Front line staff turnover retention at majestic saigon hotel

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business --- Huynh Minh Phuong FRONT LINE STAFF TURNOVER & RETENTION AT MAJESTIC SAIGON HOTEL MASTER OF BUSINESS AD

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-

Huynh Minh Phuong

FRONT LINE STAFF TURNOVER

& RETENTION AT MAJESTIC

SAIGON HOTEL

MASTER OF BUSINESS ADMINISTRATION

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-

Huynh Minh Phuong

FRONT LINE STAFF TURNOVER

AND RENTENTION AT MAJESTIC

SAIGON HOTEL

MASTER OF BUSINESS ADMINISTRATION

SUPERVISOR: Dr NGUYEN THI MAI TRANG

Ho Chi Minh City - 2019

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EXECUTIVE SUMMARY

The most important feature of the hospitality sector is that it is based on human element and it is labor intensive Since one of the competitive advantages of a hotel business is the customer service, it is crucial to manage its people assets The customer satisfaction in hotel accommodation will be greatly depend on the success

of the personnel Nevertheless, there is a rising problem of staff leaving as opposed to the ongoing growth of tourism industry and important extension of job possibilities in

Ho Chi Minh City It is demanding for hotel itself to attract and retain qualified experts Reducing the rate of staff leaving and keeping them involved in activities is the option to lessen economic losses and maintain competitiveness

This thesis aims at investigating the causes of Majestic hotel’s present changes in front office personnel A qualitative research methods via in-depth interviews with the objective of gaining preliminary perception of human resource management at Majestic hotel The goal was to gather more comprehensive data in order to get a further idea of their work

The findings are discussed in details in the research along with some recommendations for the hotel and management board to improve turnover rate in the hotel

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ACKNOWLEDGEMENT

A completed study would not be done without any assistance Therefore, I gratefully give acknowledgement to all who supported me during the time of doing this research

First of all, a special thanks to my supervisor – Professor Nguyen Thi Mai Trang for all valuable guidance, without her advice this could not have been possible

I also would like to show my gratitude to my colleagues at work and my friends for a continuous support I also send my sincere thankfulness to my parents for their care and love

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TABLE OF CONTENTS

EXECUTIVE SUMMARY 3

ACKNOWLEDGEMENT 4

LIST OF TABLES 6

LIST OF FIGURES 6

INTRODUCTION 7

1.1 Saigontourist holding company background 7

1.2 Majestic Saigon Hotel 7

2 PROBLEM CONTEXT 9

2.1 Overview of the operation of the hotel for 3 years: 9

2.2 The turnover rate status in hospitality industry 12

2.3 The turnover status in hotel 13

3.1 Policies on working hours 16

3.2 Bonuses and benefits 18

3.3 Working environment 19

3.4 Supervisor support 20

3.5 Cause –and –effect tree 21

4 CAUSE VALIDATION 23

5 ALTERNATIVE SOLUTIONS 25

5.1 Alternative solution 1: 25

the line manager assign or reallocate the appropriate tasks to staffs 25

5.2 Alternative solution 2: 27

Reorganize training sessions on time management and task leadership 27

6 ORGANIZATION OF ACTIONS 29

7.CONCLUSION 32

8.SUPPORTING INFORMATION 32

APPENDIX 54

REFERENCES 55

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LIST OF TABLES

Table 1: Business Performance of the Hotel 2016 - 2018

Table 2 Quantity and income/month of hotel in 2018

Table 3 -4 Training costs for management

Table 5 Action plan

LIST OF FIGURES

Figure 1 –Organization Chart (2018)

