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Abdul Kader, Director Operation of Dhaka Sheraton Hotel was thinking about the
forthcoming strategy for their hotel since Pan Pacific Sonargaon took the better part in
Airport Facility with respect to Sheraton. This made market share to go down by 15%
from 53% overnight. The director marketing couldnt even submit a satisfactory
business strategy by the last two months.
The Balaka Restaurant and Bar served as a great linkage for Dhaka Sheraton Hotel.
Guests really changed their decisions roughly by 11% every time in selecting their
desired hotel. However, Managements lack of vision and knowledge made Pan
Pacific Sonargaon Hotel take over 30% of the business in the market. Other hotels are
also taking over the market share, now question arises where does Dhaka Sheraton
stand?
1937
1940
1949
1960
1965
1985
1995
1998
Outdoor
Swimming
pool
Steam Bath
Beauty and
barber
Tennis
Courts
Ramna
ParkJogging
Sightseeing
Squash
Courts
Travel Desk
Conference rooms,
exhibition and
banquet facilities,
local/international
seminars, weddings
Health Club
Sauna
Jacuzzi
Body
Day Break
Clock
Services for Meetings
Service
Cuisine
Gift Shops
Banks
Business
Centre
Babysitting
services
Tourist
office
Extended
A Transit
Services
forKit
Leisure
Survival
Laundry
Recreation
Services
for
and
Business
other
Airport
Sweet
Sleeper
Facilities
Bed
Customers Services for Business Travelers
Travelers
Service
facilities
Travelers
While staying at a Sheraton, guests can ski the slopes of Colorado, cruise the Nile,
enjoy a challenge on the Arizona links or ride the waves of Australia's Great Barrier
Reef. Sheraton Resorts offer a wide variety of on-site activities for the entire family,
ranging from golf and tennis to snow-skiing, water sports, pampering spas and more.
Sheraton treats kids very warmly. Kids stay free at Sheraton Hotels around the world
as long as they are staying with an adult and using existing bedding. Babysitting
Services are also provided through the hotel staff or a bonded service.
Sheraton Hotel offers a choice of venues for meetings, incentives or social events for
groups of all sizes, from small executive board meetings to an annual convention of
thousands. Online search capability is based on a range of individual specifications, as
well as complete meeting room layouts and measurements. Planners can even e-mail
proposal requests for a quick response without having to pick up the phone. The hotel
has 5 meeting rooms and a Ballroom and Winter Garden to accommodate all types of
conferences, meetings, seminars, workshops and product launchers. Additional
Services include-
WinterBallroom
Garden
BakulConvention
for
109-pax
300 people
theatre
Centre
dinning
Style
for 700
and
80 people
pax
500class
people
dining
room
theatre
and
style
1200
stylepeople
Sheraton Hotel has Airport Hospitality Counter, which is located at the Arrival
Lounge; their airport representatives offer the best of comfort to the arriving
passengers. They have a VIP Lounge for the departing passengers holding First Class
and Business Class air tickets of the airlines that have service agreement with Dhaka
Sheraton Hotel.
Sheraton offers outdoor swimming pool, squash court, fully equipped health club with
finest exercise equipment, Jacuzzi, Sauna and Steam bath, two floodlit tennis courts
and table tennis, jogging facility in the adjoining Ramna Park. Besides these, Dhaka
Sheraton also offers a wide variety of facilities towards their valued customers.
The Sheraton Sweet Sleeper Bed is a custom designed plush top mattress set, a cozy
fleece blanket, a plump duvet and five cushy pillows.
Dhaka Sheraton, as mentioned before is situated in the heart of Dhaka city. No doubt,
Dhaka Sheraton provides a significant presence in the top. High class customer care
service and facilities made possible for Sheraton to achieve the top position of the
market. Some of the high class services that Dhaka Sheraton provides towards their
valued customers are 24 Hour Front desk, Business centre/ services, Childrens
program, Concierge service, Internet service with high speed, Secretarial service,
Babysitting service, Copy/ printing service, Computer rental, Dry cleaning service,
Doorman, Shopping adjacent in hotel, Tour service, Barber/ beauty salon, Car rental
service, Room service, Travel service, Gymnasium and outdoor pool, etc. Dhaka
Sheraton offers good and high class security.
Competition:
Competition is generally based on quality and consistency of room, restaurant
and meeting facilities and services, attractiveness of locations, availability of a
global distribution system, price, the ability to earn and redeem loyalty
program points and other factors. Their principal competitors include other
hotels and national and international hotel brands.
Rules of Leave
Attendance
Annual Leave
(A/L) = 22
days / per
year
Casual Leave
Sick Leave (S/L)
(C/L) = 10
= 14 days / per
days / per
year
year
Recreation
Leave (R/L) = 10
days / per
Management believes that the diversity of their brands, market segments served, and
revenue sources and geographic locations provide a broad base from which to
enhance revenue and profits and to strengthen their global brands. This diversity
limits their exposure to any particular lodging or vacation ownership asset, brand or
geographic region.
Sheratons brands cater to a diverse group of sub-markets within this market. They
derive their cash flow from multiple sources within their hotel and vacation ownership
segments, including owned hotels activity and management and franchise fees, and is
geographically diverse with operations around the world.
Innovations such as the Heavenly Bed and Heavenly Bath, the Sheraton
Sweet Sleeper Bed, the Sheraton Service Promise, and the Four Points by
Sheraton Four Comfort Bed.
Competitive Factor:
At Sheraton, all the departments report to the purchase request department
(PRD) for all the necessary things those are needed. Then the PRD sends to
the store depending on the item. There are basically three different types of
stores. These are: food store, engineering store and general store. All these
stores work in an integrated manner. In case of the distribution channel, raw
materials come from both the local and international market. The suppliers
supply all the materials and they act as middle man in the whole distribution
channel. While, Sheraton has its two major competitors, which are: Pan
Pacific Sonargaon hotel and Hotel Radisson. Among these two, Radisson is
just newly built and thus there is a chance that it would be in a direct
competition with Sheraton.
