The Chelmsford Hotel is the small family oriented hotel located in Melbourne. This hotel is developed by the two brothers Jeff and Chad Mitchell. This business has grown with the interest of the owners in work and efforts. The hotel consists of 163 guestrooms and offer valet parking services, housekeeping and manages maintenance and administrative tasks. The Garden terrace restaurant is also part of their service in which they offer to dine, room service, catering service and organization of events. In the hotel, there are around 130 to 140 employees while, for the restaurant around 35 more employees are hired. It is the family business in which Jeff Mitchell is the CEO and Chad Mitchell is the Vice president of community relations and are the owners. The Cindy Mitchell is the Chad’s wife and the director of the human resource department. Cindy has been working in the hotel as a member of the management team and now dealing the human resources management operations of the Chelmsford. Although, she have no HR or business management knowledge or experience rather she is operating as a natural leader in the hotel. Cindy is well respected by the employees and successfully manages the hotel tasks. Cindy prefers hiring the employees with the referral. The Chad and Jeff around the whole family and most of the relatives are employed in the hotel. These family connections are occurred spontaneously. The hotel had financially grown and generated profit within two years. However, this profitability could continue on maintaining solid reputation. The Jeff wants to open second Chelmsford hotel, but the multi organization needs structured management with proper employee policies. The HR department is not based on proper structure and needs strategic HR development for a large hotel that she cannot manage. It needs proper organizational strategies based on proper HR operations.
The Chelmsford Hotel HR strategy
Cindy has no HR experience and management practice before their Chelmsford hotel work. She is assisting the Jeff in day to day management of the hotel. The major HR strategy on which Cindy is focused is to hire the family members, friends, relatives, or referral staff that could work with full interest and provide full dedication to the family business. Cindy continues to provide available jobs to the family members, and through family oriented environment and values maintained a memorable hotel environment that emphasizes the hotel guests and visitors. The mission of the hotel is to provide the superior work environment and best services to the customers. The HR strategy of the hotel is concerned about supporting and satisfying the employees and career. The staff members are encouraged to invite the family members to the hotel on lunch, they are welcomed to conduct the summer picnics, holiday parties or organization or any family event on minimal charges. The employees have the right to post their children pictures, make an announcement for new babies, children’s graduation, weddings etc. Cindy tries to memorize their names, relations and personally congratulate them. The Chelmsford hotel, through its family focused environment, has boosted its financial profitability, and seeking to expand the business, which needs original organizational structure renovation. The Chelmsford has successfully renovated its structure according to the current interest rates. Jeff in to grow the hotel chain not only in the same city but also to take the business to the major cities of Australia. This business enhancement needs proper HR department and administrative agency, and to construct the formal policy structure that must require employees’ proper handbook, employees complaint proper procedure and training of employees. Cindy required making an effective and efficient strategic human resource management strategy. It has been identified by Cindy that, in the family or friend’s environment, many serious issues occurred that could harm the multi organizational business like the attendance problem, accountability for performance, and many other. It is required to establish and implement new policies that could not harm the positive family oriented culture in the hotel, and significant values in the organization.
Impact of Family Orientation on Business
The family owned organization has unique business characteristics as the family relationship strengthens the organization with significance. The employees hired from the family, friends, relatives, and referral are completely secure and trustworthy worker, who works within the organization with their complete loyalty, honesty and takes an interest in the family business. It is easy in family owned business to form a proper desired family culture within the business management tasks. However, there are many drawbacks too in such businesses. These barriers could become barriers in the success of the business. In such businesses the working skills, knowledge, education, and techniques to manage business task are usually suffered. The hiring of employees is done on the basis of the relations, not on qualification, experience, or awareness technical skills and capabilities. It is required to restructure organizational opportunities with change in policies and strategically plan organizational future.
Chelmsford Employee Behavior and Current HR policies
In Chelmsford hotel, most of the family employee’s behavior seems worst. Most of the employees do not even know that what their work is. There is much mismanagement in employees work has been found in the business. For example, everybody who smokes takes a long time breaks in the kitchen, and Angelina did the same most of the time. While, the Michael works for many hours and takes hardest projects.
The family relationships projects the important culture in the hotel, and enhance its value; but, family hiring results in providing some excellent employees like Michael and gives exceptional team performance. However many employees promoted on the basis of the relationship, not on performance and other employees face ignorance and raised the inequality issues.
Evaluation and Recommended policies
In family oriented business needs to regulate the employee meeting through which the employees’ views could be accessible, and ignorance could be minimized. These employee meetings could solve the problems from both ends, and it would also be beneficial to generate new ideas. The contribution of employees could also provide ease in making correct managerial decisions and to do planning. Through this practice, the employees could share some strategies of competitors, and it could integrate the core management processes to employ staff with better decision making processes. It is required to establish new policies to gain employees faith towards the business and their scope that keep their interest in their work. The hotel managements must need to provide training to all the employees after hiring qualified employees. The hotel must include promotional policies based on the work efficiency. It is required to provide bonuses to employees on time and provide standardize benefits on considering other organizations.
Current strategic issue
The numbers of employees that are currently employed are mostly the relatives or friends that are evaluated by the newly hired HR assistant Savanna Worthington. He is the qualified in HR management and had wide experience. He first has ensured all the task of the present employees and their activities. The savanna have found a number of issues in employees performance that need to be addressed to form a proper staffing plan.
