MBA Program

Course Code: HRM601

Group 9- Final Report

Submitted to:
Prof. Parveen Huda
Adjunct Faculty, Brac University

Submitted by:
Name ID
Ummah Shafi 20164008
Foujeya Yeasmin 20164017
Anamica Hussain 20164080
Shumana Mostafa 20164065
Nafisa Mahbub 20164028

Submission Date: 24/12/2021

 Capital Hotel
As per requirement we are the employees of Capital Hotel and we want to enable the hotel to
achieve its higher quality/ low cost strategy within 12 months. We have to prepare a short report
which addresses the following:

1) Identify the further forms of internal and external HR data that you will need to gather
or generate to undertake this consultancy project. Make necessary assumptions as needed.

We have to identify internal and external HR data to gather or generate to undertake this Capital
Hotel Project.

Internal HR Data

Internal data specifically refers to data obtained from the HR department of an organization. The
core HR system contains several data points that can be used for an HR analytics tool or HR
consultancy like Capital hotel. We need to gather or generate some internal HR data to undertake
this consultancy project:

 Personal employee data.

 Recruitment data.
 Performance KPIs.

 Salary and promotion history.

 Employee tenure.
 Employee compensation and benefits data.
 Employee training records (learning data).
 Performance appraisal data (assessment data).
 Reporting structure.
 Details on high-value, high-potential employees.
 Details on any disciplinary action taken against an employee.
 Employee turnover data (employee movement’s data).
 Health and safety data.
  Succession Planning of the Capital Hotel.
 Capital hotel financial data (need to know exact amounts spent for employees).
 Marketing department data.
 Number of employees in each department.
 Proper policy framework for the employees.

External HR Data

We need to gather or generate some external HR data to undertake this consultancy project:

 Facility & amenities provided by the competitors.

 Social network data.
 Wellbeing and wellness data.
 Number of graduates in Tourism & Hospitality Management.
 Local labor market salary standard rate. (For example, newcomers are able to pay 15%
higher wages in the international hotels).
 Number of competitors.
 Competitor’s data (how they maintain high standard quality and services).
 Skill levels of the employees.
 Age profile of external workforce in hotel industry.
 Brand value of Capital Hotel.
 Market volatility.

2) Identify the HR issues that currently face the hotel:

a) Internally as labor demand:
Staff Numbers – HR issues that currently face the hotel internally is labor turnover in hotel.
Based on the case, the annual turnover rate has gone up to 25%. One-fifth of those leaving were
retirements. Three fifths of those leaving were in the catering department. Two-fifths of those
leaving had less than six month’s employment.
In addition, in staff numbers if we calculate the annual turnover rate, we’ll get the internal labour
demand or shortage:
For the Management Department:
The total number of employees-9
Number of people going for retirement-1
Therefore, the turnover from the remaining employees-8x.25= 2
So total number of turnover= (2+1) =3
After turnover available employees= (9-3) = 6
For 240 rooms employees required = 9
For 345 rooms employees requires = (345x9)/240 =13
Therefore, internal shortage of employees = (13-6) = 7

For Reception:
The total number of employees-24
Number of people going for retirement-3
Number of employees having less than 6 months employment = 4x.10 = 0.4
Therefore, the turnover from the remaining employees-20.6x.25= 5.15
So total number of turnover= (3+5.15) =8.55=9
After turnover available employees= (24-9) = 15
For 240 rooms employees required = 24
For 345 rooms employees requires = (345x24)/240 =35
Therefore, internal shortage of employees = (35-15) = 20

For Housekeeping:
The total number of employees-33
Number of people going for retirement-3
Therefore, the turnover from the remaining employees-11x.10= 1.1
Therefore, the turnover from the remaining employees-28.9x.25= 7.225
So total number of turnover= (3+1.1+7.225) =12
After turnover available employees= (33-12) = 21
For 240 rooms employees required = 33
For 345 rooms employees requires = (345x33)/240 =48
Therefore, internal shortage of employees = (48-21) = 27
From the calculation we can notice that on the housekeeping department the internal shortage is
the highest & also the department has the highest numbers of employees required.

