Introduction
Strategic management is the process by which top officials set goals and develop initiatives for an organization on behalf of other stakeholders, taking into account available resources and external factors. Many CEOs openly acknowledge the importance of effective, strategic HR management for organizational success (Mello, 2018). Strategic management is critical for businesses as it helps them to meet their goals and objectives. In strategic management, leaders identify their companies’ differential factors, such as cost leadership, product differentiation, or a focus on an unaddressed niche.
Organizations constantly face limited resources, and through strategic management, they can allocate financial, human, and technological resources more efficiently. Other benefits of this form of management include adapting an organization to change, enhancing performance monitoring and control, and aligning a firm’s decisions with stakeholders’ expectations, among others. In sum, this process serves as a roadmap for decision-makers navigating the ever-complex business environment. This report presents a case study of Brunt Hotel and how it can leverage strategic management during this transitional period.
Analysis of the Situation and Pending Problem
Brunt Hotels, PLC, has embarked on a ten-year expansion journey, with the first step being the acquisition of a small French hotel chain. However, the transition is difficult, as hotels face considerable challenges, particularly in human resources management. Approximately 70% of the organization’s workers have left, leaving it unable to operate the more than 60 hotels it currently has (Robson, 2008). This turnover could result from employee dissatisfaction, as the two factors are correlated (Mello, 2018).
The brand has a tight four-week timeline to rebrand and be ready for operations, which puts pressure on rebuilding the staffing infrastructure quickly. The pending decision problem concerns how Brunt must address the staff shortages to function effectively during the transition period. The decision-makers and HR staff must decide how to approach hiring new staff and managing cultural background differences. The organization has to identify how it will handle the expansion process to prevent resistance to change and ensure a smooth transition.
Major Issues Surrounding the Organization
Major issues surrounding Brunt include workforce attrition, HR gap strategy, tight timelines, cultural integration, leadership and decision-making, employee morale and engagement, resource allocation, and compliance issues. The departure of 70% of the organization’s employees has left it unable to operate efficiently (Robson, 2008). Management should immediately take steps to replace the frontline roles to ensure a smooth transition. Brunt also has a gap in its expansion strategy, leaving its international expansion incomplete. Brunt has a very limited and fixed period for transitioning in four weeks. This aspect puts immense pressure on those responsible, which could lead to flaws in rebranding and in the organization’s preparation.
Alternative Causes of Action
Brands can leverage internal promotions to fill in the available key management positions. This is because the existing talent is familiar with the organization’s culture, procedures, and norms. Alternatively, when no internal employees are available to fill a particular position or do not meet the expectations, the company can tap into the local talent pool and industry networks.
Regarding the HR development strategy, tailored approaches could be formulated to ensure that Brunt Hotels addresses the specific issues related to external expansion. This facet should entail researching the external market and identifying ways to meet the expectations of candidates for such roles. Research shows that external recruiting can enable an organization to expand its knowledge beyond that of its existing internal employees (Mello, 2018). Alternatively, the organization could leverage external expertise rather than tailored approaches.
Regarding time management, Brunt could prioritize or extend the timeline. Prioritization means ensuring important tasks are completed and monitored (Mello, 2018). If feasible, the organization’s management could also consider expanding the transition period beyond 4 weeks. This aspect would allow the firm time to address the identified staffing and occupational needs.
Regarding cultural integration, the company could either pursue cross-cultural training or appoint cultural liaisons. The company can invest in cross-cultural training to promote understanding, respect, and effective communication. Conversely, management could rely on collaboration liaisons to support employees in navigating various aspects of the new geographic location Brunt is planning.
Regarding leadership development, Brunt can pursue training and coaching or rely on international assignments. Brunt needs outstanding leadership and to invest in initiatives that equip leaders in the organization with the required skills. For instance, integrating transformational leadership has long been considered a critical element of an organization’s success (Mello, 2018).
Additionally, leaders should be given opportunities for international assignments to explore diverse contexts and enhance their cross-cultural competencies in managing a large pool of employees and clients from diverse backgrounds. MacCann (2008) maintains that managing a diverse workforce is fundamental to succeeding in a global economy. Moreover, Brands must establish communication channels or leverage recognition programs to promote employee engagement, thereby boosting workers’ morale. The brand could reallocate budget from non-essential tasks or outsource when managing resources. Brunt could choose either legal consultation or training and awareness about compliance and legal consultations.
Recommendations
Regarding talent acquisition, Brunt Hotel should prioritize external hires over internal promotions, as most of its employees have left. The rationale is that employees may harbor negative opinions about the company, creating a toxic work environment. HR should go for tailored approaches over external consultancy. Taking the tailored approach saves organizational resources rather than a consultancy, which is expensive. About time management, it is better to focus on prioritization rather than time expansion.
Fredberg and Pregmark’s (2022) literature review shows that organizations and their leaders must prioritize creating a sense of urgency when initiating change. Concerning employee engagement, Brunt should use open communication channels rather than recognition programs. This is so because open communication programs create unity within a firm, while recognition creates division.
Brunt Hotels should outsource rather than focus on budget reallocations when seeking the best way to use resources. Outsourcing has various benefits, including cost savings, employee focus on core activities, and risk mitigation (Charles & Ochieng, 2023; Edvardsson et al., 2020). Finally, the organization should raise awareness of compliance with legal regulations rather than engage in legal consultations, since the latter is expensive and reactive.
Conclusion
The best strategic option for Brunt is to use external talent, try tailored approaches to address internal expansion, prioritize, conduct cross-cultural training, and train its leaders on expansion. Additionally, the hotels could leverage communication channels for recognition, outsource rather than reallocate budget, and train employees on legal matters rather than seek expensive legal consultations. By relying on these measures, Brunt can navigate the complexities it faces during this transitional period.
References
Charles, M., & Ochieng, S. B. (2023). Strategic outsourcing and firm performance: A review of literature. International Journal of Social Science and Humanities Research (IJSSHR) ISSN 2959-7056 (o); 2959-7048 (p), 1(1), 20-29.
Edvardsson, I. R., Óskarsson, G. K., & Durst, S. (2021). The outsourcing practice among small knowledge-intensive service firms. VINE Journal of Information and Knowledge Management Systems, 51(1), 177-191.
Fredberg, T., & Pregmark, J. E. (2022). Organizational transformation: Handling the double-edged sword of urgency. Long Range Planning, 55(2), 1-19.
MacCann, J. (2008). Unit 5 seminar(seminar 3) GB 520[Presentation]. Society for Human Resource Management.
Mello, J. (2018). Strategic human resource management (5th ed). Boston, MA. Cengage Publishing.
Robson, F. L. (2008). International HRM Case Study. Society for Human Resource Management.