It has been found that numbers of employees are not having tax file numbers which is required to make a report. Some of the employee’s background found terrible and was referred from the high post. After the checking of police record, an employee’s driving license found suspended, but he never informed or reported for the incident to HR. Whereas, two of the employees found romantic previously and no longer are in contact with each other but are operating in the same area.
Staffing plan for business expenditure
Cindy decision seems effective to hire Savanna to handle and resolve the employee issues. Cindy is now able to handle the big challenges and now concerned about appropriate staffing for multiunit business organization. Cindy is now going to make the stuffing plan for hotel. In this situation, Cindy need to make formal staff recruitment plan which is required to conduct externally to hire employees for new hotels. The employees who have not compiled must receive a written notice from the organization and provide them some days to, properly, compile all documentation otherwise as a punishment the employee would be terminated. Cindy needs to craft a letter that is given to the newly recruiting employee to get an idea about the employee in the beginning days. The employee’s identification need to be done through verification of their passport or birth certificate. The HR department must have present employee availability record. The organization must sign the agreement that employees who harm the organization and anyone will be fired as the risk factor increases. This activity will protect the hotel, guest and employees. A supervisor need to be hired who interact with the public, and able to, legally, resolve the issues. It is natural that employees will never report the HR department for the violation. The hotel needs to develop the policy that any uninformed violence activity will result in the termination of the employee. It is required that an employee on hiring receives training and according to their task. The HR has to hire the relatives or friends with proper learning, and if they are able to manage their work are conformed. The employee’s termination is done if the employee is unable to perform their job required functions.
Elements of Performance management plan
The organizational performance influences in the public setting. This performance relationship is complex and based on different conditions over the organization. The organizational activities and environment could be controlled through the elements of performance management plan. These elements include proper monitoring of the supervisors and their relationship between the employees under them. After that, it is required to develop a proper process through which the employees’ performance is evaluated, and continue to conduct it time to time or on a monthly basis. A proper planning is required to through which it can be analyzed that how team could satisfy and perform better with their human and the physical mixed resources. The performance of each employee after the process of evaluation undergoes through proper rating of the employee in comparison with others. The rewards must be given to the employees for the appreciation of their work and to show that it is expected to see more improvement in future.
Handling of employees complaints
There are a number of issues regarding employees and Cindy observed that number of employees have occasional inappropriate behavior. She asked employees to send the complaints about the organization; but, none of the employees comes forward to give their complaints. Oh the other, hand the employees are leaving the organization due to the family issues. The termination of dale is further discussed as there was no documentation that justifies this termination. In this situation, Cindy needs to concern directly with the employees and consult with the legal counsel. Cindy has decided to address the employee’s inappropriate behavior and monitored some of the supervisor’s activities. She is focused on sending the warning to the employees rather than quickly fixing the issues. It is required for the multiunit organization to address the issues by development of performance management system through which the behavior of the supervisors could be controlled with other employees .
Cindy has observed that there are many problems that staffs are facing in its hotel restaurant. The ground floor and restaurant are remodeled, and it keeps the charm of boutique atmosphere within the hotel. It has included the large windows and interior design. The newly hired chef has changed the food menu and enhanced strategic goals in the restaurant. Different marketing techniques are used for attracting local customer. The restaurant through these practices becomes busy. The staff with old members is found extremely hardworking as well as loyal with their work, but they always work in casual dining. While, the newly hired employees are focused on taking the restaurant’s rating to the possible raise. These newly hired employees are not having mush work experience, but they bought training, and services in fine dining restaurants. However, the morning incident is truly incredulous and must not be done again in the future. The major problem was found in the integration between the existing and new staff. This staff behavior would be harmful for the organization, and it must be changed.
Implementation of Policies and procedures
According to Memili and Welsh (2014) the family influence of the family organization directly affect the policies and procedures of the human resource. It also affects the employee’s performance and value creating an attitude in the firm. It is required that the firm must implement the Corporate Social Responsibility and its activities. This program the social culture system is operated in the organizational decisions and economic and legal benefits. This solves the societal problems through these policies and procedures are ethically handled among employees and customers, and elevates for social and economic welfare. The core ethical concerns only could controls family relationships with the newly hired employees. The high ethical standard helps to enhance the relationships for the internal and external stakeholders too.
In order to achieve better performance of the employees in the restaurants, it is required to develop the proper procedure through which employee is recruited on the basis of capabilities and work experience, selection, evaluation and after that they receive proper training. The restaurant needs to adopt proper professional procedure of hiring and the public policies are concerned for the necessary inspection for the family owned restaurant.
The HRM of Chelmsford hotel needs to change its strategies through which it could resolve the current issues as well as it needs to plan for its future. The family or referral employees are found in creating troubles and discouraging the new hired employees. Many employees due to the family issues are leaving the firm. Whereas, many relationship or friends referral employees do not even know about their work. While, employees have never notified about the previously done violation activity, even most of the employees did not file their documentation, which is the basic requirement in the organization. Cindy needs to take strict action against the employees; but, initially it is better to send them warning letter, and develop a proper standardized pattern through which employee and its supervisors relations with it are monitored and identify their performance, and it is better to implement the organizational operations ethically. These practices will surely help the multiunit business to grow with easy and proper handling. Whereas, the corporate social responsible activities in the firm’s HR strategies will enhance Chelmsford hotels to gain better public response. It is also beneficial in order to achieve internal and external stakeholder to grow the hotel performance in the market.
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