Case Study Report
With regard to the case study organisation ‘Reardon’s Hotels’, complete the following:
a) Identify the main reasons why Reardon’s Hotels choose to internationalise and discuss whichtype of MNCwould best suit the organisation.
b) Recruitment and Selection
i. Explain the main reasons for the internal recruitment of Hotel Manager for the new subsidiary in southern Spain
ii. Create a person specification,and suggest proper selection method(s) for the position of Hotel Manager. Justify your choice of selection method(s).
c) Training and Development
i. Devise a training and development strategy for the new position of Hotel Managerfor the new subsidiary in southern Spain and for the staff in the new hotel.
ii. Provide a rationale for each component of the strategy.
d) Total Reward
i. Design a total reward strategy for the new position of Hotel Managerspecifically,and the staff for the new subsidiary in southern Spain.
ii. Justify your choice of components included in, and excluded from, the total rewards package.
e) Outline the potential difficulties Reardon’s Hotels may encounter when opening the new hotel in southern Spain, and suggest solutions to these difficulties.
Assessment Learning Outcomes (mapped to module descriptor):
• Consider the role of the MNC as central to the analysis of international HRM
• Compare and contrast national employment systems in order to evaluate the HRM models, policies and procedures in different countries and cultural, institutional and legal constraints
• Critically assess global integration and diffusion of HRM activities in MNCs
• Compare and contrast the different HR strategies and practices of MNCs including international management recruitment and selection, training and reward strategies
Key Skills: The key skills addressed through this assessment are communication, numeracy, technology, learning and study, problem solving.
IMPORTANT: Students should refer to the assessment criteria and marking criteria provided below in relation to this assessment.
Assessment Criteria/Guidance Notes
Students will be marked according to the following assessment criteria:
• The student should demonstrate relevant knowledge and understanding of how the competing tensions faced by MNC’s between the local, the global and the organization impact upon HR policies and practices.
• The student should devise an appropriate recruitment and selection strategy, and training and development strategy for the specific international management assignment as outlined in the case study.
• The student should demonstrate the ability toidentify the key components of an effective total reward strategy given the specific organizational context outlined in the case study.
• The student should demonstrate the ability to apply their knowledge of key facts and theories to the practical organizational context outlined in the case study.
• The student should demonstrate the ability to carry out relevant research to evidence their report. This should include the correct use of Harvard referencing throughout the report.
• The report should be appropriately structured and presented.
IMPORTANT: Students must satisfy themselves as to the assessment criteria and academic standards required to achieve certain grades as outlined above. It is the student’s responsibility to seek clarification on any of these matters prior to submitting their coursework.
Students will be awarded their grade based upon the academic standards outlined below:
Grade A 80+
• As 70+ criteria but in addition answer demonstrates an excellent understanding of the question and the complexity of the issues involved relating to parts 1 and 2.
• Evidence of creativity and wide reading beyond core subject matter.
Grade A 70-79
• Comprehensive and accurate account of the issues relating to parts 1 and 2.
• Very good analysis and evaluation of the relationship between local, global and organizational effects, MNC strategy and HR policies and practices.
• Very good application of factual knowledge and/or application of theories/models to the practical situation of the case study organization.
• Clear evidence of wide reading and well-referenced.
• No significant omissions or errors.
• Very well written and structured.
Grade B 60-69
• Clear understanding of the question and includes the most pertinent issues relating to parts 1 and 2.
• Good analysis and evaluation of relationship between local, global and organizational effects, MNC strategy and HR policies and practices.
• Good application of factual knowledge and/or application of theories/models to the practical situation of the case study organization.
• Evidence of extra reading beyond lecture material.
• Few significant errors or omissions
• Well written and structured.
Grade C 50-59
• Answer demonstrates understanding of the basic issues with regard to
parts 1 and 2.
• Reasonable attempt at analysis and evaluation of the relationship between local, global and organizational effects, MNC strategy and HR policies and practices.
• Basic application of factual knowledge and/or application of theories/models to the practical situation of the case study organization.
• Report aimed primarily at the level of available lecture and seminar material.
• Some significant errors or omissions.
• Material appropriate and logically structured.
