Reference no: EM133095290
Part I. Theoretical questions
1. Briefly describe each of the following types of interviews: unstructured panel interviews, structured sequential interviews, job-related structured interviews.
2. Explain the pros and cons of commissions versus straight pay incentives for salespeople
3. Explain why career development is valuable to the organization
THE HOTEL PARIS CASE
The New Benefits Plan
The Hotel Paris s competitive strategy is "To use superior guest service to differentiate the Hotel Paris properties, and to thereby increase the length of stay and return rate of guests, and thus boost revenues and profitability". HR manager Lisa Cruz must now formulate functional policies and activities that support this competitive strategy by eliciting the required employee behaviors and competencies. Although the Hotel Paris s benefits (in terms of things like holidays and health care) were comparable to those of other hotels, Lisa Cruz knew they weren't good enough to support the high-quality service behaviors her company sought.
Indeed, the fact that they were roughly comparable to those of similar firms didn't seem to impress the Hotel Paris s employees, at least 60% of whom consistently said they were deeply dissatisfied with the benefits they were getting. Lisa s concern (with which the CFO concurred) was that dissatisfaction with benefits contributed to morale and commitment being below what they should be, and thus inhibiting the Hotel Paris from achieving its strategic aims. Lisa, therefore, turned to the task of assessing and redesigning the company s benefits plans. As they reviewed the numbers relating to their benefits plan, Lisa Cruz and the CFO became increasingly concerned. They computed several benefits-related metrics for their firm, including benefits costs as a percentage of payroll, sick days per full-time equivalent employee per year, benefits cost/competitor s benefits cost ratio and workers compensation experience ratings. The results, as the CFO put it, offered a good news-bad news situation.
On the good side, the ratios were generally similar to those of most competing hotels. The bad news was that the measures were strikingly below what they were when compared with the results for high-performing service-oriented businesses. The CFO authorized Lisa to design and propose a new benefits plan.
Lisa knew there were several things she wanted to accomplish with this plan. She wanted a plan that contributed to improved employee morale and commitment. She also wanted the plan to include elements that made it easier for her employees to do their jobs so that, as she put it, they could come to work and give their full attention to giving our guests great service, without worrying about childcare and other major family-oriented distractions. One of the metrics Lisa and her team specifically wanted to address was the relatively high absence rate at the Hotel Paris. Because so many of these jobs are front-line job valets, limousine drivers, and front-desk clerks, for instance, it's impossible to do without someone in the position if there is absence. As a result, poor attendance had a particularly serious effect on metrics such as overtime pay and temporary help costs. At the urging of her compensation consultant, Lisa decided to look into a system similar to Marriott's BENETRADE. With this benefit program, employees can trade the value of some sick days for other benefits. As Lisa put it, I'd rather see our employees using their sick day pay for things like additional health care benefits, if it means they'll think twice before taking a sick day to run a personal errand.
Questions:
1. Because employers typically make benefits available to all employees, they may not have the motivational effects of incentive plans. Given this, list five employee behaviors you believe Hotel Paris could try to improve through an enhanced benefits plan and explain why you chose them.
2. Given your answer to question 1, explain specifically what benefits you would recommend the Hotel Paris implement to achieve these behavioral improvements.