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Human Resource
Management Assignment
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Surname
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Keun
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First Name/s
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Johan Willem
Kirsten
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Student Number
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116909
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Module Name
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Human Resource
Management
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Assignment Number
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1
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Examination Venue
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CT
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Date Submitted
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Submission (√)
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First
Submission
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Yes
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Postal Address
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NCC Environmental Services
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Linda Mare
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Po box 30223
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Tokai
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7966
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7708
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E-Mail
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kirsten.keun@gmail.com
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Contact Numbers
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(Work)
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(Home)
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(Cell) 0824140671
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Course/Intake
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MBA
Year 1 - January 2012
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Declaration: I hereby declare that the assignment submitted is
an original piece of work produced by myself.
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Signature:
K. Keun
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Date:
20 March 2012
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Table of Content
Question 1 p3
Analyse City Lodge’s talent management and development
strategy in terms of the five priorities, namely leadership development,
diversity, employee engagement, learning and development, and succession
planning.
Question 2 p5
As is evident at City Lodge, benefits account for a large
share of employee compensation. Critically analyse City Lodges reward and
compensation system, discussing the role that compensation plays in creating a
motivated workforce.
Question 3 p7
Discuss the recruitment policy of City Lodge that is making
them an attractive employer to the Labour Market.
Question 4 p9
Evaluate the extent of strategic integration of the human
resource management function at City Lodge within its own policy areas and the
integration of employees with the goals of the organization and its future.
References p12
All references listed on page 12
1.
“Talent thus
needs to be managed strategically and both HR and leaders need to ensure that
they partner to identify and invest in the critical talents that will ensure
current and future business success.” Boninelli and Meyer (2011:339)
The Collins Dictionary defines a leader as “a person who rules, guides,
or inspires others; head” (2009:441)
City Lodge has taken a leading role through
challenging employment paradigms in the hospitality industry. Leadership
development is critical to organizations with ambition of industry
leadership. City Lodge effectively search, discover and nurture leadership talent
in its ranks. As the Mancosa Case Study (2012:38) points out “ the group has
established the City Lodge academy with a three-year hotel management
qualification…while the Accelerated Development and Deployment Program aims to
nurture black management talent” While many organizations seek management
talent elsewhere, City Lodge realise that the talent may often lie within their
current staff, as the case study further indicates (2012,39) “a number of
staffers have joined the group as General Services Attendants, and have climbed
the ranks to General Manager Positions” City Lodge nurtures and develops their
own staff and believe in them, creating sustainable opportunities for their
staff and producing great leadership for their organization. Defying the industry standard of high turnover
in staff, City Lodge deserves leaders through playing a leadership role in the
industry.
One of South Africa’s most attractive assets is the diversity it harbors.
From the wildlife and geographical features to the myriad of cultures and
languages of all South Africans. In the Service and hospitality Industries this
diversity can be embraced and utilised to the benefit and sustainability of
business. In the Case Study we note (2012:38) “diversity is fostered through
the employment equity plans”
With South Africa’s history of cultural and racial discrimination, it is
imperative for ambitious organizations to implement equity and equality
strategies. Talent exists- and can be stimulated in all peoples and cultures. The
service industry represents the beauty and productivity of this diversity,
presenting it to it’s own diverse clientele. The guests experience is enhanced
by the diverse nature of the people of the Rainbow Nation. Visitors are
educated and remain in awe of the functionality and interaction between peoples
from different cultures and languages unified in one nation, peacefully. City Lodge’s
executives and board represent an example of the cultural landscape and
diversity of Southern Africa.
Employee Engagement is a sign of an
open and trusting relationship between the organization and its employees. The organization
values the input and opinions of its employees. “ City Lodge’s induction
program plays a key role…with each employee undergoing an intense process to
familiarise itself with the group’s values, credo and vision…to engage with the
organisation’s culture.” Mancosa (2012:38)
Employee Engagement assures the employee of
the organizations trust and support, every employee a unique asset. An
effective and easy to use communication channel between employees and all
structures of the organization is critical to functional employee engagement.
