Question

Study and analyze the following case study and complete the Case Analysis Worksheet given below

Case Analysis Work Sheet

1. What are the key issues or the problems of the case?

2. Prioritize the issues or problems

3. Is it necessary to identify the cause of the problem?

4. Brainstorm the options available

5. Evaluate the options

(Option Advantages Disadvantages)

6. Select the optimum solution

7. Describe how the option should be implemented

CONSEQUENCES IN RECRUITMENT AND SELECTION PRACTICES

Agra is a leading hotel chain based in Bombay, India and owns 16-star class hotels across the globe. They operate a 5-star hotel in Colombo with 200 staff members and 03 years ago commenced construction of 02 luxury hotels in Hill Country and Eastern Coast. Exactly two months before opening the hotels in January 2009, Viraj Gupta joined the Group as the Head of Human Resources. He had just returned to the country after completion of 08 successful years, as a HR Professional in a MNC based in Florida, USA. He is a product of an American University and received many awards in the field of HR for his excellent HR innovations in the hotel industry. He had only two months left to recruit 350 employees to operate 02 hotels which will have to face stiff competition from the hotels in the locality.Viraj organized 02 college recruitment fairs to attract the young graduates to take up the positions in the upcoming hotels with the collaboration of leading universities in both areas. Only a handful of young interns and graduates were turned up at the fair and all of them wanted to join at the middle management level where he had some opposing thoughts. With the limited time in hand, Viraj opted for a newspaper advertisement for walking interviews. He was overjoyed with the response when over 1200 potential candidates queued up from the morning in from of Colombo hotel and he was able to recruit all 120 personnel for majority of vacancies. Since very poor response received for the vacancies in the hotel in Trincomalee, other than transferring loyal employees from Colombo, he had given the chance to resign and retired employees re-join the hotel and also extended special consideration for their children as well. Just one week prior to open the hotels, he was able to fill 95 % of the vacancies paying little attention to selection process and induction phase. Both hotels recorded a very low occupancy rate of 15 % even at the peak season periodic guest survey indicated that alarming 5 % reduction of service levels in Colombo hotel. Turn over recorded all time high of 16 % in both new hotels and many long serving staff members resigned with much resentment. Young employees formed a union amidst many unsuccessful attempts by ER team, asking for higher service charges and benefits such as staff transport. Senior management team received regular warnings from corporate head office in Bombay and Viraj spent many hours preparing lengthy reports to top team about the poor performance of the hotel staff. Chairman of the hotel chain visited and decided to close down the newly opened hotel in hill country and also to divest the business interest of other new hotel. Colombo was replaced with the new MD to take up the daunting task of sustaining the business in the country. Viraj was severely reprimanded for his mis-management of Human Resources. Within a week, Viraj resigned from the company accepting his failures in HR management.

Answer 1

1. Key Issues or Problems in the case

• Employer branding of the company is not done well
• High attrition rate of the employees
• The company did not capitalize on the potential of digital marketing and social media to attract new recruits
• Culture and job fit of the employees being hired, is not checked properly

2. The key issues or problems in order of priority

• Culture and job fit of the employees being hired, is not checked properly
• High attrition rate of the employees
• The company did not capitalize on the potential of digital marketing and social media to attract new recruits
• Employer branding of the company is not done well

3. It is quite necessary to find the root cause behind the key problems faced by the company. This is so because the root cause will help in diagnosing and treating the problem effectively and the same problem will not crop up in future.

4. The various options available to us to solve the issues faced by the hotel chain are as follows:

• Develop a comprehensive recruitment strategy and a recruitment plan
• Conduct employee engagement surveys and incorporate factors which will motivate the employees to perform well for the company
• Do nothing

5. Evaluation of the available options:

• Option 1: Develop a comprehensive recruitment strategy and recruitment plan
  • Advantages:
    • Culture and role fit of the employees can be assessed properly
    • Recruitment plan will be developed which will help in projecting strong employer brand of the company and attract right talent
    • Right talent will be hired
    • Attrition rate will decrease

• • Disadvantages
    • This can be costly process for the company
    • Development and execution of recruitment strategy can be quite time consuming
• Option 2: Conduct employee engagement surveys and incorporate factors which will motivate the employees to perform well for the company
  • Advantages:
    • The motivating factors for the employees can be assessed
    • The employees will remain satisfied and motivated to perform well for the company
    • Overall productivity of employees may increase
  • Disadvantages
    • Nothing will be done to check the culture and PO fit of the employees
    • Attrition rate can be high as the right talent has not been hired for the company
• Option 3: Do nothing
  • Advantages:
    • There will be no change in the expenses of the company
  • Disadvantages:
    • Attrition rate will go up
    • Rate of productivity of the employees may degrade
    • Overall performance of the hotel will go down

6. The optimum solution in this scenario is Option 1: Develop a comprehensive recruitment strategy and recruitment plan

7. The primary stakeholders of the company can sit together and contemplate on the recruitment strategy and plan which will be followed by the company. This strategy must be in alignment with the culture and values system of the company. A good mix of selection tests will be thought over which will help in assessing the capabilities and competencies of the candidates. Culture and PO fit of the candidates with the company will be focused upon. The company will come up with interesting but meaningful job descriptions which will help in attracting millennials. The overall employer brand of the company will be projected quite strongly.