The role of human resources department in international hotels in ho chi minh city

strengths and weaknesses in implementing the human resource activities such as recruitment and selection, training and development, performance evaluation and compensation, etc.. Chapter

" I

I" " I"

HCMe JUtY 2000

critical eye and suggested valuable guidance Mr Son Hong Duc,

I

I

Nguyen Thi Hong Nhung

love, care, and encourage me every step of the way

.advice

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According to the World Tourism Organization (WTO), countries like Hongkong, Taiwan,

Singapore and Vietnam are expected to receive an average annual tourism growth of7;6 per

cent up to the year 2010 This translates into more businesses as well as challenges to the

Vietnam hotel industry in general and particularly in HoChiMinh City

COMMENTS "\: •• 1

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strengths and weaknesses in implementing the human resource activities such as recruitment

and selection, training and development, performance evaluation and compensation, etc

convincing data and illustrations, to assist the readers in forming an overall judgmeritof '

nice format and a logical order, easy to understand

However, due to time limitation, this research could not cover all human resource aspects of

other international hotels, especially in another big cities such as Hanoi, Danang, etc And the research would be more interesting if it includes the analysis as well as comparison in terms

of human resource activities with some of State-run hotels of the same level

In short, this is a very good research, worth of reading and reference both in theory and in

practice It indicates a very serious effort and positive attitude of Student Hong Nhung in the

Forecasting business situation of the tourism and hotel industry

Front Office Department : , 9

Food and Beverage Department : 11

Engineering and Maintenance Department : 13

Sales and Marketing Department , : : 14 ,

Security Department : :15 ' Human Resources Department (HRD) 16

2.2.2.1 Determine HR demand of the hotel 21

2.2.2.2 Determine recruitment sources : ~ :21

2.2.2.3 Determine recruitment methods 24

2.3.2.1 The preliminary interview : ; 2 7

2.3.2.2 Review of applications and resumes : : 2 7

2.3.2.3 Types of employment tests ~ 30 .

2.4.3.2 Professional Training : ,.40

3.9.2 Weakness ofHR Management in Garden Plaza Parkroyal

CONCLUSION REFERENCES

expenditure affects a country's economic activities such as creating jobs for a largenumber of people working directly in the field of tourism or indirectly in other areas, the'

tourism is one of the new sectors with a high growth rate According to the World TourismOrganization (WTO) 's statistics, the incoming figure in international tourism for the year'

1996 was US$ 432 billion compared to that of 1950 which was US$ 2.1 billion There is an

increase is 4.5%

the industry has grown at a fairly rapid rate nearly 30-40% and attracted significant foreign

tourists coming into Vietnam is about 1.9 millions

Ho Chi Minh City (formerly SaiGon), once called the "Pearl of the Far East" by sea

number of international tourists was 871,077 in 1998 and 975,000 in 1999 with an increase of12% and total income was 3,090 billion Dongs in 1999

The hotel industry has quickly developed strongly in accordance with the tourism industry Tohotel investment, the supply has greatly increase and currently outstrips demand According

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dramatically in recent years The main objective of all international hotels is to expand their'

highest quality To support the objective that happy guests will come back, most of hotels are now equipped with state-of-the art facilities, the spacious and well- furnished rooms Sinceeach hotel has its own image and its own attraction, the staff is an important factor that cannot

be substituted People is the most precious resource for hotel business because all servicesprovided to guests are run, managed and performed by people - "people serve people" Hotel will only be successful with attentive, hospitable professional and courteous staff at alltime

Consequently, how do we attract skilled and effective employees for the hotel industry? How

we can to use the human resource effectively? These are the "raison d'etre" of Human

resources are managed and cared for in the best possible ways That is the major reason whythe subject of this research is "The role of Human Resources Department in internationalhotels in Ho Chi Minh City"

" 1 The objective of this research is to analyze the steps in human resource management in order'

"'J

industry

The focus of this research is on the principle and practice of recruitment, selection, training,'

Minh City

various hotels we try to point out suitable solutions for each subject of this research Thesesubjects will be solved more properly and convincingly

The scheme of this research is as follows:

Chapter 1: Introducing an overview of tourism and hotel industry in Vietnam, especially in

Ho Chi Minh City Simultaneously, introducing the typical organization and main divisions in

international hotels

Chapter 2: Analyzing, building strategic Human Resources planning, recruitment, selection,

training and development programs in order to establish the hotel's skilled staff

Chapter 3: Evaluating training and development strategies in some in international hotels in

Resources Department in the development of these hotels

, AN OVERVIEW OF TOURISM AND

HOTEL INDUSTRY IN' HCM CITY

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1.1 Overview of the present situation of tourism and hotel industry in HCM City

