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The Wilton Hotel has decided to change its business strategy and upgrade from a 3 star hotel to a 5 star luxury resort - VCE - SSCE Business Management - Question 3 - 2009 - Paper 1
Question 3
The Wilton Hotel has decided to change its business strategy and upgrade from a 3 star hotel to a 5 star luxury resort. Ms. Zheng, the proprietor, realises that the ... show full transcript
Worked Solution & Example Answer:The Wilton Hotel has decided to change its business strategy and upgrade from a 3 star hotel to a 5 star luxury resort - VCE - SSCE Business Management - Question 3 - 2009 - Paper 1
Step 1
Discuss two ways this change in business strategy will affect the way in which the human resource department selects new staff.
Answer
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Job Analysis: To select staff appropriately, Ms. Zheng needs to perform a job analysis. This involves collecting information about the tasks required for effective job performance, such as the necessary skills and experience. This ensures that job descriptions reflect the requirements for the new roles, allowing the selection of candidates who meet the upgraded standards expected in a 5-star environment.
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Recruitment Methods: The human resource department may implement more rigorous recruitment methods to attract candidates who are particularly suited to the enhanced service standards. Applicants might be subjected to situations where they must respond to challenging customer interactions, ensuring that they are well-prepared for the expectations of a 5-star hotel.
Step 2
Explain a relevant motivational theory. Discuss how it might assist the human resource manager to motivate staff to improve their level of performance.
Answer
Abraham Maslow’s hierarchy of needs is a motivational theory that outlines five levels of human needs. Starting from physiological needs, it progresses through safety, social, esteem, and finally self-actualization. To motivate the staff effectively, the human resource manager can ensure that lower-level needs are met first. For instance, providing a safe working environment and adequate job security will help fulfill these basic needs. As employees feel more secure and valued, they will be motivated to pursue higher-level needs such as social interaction and esteem, ultimately enhancing their performance.
Step 3
Describe one driving force and one restraining force for change that Ms Zheng may have considered before adopting this business strategy.
Answer
i. Driving Force: A driving force for change is the increasing demand for higher quality service in the hospitality industry. This trend necessitates that the Wilton Hotel upgrades its offerings to attract more discerning customers and gain a competitive edge in the luxury market.
ii. Restraining Force: A restraining force could be the resistance from existing staff who may be uncomfortable with the new standards and expectations for performance. Some employees might fear that they cannot meet the elevated requirements of a 5-star service, which could lead to anxiety and reduced morale.
Step 4
Select and describe a change management theory. Discuss how this theory would assist Ms Zheng in implementing this business strategy.
Answer
Kotter's eight-step change theory can be instrumental in implementing this business strategy. The steps begin with establishing a sense of urgency regarding the need for change, which in this case involves informing staff about the competitive advantages of moving to a 5-star luxury service. Following this, Ms. Zheng should create a guiding coalition to drive the change, joined by key staff who are committed to the new vision. This structured approach will ensure that all employees are aware of the changes and actively involved in the transition, thus facilitating a smoother implementation of the new business strategy.