Grade D/E 35-49
To obtain a D grade (i.e. a ‘pass’ mark 40-49):
• (i) The answer will demonstrate an understanding of the basic issues and some evidence that appropriate material has been selected.*see note below
• (ii) The answer may follow a logical structure with the overall framework sensible.*see note below
However, an answer afforded a D/E grade will also demonstrate to varying degrees:
• No evidence of extra reading
• No evidence of evaluation or analysis of the issues
• Significant errors or omissions
• Poor planning
*Note:If the answer does not meet criteria (i) and (ii) to an adequate standard the student will instead be awarded a higher E grade (i.e. 35-39)
Grade E/F 1-34
An answer afforded a lower E (30-34) or F grade will demonstrate to varying degrees:
• Significant errors and omissions present throughout
• Poorly structured and written
• Little or no understanding of the question
• Little or no relevance to the question
• Inadequate material presented
Assessment Three: Case Study Information
You are the HR Manager of ‘Reardon’s Hotels’, a UK based chain of boutique hotels with a head office based in Bristol. The CEO, Edward Reardon, started the business 20 years ago by buying a small hotel in Somerset and has since developed the company into a chain of seven hotels in the UK. Reardon’s Hotels are considered to be up-market accommodation, each property having a small spa and restaurant withhigh value food offered at a reasonable price. The hotels are typically situated in rural locations and tend to attract guests who are primarily leisure travelers seeking a relaxed intimate atmosphere and quality service. The hotel chain prides itself on offering a quality product and excellent customer service.
Edward Reardon is the head of the organization and there are three further family members on the board of directors. Although the organization has grown over the years the culture is still very much that of a family-run business with Edward Reardon viewed by staff as a somewhat strict but fair ‘father figure’. However, although decisions are made centrally management prides itself on its commitment to employee participation and involvement. Staff at all levels are encouraged to put forward their views and suggestions, and monthly ‘team circles’ are held in each hotel where groups come together to discuss operational and quality issues. The organization also has a firm commitment to equitable HR policies and as such the same (or similar) practices are adopted in every hotel wherever possible. The organization employs a relatively diverse workforce, and although salaries are no more than average for the sector (for example a hotel manager earns £45,000 per annum) there is an emphasis on continuing professional development and consequently the organization offers generous training and development opportunities.
Reardon’s Hotels have enjoyed a successful and profitable year and have recently acquired a rural hotel in southern Spain which they wish to add to the chain as their first overseas operation, with a view to developing the hotel chain further in the overseas market as a long term strategy. Most of the local staff will be remaining at the hotel but Edward Reardon and his senior management team wishes to recruit a hotel manager from their UK staff base, in order to ensure familiarity with the organization’s operational procedures and values. The position will be advertised internally to staff who are currently employed in a supervisory or deputy management role and thus the successful candidate will be effectively offered a promotion upon accepting the assignment. He or she will be expected to lead the changeover of the new hotel over a six week period and then sign a twelve month contract as hotel manager. This is a very important position as the success (or not) of the hotel will
have a direct bearing on whether Reardon’s Hotels decide to acquire other hotels in Spain or other European countries (and possibly further afield). Upon returning from the assignment the successful candidate will be offered a management position in the UK commensurate with his/her new skills, experience and knowledge base. In terms of reward, the average salary for a hotel manager in Spain is £30,000 which it is noted is significantly less than the UK salary he/she would enjoy. Edward Reardon and the senior management team are looking for a consistent approach to rewards (for reasons of equity and to ensure that there is sufficient incentive to work overseas) and also want to see a range of incentives offered over and above base pay as long as such incentives are appropriate to the circumstances of the position.
Finally, the new overseas hotel is in a rural area of southern Spain but within travelling distance of coastal tourist resorts and thus attracts a number of tourists (predominately British and German). There is a lively expat community living in the region and a local school (the private international school is situated ten miles away). The level of English language proficiency amongst the locals is fair but not as advanced as within the coastal resorts. The supervisory teams who are remaining at the hotel speak a good standard of English but the general staff are less proficient. Medical facilities and transport links in the region are very good, and crime is low relative to the more developed towns and resorts in the area.
As HR Manager of Reardon’s Hotels you are responsible for devising an appropriate recruitment and selection, training and development, and rewards strategy for the role of Hotel Manageron assignment to the new hotel situated in southern Spainand the hotel staff.