Melrose Hotels’ Human Resource Management

Introduction

The revolution that has been witnessed across the world has specifically targeted the UK market with many companies moving forward to develop better and more meaningful ways through which they can outdo their rivals and success in their businesses. One of the companies that have the capacities to fulfill such dreams is Melrose, a large hotel chain based in the United Kingdom with more than 60 branches. Recently, the management of Melrose acquired a small hotel chain in France. Presently, plans are underway for Melrose to open up operations in France. In furtherance of this endeavor, the management is planning on the selection, training, and deployment of competent professionals to fill up the managerial roles in the hotels in France.

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The categories of hotel managers required include Food and Beverage Managers and Finance Operations Managers. Appendix 1 and 2 provide an advert that bears the description of job requirements for these categories of hotel administrators. This paper examines the role of HR in designing the appropriate strategy that will guarantee a smooth entrance of Melrose in the French hospitality industry. The paper examines the matching model as a business framework that has been essential in helping Melrose to meet its targets. For Melrose to win in a foreign market, it should embrace the geocentric approach where the best workers are selected, irrespective of their nationality. However, it should consider taking its F&B and Finance and Operations managers from the host country to help instill the company’s interests in the new country.

Recruitment and Selection

Key Priorities for the Recruitment and Selection

Recruiting and selecting top-notch Food and Beverage Managers and Finance Operations Managers in Melrose may help the hotel chain to record improved productivity. Qualified or experienced Food and Beverage Managers will be in charge of the general business of the hotel chain. The selected managers will need to demonstrate excellent skills of recruiting staff, procuring food and supplies, and/or ensuring that the respective personnel is trained on appropriate dish preparation, suitable and permissible alcoholic drink services, kitchen security, and standard. They will also be required to be aware of the prevailing health principles. Besides, finding the best suppliers who do not only provide high-quality raw materials at cheaper prices but are also reliable may be a consideration that has to be approached from a strategic management viewpoint, which calls for the input of a Finance Operations Manager. Hence, the matching framework is pivotal for Melrose based on its capacity to steer the business towards excellence through the best personnel.

As a rule, multinational corporations (MNCs) face challenges in selecting and training the appropriate staff to take over their foreign subsidiaries. Luckily, for Melrose Hotels, its managers are all willing to work outside the UK. Hence, geocentric staffing will be the best approach for Melrose. The approach embraces the idea of filling the most sensitive posts in overseas branches with well-trained staff, regardless of their nationality. InterContinental Hotels Group is an excellent example of businesses that have gained from adopting the geocentric approach. From the above discussion, it is evident that one of the top priorities for Melrose when training managers should be their capability to work in a challenging and unpredictable environment. Here, employees can also be interviewed regarding whether they find a certain manager flexible. As such, they would be capable of adapting to the French corporate environment, which is unique from that of Britain (De Mooij 2013).

Who should be Trained?

As explained above, cultural differences between the British and their French counterparts often find their way into the corporate world. Interestingly, many people believe the two countries have similar corporate cultures simply because of their proximity to each other. They claim all of Melrose’s Food and Beverage Managers and Finance Operations Managers are willing to work in France could be informed by this notion. However, shockingly, working in France may not be easy for British nationals who are unprepared to counter the cultural differences and culture shock involved. Similarly, host country nationals (HCNs) may find it difficult to work under British managers. For this reason, a dilemma arises as to whether Melrose should train parent country nationals (PCNs) or work with HCNs. A third scenario would be to adopt a hybrid setup where both PCNs and HCNs form part of the employee base. The latter approach would be the most suitable in this scenario, as it would ensure that the weaknesses of having either approach alone are diminished by combining the strengths of each approach.

