Hotel Paris Case
1.
(a) Lack of attention in serving their customers due to personal problems: Hotel
Paris’s incentive plans are at par with the other hotels in the same industry but it falls
short when compared to high performing organizations. The incentive plan lacks
family-friendly benefits such as on- site or subsidized child care, elder care facilities,
so this can be a major problem for working parents or for employees who need to take
care of their ill ender parents. Also, there is not a sufficient health benefits package for
the dependents. As a result of such family-oriented major problems, the staff cannot
give full attention to their work. This leads a poor customer service that can lead to
customer dissatisfaction which eventually hurts the company’s profile in the
short-run and hamper aim in the long run.
(b) High absence rate of employees due to sickness: The existing plan is not
rewarding enough and people become absent for several reasons that are detrimental
to company’s success as Hotel Paris fail to attend guest in time due to staff shortage
and to deal with such shortages, Hotel Paris has to relay on a temporary worker and
pay over time. Hotel Paris should first analyze the reason of high absenteeism and
design an improved benefit plan. One of the major reasons for absenteeism can be due
to sickness. Hotel Paris should include proper fitness and medical facilities for
employees so that they can remain fit. One way of doing this is to introduce a yearly
medical checkup, offering gym facilities to employees, on-site doctor checkup
facilities, etc. Such an approach will help employees remain fit and lower the chances
of absenteeism due to sickness, which will eventually result in greater customer
satisfaction and reduced cost.
(c) Utilizing sick leave to run personal errands: The existing incentive plan might lack
facilities such as paid leave or flexible working schedules. As a result the employees
usually misuse the sick leave to run their personnel errands. This is also detrimental
to the company’s success. Such behavior is not favorable for the company’s growth in
the long run. The result of such behavior can also be costly as this would again lead to
lower customer service and satisfaction due to staff shortage and the company needs
to bear the cost of temporary workers or pay overtime. Overtime pay can increase
some employees' fatigue if such behavior exists in the organization for a longer time
period.
(d) Showing lack of motivation in employee behavior: The existing incentive plan
does not support high performance work system and is not linked with pay for
performance, higher salaries and better incentive plans which results in lower
employee motivation. Currently 60% of the staffs are dissatisfied. Most of the jobs in
Hotel Paris are carhops, limousine drivers, and front desk clerks whose roles involve
direct interaction with customers. A demotivated worker will appear grumpy,
unfriendly with customer that might have adverse impact on company’s profit now
and growth in long run. Also the existing incentives plan might not be equitable as it
fails to address and distinguish high and low performances. This might result in
employee turnover. Hotel Paris might lose competent employees to potential
competitors. Also replacing vacancies might be costly in terms of recruitment and
selection costs and time. An enhanced benefit plan is required so that employees are
motivated and deliver superior customer service by delighting customers by greeting
them with happy faces and take care of customer’s needs effectively and efficiently
reduce employee turnover.
(e) Not punctual on office time: If employees are not properly supervised when they
come to work, it will cause a problem. If a staff member is persistently arriving late,
this should be dealt with accordingly. When an employee is late, it affects others.
Many problems arise when group work is done. So Hotel Paris should ensure the
punctuality of each employee. Hotel Paris should keep track of employees’ lateness.
Also, they should understand whether they have any personal problems. Also, they
can take on many modern technologies and also can appraise punctual employees so
that others can learn to use time.
2.
One of the recommended benefits that I would advise Hotel Paris is to implement
flexible plans. These plans would allow employees in different age groups, with
different needs, to adjust their benefits to their stimulation.
The second recommended benefit is an on-site child care facility system. These two
recommendations will help Hotel Paris achieve behavioral improvement.
