Rewarding people in the workplace should be out of the question by any successful firm. The issue is how to go about the rewards. Rewards are psychological necessities that motivate a worker even though material incentives are given and verbal engagements made. Huntsman Hotels, PLC, should consider the fundamental issues that have caused stagnation and that remain a recipe for their downfall. Therefore, the identified challenges guide to action.
First, the Managing Director (MD), Giuseppe Salieri should formalize the wage structure. He can do this by doing thorough job evaluation for every work position offered in the hotel to determine the basic salary. The allowances such as medical and traveling allowance should be included in the pay. Employees' monthly deductions for social fees like hospital insurance and pension is included. The salary should match the job responsibility of each employee. Salieri should harmonize salaries for the same level of employees. Finally, he should then draft many pay slips to issue to the staff every end month with their salaries.
Secondly, the recruitment procedure should be free and fair to all job applicants. Now that this has cost the company, Salieri should be keener on this process to shun cases of discrimination or mistreatment of the prospective applicants. The company should make prior plans to ensure job security to the recruited employees and favorable working environments in all the branches of Huntsman Hotels, PLC.The administration should avoid favoritism or discrimination, and the employees hired on merit to ensure a high level of professionalism to be relevant in the highly competitive job market within and outside London. Excellent standards should be set and maintained in all Huntsman Hotels.
Thirdly, the staff of Huntsman Hotels, PLC should be motivated. Armstrong and Taylor (2014) focus comprehensively on the process and theories of motivation that can be of help to Salieri. They present a needs-related model of the process of motivation. Identify a need, set the goals to satisfy the needs, take action, and finally attain the target. Salieri, having identified the three issues as mentioned above in the company, can initiate this process of motivation. He can then apply the motivation theories to achieve both the intrinsic motivation and extrinsic motivation of the staff. The Instrumentality Theory compares rewards and punishment to carrots and sticks that evoke desirable behavior in workers. Workers will perform if there are rewards and punishments directed to their performance.
The Content Theory identifies needs that are the satisfiers of employees if availed. Maslow's Hierarchy of Needs Theory is in this category. Human needs are in five following levels: physiological needs, safety needs, social needs, self-esteem needs and self-fulfillment. The needs at the lower level met lead to realizing of the higher-level needs. The Two-factor Model by Satisfier or Dissatisfier Theory by Herzberg addresses intrinsic motivators such as recognition, growth, and achievement; and extrinsic motivators/hygiene factors, which are reasonable pay and good working conditions.The Process Theory examines psychological processes that affect motivation focusing on goals, expectations, and perceptions. Motivated and confident employees work efficiently (Bratton & Gold 2012).
The Total Reward Model is helpful in establishing awards to reduce employee turnover. According to Cao, Chen, and Song (2013), there are five elements of total rewards: salary, work-life, presents, performance & recognition, and development and career. Therefore, the MD Salieri should consider these five factors in his endeavor to motivate his current and future employees. Reasonable salaries will maintain the workers in the company for long hence more stability. The MD should consider work-life balance for all staff members while allocating work time. Presents are valid for designated but random slots such as 'the employee of the month' and 'the most punctual.' The most diligent workers are to be promoted in due time. The company will train the staff continually to develop their skills and build their career. The reward for motivated staff to the company is an exceptional performance. However, there are risks of rewards too. If the company spends, a lot of rewards there are negative financial implications while building individuals. Also if the employees get rewards and they relax, the performance declines.
Other recommendations require that the hotel leadership will take an extra step beyond the internal management. Due to the dynamics of the hotel industry, the management of Huntsman Hotels needs to benchmark with their top competitors on a regular basis rolling out new products relevant to the hotel industry. Additionally, Salieri and his top team should employ creativity to catch up with the dynamism of the industry and the strategies of their rivals. The technical team should be innovative in the application of the ever-developing technology to set up unique features within the hotel premises, which will make a difference compared to the rival companies.
Critical Analysis of Wider Implications Relating to the Management of People
Management of individuals at Huntsman will have implications concerning the recommended changes. The formalized wage structure and pay slips will give the staff a sense of job security and expel uncertainties. As a result, the rate of turnover will reduce drastically and can only happen in certain cases of competitors offering large packages to snatch productive staff members. Recruitment process that is procedural and done with integrity will give the team confidence of remaining in service. Huge salaries, as much as they maintain employees, may result in a ballooning wage bill that may cripple the operations or growth of Huntsman Company. Friendly workstations will make the staff more committed due to the feeling of acceptance and trust with the employer. Use of presents to reward exceptional performance will enable the company set higher targets for every level of achievement. Recognition of workers who display greater competence will challenge every employee to perform. Nevertheless, promotions mean more expenditure on wages hence fewer profits for the company. It would be wise to widely space the duration of promotion for example to five years of an upward trend of performance. Employees who undergo in servicing will upgrade their skills thus improving production. Benchmarking will have a positive impact of updating the company and inspiring appropriate strategies to give the company an upper hand over the competing hotels.
This report has covered in details the main HR issues in the case study of Huntsman Hotels using appropriate theories. I have made logical recommendations in light of the practices of rewarding. I have also evaluated the rewards and risks of the recommendations made earlier. Finally, I have critically analyzed the implications on the management of people in Huntsman concerning the changes I suggested. The MD can make a positive impact in Huntsman Hotels if he deals with the key obstacles and embraces the recommended changes.
Armstrong, M. & Taylor, S., 2014.Armstrong's Handbook of Human Resource Management Practice.Kogan Page Publishers.
Bratton, J. & Gold, J., 2012.Human Resource Management: Theory and Practice. Palgrave Macmillan.
Cao, Z., Chen, J. & Song, Y., 2013.Does Total Rewards Reduce the Core Employees' Turnover Intention? International Journal of Business and Management.Canadian Centre of Science and Education. [Online] Available at www.ccsenet.org/journal/index.php/ijbm/article/view/28709 [Acccessed 11 Mar. 2017].
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