Socio- Cultural:
The foods and beverages are served by maintaining the different cultural
issues. That is, the foods are socially accepted. They have got room service as
per order by individuals. Again they have buffet offerings. As Sheraton has
international feedback, they are aware of the different cultural issues. Thus
they are always conscious about the socio cultural factors.
Unstable Economy:
Sheraton purchases some raw materials from local market. Thus if the price of
the raw materials go up, the price of the foods also go up at Sheraton. But as it
is an international hotel and most of the customers are foreigners, the increase
of price does not matter most of the time.
Sheraton follows the polycentric approach as they hire local people for their countrywise operation. Dhaka Sheraton hotel believes that host country managers ever really
understands the culture and behavior of the host country market; therefore the foreign
subsidiary should be managed by local people.
Sheraton had proven so popular and had become such a relied-upon brand that it was
the first hotel chain to be listed on the New York Stock Exchange. One of the leading
hotel companies in the world, Starwood's other brands include Sheraton Hotels &
Resorts, Four Points by Sheraton Hotels, St. Regis Hotels & Resorts, Luxury
Collection, Le Meridian, W Hotels, and Westin Hotels & Resorts.
GM
i
AGM
DOH
R
DOC
DOR
DOM
DOFB
FC
The management team is headed by General Manager. The decision is made at the top
executive level. In the absence of GM, the AGM takes part in the decision making
process and take the control of his lead. The other executives like DOHR, DOC,
DOM work under the AGM and they have less decision making authority. The GM or
AGM sits for a meeting along with the directors of other departments almost everyday
in the morning during the tea-break time. There the top management decides what to
do for the whole day, and the directors just share their opinions and views. So they
have a little participation in the whole process.
Orientation Program:
New employees will be formally oriented with the hotel by Human Resource
Director in a formal meeting followed by ground orientation & refreshment.
They will no doubt develop a great pride being a part of Dhaka Sheraton Hotel
Management in their role as an employee of Dhaka Sheraton Hotel and they
will through their individual effort and their willingness to cooperate with
others contribute directly to their continued success as well as their own.
Every employee, as a member of the Dhaka Sheraton Hotel family will
represent hospitality, which will be offered to their guests at the hotel.
That means per hour over time amount is double to per hour Basic salary scale.
Luxury and upscale hotels and resorts in major metropolitan areas and
business centers.
Major tourist hotels, destination resorts or conference centers that have
favorable demographic trends and are located in markets with significant
barriers to entry or with major room demand generators such as office or retail
complexes, airports, tourist attractions or universities.
Undervalued hotels whose performance can be increased by re-branding to
one of our hotel brands, the introduction of better and more efficient
management techniques and practices and/or the injection of capital for
renovating, expanding or repositioning the property.
Hotels or brands which would enable us to provide a wider range of amenities
and services to customers.
Portfolios of hotels or hotel companies that exhibit some or all of the criteria
listed above, where the purchase of several hotels in one transaction enables us
to obtain favorable pricing or obtain attractive assets that would otherwise not
be available or realize cost reductions on operating the hotels by incorporating
them into the Star wood system.
At Sheraton there are highly paid labors. They also hire highly trained labors form
outside. In the technical sector like kitchen work they hire well trained labors. Again
potential candidates from outside, who studies hotel management, are always
preferable candidates for Sheraton.
The management style is not very flexible at Sheraton. There are different functions
of different departments. One department which can be mentioned in this regard is the
time keeping department. They help employees to take leave. The Time Keepers keep
the document on daily Attendance or departure reconciliation (Scaled Software
Program) of Computer. They also keep the list of employees. The Time Keepers also
keep the list of the Contract and Casual Associates in computer. Thus it can be seen
that the employees have to follow a rigid management style inside Sheraton.
The recruitment policy and practice rarely match each other in Dhaka Sheraton Hotel.
They are just so different in the real field. In most cases either the recruitment
procedure is eye wash or traditional. HR department follows all the procedure step by
step before recruitment but during the selection its no use. Usually the top level
executives pre-select the candidates as of their choice. Sometimes it is the Union also
does the same practice. Market demand is huge and there is very less competitor. Now
the situation is changed. More and more competitor is there and some more are in
pipeline. Market is getting intensely competitive. Its the time to play. The occupancy
is falling down every day and it is now 37% on an average from 80-90 %, 6 months
back. The real challenge is here to compete efficiently with this current situation. The
company is lacking proper strategy in all aspects. Competency went down so much
than the other potential competitors. This group of people is failing to create customer
based brand loyalty. They failed to recognize potential employees and eventually
failed to retain the potential employees. They failed to make a potential use of
employee development investment.
How can Sheraton Hotel retain its occupancy rate in the booming Hotel Industry
overcoming tough competition from the new challenging competitors and implement
a proper and flexible strategy in all aspects of the organization developing again the
customer based brand loyalty via investments in employee development?
Below the diagram summarizes in a tabular format the HRP Model. The Oval bullet
Points outlines the existence of the Consideration and/or Techniques of Forecasting
Demand or Forecasting Supply as per the case.
HR planning
model
Strengths:
Dhaka Sheraton, is the only five star corporate hotel in Bangladesh to offer guests
Starwood Preferred Guest (SPG) points, the worlds best and the most exciting
frequent guest program. The members of the SPG programs can earn points and
redeem awards at all Sheraton Hotels & Resorts and other Starwood brands. There are
no blackout dates, no expiration of points and is the fastest way to a free night and the
easiest way to a free flight.