City Lodge’s flat structure automates and enhances traditionally challenging
communication between the strategic functions of the company and the employee.
At City Lodge Monthly Staff meetings, Intranet and Feedback Fridays stimulate
and accommodate efficient communication between all staff structures and staff members.
Learning and Development is at the
epicenter of staff development and retention. Employees may originate from a
modest background with limited opportunity, and this is where the organization
can turn the recruited talent into a dedicated lasting workforce. City Lodge
shows dedication to learning and development of its employees through a program
in conjunction with a university and a program to stimulate previously
disadvantaged talent. They recognize the importance of education and skills
development and assist the employee in skills development and acquiring
qualifications. This is to the benefit of the organization and the employee. The
organization recognizes the essence of developing and nurturing the employee
through learning and development. The needs of the individual are aligned to
the needs of the organization improving the potential of the individual and the
organization.
Succession Planning:
“Succession
plans take a longer-term career development approach. They effectively
‘earmark’ employees for development through the hierarchy. They therefore show
something of the longer-term internal supply situation.” Gregory (2011:171)
At City Lodge the industry norm of high
staff turnover has been turned over into high staff retention. Talent is
scouted, identified and nourished through training, trust, communication and a
flat organizational structure. It is uplifting and encouraging that a Service
Attendant can become a Manager in a traditionally top heavy industry. City
Lodge throws the top over and builds their organization organically from the
grass roots level. This effort and trust will ensure successors who are
dedicated to the well being and sustainability and success of their organization.
Successors will be experienced and equipped with skills in sync with the
culture and vision of their organization. The organization takes a long-term
interest into the members that forms the organization. This reduces recruitment
costs and ensures a unique talent- and skills retention to the organization.
As City Lodge grows in an ever-competitive
market, their talent management and development strategy ensures their place in
the hearts of their clients, and in that of their staff.
Question 2
As is evident at City
Lodge, benefits account for a large share of employee compensation. Critically analyze
City Lodges reward and compensation system, discussing the role that
compensation plays in creating a motivated workforce.
Rewards and compensation are exchanged for the employee’s
commitment and performance. Adequate and sustainable rewards and compensation
attract quality talent; keeps talented employees content in the workplace, and
motivate employees in career building with the inspiration and in care of the
organization.
The organization studies and research labor markets in order
to determine pay structures for specific occupations and provide the employee
with an attractive and motivating value proposition. The value proposition is
the total package and mental association the employee accepts from the
organization:
Says Boninelli and Meyer (2011:327) “the challenge to attract, develop, deploy, engage and retain the top
talent continues to provide opportunities to think out side the box in order to
deliver innovative human capital strategies that deliver the right results.”
City Lodge offers an above average remuneration to their
employees: “at the 75th -and in some cases the 90th -industry
percentile” (Mancosa 2012:39)
Industry percentiles can give job seekers an idea of what an
organization offers compared to alternative organizations. For example the
median percentile or 50th percentile of remuneration is the average
pay in a specific industry, population or profession. Therefore City Lodge pays
between 25% to 40% more than the industry average. Although current HR theory
suggests that there are many more factors than numbers attracting people to-
and keeping employees in their jobs, this is a successful remuneration strategy
that City Lodge follows. At first glance expensive, but in the long run
economical and sustainable. Staff
turnover is expensive in many ways to a company.
City Lodge’s reward and compensation system forms part of
their employee-driven customer focused corporate culture. This means employees
at all levels think and act like owners and take personal responsibility for
the organization’s success.
Maroney (2004) points to five key factors to successfully
motivate employees:
Satisfaction, Appreciation,
Recognition, Inspiration and Compensation.
