1. Submitted by Aarthi.S 1st MBA Case study on HRM SNT GAMSAT
HUMAN CAPITAL DILEMA
Submitted by
Aarthi.S
1st MBA
Case study on HRM SNT GAMSAT

2. What systems should brian implement in order to start changing the human capital practices in the beachside hotel?
What could brian learn from joe in terms of the human capital aspects of running a hotel?
How could training and development programs be implemented in the beachside hotel in order to help with turnover and occupancy rates at the hotel?

3. 4. How could a return on investment perspective help or hurt the Beachside Hotel in trying to compete with the Sunrise Hotel?
5. What other human resource initiatives could be undertaken by either the Sunrise Hotel or Beachside Hotel in order to help with the overall performance of their respective organizations?

4. SOLUTIONS

5. 1. In order to start changing the human capital practices at the Beachside Hotel, there needs to be a serious shift in the culture there. Since Brian did not have any human resources background, he does not get involved in hiring, training, and ensuring that these functions are used to build a stronger service culture. Mary, the HR practitioner, was put into place because she could not work with customers, yet she is now in charge of the internal customers in the organization, the employees. Brian needs to get involved in building a stronger culture by making sure that he works with Mary to make sure that she is focused on people and creating a positive atmosphere. Investments need to be made in training and development of the people currently employed at Beachside Hotel and also in the new people to build a committed workforce.

6. 2. Brian should start out by learning more about the human capital in his own hotel first and getting himself immersed in the people of the company. The service profit chain starts internal to the organization and then looks to the external guest. Brian could then observe some of the human resource practices that are being used at the Sunrise Hotel and apply them to his own hotel. Joe gets involved in all of the hiring at the Sunrise Hotel as well as the training there. Brian should implement more of a focus in the top management of Beachside Hotel in order to emulate Joe’s focus on developing culture of service and in taking pride in the people that work for him

7. 3. Brian needs to focus on hiring the correct people for the various jobs at the Beachside Hotel and should then work with each person to determine what it would take to get them to be satisfied in their jobs. Training and development not only give people the skills that they need to be successful in their jobs, but also they help to develop people in other facets of their life, i.e., time management skills, money management skills, and even tuition reimbursement for college classes. These development classes help people feel a sense of connection with their jobs and would help them to be satisfied in their overall lives. The more satisfied employees are, the more that they tend to stay at a place of employment and the more they tend to satisfy the guest that they serve. Having the top management in a company get involved with the training and development of their people, helps them commit to their future growth and helps the employee feel that their employers believe in them.

8. 4. Since Brian’s job is to “fix” the Beachside Hotel, there will need to be an initial investment in order to get the human capital practices to a point where there are some significant improvements. These improvements will hopefully drive the service level up at the hotel and thus drive occupancy and repeat customers. There needs to be a return on investment focus for the hotel as they try to change the culture. It appears that currently, there is not a focus on investment in human capital at all and the cost is the low customer satisfaction scores, high turnover, and a lack of repeat guests. This hotel needs to encourage a focus on the human capital areas as well as focusing on the return on investment in this area. It needs to be noted that the return on investment may take a period of time to show a positive return, but hopefully the effort will be worth it.

9. 5. Some of the other human resource initiatives that could be undertaken by either or both properties are: regular and thorough performance reviews, 360 degree feedback programs, round table discussions with employees to focus on their needs, incentive programs to reward employees for positive performance toward the objectives of the organization, offer reward programs for guests in order to boost the level of repeat guests to the hotels, more open communication regarding progress toward the goals of the organizations in order to keep employees in the loop regarding performance, top management needs to focus on having a focus on the service profit chain regarding the internal guest satisfaction as well as the external guest satisfaction.