Through the SPG program, Sheraton is portraying loyalty to its customers. In order to
gain a competitive advantage for providing services, the service providing company
needs to gain trust and build up its brand loyalty. One way of doing this is by
providing exclusive offers and facilities to its customers. This will make the
customers more attached to the service and in return make them loyal to Sheraton. So
the SPG program is undoubtedly one of the best ways to achieve that.
Justification of Integration:
This area is related to the model because the modern SPG provides instant
technologically advanced services like no blackout dates or expiration dates, so there
can always be a free night and a free flight. Maintaining this hi-tech check will require
a thorough human resource planning since any shortage of employees on handling
these matters will lead to immediate recruitment to balance the supply and demand of
HR.
Dhaka Sheraton offers the best recreation options towards their valued customers.
They offer outdoor swimming pool, squash court, fully equipped health club with
finest exercise equipment, Jacuzzi, Sauna and Steam bath, two floodlit tennis courts
and table tennis, jogging facility in the adjoining Ramna Park.
A five star hotel should be a place of fun, entertainment and recreation for its
customers. People come to stay in a hotel for many reasons, starting from travelling a
place to an important business tour. Amidst all these hectic schedules, they do need
rest and refreshments in the place they are dwelling. They want to feel at home. And
from a five star international hotel like Sheraton the expectation goes much higher.
Through providing all the above services Dhaka Sheraton is ensuring STAY as fun
refreshing.
Justification of Integration:
This area is related to the model because since Sheraton has always been the first
choice for foreigners for years now it is very much evident that the Service of this
Hotel is desirable by all outsiders and insiders both overseas and at home. Therefore,
there is a clear demand of Sheratons service in the marketplace and also the fact that
Sheraton is aware of the different cultural issues and provides foods that are socially
acceptable shows that each year they do analyze their change of trend in customer
habits and behavior to correctly gauge the differences and fill in the gap if any as
required by their foreign and local customers. Through this they would require
adequate market analysts in their company and will have to mend any shortages of
market research personnel in their hotel to balance the supply and demand of the HRP
planning.
To enjoy leave, an employee needs to take a form from the Time Keeping
Department. Upon completion of the form it is sent back to the Time Keeping
Department, who sends it to the Human Resources Department after entering the data
into the register books. Through this the department is actually keeping records of
attendance and leave of employees, overtime report so that the whole leave process
can be carried out clearly.
In order to provide continuous service, Dhaka Sheraton will need all of its employees
at hand. One absence of the employee might transform the whole designed process
into a complete mess. In order to ensure smooth running, leave should be granted
rotationally through strict checking so that it can have employees whenever needed
for service. The Time keeping Department is performing just that, ensuring that
Sheraton provides efficient and effective service without being affected by the leave
of the employees.
Justification of Integration:
This area is related to the model because it is the first one of a kind service provided
by Sheraton Hotel in Bangladesh. It shows a sophisticated network of system when an
employee needs to take leave, or check the daily attendance, solve problems in Time
Card punching or keep the list of employees in a proper and systematic organization.
This entire works are performed in a very refined manner through the HRD
department via Scaled Software (HRM) in computer. The use of Technology is really
availed in this kind of hi-tech services provided by Sheraton to its customers. A proper
HRP is also conducted by the time keeping department to balance the supply and
demand of human resources in Sheraton Hotel.
Weaknesses
:
Inconsistency between recruitment policy and
practice
The recruitment policy and practice rarely match each other in Dhaka Sheraton Hotel.
HR department follows all the procedure step by step before recruitment but during
selection its of no use. The top-level executives and the Union usually pre-select the
candidates who turn out to be relatives in most cases. Sometimes Union gets to decide
between two potential candidates.
Justification of Integration:
This area is related to the model because most of the time in Sheraton Hotel the
recruitment procedure is eye washed or traditional. Usually the top level executives or
unions pre-select the candidates as of their choice and hence the company fails to
recognize the deserving employees and eventually fail to retain the potential
employees. Due to the inconsistency that is caused by this policy the Education of the
workforce at Sheraton greatly suffers since a houseman is promoted as a senior
cashier without any background or even a steward is promoted as an assistant
manager, etc. All this signifies that there needs to be demotions or retirements to get
deserving candidates recruited in the posts most appropriate for them and hence by
this a proper balance between supply and demand of HR will be achieved.
To ensure service and most importantly quality service in order to satisfy the
customers, an organization needs to appoint the right person at the right time at the
right place with the right type of task. Otherwise a serious blunder in work
coordination will take place as specific people are specialized for specific tasks. If that
is maintained, successful outcome should not be expected. And this not different for
Dhaka Sheraton as well. What knowledge does a steward has about marketing? And
what qualification does a houseman possess to be a cashier?
Justification of Integration:
This area is related to the model because Labor Mobility is considered as an external
factor since it impacts the organizations HR Planning Process. Sheraton first decides
who is going to do what and after seeing the mobility within the labors of the Hotel
the top organization decides on the need of the labor supply. However, Sheraton does
not facilitate a proper recruitment and selection process by which their Skills
Inventory is suffering because there is no investments in employee development as
mentioned in the case therefore they have surplus of many non-deserving candidates
many of whom needs to be demoted or terminated to balance the supply and demand
of HRP.
The management style is not very flexible at Hotel Sheraton. It is kind of rigid in
many aspects. If an executive or associate enjoys more leave than the fixed limit, then
he or she has to pay for that from the salary perform extra duty.
Human beings are not machines so that they will work continuous. Continuous
performing of the same task without any change in schedule brings about monotony
and boredom and results in slow employee performance. This hampers the overall
performance of the organization. Hotel Sheraton Dhaka is a service based company
which is done by human labor. To ensure they perform effectively and efficiently they
need breaks and rest so that they can get time off to start refreshed with energy.