Recruitment Methods

The recruitment process at Melrose Hotels should be aimed at finding the right Food and Beverage Managers and Finance Operations Managers to ensure a bold entrance and presence in the French hospitality industry. Notwithstanding, this goal should be harnessed by way of offering effective recruitment based on each selected manager’s strong areas and individual capacity to work in a challenging environment. It is important to note that willingness to work abroad itself is not an assurance that the said managers are prepared to work in a challenging environment such as is occasioned by working abroad. Achieving this goal would require comprehensive recruitment methods that would offer the best solution to organizational needs. Appendix 2 offers an illustration of the recruitment and selection process. According to Zhang and Fan (2014), proper recruitment enables employees to understand the nature of their responsibility in an organization, as well as becoming acquainted with the company’s culture. Arguably, nowhere is cultural integration more essential than in expatriate training where employees are being prepared to work outside their usual work environment. Establishing and a strong team of Food and Beverage Managers and Finance Operations Managers who can drive a business towards its objectives may never be possible without prior planning. Melrose needs to develop strategic methods that can help it to pool together new talented and skilled personnel in the said field (Alhaqbani et al. 2016).

Training and Development

The most important place to begin for the Food and Beverage Managers and Finance Operations Managers would be to learn basic French. This strategy would ensure that they communicate freely with the local customers and suppliers, most of whom do not speak English. As Hughes, Trudgill, and Watt (2013) establish, only about 39 percent of French people speak fluent English. Worse still, only about 25 percent of British adults speak any foreign language, leave alone French (Pachler et al. 2013). Given these statistical findings, foreign language skills would be important for the recruited Food and Beverage Managers and Finance Operations Managers in assisting the UK-based organization to settle in a foreign country. In other words, since Melrose Hotels’ goal is to increase its presence in France, it could benefit immensely by ensuring that its respective Food and Beverage and Finance Operations Managers have a basic grasp of French. Appendix 3 shows the total company training plan for F&B and Finance Operations Managers. Some of the benefits include ease of communication with customers, suppliers, and local authorities.

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Another priority would be to offer basic training about French culture. According to Hughes, Trudgill, and Watt (2013), locals respond better to MNCs that demonstrate a particular interest in learning the culture of the immediate society where their business is found. This argument can be justified by the common understanding that people tend to associate with those who understand them. In this case, understanding a person’s culture forms the impression that one can relate with them at a personal level. Hence, despite France and Britain being geographically close, the cultures of their people are immensely different.

Hence, when opening up a subsidiary in a foreign country, it is critical for an organization to factor in the leadership styles practiced in the destination country. The French leadership style is different from what is practiced in Britain. As Chhokar, Brodbeck, and House (2013) explain, managers in the French corporate world tend to be autocratic with a deep grasp of how the company operates. As a result, the input of mid-level managers and other junior employees may be dismissed. In sharp contrast, the leadership style in the British setup is diplomatic and casual. The opinion of junior employees is almost always considered in decision-making. Additionally, while the culture of paternalism is accepted in France, the same situation is frowned upon in Britain (Chhokar, Brodbeck & House 2013). Hence, employees in France would be more welcoming of a dominant manager relative to the one who prefers dialogue all the time. Appendix 2 provides a list of differences between the British and French business environment.

Reward and Performance Management

Melrose Hotels need to come up with a comprehensive compensation scheme for its expatriate Food and Beverage and Finance Operations Managers. Particularly, the compensation package should include adequate allowances since it is assumed that working abroad presents unique challenges from those faced when working in the home country. Appendix 4 offers a reward and justification table applicable to both F&B and Finance Operation Managers. Presently, a hotel manager in France earns an average of 60000 Euros. While this figure is impressive, Melrose should raise the amount they pay its expatriate managers to at least 72000 Euros because there is the need to include generous bonuses and allowances for the expatriate managers. These bonuses would serve as an incentive for the managers to perform impressively, regardless of being in a new environment. Also, non-financial allowances should be incorporated into the compensation package to come up with a comprehensive pay approach. The package should include insurance covers, paid-up vacations, and guaranteed pay increase based on individual performance.

Compensation Package and the Rationale behind it

Also, Appendix 4 contains a detailed description of the proposed compensation package for the Melrose Hotel managers being deployed to France. The package is designed for both occupation categories, namely, Finance Operations Manager and Food and Beverages Manager. For both these categories, the medical allowance is perhaps the most important allowance that can be availed to an employee working abroad. Due to the change in climate, it is easy to become ill. As such, the respective Food and Beverage and Finance Operations Managers should not have to worry about how to meet their medical expenses. Another importance of medical allowance is to accommodate complications that may arise due to stress. According to Marsden and Belfield (2010), the role of a manager in the French business environment is more stressful relative to the situation in Britain. Unlike in Britain where dialogue takes the center stage, the French manager is expected to have the most solutions for all problems in his or her department, which may lead to stress.

