HR Talent Management Business Report Case Study: Pea

HR Talent Management Written Business Report Case Study: Peak Hotel is a

Analyze three key workforce issues faced by Peak Hotel, a small 4-star hotel in Scotland, and provide evidence-based recommendations to enhance team cohesion and operational profitability.

Paper For Above instruction

Peak Hotel, a family-owned 4-star establishment located in Fort William, Scotland, has been a significant player in the local hospitality industry since its inception in 1998. With its 60 rooms catering predominantly to families with children, the hotel has carved out a niche for offering specialized amenities like swimming pools, cinemas, and childcare facilities. Despite consistent profitability, recent economic challenges, coupled with internal management issues, have jeopardized its stability and future growth. This paper critically analyzes three primary workforce challenges confronting Peak Hotel: declining staff morale and trust, high employee turnover, and inadequate staff training and development. Based on current research and best practices in human resource management, targeted suggestions are made to ameliorate these issues, fostering a cohesive work environment and improving overall organizational performance.

Introduction

In the competitive hospitality sector, effective management of human resources is vital for sustaining service excellence and operational efficiency. Peak Hotel's current difficulties exemplify common HR challenges faced by small to medium-sized establishments, particularly during adverse economic periods. Addressing staff-related issues through strategic HR interventions can serve as a catalyst for restoring morale, reducing turnover, and enhancing guest satisfaction, thereby bolstering profitability.

Issue 1: Declining Staff Morale and Trust

One of the most pressing issues at Peak Hotel is the noticeable decline in employee morale and trust. The recent decision to suspend pay raises and reduce the training budget, along with the replacement of experienced staff with less qualified personnel, has contributed to feelings of insecurity and diminished engagement among employees. Moreover, the managerial approach—particularly the Assistant Manager’s emphasis on authoritative decision-making and neglect of employee consultation—has further exacerbated mistrust and resentment. These dynamics adversely impact service quality, evident from negative guest feedback and increased absence rates.

Research indicates that employee engagement and trust are crucial for service-oriented organizations. According to Harter, Schmidt, and Hayes (2002), engaged employees are more committed, productive, and customer-focused. Conversely, a lack of trust can lead to disengagement, poor service delivery, and ultimately, customer dissatisfaction (Saks, 2006). In Peak Hotel’s context, the erosion of trust is evident in the rising absenteeism and the departure of high-performing staff.

Issue 2: High Employee Turnover and Loss of Experienced Staff

The resignation of high-performing employees and the difficulty in retaining skilled staff signals a critical retention problem. The staffing strategy—emphasizing cost savings over quality of service—has led to increased reliance on inexperienced personnel, which jeopardizes the hotel’s reputation for excellent customer service. The absence of formal onboarding and development programs diminishes staff competence and confidence, fueling higher turnover rates (Kraimer et al., 2011). The loss of institutional knowledge hampers operational efficiency and guest experience consistency.

Turnover theories, such as the unfolding model (Lee & Mitchell, 1994), suggest that job dissatisfaction, lack of growth opportunities, and perceived organizational injustice propel employees to leave. The current HR approaches at Peak Hotel, characterized by cost-driven decisions and limited development, align with these disengagement drivers, making turnover almost inevitable if unaddressed.

Issue 3: Inadequate Staff Training and Development

Another significant challenge is the hotel’s minimal investment in staff training and professional development. The manager’s belief in “learning by doing” as the sole training method fails to acknowledge the importance of structured learning processes critical in hospitality service excellence. This approach results in variability in service quality, as evidenced by guest complaints about disinterested staff and slow check-in processes. Moreover, in the hospitality industry, ongoing training is linked to enhanced skills, adaptability, and employee satisfaction (Baum, 2015).

According to the International Labour Organization (ILO, 2020), continuous learning opportunities contribute to increased employee competence, motivation, and retention—all vital for maintaining high service standards in hospitality businesses.