Figure 2 – Business results of Majestic Saigon Hotel from 2016 to 2018

Figure 3 – Annual revenue breakdown of Majestic Saigon Hotel from 2016 -2018

Figure 4 – Analytics of each function ‘s turnover rate

Figure 5– The turnover rate of other hotels 2017-2018

Figure 6 - Recruitment cost 2018

Figure 7 - Cause –and –effect tree

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INTRODUCTION

1.1 Saigontourist holding company background

Saigontourist was founded 44 years ago since starting from 1975 in Ho Chi Minh city originated from the travel industry Saigontourist has diversified its company, and now manages travel agents, hotels, resorts and restaurants fully equipped It will actively grow its branches overseas to guarantee a continuous development in a variety

of fields

1.2 Majestic Saigon Hotel

Majestic Saigon Hotel is a member of Saigontourist Corporation A 5 star hotel with French architecture located next to Bach Dang wharf, in the center of city The richest Vietnamese American merchant of Saigon - Gia Dinh built a hotel named Majestic at the corner of the Catinat It was renamed Cuu Long, but the name was still Majestic, under the leadership of the department of tourism It continued with the upgrade to 8 floors and expanded further to Ton Duc Thang Street until 2000s On February 27

2007, this hotel was recognized 5 star standard by the Vietnam National Administration of Tourism Majestic is also the first five-star hotel by the Vietnamese self-investment and management The Majestic Hotel was awarded the "Green Hotel"

by the Asean of Asia Association and includes 175 rooms

In addition, Majestic also has restaurants:

- Cyclo Restaurant specializes exclusively in serving food bearing Vietnamese identity

- Catinat Lounge serves Majestic's signature tea, coffee, fruit, and cocktails

- Breeze Sky Bar opens 24/24 and serves breakfast, lunch, seafood buffet in the evening

- Serenade specializes in serving European dishes

- Prime hall: accommodating 500 guests, fully equipped with the facilities of an international meeting room

- M bar: serve the food, favorite drink is prepared in Majestic style Especially the presence of the band Flamenco

- F & B (food and beverage) restaurants are responsible for catering to guests when they

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come to the hotel

The customers to the hotel are businessmen, high class tourists, tourists in the form of MICE (a type of tourism combining conferences, seminars, exhibitions, corporate travel for employees ) and international visitors

Figure 1 Majestic hotel’s organizational structure

(Source: Majestic’s Human Resource Department)

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This thesis focuses on the research of front line staffs who make a direct interaction with guests Therefore , it is easy to see that they are valuable assets and play key roles

in the hotel and their contribution are important in hotel growth

According to the statistics shown in the hotel report, the number of employees leaving has dramatically increased in the past 3 years from 2016 to 2018 Especially in front office area, this number of staffs quitted their jobs are even more surprising

This will be done through the use of qualitative research Specifically, it will be an analysis of reviews by employees and managerial responses The outcome provides a guidance tool to management, and it relates to turnover levels has to be reduced and minimized by applying possible methods

2 PROBLEM CONTEXT

2.1 Overview of the operation of the hotel for 3 years:

This is reflected in the targets of total revenue, profit of the business activities of Majestic Saigon hotel over the years as follows:

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Table 1 Business Performance of the Hotel 2016 – 2018

(Source: Accounting Division of Majestic Saigon Hotel) The chart below shows the business results of the hotel over the past few years :

Figure 2 Business results of Majestic Saigon Hotel from 2016 to 2018

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From the data in Table 1 and Figure 2, we see that hotel revenue is decreasing For years, profits have not changed much compared to 2016 If in 2016 total revenue reached 269 billion, then by 2017 total revenue has reduced to 266 VND billion in absolute terms decreased 3 billion or 1.11% decrease And by 2018, total revenue was just VND253.422 billion, a decrease of 4.73% or an absolute loss of VND12,578 billion compared to 2017 Thanks to the cost cutting, the profit of the hotel still slightly increased As follows: In 2016, the profit was only 118.43 billion dong but in

2017, the profit has increased to 123.252 billion dong with the increase of 4.822 billion dong and the growth rate is 3.91 percent 2016 profit reached 121,31 billion VND has decreased 1.6% or absolute number decreased 1.942 billion compared to

2017

Figure 3 Yearly analysis of Majestic Saigon from 2016 to 2018

Its revenue included sales of rooms, food and beverage and others Room sales are always Majestic’s largest share of income They were 56.3% in 2017 , which is 1.3% greater than 2016 During this period of time , F&B sales have been fluctuated at 34.4% – 35.3% Meanwhile, other revenues decreased slightly by 0.9%, which contributed a 9.8% to total number last year