Tourism, the smokeless industry, is seen as important sector contributing to national income,

II

In the begin 1990s, Vietnam tourism industry enters a new stage under the "Doi Moi" policy

correspond to its potential is one of the important economic goals"

Robert Burns, chairman of the World Travel and Tourism Council (WTTC), stated "There are

no doubt that Vietnam will become one of the great travel destinations of the 2151 century and

we want to make sure that this is achieved to the benefit not only of international travelers butalso the Vietnamese "

would have significant potential for tourism development over the next 15 years

Mrs Vo Thi Thang, Head ofVNAT, said "Tourism development at present is not proportioned

•

compete with those of other countries in the region." (V NAT, 1998)

JI?to/le"1", /YIti :Jtir,? J17:(~

These figures include an estimate of the total number working in the private sector and in join

include an estimate of the employees working domestic tourism

In 1997, the Vietnam lodging industry had more than 3,000 hotels and 56,000 rooms in which

destinations, the recent rash of hotel development in HCM City has resulted in an over supply

the join-venture hotels have increased dramatically,in recent years Therefore, Mr Bui Xu an. .

necessary to encourage foreign investment in the hotel field, yet in the long run" In 1999,

The table 1.2 shows the join-venture hotels in HCM City today

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The Role of Human Resour.c.esDerartment in.lliternationa1.Hote1s in H~Gh} Minh Qitr

.Table 1.2: Join-venture hotels in HCM City

Notes: *Still not operate

period 2000-2005

The marketing campaign" Vietnam - The Destination for the New Millenium" is the National

Program of Action on Tourism and Tourist Events in 2000 all over the country that put forward

by the National Tourism Administration This program has enlisted the participation from, and

program is to attract more local and foreign tourists to visit all parts of our country

activities and events, which is started with the tourist festival under the theme of " Meeting the

Southern Land" at Dam Sen Cultural Park In support of the nation's overall effort to make the

country a center of the region for major events and activities, all international conferences and

seminars will be held in close association with tourist activities

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Tourist show is also the major activities of the National Program of Action on Tourism and

South This will be an opportunity for "no-tour" tourism to enjoy special characteristics ofvarious tourist regions and cultural festivals full of national character

contribute 9-10% GDP by 2000 and 20% GDP by 2010

Total income of whole this sector is 3,400 billions, increase 10% in comparing to the last year

The forecast on GDP index in tourism and other tourist-related branches to tourist business tothe year 2005 is illustrated in table 1.3

Table 1.3: Forecast on GDP index in tourism and other related branches to tourist business by

3 GDP proportion of tourism in national total GDP % 4.6 9.6 10.5

4 Total GDP of branches relating to tourism activities BiI.VND 13332 29190 81732

1212 2654 7430

5 GDP proportion of branches relating to tourism activities Mil USD 7.0 9.0 12.2

6 Total GDP of tourism and branches relating to tourism activities Bil.VND 22121 60544 151657

Mil USD 2011 5504 13787

7 GDP proportion of tourism and branches relating to tourism in national total % 11.6 18.6 22.7 GDP

8 GDP proportion of other services in national GDP (1) % 39-41 41-47 46-50

Source: ( 1): Forecasted statistics by State Planing Committee Olher forecasted statistic by [TDR '

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The Rote of Human Resourc.es Department in Internaiionii1Hotefs in Ho EhiMinh Citr

Table 1.4: Forecast on international tourist arrivals and income generated (year 2005)

-Average expense per visitor per day in 1998-2000 period: 100 USO -Average expense per visitor per day in 2000-2005 period: 103 USO

The business situation of the HCM City hotel system is increasing significantly as a result of

World 56%, Equatorial 50%, Caravelle 38%, etc (Dl;!Lich, 104,36)

The number of international. and domestic hotel rooms to the year 2005 can be seen in table.

Table 1.6: The number of domestic hotel rooms by the year 2005

Unit: Room

increase

Note: 4 beds per room

Table 1.7: Forecast on the tourism's labor force ih1995-2000 period

Estimated 1.2 direct employees per domestic standard room (VIE/89/003)

I direct employee corresponds with 2 indirect employees (PATA & VIE/89/003)

1.3 Structural organization of an international hotel

It is said that hotel like "a little society" with complex relationship between employees,departments and divisions For a hotel to ~un effectively and efficiently, every employee must

of cooperation both within and between their departments

department as revenue center and support center

• A revenue center sells goods or services to guests, thereby the main revenue for the hotel.

and Retail stores

Some international hotels use the terms "Front of house" and "Back of house" to classify hoteldepartments, divisions, and personnel

office, restaurants, and lounges

repairing and maintaining the hotel equipment, or correcting any error in a guest account

1.3.1 Main departments in an international hotel

All international hotels have many departments a~d divisions with different responsibilities

objectives A common way to represent the hotel structure is the organization chart, that is a

full-service property However, the organization chart can be flexible to fit the hotel's size and.requirements

Exhibit 1.1 Orgarnization Chart: Management Positions in a Large Hotel

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The Roteof HumanResourcesDiritrtm~ntin International ~otetsin HoChi Minh Cit¥

(from 60% to SO%total revenues in international hotels.)

