Reference no: EM133029438

The LemuelIris Hotel is located in the capital city of a Central Business District. In the past, its main clientele has been government officials and administrators in departments of state and managers of heavy industries visiting the capital on official government business. The room occupancy rate was on average 50%. This custom has declined somewhat in the last two years, but it has been more than replaced by business-people from neighboring countries in the week and by foreign tourists at the weekend. Generally speaking, there is greater demand for catering staff at weekends since many tourists like to take lunch in the hotel's restaurant.

However, there is lower demand for housekeeping staff at weekends as tourist customers generally stay for longer periods than business-people and make less demands on this service. Currently the hotel has 240 twin rooms but an extension is now being built and next year there will be 345 twin rooms altogether plus a revamped leisure club with a brand-new swimming pool and spa (run independently as a franchise).

The owning company, European Leisure Resorts, wishes to reposition the hotel, re-designing and re-branding the hotel as an up-market "boutique" hotel. A new name is proposed, "The Garden Court". A new General Manager has been "head-hunted" from one of the top hotels and her mission is to transform the quality of the hotel while ensuring good value for money. During the last two years a number of international hotel groups have opened hotels in the city to cater for the new markets. All of these are known for their high standards of service. Prices are correspondingly high.

The management of LemuelIris Hotel believe that to compete, they need to improve the standard of service whilst pegging prices some 10% below their competitors. A survey of customers has indicated that customers would like the checking-in process to be made quicker, for service in the restaurants to be speedier and more friendly and for the rooms and public areas to be decorated and furnished to a higher standard.

QUESTION:

1) Explain the rationale for head-hunting the general manager instead of using other forms of recruitment.

2) In explaining three challenges that affect the use of interviews, make a case for the use of formal testing and background investigations.

3) Since the general manager is being head-hunted for, it appears she already has experience for which reason orientation might be irrelevant. What is your take?