Annual revenue breakdown (2016 – 2018)

Room sales F&B sales Other sales

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2.2 A turnover rate status in hospitality industry

Ho Chi Minh city is rapidly emerging as a top worldwide travel destination and according to the 2018 Tourism Highlights Report of the United Nations World Tourism Organisation 1, Viet Nam is among the top ten speedy increasing traveller attractions around the globe The overall amount of tourist has risen by 19 per cent to

86 million last year, while the amount of global visitors has risen by 29 per cent According to Grant Thornton Vietnam’s 2018 Hotel Survey 2, the luxury hotel industry continued to see a better year with the ration EBITDA in previous year growing by 1.7 per cent Revenue per available room for hotels continued to expand, 10.2 per cent for five-star — the study2 showed

The Vietnam Tourism Association 3estimated a shortage of 40 percent of employees Hotel officials remarked on elevated turnover of employees Indeed, a number of scientists found that the hotel sector faces the issue of staff shortage according to Mohamad & Nurzeti 4 Alan et al 5 mentioned that there is redundant rate of leaving around 60% of all employees in hotel sector worldwide and Vietnam is not excluded

As stated by Aizzat Mohd Nasurdin 6, there is always a high turnover among hotel staffs The greater intention they are to quit, the poorer service quality

Based on some opened speeches from representatives of some other hotels and front line staffs ,in the hospitality industry, employee turnover stays greater than in other service-oriented companies Despite ongoing improvements in HRM strategies and policies, hospitality experts find insecure and unwanted employment in hotels

In addition, FO manager made a brief about the problem of high turnover rate in current situation He shared that :

When I joined the FO team meetings or Human resources member from the hospitality industry openly shared that in hotel industry, young front line staffs have trend to stay in 1 year and a half to 2 years in the current place before moving to another workplace

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45

% 40

% 35

% 30

% 25

% 20

2.3 The turnover status in hotel

Based on the HR report and analysis from hotel, as shown in Figure 4, the turnover rate of hotel staffs was 41% (it means 34 staffs left the hotel) in 2018, which is the highest number in the last 3 years The point is that from the secondary data, in the last three years , the percentages of leavers in FO team has been rising and as the result, when looking into the turnover rate of total hotel , the overall percentage is quite competitive in the market In specific, the turnover rate of a whole hotel from 2016 to annualized 2018 was quite stable , with 22 % in the year of 2016, 16.5 % in the year of

2017 and 17.3 % annualized in 2018 However, in FO team this rate is much higher compared to the total hotel From Figure 3, employees who work at front office have the highest turnover rate with 41 % in 2017 ( increased 26% compare to 2017)

Figure 4. Analytics of each function ‘s turnover rate

The tourism industry is considerably growing throughout the globe and high turnover

of employees is a prevalent scenario for organizations suggested by Ongori7

Compared to other hotels in this industry, Majestic hotel has the highest turnover rate with 43 % in 2017 These rates in others 5 star hotels such as Grand, Rex, Sheraton are only in the range of 15-22%

to time to be trained ; therefore the business results of the hotel in several months are negatively affected Turnover rate affect negatively to an hotel operation such as increasing cost of recruitment and training newcomers, reducing performance efficiency, etc Lashey C 10 mentioned three types of direct costs when replacing staff including : the cost of discontinuing of an existing employee, the cost of finding a replacement, the cost of bringing the new comers onto work and training them to full effectiveness Simon et all 11 also found that turnover drives out profits , many of the specified expenses result from hard to estimate productivity losses

The chart from Figure 6 show the recruitment cost in hotel in 2018 which increased together with the turnover rate

However, both scholarly and business studies are challenged to design universal frameworks to identify the main reasons for job leaving The topic needs to be analyzed from an organization's view

Henry Ongori 7 suggested to differentiate key reasons of staff leaving between the perception of work-relevant variables - organisational variables within the recent academics Every service organization consider labor as a core factor , therefore an investment in human management is considerably huge A trend of employees leaving cause an economic fall for businesses stated by Surji 13