General Manager

I

Assistant Manager

Agents

IP.A Cleaner I I

ILaundry I

I-Attendants Attendants

I

Exhibit 1.2 Organization Chart: Rooms Divisionin a Large Hotel

The Front Office, is the most visible department in a hotel and it is under the management ofRooms Division Most front desks are located in the hotel lobby Front Office persOnnel havemore contact with guests than staff in most other departments Guests come to the front desk to

c: register; receive room assignments; inquire about available services, facilities, the city or

surrounding area; and to check out Front desk personnel are the first and last persons to create

guest relations and sales program without the front desk

The main functions of the Front Office are to:

• Sell guestrooms, register guest, and assign guestrooms

• Coordinate guest services

events of interest to guest

• Maintain accurate'room status information

• Maintain guest accounts and monitor credit

• Produce guest account statements, and complete proper financial settlement

• Register guest with local police

The chart below illustrates the Front Office personnel organization in a mid- size hotel

Front OfficeManagerI

Switchboard, Front Office ConciergeReservations

Exhibit 1.3 Organization Chart: Front Office Personnel

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Job specification Front Office Personnel

Our property considers the following traits important for the successful performance of front office work

• Has a positive attitude toward the job and the hotel

• Recognizes positive and negative aspects of the job

• Possesses maturity in judgment

• Is sensitive to the guests' need

• Possesses a sense of humor • Responds and speaks intelligently

• Demonstrates creativity

• Practices good listening skills

• Willing and able to accept a different workshift if necessary

• Understands others' points of view

• Willing to try new ways of doing things; is not set in ways

• Works well with guests and hotel staff; is a team player

5 Well-groomed Appearance

• Dresses appropriately; meets property standards for wear and care of uniform

(Source: Managing Front Office Operations)

Exhibit 1.4: Job Specification of Front Office Positions

1.3.1.3 Food and Beverage (F&B) Department

and beverage department is generally second to the rooms division in terms of hotel revenues

Exhibit 1 4 illustrates organization chart of the food and beverage department

•

F&B Clerk F&B MANAGER

Banquet sales

Exhibit 1-5 Organization Chart of Food and Beverage Department

Possible outlets include quick service, table service, fine dining restaurants, coffee shops, bars,lounges, and clubs The food and beverage department also typically supports other functions.such as room service, catering, banquet planning, and banquet organization

opportunities for the food and beverage department

for the food and beverage department May be held inside hotel or at guest's home

1.3.1.4 Engineering and Maintenance Department

A hotel's engineering and maintenance department is responsible for maintaining a property'sstructure and electrical and mechanical equipment

rest with the front desk agent or Housekeeping secr~tary but should be written up and quickly

informed about maintenance problems that render a room unsuitable for sale

Secretary CumStockerAssistant Maintenance

Shift Engineer

Exhibit 1.6 Organization Chart: Maintenance and Engineering Personnel

1.3.1~5 Sales and Marketing Department

PR programs for the hotel to attract guests

The hotel's accounting department controls and monitor the financial activities of the property

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management

Exhibit 1.8 Organization Chart: Accounting Personnel

1.3.1.7 Security Department

All hotel employees must be concerned about the safety and security for hotel guests, visitors,

hours) to provide the best safety measures to all guests and all staff The security department's

positioning in Front and Back of House

checking all screens from CCTV system (Closed Circuit Television), fire hazards system, aswell as monitoring the staff entrance

• At the Front-of-house, the security staff's main focus is the hotel lobby This is the public

, fI«[j<3 15

required to be extremely alert, tactful, and vigilant, always watch for anyone and anythingsuspicious As well as CCTV system the associates assign to the guest floors.

