the employees' turnover rate was at increasing at high level. It is
because of mismanagement and lack of interest towards work performance Birasnav, (2014).

Moreover, there was less bonus and incentive facilities for workers also no training and
development programs. It repulses employees on large scale and resulted to turnover issue. For
reducing this case, following terms should apply can describe below:
 Providing clear communication between employees and East Bay therefore,
requirements of workers can be fulfilled. It will be resulted to decreasing in turnover
issue and more increasing interest of workers towards performances.
 Treat with all workers of the entity equally and fairly.
 Organising training and development program to increase working efficiency of
workers and motivating them for better work performance.
 For encouraging employees for better work performance, it is required to use
different motivational tools like; providing incentive, bonus, reward, appreciation etc.
 Providing proper guidelines to supervisors, managers in context of employees'
protection and security.
On the contrary to this, it is recognised that implementing HR policies may not be so
effective because of different mind sets of all individuals. However, focusing on all workers'
performance remains quite difficult for the organisation. Therefore, it is needed to implement HR
policies by preparing strategies and its effective follow up.
2) Importance of Strategic Human Resource Management (SHRM)
Strategic Human Resource Management (SHRM) refers to human resource component
useful for better performance and collaborative manner to boost retention. In this regard, several
tools are used such as; hiring, discipline etc that affects workers' performance and interest
towards job Brown and Matsa, (2015). However, some of the main significance of SHRM can
describe as below:
 It is helpful for increasing benefit for all workers to fulfil their desire and creating
understanding environment among them.
 It improves work experience also boost retention among them that impacts on proper
maintenance and recovery of East Bay.
 SHRM is a process for developing HR policies and implementing all strategies of the
organisation. It is linked with workers' performance and understanding HR practices for
employees' development.

Although SHRM is effective but also has some disadvantages. For instances, preparing
practices and following on all rules and regulations mentioned in effectiveness is difficult.
Including this, it is costly and time consuming that affects employees' performance management.
3) Human Resource Management and Strategic Human Resource Management
HRM emphasis on human resources and performs functions like; recruiting, selecting and
performance evaluation of employees. It prepares strategies for personal and professional
development of workers as well creating friendly and understanding environment of East Bay.
Including this, it follows several practices and legislation for workers' performance and
providing protection to them Budhwar and et.al., (2013). However, it involves different tools for
proper management of organisation's personnel as well safety and health for them. In this regard,
for recovery of East Bay, it is required for management to prepare strategies regarding workers'
performance and satisfying them with their work. Similarly, treating with all employees equally
is essential for them to create good relationship among them. Moreover, for encouraging workers
towards good performance, it is needed to organize training and development program. It will be
beneficial to gain their proper contribution in working in group.
In the other way, SHRM is a process that creates link between workers and strategies of
hotel entity. For solving out case study of East Bay, resource practices and rules for employees'
protection is possible. However, it is integrated approach that is appropriate to align workers'
performance with hotel entity's effectiveness CHENG and et.al., (2015). It emphasis internal and
external relation between organisation and its employees. Including this, it initiates changes as
well responsible for investment centre. Thus, SHRM is essential for East Bay to implement
practices and rules made under legislation for employees' management and their protection.
As per critical evaluation, it is determined that HR and SHRM are different concepts with
each other. In accordance to this, SHRM is integrated approach as well focuses on overall
practices of organisation. While, on the other side, HRM emphasis on employees' performance
evaluation as well conducts training and development program to improve their skills. Thus, it is
needed to create balance of these comparisons effectively.
2 RECOMMENDED HR POLICY
According to given case study, it is recognised that ratio of employees' turnover is
increased because of several reasons. For example; decreasing interest towards work

performance, lack of adequate technologies, conflicts and other negative aspects (Delahaye,
2015). Therefore, fore reducing these issues, East Bay can recover its position by following on
rules amended in HR policies. In this regard, several techniques can be applied expressed below:
1) Formal Employee Induction Programme
In this process system, introduction of former workers is conducted with new selected to
make them understand all work and corporate culture. In this regard, strategies are prepared to
align employees' performance with East Bay. However, by organising event for for introduction
and meeting all workers with each other. It influences SHRM and also implements HR policies
to create understanding and friendly environment among them Demerouti, Bakker and Leiter,
(2014). Including this, it is beneficial to improve an individual's work performance and
experience regarding hotel entity's performance and so on. In addition to this, it proceeds to
increase commitment and job satisfaction effectively by conducting program through using HR
practices and development of workers personally as well professionally. Therefore, former
employees' induction program remains benefited in perspective of HRM and management of all
workers' performance efficiently.
Conducting this program is costly as well risky to emerge all workers' interest towards
strategic plans and following on it so efficiently. In addition to this, it is not so sure that only
SHRM would be effective for this event.
2) Employee Recruitment
Due to increasing in turnover ratio of workers at East Bay, there is lack of new staff for
work performance. Thus, it is necessary for entity to recruiting and selecting new staff therefore
proper management of entity can be gained. In can be done through advertising job
advertisement using several ways like; campus seminar, publicity, social media and so on. After
this process, applicants which are interested in job will apply for job Friedman and et.al., (2014).
Therefore, all workers will be able to perform their work effectively. Including this, it is HR
practice that involves entering management position of the entity. However, for recruiting new
workers, it is essential to consider all employment legislation. In addition to this, employees'
recruitment requires to implement staff and helpful to allow SHRM in terms of align work
performance with East Bay for proper management and effective contribution of workers in
organisation's effectiveness. Thus, employee recruitment supports human resources to be
managed and increasing in number of staff to reduce issues.