By Satisfaction we understand that any employment can cause
an employee to be satisfied or dissatisfied with their commitments,
relationship and association with an employer or organisation. The value that
the employer presents or bestows to the worker is relative to the thoughts and
state of mind of the worker. Valuable talent is treated with respect and
sustainable monetary and psychological compensation in order for the
organisation to capitalize on its human resources of capital. City Lodge strive
to satisfy their employees in exchange for dedicated work, capitalizing on low
staff turn over and scoring high on staff equity.
To feel appreciated is a morale boosting and productivity
increasing state of mind. Workers who
feel appreciated are likely to appreciate their organisation in turn boosting
productivity, growth and sustainability. Strengthening the company brand
identity.
Rewards could be intrinsic or extrinsic. Intrinsic rewards
are the feelings of the worker such as satisfaction and feeling recognized,
while extrinsic are the salaries and bonuses or opportunities to ownership of
the organisation. City Lodge sees the importance of intrinsic and extrinsic
rewarding.
Recognition strengthens relationships boosting trust between
recipients. City Lodge looks for opportunities to celebrate recognition of
their staff’s achievements: “the company celebrates employee achievements
through Long Service Awards, Gotcha Awards…and a number of awards that are
presented on the awards evening” (Mancosa 2012:39) Recognition is a good
example of non-monetary ways to stimulate staff morale and productivity.
The company can inspire its staff in order to strengthen the
bond. For example City Lodge takes a leading
role in employment equity and their value proposition to their staff. People
are inspired to associate with City Lodge and their staff stays inspired, since
they are aware of the employment challenges in the industry such as high staff
turnover and diminutive value propositions and remuneration.
Although monetary
compensation has been pointed out to be one of many ways for the organisation
to attract and keep talent, the importance of a fair, equitable and market
leading salary cannot be underestimated.
People use money to pay for living expenses, housing, transport,
schooling and holidays.
City Lodge’s share ownership scheme enables staff to become shareholders
as it strives to be at the helm of employment equity, talent management,
development and retention. Although stock options have recently become a
popular way of a responsible business, Noe et al (2010) note “the Golden age of
stock options may be coming to an end”. This is because of economical
fluctuations and in some cases people need cash, not stock especially if the
stock is not valuable or obviously favorable to the employee.
In the South African context it is imperative that the
leading organisation assist previously disadvantaged groups through development
and equity. This cements the place South Africa holds on the continent and
worldwide as a leader in innovative Talent and Human Capital Management and
Development.
City Lodge contributes and nurtures the labor market through
transformation strategy, Black Economic Empowerment, skills development and a
social investment program.
Benefits are integrated into the employee value offering,
“Remuneration packages include a thirteenth cheque...generous leave…maternity
leave and study leave (as well as assistance)…pension and provident fund,
medical aid…” Although it is interesting to note that “Secondary Benefits and Working
Conditions “
is the only area
where City lodge gets only three stars form Best Employers. There may be some
work ahead for the HR dedicated director.
Organizations in the Southern African hospitality industry
can learn from City Lodges committed investment in their Human Capital and
Human Resources. Their staff follows suit with attitudes of ownership,
responsibility and self-improvement, believing in their organisation and
becoming long time employees in an industry that needs exactly that.
Question 3
Discuss the recruitment policy of City Lodge that is making
them an attractive employer to the Labour Market.
City Lodge is attractive to the Labour Market with it’s
motto: “People caring for People”, and also the more recent: “I’m kind” These
mottos typify the relationship the group foster with its staff (and clients) If
City Lodge cares for their staff and are kind to them, that is very attractive
to the Labour Market.
“The Group considers its
people to be its greatest asset;…many team members have remained with the group
throughout its 25 years of existence” (Mancosa 2012)
City Lodge’s recruitment policy aims to select and place staff
that embodies their care for each other, the organisation and its clients. The
Recruitment policy makes it easy for the company to reach candidates that fit
their need of people with specific characters and ambitions, both inside and
outside the company.
Recruiting candidates who invest in themselves, and care for
their employing brand, the policy is in line with legal requirements that
provide equal opportunity to all, and specifically people from previously
disadvantaged groups. In the South African context, this is imperative to the
Recruitment policy of all organisations.