While monitoring, the security staff must always be alert to recognize any potential hazardoussituations such as short-circuit, water and fuel leaking, blocked exits or fire extinguishers in

handling the security for VIP delegations

The HRD is apart of the support center Therefore, it does not generate direct revenue but it isalso an important department in the hotel staff management

operating is 2.5% of total hotel payroll or I % of total operating budget The General Managerand Human Resources Manager (HRM) have to discuss carefully to choose 2.5% or I %

Exhibit 1.9: A typical organization chart of HRD

The HRD's role is helping the hotel to reach its objectives in an advisory or assisting capacities '.

ensure an experienced and qualified staff to satisfy both the hotel and guests' needs

HR policies serve three major purposes:

• To assure employees that they will be treated fairly and objectively

• To help managers make rapid and consistent decisions

• To give managers the confidence to restore problems and defend their decisions'

Main functions of HRD are:

• Orientation! induction and socialization

However, because of the research scope, the next chapters just focus on some basic functions

of HRD such as recruitment, selection, training and development the hotel staff

CHAPTtRTWO

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2.1.1 Definition of Human Resource Planning (HRP)

HRP is the process of systematically reviewing human resource requirements to ensure that

the required number of employees, with the required skills, are available when they are

needed (Mondy, Noe, &Premeux, 1998, chap.S)

2.1.2 The strategic planning and implementation process

suitable strategies in the HRP process (Figure 2-1)

sources to provide services to a large number of guests Besides, the hotel should considerits alternatives carefully before engaging in recruitment Alternatives for most hotels to

workers

solution for short-term fluctuations in hotels Although with this method, the hotel benefits

by avoiding recruitment, selection or training cost and the employees will receive overtime

method also creates problems For example, the hotel pays more and receives less in return;

properly and accurately according to the standard Also, it is common happening that staff

Vietnam Labor Law

2.1.2.2 Employee leasing

popular because it helps to reduce the recruitment expense The total cost of a permanent

employees do not acquire enough necessary skills or training time for new jobs or positionsbecause they will be working in new conditions and environments

2.1.3 Forecasting HR requirements

A requirement forecast is an estimate of the numbers and kinds of employees the hotel will

requirements in cases such as maternity leave, retirement, leave without pay, etc to still

development are of the most necessary tools in HRP of a hotel because they not only ensurethat a qualified person is always available to assume a managerial position once the position

is vacant, but also develop a profile of types of individuals who can effectively manage the

considered for a future position, they are kept informed and encouraged to participate intheir development process

EXTERNAL ENVIRONMENT INTERNAL ENVIRONMENT

Forecasting Human Resource Requirements

Demand Supply

No Action

Surplus of Workers.

Restricted Hiring, Reduced Hours, Early Retirement, Layoff, Downsizing

Forecasting Human Resource Availability

Shortage of Workers

Recruitment is the process of attracting individuals on a timely basis, in sufficient numbers

and with appropriate qualifications, and encouraging them to apply for jobs with an.

organization (Mondy, Noe, &Premeux, 1998, chap.6)

r-2.2.2 Description of hotel staff recruitment process

Staff recruitment is not just an advertisement to attract candidates as there is a shortage ofhotel's staff, it is really a complicated process It begins from realizing hotel's staff demand

recruitment process to ensure that this process can be effectively implemented (Figure 2-2)

specifies job title, the number of employees needed for work, and other details With this

qualifications required from the candidates

external sources

• Internal recruiting sources:

Hotel managers frequently identify current employees who possess qualifications for filling

possessing required qualifications to apply for the posted job In addition, promotion fromwithin is also a policy of filling vacancies with current employees

EXTERNAL ENVIRONMENT INTERNAL ENVIRONMENT

Recruited Individuals

Figure 2-2: The Recruitment Process

improving moral or hotel loyalty by providing greater promotion opportunities or motivation

features such as forming the tendency to maintain the status quo - called "inbreeding",creating a homogenous staff or political infighting

encouraging policies

"

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• External recruiting sources:

outside sources The following needs require external recruitment: filling entry-level jobs, acquiring skills not possessed by current employees, and obtaining employees with different

*Direct application:

spec" applications HRD records these applications for future recruitment With this source,the hotels always have a number of available candidates in a short time with almost no cost

*From competitors:

experience is required, especially for the hotel industry because it does not take much time

to train these experienced candidates This method has become popular in recent years, but.also has some negative points such as creating tough competition or "brain drain" amonghotels

*Former employees:

This is also a very good source for external recruitment The candidates are very familiar

1"'::"'" -The Rote of Human ResCl

seeks re-employment with the hotel, a history check must be carried out by contacting Head

attempting to manipulate their pay scale through several job changes

*Tourism Colleges and Universities:

This is the major recruitment source for simple work or for part-time jobs in the hotel with

Moreover, they have acquired a basic knowledge in tourism as well as in hotel industry, andhence easy to be trained

*Employment agencies:

