The HRM Strategies for the Reardon Hotel in Spain - Essay Example

THE MNCS AND THE HRM STRATEGIES FOR THE REARDON HOTEL IN SPAIN Introduction The multinational companies (MNCs) play a central part in the contemporary economy especially when looking at the businesses with international and national perspectives. For instance, Kostova et al (2008) described MNC as ‘emerging global class of organizations’ (p. 996) because of their capabilities in forming an intra-organizational field. Further, Edwards and Walsh (2008) ascertained that these perspectives enable the concerned companies to impact their cultural practices in the country that hosts their business. Organizations that seek to rollout branches across the globe need to understand the challenges that may hinder their success. One approach is to ensure they understand the cultural, organizational, and national framework to ensure the personnel tasked with the duties of implementing such strategies understands the expectations and the context of the business. Reardon’s Hotels is one of the United Kingdom companies in the hotel industry embracing the concept of MNCs. The hotel has seven branches with it’s headquarter in Bristol. Edward Readson is the current Chief Executive Officer (CEO). The organization has an up-market accommodation as its strategic market position. The managerial style and the organizational culture is that of a father figure because it’s a family run business (Reardon’s family) but follows a standardization human resource policy. Their primary customer targets are the travelers. Given that, most MNCs have strategies that lure, attract, and retain the best staff, tailoring the reward scheme that is justified to, the position will play a critical role in building the institution (Marginson et al., 2010; Tony 2010). Therefore, the MNC plays a significant role in influencing change and the possible directions the organization is likely to take to ensure acceptance and profitable entry into various markets across the globe. Therefore, the case of Reardon Hotels is a good example in assessing the roles played by MNC in the context of HRM to ensure integration and differentiation within and between the national and international system of organization. The MNC approach, a case of Reardon Hotels There are several perspectives on literature that assessed the MNC by examining the differentiation and integration. The perspective associated with the fact that most MNCs have had a tendency of retaining their national goals and values (Doremus et al 1998), because they retain a much stronger link between their country of origin and the subsidiaries. However, some researchers have documented converging evidence that aimed at a dominant practice based on a US model (Pudelko et al 2007; Pudelko and Harzing 2007). The integration of MNCs in the international human resource strategy is seen as the best way to generate synergistic benefits for organizations with cross-border operations. In fact, if the MNC has a segmented configuration that involve the local operations in the United Kingdom taking a management role while the national operations in the Spain ensure supply of services in terms of employees, the approach will give return to the business. Ensuring proper linkages between the chains is likely to create a scope of synergy that assumes a vertical integration. The best selection of MNC approach for Reardon Hotels is to configure and replicate the Human resource management practices and strategies in the Spain to simulate those happening in the UK by replicating its standardization approach. The approach ensures that local operations, national, and international operations adopts and perform similar functions. These also ensure there is a comparable occupational profiles and technological investment between the different systems at local and national markets as earlier reported by Ivarsson and Alvstam (2005). The method creates a potential for synergy hence called horizontal integration (Gupta and Govindarajan 1991). The horizontal form of integration will give the Reardon Hotels a leveraging advantage in the Spanish market because approach will empower the employees to have better remunerations (occupational profile) and technological means to offer superior services. Besides, the employees will be highly motivated and captivated in their chores. The motivation of workers and excellent working environment translates makes employees dedicate their efforts to their chore. Main reasons why Reardon Hotels choose to internationalize MNC Although there are many similarities between the Spanish market and the UK, there are some differences, which signify the need to internalize MNCs. The UK is characterized with a single channel representation, while the Spanish tend to take a coordinated economic approach. Human resource policies and other practices related to the management of personnel are essential factors because they are the mechanisms that controls and coordinates the local and international operations. Previous studies argue that values from the human resource practice and policies are a key component in the process that shapes cultural values of the people (Perez-Nordtvedt et al. 2008; Edwards et al., 2007). Therefore, internalization of MNC is a noble approach when attempting to transfer HRM strategies abroad. For that reason, Reardon Hotel chose to internalize MNC to make it easy for the organizations during the implementation of global strategy (Marginson et al., 2010; Tony 2010). Issues of HRM are normally seen as impediment when MNC attempt the implementation of global strategies. The main challenge attributed to these issues relates to the complexities experienced when managing personnel, employing the staffs who originate from diverse cultural and national backgrounds hence the need to adopt and use methods that ensures success (Minbaeva, 2007; Pudelko et al., 2007). Internalization of MNC by the Reardon Hotel ensures that the hotel incorporates the global, ethnocentric, multi-domestic, and transnational perspectives into its operations. Besides, it will assist the hotel to adapt to the new setting and export relevant strategies from the UK to the Spain Figure 1: the context that defines human resource function in a multinational setting Internal recruitment of managers The choice by the management of Reardon Hotel to recruit the manager from its employees among those in the current ranks of managers based in the UK is