Moreover, it creates a adverse effect on the hotel image For applicants, a workplace becomes unattractive Team employees stay unmotivated and with little involvement

in the activities by Surji 13.According to Bryant et al 14 research, all fresh staff recruitment expenses often exceed the advertised position's annual wages In comparison, experienced and extremely qualified staff are guarantees that the hotel will achieve defined KPI and its long-term policies showed by Bryant et al 14

While the hotel seems to be a required location to work with each hospitality

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specialist, line staffs tend to not remain in these roles According to general statistics

of hospitality industry, since the 2017 40% of all Front Office staffs have quit their workplaces Employees at front line are essential because they are the direct contact point for visitors and as such need autonomy to cope efficiently with the concern of guests Therefore, exploring the primary causes for elevated staffs leaving is important before identifying a way to reduce this issue

3 PROBLEM IDENTIFICATION

Luxury five-star hotel normally provides clear strategies for the principles of long-term employee orientation They provide greater wages, organized assignments and a transparent promotion plan Staff turnover continues high despite attempts to build a strong workplace Therefore, the internal reasons for leaving a workplace need to be analyzed To make clear the problem, beside theories supported, it is progressed to collect secondary data and have interviews through three groups : ex line staffs , current staffs and line managers Respondents had to satisfy the fundamental requirements: they had to work in the front team or involved in the human resources department

The issues were intended to view hotel HR strategies from a line employee view It included fields of payment, work environment, benefits, supervisor support Those questions were directed at obtaining information on HR policies, working conditions and payments

There are some key factors causing the front line staffs leaving at Majestic hotel including overload working hours, unproportional bonuses and benefits with duties and lack of management skills

3.1 Policies on working hours

As the analysis of the finding indicates, majority of employees in Majestic hotel are well aware of working hours in the hotel are not set up in line with duties Also on the interview session’s 8 employees mentioned that additional hours asked for them in order to complete a shift They specified unclear duties and not enough information

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channels According to literatures, Dess et al 15 described it causing employees quitting FO staffs asserted that they had to take on duties not mentioned in their agreements For instance, they had to do job without FO assistance There were also two respondents who didn’t mentioned about their supervisors since it supposed that direct supervisors didn’t have sufficient skills

Most staffs stated that additional hours need to be required for work, however management doesn’t support the concept Instead, FO manager has always been against overwork and has been encouraging timely leave of job policy.However, the amounts of job needed to stay extra

In addition, there was no strong worklife balance among 5 out of 8 participants

After five days of job, their responses generally engaged aspects of being mentally and physically tired

A staff stated that :

I think a day working per week is overwhelmed , I couldn’t rest properly and was exhausted even during the weekend, there is no time for other personal things A feeling of exhausted and lack of motivation to continue a job

All participants were questioned if the job shifts were intended for the benefit of staff

or employers The responses based on the working hours issue is nearly third quarter

of staffs agreed that shifts or roster schedule intended to benefits for one -side of employers.Management roles representatives confirmed that both sides benefited from working hours.The remainder of the participants, however, were not pleased with the changes as the bus schedule was tightly planned A participant said that

A shift planning have definitely been arranged in the manager’s favour Since I had to wake

up at 4am for morning changes and catch the first bus, but I had to run literally to take the last bus when I had evening shifts

In conclusion, the working hours category outlines gaps in shift planning effectivenees Five working days were physically and mentally difficult for most line staff to deal with Employees during the week are not happy because a number of hours for working and considered it was absolutely not enough for the remainder of two days However, schedules have been developed in a favourable manner for shift supervisors and FO manager

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3.2 Bonuses and benefits

All interviewees pointed out a staff wage was competitive to same standard hotels however the range of duties was insufficient Luna –Arocas 16 found that the importance of financial incentives in staff retention goal is huge. The primary reasons for employee turnover, however, were not low wages Instead, the participants were unsure about their duties and were not explained with specific examples of their fields Several participants highlighted management's failure to take complete possession of the activities One of the participants remarked on wage environments as