Justification of Integration:
This area is related to the model because management of Sheraton follows a
Polycentric Approach because the Hotel believes that host country managers really
understands the culture and behavior of the host country market so the foreign
subsidiary should be managed by the local people. This makes the management very
centralized and rigid. Moreover, it is a policy at Sheraton that if an executive or
associate enjoys more leave than fixed then he/she will have to pay for that from the
salary. This management philosophy of Sheraton in terms of organizational approach
and pay leads to shortages of employees and hence another round of eye-washed
recruitment to balance the demand with supply of human resources in the Hotel.
Opportuniti
es:
Franchising and licensing the Hotel Sheraton
Dhaka to selected third parties
Franchising the Hotel Sheraton Dhaka to selected third-party operators and licensing
the brand name to selected third parties in connection with luxury residential
condominiums, thereby expanding the market presence, enhancing the exposure of its
hotel brands and providing additional income through franchise and license fees.
Franchising and licensing the brand name to selected third parties would ensure
growth as the franchisees are from Bangladesh which makes them very much aware
of the local market situation. Their expertise would help the market penetrate easily
through the market. Additionally the benefits provided by the third parties for
example luxury residential condominiums would attract more customers.
Justification of Integration:
This area is related to the model because Sheraton has evolved itself and got itself
diversified by either taking over or acquiring another hotel around the world.
Franchising and licensing will be another opportunity for Sheraton to avail and hence
achieve further Organizational growth. It has been mentioned in the case that brand
diversity, market segments served and geographic locations provide a broad base from
which Sheraton is able to strengthen its global presence. Increasing awareness means
achieving further growth in the marketplace and thereby considering the above
mentioned expansion strategies Sheraton will be able to recruit more employees this
time from diverse origins to balance the supply and demand of HR.
This allows them to expand the presence of its lodging brands and gain additional
cash flow generally with modest capital equipment. They will acquire hotels or brands
which would enable them to provide a wider range of amenities and services to
customers. In the process they will acquire hotels and resorts located in major
metropolitan areas and business centers which attract customers resulting in extra
cash flow.
Justification of Integration:
This area is related to the model because Sheraton has always been the first choice for
foreigners visiting or touring Dhaka for the first time. Moreover it was the first 5 star
Hotel in Bangladesh. Sheraton still is preferred by many tourists and visitors round
the world which clearly shows that Sheraton has its service still demanded. Sheraton
is able to achieve growth by its brand diversification and internationalization.
Moreover acting like the third- party manager for hotels and resorts gives the hotel
multiple sources from which to derive their cash flow, income and profit. Hence
through this they are able to forecast their demand for further employees and recruit if
needed to bring the supply and demand of HR to equilibrium.
Dhaka Sheraton Hotel should continue to grow its frequent guest program, thereby
increasing occupancy rates while providing the customers with benefits based upon
loyalty to Sheraton. This enhances the marketing efforts by integrating the proprietary
customer databases, so as to sell additional products and services to existing
customers, improve occupancy rates and create additional marketing opportunities.
In order to hold on to the customer base permanently, service companies like Sheraton
Hotel should provide extra benefits thus creating a sense of loyalty among its
customers. This will make the customers more attached to the hotel and increase
positive word-of-mouth which in turn will attract more customer base. Through this
Sheraton will also be able to sell its extra products and services.
Justification of Integration:
This area is related to the model because Sheraton is again securing its occupancy rate
in the market and thereby creating customer based brand loyalty. Growth is also
facilitated for Sheraton since through this the proprietary customer databases will be
integrated and hence additional marketing opportunities will be created. This internal
consideration will lead to reconsidering the need of employees to work for Sheraton
and hence a better and proper recruitment can be facilitated to balance the supply and
demand of HRP for the Hotel Chain.
Threats:
The Balaka Restaurant & Bar used to work as a competency for the hotel. There was
around 11% change for selecting hotel for the next trip because it was an extra facility
for the outgoing Sheraton guests and Sheraton had monopoly in this business. Now
for Managements lack of knowledge and vision and inefficient strategy Pan Pacific
got a chance & took around 30% of the business including other hotels taking a
chunk.
If this lack of knowledge and vision by the management continues, then it will give
birth to more wrong decision being taken thus leading to inefficient strategies. Due to
this they Sheraton will lose their competitive edge as it happened with Balaka. From a
monopoly business it is losing share to its competitors. In the future more of their
unique businesses will be on the way to be threatened if correct actions are taken.
Justification of Integration:
This area is related to the model because it is the top management executives or
Unions who most of the time pre-selects a candidate as of their choice in the
recruitment and selection process which then leads to lack of proper strategy in all
aspects of the organization because the potential employees are not recognized and
hence they cannot be retained which is making Sheraton lose out its market shares
against the new emerging competitors like Radisson, Westin, or Pan Pacific
Sonargaon Hotel. This Management Philosophy needs to be changed so that a proper
demand for employees can be forecasted and a balance of proper supply and demand
of HR can be achieved at Sheraton Hotel to uphold its presence in the market.
While some of the competitors are private management firms, several are large
national and international chains that own and operate their own hotels, as well as
manage hotels for third-party and develop and sell VOIs, under a variety of brands
that compete directly with our brands.
Brands directly competing with Sheraton possess as a strong threat because any time
they might get an upper-hand on the hotel business. Especially the ones which are
internationally owned is a direct threat because they come in with the same expertise
and facilities. These international ownerships are transferring their expertise skills to
the third parties and making them equally competitive as the original franchisees.
Justification of Integration:
This area is related to the model because the Hotel Industry in Bangladesh is recently
flourishing a lot and due to that many new challenging competitors are popping up in
the market which are either private management firms or national/ international
chains. This shows that there is a Demand for Hotel Services. Sheraton needs to
buckle up before the other hotels come in with the same expertise and facilities.
Sheraton does have the first mover advantage and also provides distinctive services
which are still valued by the customers, hence in order to deliver competitive services
Sheraton will have to re Forecast its demand for potential employees and hence
balance the Supply and Demand of HR in their Hotel.
