Beachside Hotel HumanCapital Dilemma

This is a case of two competing hotels,Sunrise Hotel andBeachside Hotel that are both
located in a medium sized, tourismbased town in the Northeast U.S. The hotels are both
competing for the same set of guests,as well asthe same set of potential employees. Both
arebudget hotels, right next door to each other,with 60 guestrooms each and a view of the
beach.

The occupancy during peak season for the Sunrise Hotel is 98%, but during the winter
months goes down to 65%.
Joe isthe GeneralManager of SunriseHotel and has been in his current position for 5
years. He has been with Sunrise Hotel for a total of 10years.He worked his way up at
Sunrise Hotel fromfront desk agent to front desk supervisor, and finally to Assistant
General Manager before he became the General Manager.He doesa good job of screening
potential employeesfor hisfront desk area of the hotel becausehe realizesthe importance
of that areaof thehotel, especially intourist areas.
He also has incentives set up for excellent performance of the front desk agents andtraining
and development programs designed to give everyone information that willhelp them do
their job better. There is a sense of teamwork at Sunrise Hotel and thathelps everyone want
to do a good job .His guest satisfaction ratings for his hotel areoverall excellent. On a rating
scale of 1-10, his hotel averages a 9.
The average length of tenure of his employees is 4 years, and his current front desk
supervisor was promoted from within, along with his Assistant General Manager. Because
of the small size of the hotel, Joe is actually involved with all of the hiring decisions and
helps to give training programs himself, along with his leadership team. The employee
turnover at the Sunrise Hotel is 25% overall and that is primarily whenhourly employees
graduate highschoolor college and leave theSunriseHotelfor a career somewhere else.
The Beachside Hotel
Brian isthe General Manager of the Beachside Hotel and deals with a very different
situation. Brian was brought in from another hotel in the same hotel group about 6
months ago. He was told by his boss that he needed to “fix” this hotel so that it would
start having better customer satisfaction ratings and more return guests. Despite the
fairly high occupancy of 90% during peak seasons, the off peak season occupancy is
only 50%. Also noted by his boss, the occupancy should be as good as the SunriseHotel.
Brian has been with his hotel group now for 2 years and he came out of the accounting
and finance department in his old hotel. He has a great understanding of the numbers
in the lodging industry, but has not been involved with the human resource aspects of
thejob.The turnover of hourly employees atBeachside Hotel is 120% and thatmeans
that Brian isconstantly running the hotelshorthanded andwith new employees.
The Beachside Hotel has been doing the hiring through a human resource practitioner
in the hotel that was put in the position because she really could not handle serving
guests at the front desk very well. Mary was promoted to human resources a year ago
after she had one too many altercations with the guests at the front desk. The owner of
the hotel wanted to make sure that she would not make any of the other guests angry,
so he promoted her to a human resources practitioner. Since that time, she has been
busy trying to keep up with hiring and she has had no time for training employees.
Because she issobusy, paychecks often come out to employeeslate,there are no
policies written down for employeesto use as a guide for performance,customers
are treated badly by new and poorly trained employees, and the departments ofthe
hotel do not communicate very effectively and therefore everyone blames everyone else
when things go wrong.
The average length of tenure of the front desk agents at the Beachside Hotel is 3months
and the customer satisfaction rating at the Beachside is a 6 out of a 10 possible rating.
Most of the front desk agents that are hired come from other hotels in the area after they
quit or are fired. Brian is not involved in the hiring for the hotel at all, and does not get
involved with training and development. He spends most of his days looking at the
f i n a n c i a l reports for the hotel and analyzing average daily rate, occupancy rates, and

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Brian knows that he has many problems to deal with and so he goesto the Sunrise
Hotel to observe things over there for awhile. He sees a happy crew and talksto Joe
about how he ismaking that happen. Joe is happy to help,but wants Brian to go
back and observe his employeesfirst and come up withwaysthathe specifically can
help guide him.
1. Identify 4 HR functional and their processes that need to change at the Beachside
Hotel to start achieving better results. Be sure to explain why. (20 points).
2. Why is Brian struggling? Identify 3 reasons. Why is Joe so successful? Identify 3
reasons. (15 points).
3. Identify 3 Training and Development programs that should utilized at the Beachside
Hotel to aid specifically in occupancy rates and turnover rates. Explain. (15 points).
4. Is Brian’s focus on the financial performance of Beachside helping or hurting?
Explain. (10 points).

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