Employee Participation and Involvement

Key Priorities

High levels of employee engagement in a company often lead to excellent business performance. For Melrose, the starting point would be a clear communication of the company’s goals and expectations to the employees, particularly Food and Beverage and Finance Operations Managers who are being expatriated to France. Appendix 5 provides the proposed compensation for non-manager employees. In other words, the expatriate employees need to be aware of why Melrose Hotels is venturing into the French market, including what it hopes to achieve in the end. Further, employees should be made aware of how the performance of the French hotel chain would influence the company’s prospects of venturing across entire Europe. Concerning this issue, the managers in question must be involved in decision-making at the top-level management since this move will prepare them to handle their branches more efficiently (Müller & Turner 2010). Consequently, the Food and Beverage and Finance Operations Managers will pass their skills to the employees, hence promoting success at the Branch level. Melrose has subdued all opposing market forces to emerge a winner in one of the most competitive industries in the world. The organization would like to own 150 hotels in the next five years. Their 10-year plan is to own 300 hotels across Europe. This target is ambitious. Hence, the organization needs to find an effective formula to operate successfully in other countries.

High-Performance Work Practices (HPWPs)

High-performance work practices are modern techniques that are used in employee management. As Markos and Sridevi (2010) opine, employee participation and management have become relevant in modern times relative to how it was in the past due to the increasing competition. At the same time, organizations realize that human resource is the most crucial capital in an organization. Presently, numerous management styles seek to increase employee involvement in an organization. This part will discuss three of these HPWPs, which if adopted can drive success in Melrose Hotels’ chain in France.

The first approach involves creating self-managed teams to minimize employee supervision. Teamwork in organizations has been identified as an effective tool in promoting employee participation (Alhaqbani et al. 2016). Conversely, micromanaging employees may often lead to counter-productivity. Employees may feel unnecessarily pressured. Therefore, teamwork is not only a suitable management style but also a means for ensuring that employees are responsible for their results. As Johnson et al. (2013) explain, in a self-managed approach, employees are encouraged to take part in driving company success by working toward mutual goals. Therefore, self-management is skewed toward employee empowerment. Programs such as employee training and motivation are common.

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High compensation levels can also be used to promote employee participation at Melrose. According to Bryant and Allen (2013), successful companies embrace compensation as a technique for retaining top-notch employees. Employee turnover is a leading cause of company losses. A poor working environment, specifically poor pay occasions (Iqbal 2010). Organizations today realize the need to offer competitive wages and allowances, as well as other additional non-financial benefits. Consequently, Melrose should design a competitive pay package for its employees, both locally and for the French hotel chain. Achieving this goal will require the company to observe how other hotel chains pay their employees, including other allowances and non-financial incentives (Xavier 2014).

Next, the company will design a package that is slightly more attractive compared to those of the competitors. Thirdly, employee training should be incorporated as an HPWP in Melrose as a tool for driving company success. Particularly, employees to be deployed in France should acquire basic skills in French culture. Working in a foreign environment can be daunting for restaurant employees who are then required to prepare strange recipes and/or attend to customers who cannot speak their language. MNCs derive their success abroad from the ability of their employees to embrace the local culture of the destination country (Zhang & Fan 2014). For instance, being able to speak French can be appealing to the local customers who then find it easy relating to the hotel chain. Also, training can be provided in other areas such as customer expectations for employees to understand what their new roles entail (Bunderson & Boumgarden 2010).

Conclusion

As indicated in the case study, Melrose is ambitiously anticipating this expansion. Hence, the future of the company relies on how it handles its current task. The approach will further allow the management to prepare the new and available staff members to be ready for any promotional opportunity that may come up in the future. Conclusively, Melrose’s successful venture in the French hospitality industry will require the deployment of highly competent and motivated Food and Beverage and Finance Operations Managers. As such, adequate training should be provided for the selected managers. Besides, high compensation should be employed as a tool for retaining the best talent for both managers and employees. Also, high compensation will enable expatriate managers and employees to live comfortably in a foreign country where they can focus on their productivity to the hotel chain.