Dhaka Sheraton offers a good and high class security which includes guards at the
entrances, searching under cars, and scanning people entering and also checking their
bags as well. But despite all these, the risk factor is that there are often functions
being held here so a large number of non-guests can be found in and around the hotel
at these times.
Intrusion of non-guests at big places like Dhaka Sheraton possesses a big threat to the
security to the people present there as well as to the hotel. Too much crowded place is
always a target for mishaps and international standard venues like Dhaka Sheraton
becomes a prime target if safety is not taken beforehand. These non-guests might not
be people with good intentions as a result they may tarnish the name of Dhaka
Sheraton.
Justification of Integration:
This area is related to the model because Sheraton does not use technologically
advanced equipments to check on guests during big occasions. Being such a big hotel
they just have security guards at the entrances to search under the cars, scan people or
check bags. So its just the same casual scanner they use every time which then
provides the risks of catering to uninvited guests around the hotel at times. Therefore
a proper forecast of demand for guards will identify the shortages in the number of
guards and hence perhaps with more recruitment of guards full time, Sheraton can
eliminate this problem if not at once go hi-tech which will then eventually balance
supply and demand of Employees in the Hotel.
The existing orientation program at Hotel Sheraton is conducted by HRD director and
GM in a formal meeting followed by ground orientation and refreshment. The goal of
orientation program is to welcome the new employees, motivate them by giving
motivating speech, making them feel as a member of Sheraton Hotel and answer the
questions that most likely interest the employees. It has always been assumed that the
new employees standard will always be high and they should have educated
experience and personality to expand the situation. But unfortunately, the standard of
all new employees are not equal due to some existing bad HR practice at Sheraton
during recruitment and selection and not every employee have same understanding
capability. The HRD director and GM must keep this in mind while conducting
orientation program and giving motivational speech but they usually wrongly assume
all employees have same understanding capability. So it becomes a high challenge for
HR department to ensure the effectiveness of orientation program to lower the
newness anxiety and motivate each and every employee.
force and time keepers after technological up gradation which is a major challenge for
HR department as lack of proper training and development can hamper Sheratons
competitive position and operations.
challenges is to come up with a proper recruitment and selection process, ensure its
proper application and minimize staffing complexity.
ALTERNATIVE 1: DO NOTHING
Dhaka Sheraton Hotel is the first renowned international five-star hotel in Bangladesh
who is also the proud recipient of the prestigious Outstanding American Company in
Bangladesh award for its excellence in the hospitality industry. It has gained
competitive advantage by maintaining up the scale strategy and provided superior
customer service all these years. Dhaka Hotel Sheraton can continue its operation in
the same way as it has been doing all these years since it first started.
Saves Money:
Dhaka Sheraton Hotel can continue its existing operations in the same working
environment that existed since its inception without incurring any further costs. This
helps Byzid to save money that can be invested in the future.
Saves Time:
By following the alternative of Do Nothing Dhaka Sheraton Hotel can focus on its
existing operation maintaining its operations efficiency, workflow. This will allow
Dhaka Sheraton Hotel to save time.
Saves Effort
Making changes in an existing organization requires a lot of effort so that the people
in the organization can adapt to the change and improve their performance. Some
people show resistance to changes and become dissatisfied. If Dhaka Sheraton Hotel
follows the strategy of Do Nothing, it does not have to put in extra effort and still can
maintain its operations efficiency and effectiveness.
Existing Recruitment & Selection program fails to attract right people with right
skills in right position at right time:
The existing recruitment and selection process is just eyewash. They usually follow
each step by step guideline before recruitment but during selection, candidates are pre
selected by executives and unions. Candidates are selected on the basis of preference
by a certain executive and if the candidate is relative of union. HR director has
limited authority during selection process. So the existing recruitment and selection
process fails to attract right people with right skills in right position at right time.
Inappropriate people with no adequate knowledge, skills and abilities are selected. It
is seen that stewardess is given the position of assistant marketing manager. If this
continues, then Sheraton would fail to develop a talented work pool which is
detrimental to its survival against increasing competition.
Improper Orientation program fails to motivate people and lack of proper,
specific Training and Development program leads to a less efficient, effective
sales task force and time keepers and hence failure to maintain up scale strategy:
The existing orientation program is not effective enough to fully motivate the new
employees and reduce their newness anxiety as well as answer their questions
effectively. One of the reasons is because the General Manager and HRD department
assumes that all the newly hired employees have very high standard but it is not true
due to some bad HR practices during recruitment and Selection and not all new
employees have same understanding capability. Moreover, Dhaka Sheraton Hotel
upgrades its technology from time to time but does not provide training program to
the existing and new employees regarding the technological change. This might
hamper the workflow and operation efficiency as employees are not properly trained,
cannot cope up with the change, which in turn demotivates them, reducing their
productivity, satisfaction and increasing absenteeism and turnover. This will
eventually lead to lower profits, market share and loss of potential customers.
Lack of proper, flexible compensation package will be detrimental to
organizations success as it lowers employees morale and productivity, increasing
turnover:
A proper compensation package helps to lift the employees morale. At Dhaka
Sheraton Hotel, executives are dissatisfied with existing rigid compensation package
that only focuses on salary, overtime and leave policy. It does not include any benefits
such as annual bonus, health insurance, transport allowances etc. and incentive plans
such as profit sharing. If nothing is done about this, then employees productivity as
well as job satisfaction will deteriorate which will ultimately lead to increased
absenteeism and turnover. This will eventually cause disturbance in maintaining the
current workflow and Dhaka Sheraton Hotel might fail to delight its customer through
providing superior customer services
Lack of proper HR planning will face labor shortages and in periods of
renovations and up gradation, Sheraton will not able to perform at full capacity
to satisfy its customers:
Due to continuous renovation and technological up gradation at Dhaka Sheraton
which cannot operate at optimal level, existing employees that are resistant to change
leaves the job that further disturbs the work flow. As there is no proper HR planning
and forecast on labor movements, Dhaka Sheraton faces problem in finding a proper
replacement quickly. If nothing is done about this, Sheratons operation efficiency will
decline during renovation and technological up gradation and will lower customer
service quality which in turn will result in lower customer satisfaction and will
threaten Sheratons survival in long run.