Deployment – Organizations have to analyze the cost to calculate the return on the investment of
deployment.

Skills – It is also difficult to recruit chefs. This is because there is a severe regional shortage of
the top-class chefs needed to achieve the restaurant awards that the management require to
realize the overall strategy of a quality “boutique”, hotel.

b) Externally as labor supply in terms of staff numbers, deployment and skills.

Staff Numbers – Hiring labor externally often discourage the existing employees. Intentionally
many obstacles can be created just to hamper the regular flow of the work if the labour is
supplied externally. So before executing any external hiring the employer needs to have
understanding with the existing employee & there should be proper evaluation of the existing
employees before any sort of recruitment.

From the case study we can see that the highest number of employee requirement & shortage is
noticeable in the Catering department. So, the Hotel basically failed in their contingency
planning. One of the reasons for this highest number of turnover is that the competitors of
Capital Hotel is at least 15% higher. If now, the Capital Hotel will hire labours with 15% higher
wages there would be a huge conflicts between the existing employees & the new employees.
The result would hamper the productivity of the employees. They can increase the wages of the
existing employees or otherwise they have to look for additional skill in hiring new labours
externally to justify the higher wages to the existing employees. There’s a huge shortage of
Chefs in the market for which the Capital Hotel can train the existing Chefs with a higher cost &
high turnover chances. To sustain with extended business it would be very difficult for them to
have external recruited chefs in this competition. Therefore, considering all the market scenario
the hotel should try to utilize the existing employee quality rather than emphasizing on recruiting
from external sources due to overall competition & shortage of quality employees.

Deployment – The employment rate has a strong impact on the recruitment process. Higher
unemployment rate increases the applicants against the job opening.

Skills – The competition in the specific area increases the difficulties to find the candidate
perfectly fit in your organizational needs skills. With higher competition, the candidate’s will
have more choices and harder for the companies to attract the candidate.

3) Develop a comprehensive HR Plan for the hotel – considering all types of scenarios –
same level of business, optimistic and pessimistic business.
Qualitative Method:

If 25% For, 75% business; (100% + 25%)=125%

increased

Scenario
240rooms For, 50% business; (100% + 43.75%)=143.75%

If 25%
decreased For, 25% business; (100% - 25%) = 75

Here, (345-240)/ 240 = 43.75% rooms will be increased.

Scenario Planning:

Management

Staff For 50% Business For 75% For 25% Retirement Turnover
 Members (143.75%) business (125%) Business (25%)
(75%)

9 12.94 16.18 9.71 1 2.25

Employee will leave: 9 – (1+ 2.25) =5.75 ˜ 6.

Therefore,

12.94 – 1 – 2.25 = 9.18(for 50%)

16.18 – 1 – 2.25 = 13.56(for 75%)

9.71 – 1 – 2.25 = 6.46 (for 25%)

Reception/Clerical

Designation Staff Members For 50% For 75% For 25% Retiremen Turnover
Business Business Business t (25%)
(143.75%) (125%) (75%)

Supervisor 6 8.63 10.78 6.47 0 1.5

Staff 18 25.87 32.33 19.4 3 4.5

 Supervisor:
Here, Employee will leave: (6 – 0 – 1.5) = 4.5 ˜ 5

8.63 – 0 – 1.5 = 7.13 ˜ 7 (for 50%)

10.78 – 0 – 1.5 = 9.28 ˜ 9 (for 75%)

6.47 – 0 – 1.5 = 4.96 ˜5 (for 25%)

 Staff:
Here, Employee will leave: 18 – 3 – 4.5 = 10.5
25.87 – 3 – 4.5 = 15.73 ˜15 (for 50%)
32.33 – 3 – 4.5 = 21.8 ˜ 22 (for 75%)
19.4 – 3 – 4.5 = 8.9 ˜ 9 (for 25%)

Housekeeping

Designation Staff For 50% For 75% For 25% Retirement Turnover
Business Business Business
 Members (143.75%) (125%) (75%) (25%)

