CASE STUDY-1

The Hotel Arurs competitive strategy is to use superior guest services to

differentiate itself, and to thereby increase the length of stay and return rate of
guests, and thus boost revenues and profitability. HR Manager Lisa Crue has
formulated functional policies and activities that support this competitive strategy
by eliciting the required employee behavior while working on competency model
and also intends to do internal hiring through selective selection.

However recently while reviewing periodically HR performance, she has come to

know that organizational effectiveness and productivity is not up the required
standards. She got to know about several guest’s complaint regarding unethical
behavior of staff at several places ranging from uncooperative behavior at
reception, stealing of valuables from rooms, guest abuse and unpleasant smell
from laundry. In order to resolve such issues she explored and found out that
hospitality manager, Stephen has already dealt with few issues and dismissed
ten housekeeping staff on guests complaints to set an example for others not to
indulge in such issues as he considers that in order to firing greater revenue
Azure, customer satisfaction is the key. And he also asked the existing
housekeeping to work a little extra in lieu of those terminated staff. Moreover,
one pregnant woman had been terminated once she refused to do overtime.
Furthermore, five staff members had been suspended for two days without pay
because they came two minutes late after the allocated fifteen minutes lunch
time. In addition to al this, one long term and well trusted employee of Azure,
Meltisa approached Lisa and informed about grievance prevailing among other
employees over unfair dismissal, low wage, unethical and rude behavior of
immediate bosses while having no accountability at their ends. She also informed
that employees are planning to unionize themselves.
Q1. While analyzing the functional policies, identify which HR strategy Lisa
made to create a strategic fit with its competitive strategy and why it could
have been considered the best fit?

Lisa set the competitive strategy is to use superior guest services to differentiate
it which will increase the length of stay and return rate of guests, and thus boost
revenues and profitability. Therefore, it could have been the best fit.

Q2. Which approach of ethical decision making has applied by Stephen

while dismissing housekeeping and how did you come to know about it?

● Stephen used Utilitarian approach.

● Which says moral behaviors should produce the greatest good for the
greatest number.
● A decision maker is expected to consider the effect of each decision
alternative on all parties and select the one that optimizes the benefits for
the greater number of people.
● Stephen dismissed the housekeeping staff on customers complaints as
customer satisfaction is the key of their business. If, it continues to happen
in future then they might have lost their customers. Therefore, to set an
example for others, he dismissed housekeeping staff.
● Further, when you set example for others, it indicates that you have used
utilitarian approach of decision making.

Q3. Which theoretical approach you would recommend Lisa would apply to deal
with such problem?

Q4. Which dimensions of Ulrich Model of HR, Lisa would apply to deal with such
problem?
Q5. Advise Lisa six steps required to be taken to conduct termination
interview.

• Get to the point.

• Describe the situation.

• Listen.

• Review all elements of the severance package.

• Identify the next step.

• Outplacement Counseling