If top management are not trained regarding internal development
decisions now, then they will fail to expand properly in future:
The top management at Dhaka Sheraton Hotel mostly focuses on day to day
operations. They are not much concerned about the long term strategic plan.
Moreover, there is no proper training and development program to train the top
management regarding internal development decisions that will allow rapid growth of
Sheraton. If nothing is done about this, there is a high chance that Sheraton will not be
able to face the incoming competition and will be unable to maintain its competitive
advantage as it fails to expand properly.
If management policies are not made flexible and decision making
authority are not decentralized along with empowerment of departments head
and accountability will threaten Sheratons competitive advantage:
The decision making authority regarding operations is highly centralized and only
General Manager takes it. The other department heads have limited authority and
assist the General Manager in decision making whenever needed. Empowering the
other department heads in decision making regarding the activities in their own
department and empowering the employees by making flexible management policies
will help Sheraton to expand and motivate employees as well. But this is not so in the
current situation and Sheraton is focusing mostly on survival against increasing
competition. If nothing is done, Dhaka Sheraton will fail to expand and hence lose its
competitive advantage.
Lose customers, market share and suffer losses:
As mentioned in the case, Dhaka Sheraton has lost occupancy rate by 53% and market
share by 15%. Moreover, Director Marketing could not come up with proper strategy.
If nothing is done at this moment, Dhaka Sheraton will further lose its market share,
suffer losses and also lose potential customers due to poor service quality compared to
its competitor Pan Pacific Sonargaon. This threatens Sheratons existence.
An effective orientation program will allow to reduce the newness anxiety of new
employees, will answer their questions effectively, will make the employees first few
days a positive experience, will get them on the right track with positive attitude and
make them feel as a member of Sheraton Hotel, motivating them increasing their job
productivity, satisfaction and organizational commitment that will help Sheraton earn
more profits in the long run.
Proper training and development program will help time keepers and
sales task force to operate effectively and efficiently even when renovation and
technology up gradation takes place from time to time:
They can continue as 3RD PARTY MANAGER FOR OTHER HOTELS AND
RESORTS:
Working as a 3rd party Manager for other Hotels give Sheraton exposure to new
customer base and using its experience, it can earn more revenues and cash inflows.
This will further allow Sheraton to try and test new concept and see whether they are
effective. Working with employees of other Hotels, Sheraton can get exposure to new
ideas and access to more resources that will be beneficial for Sheraton in the
upcoming future.
The employees in the marketing department are empowered to participate
and give ideas regarding development of FREQUENT PROGRAMS and can
also carry out promotional activities to clear misperception of local people as
well as religious ones and increase market shares and profits:
Empowering the employees in marketing department allows Sheraton to conduct
extensive market research and then focus on creating differentiated, high quality
customer service to gain competitive advantage, new customer base, create, build and
maintain long term relationship with its new and existing customers. Hotel Sheraton
has not focused much on the local people and religious group who has misperception
about Sheraton. But now the marketing department employees can target the local and
religious people, provide differentiated, high quality service and conduct promotion to
clear misperception and hence increase customer base, market share and earn more
profits.
The Director of Rooms, Catering and Banquet, Food and Beverage, HR and
Finance controller are empowered to make decision regarding their department
goals and are accountable to general manager:
Empowering the HR director ensures creating proper HR practices (HR planning,
recruitment, selection, compensation, training, development, succession planning and
maintaining employer-employee relationship) and its proper implementation that will
lead to a talented workforce which will help Sheraton gain and maintain competitive
advantage. Empowering all the directors of other department allows each director to
pay more attention to each department and their problems. The Director of each
department can work together with its employees to provide novel solution to each
problem, motivating all the employees to outperform and maintain its competitive
advantage in long run. This also help Sheraton to achieve economies of scale in
providing services that its competitors cannot match and launch new, high quality
service as well. Making all the directors accountable to General Manager lowers the
risk of the director to pursue their own interest as General Manager still has ultimate
power.
The top management can now focus in long term decision making process
regarding expansion, internal development in order to decide how to deal with
increasing competition and handle goals:
The top management can now devote more time, effort in long term decision making
of Sheraton than was possible before. The General Manager along with all the
directors jointly participates in long term strategic decision making regarding
expansion, internal development. This allows them to understand whether a certain
strategy is feasible in all aspects and whether Sheraton has the required resources,
funds and if not, how can Sheraton get the resources and whether the strategy will
help them attain their desired goals.
Cons of Alternative 3: The decision making process regarding functional and
business level in each of the departments must be decentralized that is made by
departments themselves in order to pursue organizations goal, thus giving the
top management to focus on other important decisions regarding expansions,
future competition and internal developments.
It is very time consuming, takes a lot of effort and is costly:
Changing a Dhaka Sheratons decision making process from centralized to
decentralized decision making process regarding operation takes a lot of effort. All the
head of directors and employees will have to put in extra effort to achieve goals and
embrace, adapt to the change in order to maintain operation efficiency and succeed.
This also might take a lot of time because change is not easy and takes time to
overcome resistance to change and show positive results. Moreover, changing into a
decentralized decision making system will require changes in the existing
management policies which have to be reviewed for loop holes first and then
modified which is costly, time consuming and takes in a lot of effort.
The Directors can deviate from organization goals and pursue their own
interest:
The directors can misuse their power and pursue their own interest instead of
organizational goals which will create conflict with other department and threaten
organizations survival in long run. Even though, the directors are accountable to
General Manager for their action, there are chances that directors can do something
that is non-consistent with organizations goal and might cause damage to Sheraton
Hotel before the General Manager can stop them. This might hurt Sheratons brand
image, causing it to lose its potential customer, lower market share and suffer losses.