My wage was slightly greater than in my past hotel at the same place But there were far too many duties I think the salaries were not proportional to those daily duties Our hotel here is much larger , therefore visitors need extra facilities We are required to work together with hotel inner strategies and global standards We had to upsell and be accountable for more of our equipment

The primary data is correlated with Zuber’s 17 academics which suggested implementing “insufficient economic incentive” term to explain insufficient rewarding and bonus scheme as stated by Zuber17 The study describes elevated employee turnover from the view, where the staffs with minimal economic incentives are supposed to be top performers In addition , hotel has announced benefits scheme strategies formally All this mentioned was introduced at the beginning of meetings but throughout their work, most participants have never earned bonus prize

One respondent remarked on the bonus scheme as

There was no bonus scheme that was supposed to happen in particular, it is developed as excellent tables , so a bonus would be given to the worker who could upsell service center A supervisor pledged to do this but it never occurred, sadly

Hotel provided a broad variety of indirect bonuses, which are essential in promoting its employees’ wellbeing For instance, it provides complete medical insurance and offers personnel prices for hotel service It provides meals, supporting vehicle to staff who need to do during the night There are some staffs were negative about the quality of food supplied To using a system of personnel rates seemed extremely bureaucratic Most participants were unable to obtain facilities or rooms because they are bound by

a broad of working on paper and circumstances Finally, a rate of staff leaving is

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linked to a huge burden of job which is ambiguous to front line staffs The work had more duties, while the award was not comparable In addition, managers have not followed up on the bonus scheme, and this scenario can have a adverse effect on staff and their involvement in the process

We offer the team members fair chances to give their thoughts or acquire fresh abilities, creating staff with a helicopter perspective in activities is essential for our organisation

Without prior work experience, line staff valued content training providing perspectives and expertise about the luxury hospitality industry Besides, staffs that worked in hotel industry before had not discovered a mark of learning during a training session and tend to involved in a line crossing training where fresh skills are obtained with another area For staff, bonuses increase are not proportional with an amount of duties they had Most of them outlined that the goals were huge whilst the bonuses were limited , there was therefore no motive for further attempts

To sum up, a rising rate of employees leaving is induced by irritating functional setting and pressure with leadership Moreover, a system of economic prizes and bonuses seemed not to be well established Finally, a rate of leaving would be triggered by the head board values that aim only to benefit the hotel however , it does not appreciate organizational distinctions, backgrounds and business changes

I didn’t really feel important in my position HR division has been independent to operative hotel units, as well as a leadership has not drived an accomplishment learning

In addition, the study discovered that employee therapy was varied and unfairly Representatives said that

Executives enjoyed some staffs more than others Managers addressed the attitude and behaviors of line staff

Staffs are put under pressure due to the lack of supervisor support in daily operation Also, the job duties and working routine are changed by taking feedbacks from employers only, which made most staffs feel disrespected An immediate action should be taken to reduce the number of staff quitting their jobs by building a suitable training course and improve supervisor support However, at present hotel has not been pay attention to these actions A supervisor who is new recruited from acquaintances or promoted from a line staff , is not well trained about their abilities and responsibilities There are no criteria to evaluate how experienced they are or what capabilities they have According to a normal routine of HR department as said

by HR specialist they just need a meeting before taking the job without standardized documents One current line staff mentioned that

The hotel would like to cut costs and look down to the importance of training management level

According to Green20 , transformative developing leadership that can assist staffs get involved and decrease the desire to leave Poor implementation of HR values and workplace injustice have been the primary causes for front line staffs to leave the workplace along with workload and strict shift planning A hotel itself has put in place sound policies and conditions for efficient jobs and retention of employees, but the

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challenge is the application and uncertain plan to implement these values

3.5 Cause –and –effect tree

The preliminary causes and effect tree will be developed as Figure 7 as bellows:

Costing on time money, other

resources

Bonuses and benefits Working hours

Lower performance and working spirit

Unclear duties

Combination with studies

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The turnover of employees result in intention, absenteeism, delay and operating costs

as stated by Lee21 , Angle 22, Mowday23 Moreover, the low output of the work will

be found by Vandenberghe 24, Lee25, Mowday 23 Kwantes 26 stated that the organizational competitiveness will be reduced if it last in the long term However, based on a significance of the problem, the participants in the in-depth interview verified that the consequences of this problem were: reducing the output and working spirit of the remaining staffs, adversely affecting the growth of hotel business, impacting hotel reputation and increasing costs

