(HUMAN RESOURCE MANAGEMENT) CASE STUDY 2: NOT SO GRAND EMPLOYEE MORALE AT THE GR
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(HUMAN RESOURCE MANAGEMENT)
CASE STUDY 2: NOT SO GRAND EMPLOYEE MORALE AT THE GRAND LIMITED HOTEL For years, the Grand Limited has been known as the hotel to work for in the metro- politan area where it is located. The hotel has even received a number of awards for being a best place to work and for its family-friendly policies. It is not uncommon for workers to have been with the hotel for 25 years Now, the hotel is faced with new management and numerous retirements among its 500 employees. With a downturn in the economy, the new manage- ment of the hotel has decided to offer a lower wage structure and fewer benefits for new employees than it has offered in the past. The hotel is still paying the market rate for jobs similar to others in the area, and so far it has been able to attract new employees. Unfortunately, the hotel managers have failed to take into consideration that many of the local hotels are unionized. There are rum blings that the newer employees are considering asking the local service industry union to represent them to bargain for better wages and benefits, as well as bet- ter working conditions. The newer employees are feeling disenfranchised and have little loyalty to the hotel. They believe they are not being treated equitably with the employees who have been around for a long time, As you can imagine, these issues are starting to spill over into the level of customer service provided to guests of the hotel You have been asked to serve as a consultant for the hotel to address these labor issues. A goal of management in bringing you in is to stop the employees from hav- ing a vote to be represented by a union. Discussion Questions 1. As the consultant, take a stand either for or against what management has done to date. Review the facts of the case and use those facts to support your 2. Describe what you would do to assist management in blocking the union. Be 3. Can you identify any value that could actually come from having the employees 4. Make a final recommendation to management about how to proceed in argument. State any assumptions that you are using. sure to address legal issues inherent in attempting to block a union effort. represented by a union? handling this situationExplanation / Answer
1. The new management is within its right to pursue a new policy for fresh recruits. It is not disturbing the existing employees and also offering market rate salary packages to newer employees as offered by other hotels for similar kind of jobs. The management is also entitled to its decision for lesser benefits to new employees as it has to function within the economic downturn condition. The primary aim for existence of Grand Limited Hotel and for that matter any other hotel or business entity is to earn profits and therefore decisions will be taken that best suits the organization.
2. The management will need to talk to the new employees and explain the benefits being accorded to them. They should explain the market rate for salary packages at other hotels and stress that the same is not being denied to them. The new employees should also be counseled on the economic condition of the country where if cost cutting is not done, the hotel will not have any other option but to severely curtail its services which will result in lower revenue and hence lower salary packages. The economic conditions are a passing phase and situation may improve in next few months or a year or two and thereafter fresh benefit packages can be discussed and implemented. The workers will therefore be advised not to bring in union representation as thereafter the issues will go out of hand and a lot of legal challenges may arise. They may amicably discuss and sort out issues internally as family members without the need for outside influence. The management will also cite the examples of older employees working for decades as family members. Finally, the management should leave the final decision for involving union activities to the employees themselves taking cognizance of the law of land.
3. The value that comes from having the employees represented by a union is that the individual voice of hundreds of employees becomes one and the management is forced to listen and negotiate. In a large organization an individual employee is not able to get due attention from the management for certain benefits. The same employee has a better chance to get things moving once a union takes up the cause.
4. I would recommend the Grand Limited Hotel to have a meeting with the new employees and discuss the issues amicably. They should explain all their actions and at the same time should listen employees viewpoint too. At the end the management may buy some time say for a year or so to re-assess benefit policies and seek moratorium from the employees for any action on their demands till then.
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