Supervisor 4 5.75 7.18 4.31 0 1

Staff 25 35.93 44.91 26.94 2 6.25

Maintenance 4 5.75 7.18 4.31 1 1

Here, the new recruitment will be

 Supervisor:

Employee will leave: 4 – 0 – 1 = 3

5.75 – 0 – 1 = 4.75 ˜ 5 (For 50%)

7.18 – 0 – 1 = 6.18 ˜ 6 (For 75%)

4.31 – 0 – 1 = 3.31 ˜ 3 (For 25%)

 Staffs:

Employee will leave: 25 – 2 – 6.25 = 16.75 ˜ 17

35.93 – 2 – 6.25 = 27.68 ˜ 28(For 50%)

44.91 – 2 – 6.25 = 36.66 ˜ 37(For 75%)

26.94 – 2 – 6.25 = 18.69 ˜ 19(For 25%)

 Maintenance:

Employee will leave: 4 – 1 – 1 = 2

5.75 – 1 – 1 = 3.75 ˜ 4 (For 50%)

7.18 – 1 – 1 = 5.18 ˜ 5 (For 75%)

4.31 – 1 – 1 = 2.31 ˜ 2 (For 25%)

Catering:

Designation Staff For 50% For 75% For 25% Retirement Turnover
Members Business Business Business (25%)
(143.75%) (125%) (75%)
 Supervisors 8 11.5 14.37 8.62 2 2
Chefs 4 5.75 7.18 4.31 1 1
Kitchen 15 21.66 26.95 16.17 0 3.75
Staff
Bartenders/ 12 17.25 21.56 12.93 0 3
Waiters

Here, the new recruitment will be:

 Supervisor:

Employee will leave: 8 – 2 – 2 = 4

11.5 – 2 – 2 = 7.5 ˜ 8 (For 50%)

14.37 – 2 – 2 = 10.37 ˜ 10 (For 75%)

8.62 – 2 – 2 = 4.62 ˜ 5 (For 25%)

 Chefs:

Employee will leave: 4 – 1 – 1 = 2

5.7 – 1 – 1 = 3.75 ˜ 4 (For 50%)

7.18 – 1 – 1 = 5.18 ˜ 5 (For 75%)

4.31 – 1 – 1 = 2.31 ˜ 2 (For 25%)

 Kitchen Staff:

Employee will leave: 15 – 0 – 3.75 = 11.25 ˜ 11

21.56 – 0 – 3.75 = 17.81 ˜ 18 (For 50%)

26.95 – 0 – 3.75 = 23.2 ˜ 23 (For 75%)

16.17 – 0 – 3.75 = 12.42 ˜ 12 (For 25%)

 Bartenders/ Waiters:

Employee will leave: 12 – 0 – 3 = 9

17.25 – 0 – 3 = 14.25 ˜ 14 (For 50%)

21.56 – 0 – 3 = 18.56 ˜ 19 (For 75%)

12.93 – 0 – 3 = 9.93 ˜ 10 (For 25%)

From Above calculation we have come up with that if we want to increase our business we have
to hire more employees for the hotel business.

Considering all the situation we have decided to increase our business 75% (optimistic
Business). Though, competition is increasing & new businesses are also establishing so, to cope
up with this competitive situation we have to be optimistic. However, to increase the business a
lot of investment needed. In this competitive situation business have to take risk otherwise it is
not possible to become successful.

By taking risk Company need to invest in the hotel to increase the business 75%. Even though, it
has a good reputation in the market & its running employees also very active so it won’t go vain
if we invest more money here. Moreover, by providing training to the employees we can make
them more capable. Again, overtime also help to motivate the employees to be with the hotel.
Still, employees of housekeeping department remain idle for 2 hours. By providing training
make them capable to work in other department & involve them working there. Therefore, by
succession planning we can fix the upcoming vacant position. Following all the factors we take a
cost effective decision regarding HR plan for the hotel.