There is risk in selecting adequate and qualitative worker for the organisation. However,
analysing their performances only at one interview is difficult. Including this, there is possibility
that new employees may create inappropriate environment of the entity which remains
ineffective for entity.
3) Employee Talent Management
Workers' performance of East Bay can be managed efficiently through organising
training and development programs that improves their working efficiency. It influences skills
and their improvement regarding performance and effectiveness in working abilities Goldman
and Myers, 2015). Including this, various methods are applied for encouraging workers towards
better work performance and enhancing their qualities. In this regard, proper effectiveness of
hotel entity can be achieved through talent management and improving skills adequately. Thus,
employee talent management is useful for East Bay and its recovery adequately.
It requires a lot fund for conducting talent management program which is not so possible
for hotel entity. In addition to this, there is possibility that after taking advantages of
development programs, skills of workers might not be appropriate. Thus, conducting employee
talent management is difficult for hotel entity.
4) Analysis of Talent Management Programme
Under this analysis, conducted program for talent management of workers is analysed by
which several ideas are generated for better performance. As per organising talent management
event, various problems are occurred. For example; primary and limited productivity as well
efficiency of hotel East Bay, limited resources for organising programs etc Hollenbeck and
Jamieson, (2015). In addition to this, it is evaluated that due to lack of adequate fund and
resources, organising training program remains difficult. In order to this, customer relationships
get detrimental impacts on services of hotel entity. Thus, on the basis of this assessment, it is
observed that management program for improving workers' efficiency, various difficulties are
occurred that requires to solved out.
On the contrary to this, analysing talent management programme is difficult as well
remains inappropriate for hotel entity. Therefore, contribution of all individuals may not be so
efficient that affects organisation's effectiveness.

5) Employment Law
There are different rules and provisions present in employment law includes rules and
regulations to be followed on. As per the given case scenario, it is determined that East Bay hotel
entity neglects employment law for providing incentive, bonus and different rights. In addition to
this, for this reason, entity had to face different issues regarding employment legislation etc.
Besides this, increasing in turnover ratio of workers Merrill and et.al., (2013). Thus, it is
essential for hotel entity to follow on rules and regulations presented in employment law for
protection of workers adequately. Including this, it is required to provide equal rights and
benefits to all workers therefore proper management can be obtained to handle workers
efficiently.
Following on all employment Laws are difficult. In this regard, some disputes and
conflicts occur at workplace that disturbs environment of hotel entity. In this regard, different
outcomes are gained for following on rules for all workers.
3 EMPLOYEE DISSATISFACTIONS
1) Employee turnover
There is high turnover in East Bay hotel entity which occurs due to dissatisfaction of
workers regarding performance. It occurs because of lack of interest towards working in a group
well for the organisation. However, different problems occur because of lack of innovative
technologies and training advancement. Including this, several issues raised because of salary
issue like; not providing adequate salary according to their work performance Purce, (2014).
However, lack of motivation and encouragement among employees’ turnover problem emerged.
Along with this, HR practices remains fail in the hotel entity because of negligence of their
protection and overall legislation. Therefore, it is required to reduce this employees' turnover
ratio because of proper effectiveness of East Bay by formulating and implementing strategies to
sustain them at workplace. It will be helpful for entity's effectiveness and recover its issue.
It is one the great occur at workplace that influences business operations and its services.
It is recognised that if employees are not satisfied with organisation's policy then turnover ratio
get enhanced at large scale.