Theoretical Justification

1. Addressing Morale and Trust through Engagement Theories

Theories such as the Social Exchange Theory (Blau, 1964) emphasize the reciprocal nature of employer-employee relationships; trust and mutual respect are foundational. Implementing participative management practices can rebuild trust, as suggested by Lewin’s Change Management Model (Lewin, 1947), emphasizing involvement and communication. Empirical studies (Saks, 2006; Kim & Mauborgne, 2003) demonstrate that employee engagement initiatives, including recognition and transparent communication, positively impact morale and service quality.

2. Reducing Turnover through Motivation and Justice Theories

Herzberg’s Motivation-Hygiene Theory (Herzberg, 1959) underscores the importance of intrinsic motivators like recognition, achievement, and growth opportunities. Ensuring fair treatment through organizational justice (Folger & Konovsky, 1989) can decrease turnover intentions. The concept of psychological contract (Rousseau, 1995) also highlights the importance of fulfilling mutual expectations, such as career development and acknowledgement, to retain staff.

3. Enhancing Training and Development through Learning Theories

Experiential learning theory (Kolb, 1984) supports the notion that structured training combined with practical experience fosters skill mastery. Implementing formal onboarding, continuous development programs, and multicultural training can improve service delivery (Baum, 2015). Technology-enabled learning platforms are especially relevant for small hotels aiming to upscale their training practices cost-effectively (Guskov et al., 2020).

Recommendations for Improvement

To mitigate these issues, Peak Hotel should adopt a multi-faceted HR strategy emphasizing participative management, comprehensive training, and fair reward systems.

1. Implement Participative Management Practices: Engage staff in decision-making processes, particularly regarding operational changes and development initiatives. Regular staff meetings, surveys, and suggestion schemes can rebuild trust and demonstrate management’s commitment to employee well-being. This aligns with the principles of transformational leadership, which fosters motivation and commitment (Bass & Avolio, 1995).
2. Revise Reward and Recognition Systems: Reinstate the employee loyalty bonus and introduce non-monetary recognition programs to reinforce positive behaviors and performance. According to Deci and Ryan’s Self-Determination Theory (1985), recognition enhances intrinsic motivation, leading to better performance and job satisfaction.
3. Develop Formal Training and Career Development Programs: Allocate a realistic budget for staff training, focusing on customer service, operational procedures, and leadership development. Partnering with industry training providers such as the Chartered Institute of Personnel and Development (CIPD) or local hospitality colleges can provide cost-effective learning pathways. Formal onboarding and continuous learning initiatives have been linked to higher retention and improved service quality (Guskov et al., 2020).
4. Enhance Internal Communication and Transparency: Establish open channels for communication to keep employees informed about organizational changes and future plans. Transparent communication fosters trust, reduces anxiety, and promotes a sense of organizational justice (Kim & Mauborgne, 2003).
5. Promote a Culture of Employee Involvement and Recognition: Recognize employee achievements publicly, encourage team-building activities, and solicit feedback regularly. Positive workplace culture contributes significantly to staff retention and guest satisfaction (Harter et al., 2002).

These strategies, grounded in contemporary HR theory and industry best practices, can restore employee morale and reduce turnover, resulting in a more cohesive team capable of delivering high-quality guest experiences.

Conclusion

Peak Hotel’s challenges reflect broader HR management issues that impact organizational performance and guest satisfaction. By adopting participative management, enhancing training, and fostering a transparent and recognition-driven culture, the hotel can address employee dissatisfaction and turnover. Implementing these evidence-based strategies will not only improve staff morale but also bolster operational efficiency and customer loyalty, ultimately strengthening the hotel’s competitive position in the market.

References

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• Folger, R., & Konovsky, M. A. (1989). Effects of procedural and distributive justice on reactions to pay raise decisions. Academy of Management Journal, 32(1), 115-130.
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• Harter, J. K., Schmidt, F. L., & Hayes, T. L. (2002). Business-unit-level relationship between employee satisfaction, employee engagement, and business outcomes: A meta-analysis. Journal of Applied Psychology, 87(2), 268–279.
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