Recommendations

As already observed, a proper international strategy will be critical for Melrose’s successful entrance into France. Such a strategy will ensure that only the best talent is deployed to manage the new hotel chain. As such, a robust selection and training criteria should be adopted to ensure that only those managers who are willing to work in a challenging foreign environment are absorbed into the new hotel chain. At the same time, the company must be ready to look into how the staff members who might decide to leave will be succeeded. Secondly, progressive training in basic French, as well as the French culture, should be deployed immediately. This strategy will allow managers to be prepared to deal with the challenges of cultural and language differences. Importantly, instead of relying solely on PCNs or HCNs, the company should work with a hybrid system that will result in maximum benefit for the organization. More precisely, PCNs will learn Melrose’s organizational culture from the HCNs who in turn learn basic French and the French culture from the locals (HCNs).

Reference List

Alhaqbani, A, Reed, D, Savage, B & Ries, J 2016, ‘The impact of middle management commitment on improvement initiatives in public organisations’, Business Process Management Journal, vol. 22, no. 5, pp. 924-938.

Bryant, P & Allen, D 2013, ‘Compensation, benefits and employee turnover: HR strategies for retaining top talent’, Compensation & Benefits Review, vol. 45, no. 3, pp.171-175.

Bunderson, J & Boumgarden, P 2010, ‘Structure and learning in self-managed teams: Why “bureaucratic” teams can be better learners’, Organisation Science, vol. 21, no. 3, pp.609-624.

Chhokar, J, Brodbeck, F & House, R 2013, Culture and leadership across the world: The globe book of in-depth studies of 25 societies, Routledge, London.

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De Mooij, M 2013, Global marketing and advertising: Understanding cultural paradoxes. Sage Publications, Thousand Oaks.

Fontenot, R 2016, Winning the talent acquisition game: With recruitment process enhancement, Ascend HR Corp, Houston.

Hughes, A, Trudgill, P & Watt, D 2013, English accents and dialects: An introduction to social and regional varieties of English in the British Isles, Routledge, London.

Iqbal, A 2010, ‘Employee turnover: Causes, consequences and retention strategies in the Saudi organisations’, The Business Review, Cambridge, vol. 16, no. 2, pp. 275-281.

Johnson, M, Hollenbeck, J, DeRue, D, Barnes, C & Jundt, D 2013, ‘Functional versus dysfunctional team change: Problem diagnosis and structural feedback for self-managed teams’, Organisational Behaviour and Human Decision Processes, vol. 122, no. 1, pp.1-11.

Markos, S & Sridevi, M 2010, ‘Employee engagement: The key to improving performance’, International Journal of Business and Management, vol. 5, no. 12, pp. 89-96.

Marsden, D & Belfield, R 2010, ‘Institutions and the management of human resources: Incentive pay systems in France and Great Britain’, British Journal of Industrial Relations, vol. 48, no. 2, pp. 235-283.

Müller, R & Turner, R 2010, ‘Leadership competency profiles of successful project managers’, International Journal of Project Management, vol. 28, no. 5, pp.437-448.

Pachler, N, Evans, M, Redondo, A & Fisher, L 2013, Learning to teach foreign languages in the secondary school: A companion to school experience, Routledge, London.

Xavier, B 2014, ‘Shaping the future research agenda for compensation and benefits management: Some thoughts based on a stakeholder inquiry’, Human Resource Management Review, vol. 24, no. 1, pp.31-40.

Zhang, M & Fan, D 2014, ‘Expatriate skills training strategies of Chinese multinationals operating in Australia’, Asia Pacific Journal of Human Resources, vol. 52, no. 1, pp. 60-76.

Appendices

Appendix 1

Advert!

Vacancies available for-

Food and Beverages Managers

Finance and Operations Managers

Get an opportunity to advance your hotel management skills in France.

Are you a hotel manager with at least 2 years’ experience in either of the two categories mentioned above? For the position of the finance operations manager, accountants in any other field but with at least 5 years’ experience are invited to apply.