They help the hotel recruit qualified applicants who have to pass the preliminary interview

requirements in a short period of time

methods, and each hotel, depending on its own demand, can find the best method to apply

job's types in each hotel

*Employment agencies

The hotel's HRD can ask these agencies to provide qualified applicants according to openpositions These agencies certainly collect fees from the hotel or from both the hotel and theapplicants

*Other methods

the internships, the recommendations of current hotel staff, etc

• Receive all applications

• Investigate, analyze and record the applications

• Submit preliminary recruited candidates list

• Inform the applicants who do not meet the criteria

• Make initial screening and interview

• Introduce those who passed the screening to respective Department for final interview

Vietnam Labor Law, and international hotel practices

•

2.3 Selection

2.3.1 Definition of selection

Selection is the process of choosing from a group of applicants the individual best suited for a

particular position and an organization.(Mondy, Noe, &Premeux, 1998, chap.7)

2.3.2 Describe the hotel selection process

Figure 2-3 illustrates a generalization of the hotel selection process

EXTERNAL ENVIRONMENT

INTERNAL ENVIRONMENT

Review of Applications and Resumes

Reference and Background Checks

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Figure 2-3: The Selection Process

fl,Uffe 26'

2.3.2.1 The preliminary interview

The selection process often begins with a preliminary interview This is the first time theapplicants have an official contact with the hotel Therefore, hotel staff need to help them to

of future jobs, job requirements and the hotel At this stage, the interviewer asks questions

to clarify any unclear parts on the applications that are handed in to the HRD Following this.stage, the applicants who pass the preliminary interview will receive an application form,

2.3.2.2 Review of applications and resumes.

history The form should contain a statement whereby the candidate gives permission for his

a real time-saver because it collects essential information and presents it in a standardizedformat (See figure 2-4.)

I

PLEASE ATTACH

A RECENT PHOTOGRAPH HERE

(Please fill up this form correctly and accurately All information will be kept in confidence) TEL: NO _ NAME: (MRIMISS/MRS/MDM) _ ADDRESS

Birth Date Birth Place: Race: Dialect _NRIC No. Colour: Citizenship: ,Age: _

Sex: Religion: Income Tax No: _ Marital Status: 0Single D Married D Separated D Divorced D Widowed

If Married, Siate Spouse's Name: Occupation: _

In Case Of Emergency, To Notify: Name: Relationship: _

Are you Serving Bond With Your Present Employer? DYes D No

POSITION DESIRED: Salary Expected: $ Per Month Other Positions Which

You Are Qualified: Date Available:

Previous employed by/applied to join Company: NolYes Relatives/Friends in Company: Date: Position:

DID YOU GRADlJA TE

LEVEL NAME OF SCHOOL ADDRESS FROM TO YES NO DETAILS PRIMARY

SECONDARY .VOCATIONAL

COLLEGE UNIVERSITY OTHER

If you Plan Further Education, Please Explain:

If Licensed in Profession or

Trade State Kind And Where Registered:

Other Training Or Skills (Factory Or Office Machines Operated, Special Courses, etc.):

Hobbies:

NATIONAL SERVICE

FULL TIME Type Of Discharge Next In-Camp Training Last Rank

LastRank Period/Date Of Registration Duratioin Of Liability

Reason(s) PART TIME

EMPLOYMENT HISTORY

May We Contact Your Present And/Or Previous Employers Yes/No

PRESENT EMPLOYMENT Name&

Employment Date Position & Brief Description Of Duties

ALL PREVIOUS EMPLOYMENT From

I To Position & Brief Description Of Duties

I To Position & Brief Description Of Duties

.

LINGUISTIC ABILITY Write/Read/Speak Fluently

Any Major Iliness/Accident In Last Six Months? NolYes, Please Specify:

REFERENCES: (1) NAME: OCCUPATION:

DECLARATION

I havelhave never beell convicted on a criminal charge.

I have/have never taken and am presently not taking drugs.

I hereby certify tihat the above information as provided by me is true, complete and accurate to the best of my knowledge.

I further understand that any wilful act on my part in withholding information or making any false statement in this Employment Application is in itself sufficient ground for dismissal from the Company.

Figure 2-4: Sample Employment Application

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as they selected their employees in 1994

A resume is a common method applicants use to present their qualifications

resume are:

marital status, etc

computer skills and the applicant's certificates, etc

addresses of his (her) former managers or hotel, the reason for leaving, as well as any.other pertinent information in the event that a background check is necessary

Besides the above criteria, other factors are also important such as signature, handwriting,

HRD This stage helps the HRD to analyze and select qualified applicants to record in theselection document

There are many different tests depending on each specific job's requirements In the hotel

order to provide a suitable training program Foreign language tests are obliged for those