a noble approach for the horizontal integration aspect of MNC. The process is appropriate because it will ensure that the professionalism and operation of the hotel are replicated and transferred to the new branch in the Spanish market. This is a noble perspective considering the fact that the top management is hoping to roll out other branches in Spain. Therefore, the internal recruitment process for the managers in the Reardon Hotel’s new branch in the Spanish market should take a more elaborate approach to ensure there is proper selection of individuals with the potential to ensure success in the new branch. Perhaps the best recruitment approach should take into account a more robust recruitment process by a recruitment agency with experience in the Spanish market. Such an approach will ensure a suitable candidate with the required perspective takes the lead in rolling out the vision of the institution and lays the ground for future branches and managers (Minbaeva, 2007). Starting from a positive point should lay a solid background for future prospects and growth of the branches and its subsidiaries. A person specification for hotel manager The person most suitable to get the job of a hotel manager in the newly created Reardon Hotel in Spain must have specifications of creativity and the potential to carry the branch a notch higher in order to set the precedence for the subsequent branches. The potential to innovate and implement solutions that creates value for the business is paramount. This does not come without the required experience and proper qualification. Although qualification plays a significant role in such consideration, it is important to note that previous experiences in the management process are essential in the selection criteria. For that reason, managers who have demonstrated creativity in their previous positions with the potential to innovate new ideals with the prospects of growth are very important. The manager must have the leadership capabilities, able to work with a team and instill work ethics to the group that works under the manager. The person should also have the potential to critical analysis of the work environment and identify key issues of importance for making management decisions (Marginson et al., 2010). In fact, critical analysis of the market and the potential to learn the trends in the new market while formulating appropriate managerial policies in-line with such changes is pivotal component of leadership for such a position that sets the precedence for future branches. Selection process for the hotel manager The selection process should be tailored to ensure the required personnel with the excellent skills and experience gets the position at Reardon Hotel in Spain. Tailoring means that the management would determine some of the most essential characteristics required for the position based on the location, the target market, and the cultural background. However, some of the traditional features of selection take into account the experience, level of training, the seniority, and the collective agreement from the senior management. Many MNC have introduced the selection process that involves support from the senior managers on the most appropriate personnel for such a position (Tony and Miao 2008). Selection also determines the compensation of the personnel. For instance, the level of payment is determined based on parameters like individual qualification, the remuneration regime of the company, the industry, and the national statistics (Minbaeva, 2007; Pudelko et al., 2007). When a manager is selected, these factors are taken into serious consideration in addition to previous achievements, performance, and the level of seniority. However, the other important segment for a successful selection process takes into account the method used in carrying out the practice. For instance, a panel interview process that involves constitution of a group of senior managers in the Reardon Hotel (UK). Inclusion of a representative from a consultant firm in the Spanish market may reflect a good model for a panel interview option. The panel interview should be the second phase of selection. The first stage of interview for the selection should consider using an aptitude test to narrow down to a limited number of personnel. The aptitude test approach may not give a true reflection of the best selection; therefore, panel interview compliments such a selection procedure. The last phase of screening in the selection process should consider using the competency-based interview (Caldwell, 2003). The last phase ensures that the right and competent personnel gets the opportunity to help the company grow. Training strategy for Hotel manager Implementation of global and international strategies in training is one of the issues that have been studied in literature based on the MNC perspective. Effective integration of strategies of human resource management as well as corporate strategies is possible if MNC adopt training strategies suitable for their organization (Tony and Miao 2008). The aspects of training relates to competent development in order to improve the human resource strategies. There are four aspects of competent development relating to training that Reardon Hotel could consider in their attempt to roll out the new branch in Spain. These are formal and informal learning, intercultural training, learning from a work related perspective, learning from the formal place with both national and international consideration (Marginson et al., 2010; Tony 2010). Reardon Hotel should consider using both formal and informal training as well as on-job training. The formal and informal training is appropriate to enable the manager get a general understanding the management issues that defines the tasks ahead. Besides, it gives the trainees opportunities to understand the requirement of the job and the expectations that comes with such a challenge. On the other hand the on-job training approach ensure they attain the most out of it, such a program ensures that the managers tailor their training to meet the customers’ expectations (Sparrow, 2007; Gupta and Govindarajan, 2000). Professional training is a key component for all the organizations aiming to advancing the skills of its employees. Employees’ skill development is essential for both their growth, development, and the growth of the organizations. Rationale for each of the strategies The selection of formal and informal