Academic Qualifications

Food and Beverage Manager

Diploma/ Degree in any of the following-

Food and Beverage Manager

  • BA Hotel and Hospitality management
  • BA Global Business management
  • MBA Hospitality management
  • MBA Global management
  • Culinary Arts (Diploma)

Finance Operations Manager

Finance Operations ManagerFinance Operations Manager
Job Vacancy

Are you knowledgeable in the Finance Operations Manager Field? Do you possess skills obtained within the hotel sector? Are you looking for an extensive finance role? Do you possess excellent intercontinental accounting/multi-currency knowledge? Could you be looking for a role within France? Do you have any of the following credentials?

  • Degree/Diploma in Accounting from a reputable UK institution
  • CPA

If you feel the best suited, there is a job for you.

Appendix 2: Recruitment and Selection

Fig. 1 shows a sample recruitment process that can be adopted for Melrose Hotels.

A sample recruitment process that can be adopted for Melrose Hotels
Source: Fontenot (2016).

Important!

Job brief
F&B Managers

We at Melrose are looking to hire several managers for the F&B department in our newly acquired hotel chain in France. We hope to transfer our culture of delivering quality and timely service to our esteemed customers in France. Thus, it is our expectation that the new managers will be capable of not only maintaining our standards but also surpassing them. Please note that innovativeness is highly valued and rewarded at Melrose Hotels. Additionally, managers must demonstrate that they are up to date with F&B practices and trends, as well as the ability to manage a large workforce and to meet financial goals.

Responsibilities of the Food and Beverage Managers shall include-

  • Managing all F&B everyday operations with the set budget and according to Melrose Hotels’ standards
  • Working to promote customer and employee satisfaction at all times
  • Leading in the recruiting, training, and appraisal of talented employees
  • Setting forth goals, including schedules, procedures and policies, for the F&B department, and tracking their performance

Finance operations managers

We are venturing in a new market that we have no prior financial experience operating. Thus, it is our expectation that our managers can streamline the financial unit of our food chain to function accordingly in the French market. Therefore, managers in this area must demonstrate excellent skills in accounting and auditing. Experience in aspects like international currency fluctuations and the EU tax regime will place applicants at a great chance of being hired.

Responsibilities of the Food and Beverage Managers shall include-

  • Monitoring the Financial health of the hotel branches
  • Advising the executive on financial matters
  • Preparing financial reports
  • Ensuring the branches conform to the French and EU legal requirements particularly on tax compliance

Appendix 3: Training and Development

Total Company Training Plan for F&B and Finance Operations Managers

F&B Managers will undergo continuous training on:

  1. Employee appointment procedure
  2. Menu arrangement
  3. Worker training methods
  4. Kitchen arrangement and food preparation during events
  5. Procurement and stock control
  6. Promotion methods
  7. Other interrelated skills

Finance Operations Managers will undergo continuous training on:

  1. Finance operations awareness
  2. Financial data planning
  3. Control of monies in and out of the company’s accounts
  4. Analytical and communication skills

Appendix 4: Reward and Performance Management

Reward and Justification Table Applicable to both F&B and Finance Operation Managers

Position Salary (in Euros) Financial Non-Financial
Manager:
PCNsHCNs
60, 000 Medical allowances: 50% for expatriates
25% PCNsTravel allowance
5% available for PCNs only
30% commission for family members
Available for both PCNs and HCNs
100% single annual bonus
Both PCNs and HCNs
Lunch offered
Both HCNs and PCNs
Paid-up vacations
Maternity/paternity leave
Guaranteed pay increase

Appendix 5: Employee Participation and Involvement

Proposed Compensation for Non-Manager Employees

Position Salary (in Euros) Financial Non-Financial
Clerk 21,000 50% medical allowance (PCNs)
25% medical allowance (HCNs)
Expatriate training for employee and,
BasicEducation/French skills for children (up to 3 children)
5% travel allowance for PCNs
Staff 15,000 100% annual bonus
Flexibility working hours
Lunch provided
Education/French skills provided for PCNs’ children (up to 3 children)
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