4 PSYCHOLOGICAL CONTRACTS
HR department of East Bay can build its restructure and re-existence by creating
psychological contract with its workers. It involves job satisfaction, competitive pay, pension
and providing other benefits to them. However, different implementations are to be followed on
as prepared to achieve employees' satisfaction and great interest towards work performance. It
resulted to increase their work performance to contribute in group effectively Riley, (2014).
Therefore, psychological contracts related to employees' satisfaction can describe as below:
1) Competitive Pay
As per the given case scenario, it is observed that employees are not satisfied with their
salary and working hours specially performers who work for full time period. Therefore, for
proper maintenance and recovery of East Bay, it is needed to set proper salary for them
according to their performance. Including this, unsociable hours and low skills low-paying work
should reduce to increase their satisfaction and proper contribution for working in a group.
Along with this, it is analysed that it will be suitable for employees and their satisfaction towards
performance. Besides this, working hours for full time workers should be adequate and exact 8
hours. However, by setting proper leaves and additional benefits related to work performance
affects workers' satisfaction Sanders, Wisse and Van, (2015). Thus, it is essential for East Bay
entity to increase their salary and rates influences their working efficiency. However, HR
department must be concern about providing proper salary and payment to encourage and sustain
workers for entity's effectiveness. Thus, it will be appropriate for entity and its growth in respect
of performance and quality services efficiently.
On the contrary to this, it is determined that competitive pay affects workers' performance
and their contribution in teamwork. However, differences in pay system occurs disputes and
conflicts. Therefore, several negative aspects affected for this system.
2) Fringe Benefits
It is a kind of motivator that influences workers for better work performance. In this
process, different benefits are provided to staff including meal during shifts, additional holidays
etc. Therefore, proper management of entity can be obtained that affects workers' efficiency and
contribution. Including this, several benefits are required to provide them like pension, incentive,
different pension schemes to personnel meeting etc. Thus, fringe benefits are essential for entity

to satisfy its workers towards performance and staff motivation. It will be resulted to reduce
employees' turnover ratio Smith, (2015). However, facilitating with these benefits affects
sustainability of workers and different processes. Therefore, various positive aspects will be
gained at high level also improves their working efficiency. Hence, it is recognised that East Bay
can enhance satisfaction of workers towards performance at maximum level also affects entity's
performance and effectiveness regarding sustainability effectively.
It is critically evaluated that providing fringe benefits are not so effective for all workers'
performance and encouraging them towards work according to their ability. However, it is costly
in respect of HR budget and expenditures are incurred on large scale.
3) Staff Training
It is needed for East Bay to organise proper training and development to its workers. It
influences their working styles and also get interested towards technological advancement.
Including this, various positive outcomes are emerges as improving skills and their personal
development. Including this, conducting staff training is most appropriate tool for hotel entity to
encourage its workers to contribute their performance more efficiently Yalew and et.al., (2013).
However, staff turnover is one of the greatest tool to encourage workers and maintaining their
interest towards performance on large scale.
For organising training and development program, high level of fund is required that
affects financial position of entity. In accordance to this, several differences are occurred in
employees' performance as well there may be not be any improvement in their work even after
attending the program.
4) Job Security
It is essential for East Bay to provide job security among workers for job performance..
However, job security increases self-actualization and proper development of workers for better
work performance. In addition to this, positive environment of entity is created that reduces
conflicts and anxiety among workers Human Resource Management, (2017). Therefore, for
proper job security, rules and regulations amended in Employment Law are required to be
followed on that affects job performance and skills get improved. In addition to this, organising
training and development increases confidence among workers towards work performance and
proper growth.

It is always a fear in employees regarding job security. Following on all rules so strictly
and encouraging them towards job performance legally remains unsuccessful. Therefore,
assuring employees with their job is quite necessary.
5 BENEFITS ASSOCIATED WITH INCREASED STAFF MOTIVATION
It is beneficial for East Bay to increase staff motivation that affects satisfaction and
development regarding working efficiency. In accordance to this, it is able to encourage workers
for better performance and different positive aspects. It is considered that motivated employees
are able to create positive environment of hotel entity. Including this, effective contribution of all
workers can be gained for working in a group. Thus, entity can motivate its employees through
different ways by using monetary and non-economic tools Alfes and et.al., (2013). For example;
incentive, bonus, reward, appreciation and additional benefits. Therefore, staff motivation affects
East Bay's effectiveness as well effective goodwill for implementation and reducing issues
effectively.
On the contrary to this, it is noticed that staff may not be motivated by attending training
and development program. In addition to this, it is not so certain that each employees will not be
so encouraged in comparison to others. However, they disturb environment of entity affects to
reach out set goal.
6 CHANGE TO CORPORATE STRUCTURE
Staff motivation affects corporate structure of East Bay as well as its effectiveness. It is
recognised that encouraged workers are key performers for implementation of hotel entity. In
addition to this, by organising training and development program issues occur among workers
get reduced. However, proper growth of entity and its workers is possible through this process. It
resulted to create friendly and understanding environment of organisation Armstrong and Taylor,
(2014). Moreover, encouraged workers support group work at high level remains effective for
organisation's growth.
Changes in corporate structure impact on East Bay's performance and further operations.
However, it is difficult to get positive changes all the time. Therefore, accepting fluctuation and
getting adjusted towards it remains difficult for hotel entity.