form of training for the managers at the new branch of Reardon Hotel in Spain ensures that the team gets the required understanding between the job specification and the expectation of the market. Usually, when MNC are moving to a new cultural and management setting, the challenge is to get it right from the onset (Minbaeva, 2007; Pudelko et al., 2007). The assumption that most organizations have in their management team may reflect immense challenges hence the need to avoid making any assumptions. Formal and informal training is the best approach in ensuring the managers get the requirements for such a challenge without assuming they have the required knowledge in exercising their duties. Second, the use of on-job training is appropriate for all the employees in the facility to ensure they respond to the issues that affects the customers more directly. Different regions have diverse customer response and requirements, the best approach to ensure the customers and employees get the most out of the business is through the implementation of on-job training (Minbaeva, 2007; Caldwell, 2003). Training of employees at their place of work seeks to tailor their response to the national and cultural values of the customers. It tends to seek and understand the customers’ demands and expectation as opposed to a more general approach that may not take a specific route. The two strategies are appropriate to ensure all facets are taken into account and bring on board essential elements with strategic perspective. Reward strategy for the new positions Elements of Human resource are selection and training of the staff, training them and devising appropriate methods of compensation. MNC defines rewards as a form of providing either non-monetary or monetary reward to the employees. These include both the salaries, short and long-term incentives, benefits, and value to the employees. The best MNC strategy of rewarding the employees is through devising measures that attracts, retains the best staff, and offer motivational rewards that are sustainable (Caldwell, 2003). According to best practices for MNC, compensation and reward models are developed and administered at the main institution (Yadong 2005; Marginson et al., 2010). Therefore the hotel should adopt strategies that awards both at the national (UK) and the international (Spain). One of the reward strategies is to offer benefits that are based on the performance of the employee. The approach is likely to motivate all the employees to work hard and compete among themselves. The model will ensure that employees get rewards based on the personal contribution to the organization. Such rewards would be presented at the headquarters in the UK. The second approach is to encourage employee’s personal development through a reward on leave and education. Such reward will enable the employees to enhance their skills through taking up appropriate studies on recommendation from the organization. Justification for the selection of reward strategy Reward strategies play a significant role in motivating the employees. Motivated workforce has a better output than those without such strategies. Therefore, selection of a reward scheme that seeks to recognize employees with commendable contribution to the organization is a model that will encourage such employees to work hard and dedicate their efforts in attaining success and growth (Pudelko et al., 2007). Most employees would prefer an institution that recognizes their efforts and contribution to the firm. It sets the way for other employees to adapt a culture of hard work knowing their effort would not be in vain. However, most organizations lack gold standard strategies that identify such individuals, which make it difficult to identify the best personnel for such rewards. However, organizations that set targets for the departments and assigns individual goals and targets are likely to identify personnel with the potential to getting such recognition. The second selection that seeks to help employees in the capacity building is a double fold strategy because it not only assist the employees professional development but also improves their potential to offer efficient services to the customer hence giving back to the organization. Organizations should develop reward strategies that empower their employees and increase their professionalism through scholarships for short course and certificate training (Perez-Nordtvedt et al., 2008). The selection of this reward scheme is appropriate because it seeks to improve on service delivery hence essential for the development of the business as well as the development of the employees with the enthusiasm to acquire additional skills in their areas of specialties. Challenges of Reardon Hotel opening new hotel in Spain The challenges will come from various perspectives. When rolling out new businesses in an area with different cultural values and diverse customer expectations, the main challenge will involve learning how to address these issues and respond to the expectations of the customers. Learning such virtues may take time and that may translate to slow return because it will mean a stepwise approach to the issues that affects the customers the most. Since the location has been identified, with the geographical area and the language of most target customer well documented, the main challenge will involve recruitment of the local staff to help in most chores. Recruitment of personnel with the required competencies may vary because the market segment in the UK is different from those in the Spanish market. Understanding these variations and seeking appropriate strategies to tackle them may also play a significant role in attaining success for Reardon Hotel in line with models of MNC previously described in literature (Perez-Nordtvedt et al., 2008). Possible solutions Understanding the cultural values of the local people in Spain is the most appropriate strategy to find the underlying cause of the management issues that may jeopardize service deliver. However, that is may not be possible at first hand, because it will mean that the staff would need to begin learning virtues and values of the locals. The best strategic approach is to ensure the local staffs play a significant role in the implementation of the plan; this is possible through hiring a consultancy firm to assist in the recruitment of the staff from among the locals. 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