Empowering employees in Bangladesh can cause a set back because of
union activities, misuse of power by union employees
Sometimes empowering employees in Bangladesh can be a setback due to union
activities. Unions can misuse their power and pursue their self interest. If anyone tries
to stop them, they retaliate in a fierce manner, hampering workflow that is detrimental
to any organizations success.
hold its competitive position and face the direct competition by revamping the entire
service system for better scope of improvement in order to delight its customer. It can
target different market segment and provide innovative services to the rich, local and
religious group. Moreover, it can conduct research and then introduce differentiated,
innovative service and gain fast mover advantage over its competitors by coming up
with new kind of service not available in Bangladesh hotel industry.
Pros of Alternative 4: overall revamping the service sector of Sheraton and
maximize customer service.
Achieve growth:
Restructuring service system of Sheraton for improvement will allow Sheraton to tap
into market niche and help for better market penetration through new, innovative
service and achieve long term growth and increased revenues.
Cons of Alternative 4: overall revamping the service sector of Sheraton and
maximize customer service.
It is costly:
Moreover, introducing new services and improving existing services after extensive
review is quite expensive. This is because Hotel Sheraton Dhaka has to invest a lot of
money in research and development for new kind of service, conduct extensive
market survey and also review and make improved changes in existing service
system. Designing training of employees and providing employees training to better
provide new service can require hiring a specialist to design a proper training and
development program which can be costly as well.
Now, after recommending the best alternative, its time for us to explore the
implementation phase of this recommendation. No recommendation can be decided as
fruitful until it has been implemented. Because, this is only through proper
implementation, we can achieve the desired results. If the desired result is not
achieved, then at least it will reveal the lapses which caused the problems so that these
loopholes can be rectified in the future or we can go for the next alternative and go
through the same process of implementation.
We will go through two phases of implementation for Dhaka Sheraton hotel according
to the following diagram:
Phase
1
General
Implementation
Phase
2
Functional
Implementation.
Marketing Implementation
Financial Implementation
Operational Implementation
Human Resource Implementation
Dhaka Sheraton, one of the brand hotels of the Starwood Hotels and Resorts
Worldwide Inc. is the only five star corporate hotel in Bangladesh to offer guests SPG
points (Starwood Preferred Guest), the worlds best and the most exciting frequent
guest program. Sheraton Hotel is uniquely qualified to welcome their customers and
make them feel right at home, whether they are staying with them for business or
leisure. Dhaka Sheraton also offers a wide variety of facilities towards their valued
customers. They offer gift, handicraft and painting, photography, book shop, beauty
and barber salon. Their activity is fully based on service. So it is very crucial for Hotel
Sheraton to do a very through and in-depth implementation process for the desired
result.
To maintain the service level like an international one, the decision making process
regarding in each of the departments must be decentralized that is made by the
departments themselves thus giving the top management to focus on other important
decisions regarding expansions, future competitions and internal development. Dhaka
Sheraton Hotel is doing excellence in Hospitality industry in Bangladesh. The hotel
business in Bangladesh is an emerging business in this country now a day. The best
trend in the service providing organization is to satisfy their customers in any way. If
the customers are not happy with the organization or the company then the country is
surely going to lose the way of doing business and the organization will not be able to
do anything good in regards to their business. So Sheraton has to review their
departmental policy as the management executives are the ones who make all the
decisions regarding what to do, what to avoid. But they need to empower their
employees also. Each departments employees should have the opportunities to
perform and achieve goals in any way they want, increasing their morale.
They should also maintain proper recruitment and selection process with proper
training and evaluation. The union and the management executives should avoid the
pre select policy. They should also maintain upscale marketing strategy through
providing superior customer service.
Sheraton Hotel should also maintain a congenial and supportive relationship whit
other existing hotels in Dhaka city.
Finally they should use their facilities effectively to earn revenues. They should have
their financial backup from the parent company to earn more revenue and minimize
risk exposure
.
The hospitality industry in this country is the fascinating one and only the hotel
service is Sheraton. It is the unique place to enjoy the innovative hospitality service
and the Sheraton Hotel of Dhaka only provides that. Main thing a service organization
do is to satisfy their customers and the main thing now a day is happening in the
Positioning
Organizational growth narrates the organizations position, which is changeable based
on the situation. Organization can reach its introduction, peak, trough, and declining
consecutively. First organization pass through introduction face then comes the
growth stage. Growth stage organization increases rapidly and it indicates that when it
will reach to its maturity stage. When the growth is good then the organization will
forecast that the demand will be higher in the future. If the growth is bad then the
organization will be searching for new strategy. So in the components of positioning
strategy we have also added the new attributes generated from the department by
providing superior services to match the customer demand. This positioning strategy
would also carry Sheratons expertise and knowledge in producing high quality
products and create a clear image on the customers mind.
The financial condition of a firm indicates how the firm is performing in the
competitive market forces. The financial condition of the firm determines the external
condition surrounding the firm. And the financial condition actually reflects the firms
performance in the external environment and also its internal productivity. Sheraton
has monthly target to fulfill. If they cannot achieve the target in a given month, they
try to adjust it in the following month. That is, there is always a target ahead of them.
If they cannot reach their targeted profit margin in one month, they try to exceed their
target in the following month. They have their backup from parent company. The
main source of financing is the mother company, Starwood.
So they need to invest carefully in internal development. They need to take more care
to their departmental employees by providing empowerment to all the departments
and proper implementation of this empowerment with accountability, so that the top
management can feel safe to think about other issues.