Considering the entire situation & above calculation we need to invest some by hiring employees
for catering dept. specially for hiring chefs for the hotel & other department. Without good chef
hotel business cannot be run smoothly. There are also some employees above 68yrs but because
of lack of manpower & succession planning they are holding these positions so we have to
immediately take action by replacing other to become successful. Therefore, we have to hire
employees housekeeping department too.

Finally, we can say that we are hoping we will run a healthy business by taking decision
critically & strategically in terms of recruiting manpower & applying other HR issues. Therefore,
for this hotel business we want to go for optimistic business & increase it by 75%. Because a
successful business organization must have the risk taking capability to be number one.
4) Prioritize the HR actions that are necessary to enable the hotel to realise its strategy.
Prepare action plan on what should be done, when and why and take into account the cost
of realising these actions given that Capital Hotel is hoping to be a cost leader. Give
recommendation to the hotel management exactly what they should do and why.

Prioritize the HR actions that are necessary to enable the hotel to realize its strategy:

Step 1: Human resource planning is a process that identifies current & future human resources

needs for an organization to achieve its goal.

Step 2: Link between human resources management & strategic plan of an organization.

Step 3: HR strategy should aim to capture "the people elements" of what an organization is

hoping to achieve in medium to long term i.e.

a. Right people in right place

b. Right mix of skill

c. Employees display the right attitudes & behaviors

d. Employees are develop in right way.

Action plan what should be done, when and why and take into account the cost of realizing

these actions given that Capital Hotel is hoping to be a cost leader:

 Bench strength (back-fill) plan: In a time of high turnover, it’s increasingly essential to

have a strategy for identifying and developing individuals who can take over if an

employee leaves. A “bench strength” plan differs from traditional succession planning in

that it only covers replacing key jobs within a single department.

 Targeted succession plans: Targeted succession plans are narrowly focused strategies

for ensuring that individuals are available to fill vacant key positions. They also tell key

employees in advance that they have a future at the organization. Targeted areas often

include major software implementation efforts and product development teams. Most

succession plans fail because they are too broad and cover too long a period of time.

Targeted plans allow the focus and forecasting to be more narrowly applied with the goal

of increasing the accuracy of the planning.

 Improve the efficiency and effectiveness: Career development centers can help Capital

hotel retain the employees and reduce the turnover rate. The career development centers

helps employees discover more career option which available within the organization.

Besides that, the career development counselors are provided to analyze the KSAOs of

particular employee and try to pair with what job within organization are suitable for

particular employee. Therefore, the turnover rate for Capital Hotel will be reduced.

 Develop a “most wanted” list: A “most wanted” list is an element of a recruiting

strategy that espouses asking your key managers which individuals working at

competitors that are “to die for.” By identifying the specific individuals you want to hire,

by name, at the beginning of the hiring process, you take a good deal of the “chance” out

of the recruiting process.

 Redeployment: Quite often businesses reduce their productivity not because they have

the wrong people but because they have good people in the wrong job. This is especially
 true in businesses that are undergoing continuous rapid change. Initially placing an

“innovator” in a business unit, for example, might have been a wise move when the

business was in its early growth stages. Once the business has transitioned into a

commodity business, however, it makes more sense to move the “innovator” out and into

another business where “innovative ideas” can be put to better use this can have more of

an impact as well.

Recommendation to the hotel management exactly what they should do and why:

 Hotel management need to forecasting HR requirements, employee gap analysis,

assembling the current HR capacity & developing HR strategic to support organizational

strategies. So, management need to link between human resources management &

strategic plan of an organization.

 Since, Capital Hotel are focusing the hotel expansion, diversification, technological

change, they should be backed up by the availability of human resources. It suggests

modification in the plan when the expected man for is not available.

 Here the hotel management is required to use the "pull strategy". This can be done by

advertising themselves as one of the best employers. They need to setting high standards

do that getting a job in this hotel becomes & achievement.

 Capital hotel management can hire retired chefs as tanners to train new staff.

 By increasing the non-monetary benefits as they do not hamper the company's budget but

the help to accelerate employee loyalty, employer branding & attraction in the market.