The policy is to advertise opportunities internally and externally,
and in line with development of individuals into the “family”, they seek to
recruit candidates who are likely to stay with the group for many years,
improving their experience, skills and qualifications, and in line with company culture that
develops careers.
Service and
hospitality organisations require a variety of staff at different skills and
experience levels in a variety of fields. The Recruitment Policy and strategy
provides the company with the necessary people filling the particular roles in
the functioning of the organisation.
Today’s competitive Hotel and Tourism industry demands a
well-defined recruitment policy timely providing quality human resources.
City Lodge boast their career development and seem to
provide unique opportunities to suitable individuals that has the groups
priorities of taking care and being kind at heart. This is a culture where
individuals from diverse backgrounds and qualifications may live out their
ambition and make the contributions necessary to see their organisation
succeed. One specific management
position is dedicated to “…Orientation and Management Development that oversees
the recruitment, on-boarding, development, progression and retention…” (Mancosa
2012) This shows that City Lodge spends resources in building up a recruitment
policy and strategy that can provide them with necessary leadership in this
demanding industry and field. By the time such leadership positions arise,
blooming candidates are developed and prepared in the company development
program, ready to become managers.
Although staff growth have stabilized in the last year “Total number of employees of
1 530, compared with 1 555 in 2010…”(City Lodge Annual Report 2011) Gabriel
Mothiba says: “Over the last decade or so we have witnessed a
spectacular growth of the sector. It is
generally accepted that the hospitality sector is one of the fastest growing
sectors of the economy” The same report indicates that 7.6% of National
employment is covered by the sector taking care of over one million jobs.
The sector is
growing strongly, and although South Africa faces a skills shortage, the
hospitality sector demands mostly unskilled labor. In the bigger scheme anyone
can therefore start up a hospitality venture in South Africa but it takes
initiative and corporate responsibility to establish a successful sustainable
organisation that thrives on it’s human capital. It is in the training,
development and trust of their work force that City Lodge is rewarded with
growth and success. While some companies may follow a route of utilizing
affordable labor to penetrate the hospitality sector, the secret is to invest
in the workforce and develop it into the organisation’s care- taking force of
the future. This is the most attractive City Lodge characteristic to the labor
Market: they recruit, employ and compensate talent, utilizing their human
capital to grow business sustainably.
City Lodge is
cemented as a modern responsible hospitality brand with thousands of employees
in the family. Acknowledging the
importance of transformation and social responsibility; re -investing in the
communities they source talent from; and growing by educating and developing
the skills and qualifications of their staff.
Marcel Kobilski
Human Resources Director says:
“ … we hope that in time we can use
this to draw a correlation between the development of our employees and our
profits” (Investors in People South
Africa 2009)
Evaluate the extent of strategic integration of the human
resource management function at City Lodge within its own policy areas and the
integration of employees with the goals of the organization and its future.
Van der Westhuizen
highlights five broad guidelines stipulated as ideal Recruitment policy and
procedures for public sector companies. These guidelines are highlighted in
italics in the following text (Van der Westhuizen 2011: p206):
Secure a pool of acceptable candidates for vacancies
With a culture of career development for entrants in the
company, City Lodge should find managers and leaders in it’s own ranks. This
pro- active and bold talent development saves costs in finding experienced
leadership, in that it coaches and grows it’s own leaders.
“Thirty percent of labor in the hospitality sector is
classified as unskilled. While there has been a steady increase in the number
of employees in this sector, general workers dominate the industry by 72%. Most
of the employment opportunities remain labor intensive.” (Mothiba 2010: p11)
The bulk of service industry employees start in
quasi-skilled jobs as cleaners, porters and assistants. An effective way of scouting potential is to measure
how candidates meet the demands and challenges in their work. Talented
beginners are channeled into training, coaching and studying, assisted to
qualify in their own right and also in the work force of the organisation.
Ideally this provides City Lodge with economic, fresh and young talent from
within it’s own ranks.
In City Lodge’s transparency, equity and responsible
practice claims they should also state this aggressive growth of the particular
sector partly responsible for creating the opportunity for their Human Resources
function to thrive. Today Human Resources are more challenging to manage in a
gold mine that in a Southern African Hotel.
Ensure all recruitment efforts establish a positive image for the
institution
Recruiting staff markets the organisation to potential
employees, giving the potential candidates an idea of their intended duties and
roles in the organisation. Compensation and the role the organisation can play
in their lives is discussed and explained. City
Lodge’s “people caring for people” (Mancosa 2012: p40) advertise to potential
employees to join a family and not just a job.
The challenge for the recruitment function is to treat all
applicants fairly and equally, filling its human resources needs and leaving both
successful and unsuccessful applicants with a positive image of the experience.
Miss Linda Mare, Human Resources Manager of Nature
Conservation Corporation in Cape Town stipulates in her Policy: “unsuccessful
candidates will be given feedback from HR”
Recruitment Activities are efficient and cost effective
The expense of finding people for specific jobs can be much
more than meet the eye. The company employs or contracts Human Resource
professionals to perform the tasks efficiently and economically. Within an
aggressive growth sector organisation, more and more hands are needed since
expansion requires more Human Resources. Resources are spent on a function that
is critical and part of the growth of the company.
Low staff turnover is the reward to sustainable, efficient
and cost effective recruitment. The better staff are selected, recruited and
induced, the longer they stay with the organisation and develop themselves
under the umbrella of the employer. Efficient recruitment chooses talent that
is dedicated, faithful and productive.
The Recruitment process is fair and equitable
Fair recruitment exposes a broad range of applicants from
diverse backgrounds and demographics to a possible position within City Lodge.
This ensures that minority groups are invited, welcomed and fostered by the
organisation. There can be no discrimination other than legally required
affirmative action.
Equity brings equal opportunity to all regardless of
culture, sex and orientation. City Lodge boasts a female Manager of Orientation
and Management development. (Mancosa, 2012: p38)
Linda Mare at NCC stipulates in their Recruitment Policy:
“In particular it is recorded that no person may unfairly discriminate,
directly or indirectly, against an employee on one or more grounds, including
race, gender, sex, pregnancy, marital status, family responsibility, ethical or
social origin, colour, sexual orientation, age, disability, religion, HIV
status, conscience, belief, political opinion, culture, language and birth.”
(Mare, L: 2011)
Enable the Institution to attract those potential employees who have
the necessary knowledge, skills, and competencies relevant to the requirements
of the post
“Tourism has
become the lifeblood of the South African economy and has injected R350-billion
in foreign direct spending since 2003” (Mothiba 2010: p10)
This sector’s
formidable growth has set the stage for a doer of the right thing in Human
Resources. While some players have assisted the industry in becoming known for
it’s shortcomings in career development, City Lodge has done the right thing
and used this growth to nurture an effective, efficient, sustainable and ground
breaking Human Resources function. The rewards are huge, and evident in the
role it plays as the benchmark it sets in the industry. Current growth beyond
the borders of South Africa indicates the success of the organizations Human
Resources and in the marketplace at large.
Human Resources align and integrate with top management
functions of the modern successful sustainable organisation around the
boardroom table. It is refreshing that City Lode invests a Divisional Director
position to their Human Resources (Marcel Kobilski) as well as a Management
position for Orientation and Management Development functions (Maxine Muir)
These professional’s roles include finding, sourcing, recruiting, inducing,
managing, growing and inspiring the workers, leaders and directors of their
organisation, the intellectual capital of City Lodge.
Conclusion:
The function of Human Resources management has grown and
evolved from an administrative function attempting to manage, control and
direct staff into the provider of human intellectual ability, all the talent
and skills required to start and grow a successful sustainable organisation.
The HR Director and Manager dedicate their time and
strategically prepare and plan the work force, the human resources, the skills
and talent, the intellectual capital of the enterprise.
As a responsible corporate citizen, City Lodge strategically
aligns their Human Resources functions to the laws of the country. Providing
equal and equitable opportunities to all.
“…Finding innovative communication channels” (Mancosa 2012)
shows their serious attitude towards keeping all staff involved and close to
the strategies, policies and goals of the organisation. Internal communication
is boosted through online resources such as a planned Intranet called “CityPedia”
and the information website: “GetAbstract”
Regular meetings between head office and managers ensure
strategic alignment with all hotels. A horizontal structure of communication in
an organization brings it closer to integrated strategic policy through the
whole organization. In this case of City Lodge, the dedicated director and
manager ensures effective communication and interaction between the
organisation and all of its leaders and staff. Brand days and an annual
conference is used to “discuss issues and trends affecting their brand”
(Mancosa 2012: p 40)
Communication channels between all structures in the
organisation should be secured, nurtured, reinvented and stimulated to grow.
Company Goals should trickle down into the goals of units or
hotels / lodges and in turn down into the goals, objectives and Key Performance
Indicators of individuals.
Key Performance Indicators are used to clarify goals and
objectives and measures progress towards company goals into the future.
Policy clarifies and sets guidelines or “rules” to all
employees to understand processes and promote transparency. This stimulates the
synchronization of the individual’s goals, with that of the organisation.
References
Best Employers South Africa (2012) Identifying Best
Employers since 1991.[Online] Available: http://www.bestemployers.co.za/BESTEmployers/BestEmployers20112012/C/tabid/5678/C/707/CityLodgeGroup.aspx
Accessed [3 February 2012]
Boninelli,
I. and Meyer, T. (2011) Human Capital Trends. Randburg: Knowres
Publishing
City lodge Annual Report (2011) Integrated Report 2011.
Available: https://www.citylodge.co.za/annual_reports/annual_report2011.pdf
[Online]Accessed: [5 February 2012]
Collins: Paperback Dictionary. 6th
Edition. 2009.Glasgow: HarperCollins Publishers
eHow.com(2012): What Is a Percentile Salary? [Online]
Available (http://www.ehow.com/info_10032733_percentile-salary.html#ixzz1lGOzhrjc
Accessed [1 February 2012]
Gregory, J.L. (2011) HR Metrics. Randburg: Knowres
Publishing
Investors in People South Africa (2009) City Lodge
Achieves Recognition [Online] http://www.iipsa.co.za/manageContent.aspx?object.id=40792¶m.1=¶m.2=¶m.3=&art.c=53593
Accessed: [8February 2012]
Mancosa (2012) Course and Assignment Handbook MBA year 1.
Management College of Southern Africa
Mare, L (2011) Nature Conservation Corporation’s Recruitment
Policy in a letter to the Researcher.
Maroney, J.P. (2004) Employee
Motivation - The 5 Master Keys
for Success. [Online]
Available (http://www.jpmaroney.com/Free-Articles/employee-motivation.htm)
Accessed:[2 February 2012]
Mothiba, Gabriel (2010)
Report by Employment Conditions
Commission on Hospitality 2010 [Online]
Available:
http://www.labour.gov.za/contacts/statutory-bodies/HOSPITALITY%20%20REPORT%202010%20FINAL.doc/view?searchterm=hospitality
Accessed [4 February 2011]
Noe, R.A.,
Hollenbeck, J.R., Gerhart,B. and Wright, P.M. (2010) Human Resource
Management: Gaining a Competitive Advantage 6th Ed. Mcgraw-Hill
UCT (2011) Writing the report / assignment: Harvard
Referencing Style [Online]Available (http://www.lib.uct.ac.za
/infolit/harvard26.html) Accessed: [1Febraury 2012]
Van Der Westhuizen, E. and Wessels, J. 2011 (eds.) 2011. South
African Human Resource Management for the Public Sector. Cape Town:
Jutta
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