Management of Dhaka Sheraton believes that the diversity of their market segments
served, revenue sources and geographic location provides a broad base from which to
enhance revenue and profits and to strengthen their global presence. Dhaka Sheraton
derive their cash flow from multiple sources within their hotel and vacation ownership
segments, including owned hotels activity and management and franchise fees, and is
geographically diverse with operations around the world. And this diversify asset will
limit their risk exposure.
The finance controller with careful planning would then use the fund obtained from
diversified asset and bear the cost needed in restructuring HR practices
(compensation, recruitment and selection, T and D plan) and empowering all other
departments so that they can obtain their goals.
Dhaka Sheratons luxury and upscale services made them well positioned over all the
hotels in Bangladesh. Dhaka Sheraton, as mentioned before is situated in the heart of
Dhaka city. No doubt, Dhaka Sheraton provides a significant presence in the top. It is
in the top along with other hotels: Pan Paicific Sonargaon Hotel and Radisson Hotel,
which is built recently. So in order to sustain in this competitive market, they have to
maintain their superior service for their customers. And which will help them in the
near future as their loyal customers will provide positive word of mouth.
As per the Dhaka Sheraton Hotel Management policy General Manager will be
responsible for the successful operation of the hotel. He will have the authority to
make decisions that will maintain efficiency in operations and public relations. But
the employees do not any empowerment to make any kind of decisions. So they need
to have an effective chain of communication where employees can share their views
with the employers and the management executives.
At Sheraton there are highly paid labors. Potential candidates from outside, who
studies hotel management, are always preferable candidates for Sheraton. They are
always preferred to be hired. On the other hand, as hotel industry is not well
established in our country, thus some potential candidates might not be interested to
work here. So Sheraton need to authorize right person at the right place.
Strategic human resource management or SHRM is like the heart for the company
since it is the department which would be searching and employing those skilled and
qualified people who are going to make a company successful.
In the case of Dhaka Sheraton Hotel, the company also needs to give high attention on
its SHRM. Because a successful entry is not the ultimate success of business, it is the
sustainability of business that counts. So Dhaka Sheraton Hotel should carry out an
effective Human Resource implementation system to bring out the desired result from
the recommendation.
To bring about the desired result from the strategic human resource implementation,
Dhaka Sheraton Hotel would be a shown a systematic building block which they can
restructure the HR department. The following diagrammatic representation
summarizes the process blocks for the HR implementation for Dhaka Sheraton Hotel:
Obtain the
required
Compensation
and benefit
management
Manage
employment
related issues
Now we will go through a detailed analysis of the above building blocks in the
following pages.
For empowering all the departments regarding department wise decision making,
professional personals is needed. They will be the ones drawing up the plans and find
ways to implement them to give Hotel Sheraton Dhaka a proper sound department
functions. There will be a departmental head, who will think of the plans and policies
for Sheraton on his/her own judgment and get those plans approved by the top level
management. Then there will be a stand-in HR head or more precisely a deputy to the
departmental head who will carry out the plans further for implementation. At the last
stage will be the departmental executives who will be actually on the field that is they
will carry out the instructions of the departments.
To understand the fruits of their efforts and planning, a pool of workers should be
present on whom; the plans are actually going to be implemented. They will be the
source of feedbacks for whether the restructuring of the entire department has been a
wise decision or not.
Job Analysis: This involves identifying the skills and expertise required to
perform the work, which clarifies hiring and promotion standards.
A diagrammatic summary in the next page will give the whole picture of the plan.
Effective evaluation will give the employees feedback about their work and output. It
will keep them on a regular check. The employees will understand areas to develop on
and areas on which they are good but should work hard to be better. Evaluation will
also help the authorities to decide whom to keep and whom to fire.
The activities that need to be carried out for the effective improvement of skills and
qualifications and evaluating performance are:
After carrying out the necessary evaluation techniques and methods it is now time to
reward those employees according to the results of the evaluation. Compensation and
benefits are the most influential motivators for the employees to strive for success. A
person carries out his or her work in the hope the he or she will be rewarded
appropriately. The way the person is being rewarded whether monetarily or nonmonetarily will determine whether that person will give the same level of
performance in the future or change the level of performance. This is both in the case
for positive and negative views.
In order to make sure that the departments use their empowerments wisely, effectively
and efficiently, a combination different set of compensation and benefit packages need
to be introduced for different set of employees. The division will be accordingly:
Head of the departments, Deputy, Executives.
For the Head of the departments, following benefits will be provided: Profit sharing,
Pension incentives, Payments for holidays, Expatriate benefits, Employment
insurance, Annual bonus, Health and transport Facilities.
For the deputies, following benefits will be provided: Health and transport incentives,
Profit sharing, Pension incentives, Expatriate benefits.
For the executives, following benefits will be provided: Health insurance, individual
bonuses. Department wise profit sharing program, annual bonus, Expatriate benefits,
Transport.
All the above benefits and packages will be determined based on the Cost Of Living
Adjustments (COLA). This will ensure the employees that Sheraton is keeping of its
employees needs and is trying to fulfill it accordingly. This will motivate the
employees to choose the right strategy for their empowerment.
Other sort of compensation and benefits for all level of employees can be:
motivational strategy, career counseling, and career specific information &
employment opportunities.
Lobbying:
The departments should be able to handle the issues and problems related to union
involvement. They should look into the fact that undeserving candidates do not find
their way into the company through lobbying or power of the unions.
Consulting:
The departments should always arrange discussions and meetings in order to consult
the issues of employee management. This will help Sheraton as a whole to manage a
balanced employee base. These consultations will look into every aspects and
therefore will try to look for loopholes and rectify the employee management system.
Diversity management:
As Dhaka Sheraton is an international level hotel, so its obvious that there will be
employees of different nationalities working under different departments. In this case
the departments have major role to play so that an effective and efficient diversity
management takes place so that the employees whether local or international can
work side by side to offer superior service.
The above mentioned core activities for managing employee related issues can be
summarized by the following ways: