coalition

coalition
kirsten.keun@gmail.com

Monday, 02 April 2012

My HR assignment towards my MBA is due today. You can read and comment!




Human Resource Management Assignment





                                          
Surname
Keun

First Name/s
Johan Willem Kirsten

Student Number
116909

Module Name
Human Resource Management

Assignment Number
1

Examination Venue
CT

Date Submitted


Submission (√)

First Submission
Yes





Postal Address
NCC Environmental Services
Linda Mare
Po box 30223
Tokai
7966
7708

E-Mail
kirsten.keun@gmail.com


Contact Numbers
                                                                      (Work)
                                                                      (Home)
                                                                      (Cell) 0824140671

 

Course/Intake

 

MBA Year 1 - January 2012

Declaration: I hereby declare that the assignment submitted is an original piece of work produced by myself.



Signature: K. Keun

Date: 20 March 2012





































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)






 Question 4 
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


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&param.1=&param.2=&param.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:



 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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