First, mentioning the performance and working spirit of the remaining individuals after some colleagues leaving For few coworkers left the workplace, it's still okay However, the team's spirit can not be as it used to be when the amount of leavers has increased The current staff required to cover leavers ' workload, and the commitment was also not that high The adverse atmosphere was then distributed to the entire team Once they are not driven enough, because of their less contribution and worse results, hotel development will be affected In addition, the service delivery can not be retained owing to the absence of staff in the team For all service oriented businesses, the employee rotation phenomenon is a highly sophisticated topic Employees tend to be the heart of all activities in these organisations and are generally the primary source

of competitive benefit as stated by Zopiatas et al 8 As a result, financial investment to recruit, train and retain staff remains one of the largest expenditures of the organization The above figures provide strong evidences that high turnover rate of front line employees is an outstanding problem for hotel operation The managers are looking for solutions to reduce turnover rate and achieve financial targets In order to obtain that target, it’s necessary to understand the causes of turnover rate, why hotel employees want to leave and if those factors have any effects on this rate

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4 CAUSE VALIDATION

According to above causes and effect tree, interviews provided by HR department and respondent interviews, among four above factors, it is found that the problem lies in skills and leadership of middle management from FO The management team needs

to do some quick actions to reorganize the workload in the team to ensure the business will not be impacted Because of this factor, it requires managers focus on them and find the best solution to overcome soon With the high demands, the hotel offers a competitive wage for staff that is greater than in other comparable hotel and a full of benefits provided

Regarding to an average wages presented in the table below

Table 2 Quantity and earnings/month of hotel in 2018

(Source: Human Resource Department)

Position Quantity Income/month (million VND)

1 Board of director of factory 3 26

Other reasons are not main factors that leading to high turnover rate In fact, not many staffs leave hotel jobs because of workload itself only because they accept to the nature of service industry as a normal situation Above factors were not the top of mind idea from most interviewees HR manager agreed that supervisors’ point of view on leadership was a main factor that lead to high turnover rate

Based on the possibility , the management which plays the big part in the reasons that staffs are leaving It can not denied that other factors also impact on hotel but comparing with two above issues , they are less urgent and respondents did not mention a lot about these With this approach, it was able to gather a data and comprehend the experiences of 9 interviewees in a hotel with excellent understanding

of the HR scheme HR department and relative departments were indicated to improve this situation, but it is facing some following difficulties:

Firstly, there are only 01 supervisor for each shift while the number of staffs totally from 20-30 in same time It means that each middle managers as taken care 25 people

in average Thus the human resource is not enough to serve well

Secondly, currently there is training sessions only for new hires and line staffs operated across the hotel So supervisors manage the amount of many duties without systematic methods It is recognized that the annual training session is less than the demands of service which are required for job position

To resolve this situation and be more proactive in providing services, hotel considers approaching some potential solutions

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5 ALTERNATIVE SOLUTIONS

Realizing the urgent of an situation, there are two distinct approaches for interacting with staffs -managers and concentrate on providing alternatives to solve the problem Below are some optional suggestions applied for the current issue

5.1 Alternative solution 1:

the line manager assign or reallocate the appropriate tasks to staffs

The issue that the manager wants to consider obviously is to assign the suitable workload to team members It requires to guarantee employee 's fairness, the efficiency

of the services provided, and the outcome of the entire operation A current status is many managers lack the abilities to manage tasks and individuals, leading to the team's poor working spirit

They do not have enough time to join the hotel training to get the technique to handle their staff, coach their staff, motivate their staff and, in particular, assign the job to their staff properly and fairly Even high performing staffs would finish their enormous workload with their efforts, but if the scenario lasted for a long time, their spirit would

be diminished and they would feel unfair, they would decide to leave

One FO staff said that:

It was stressful because timetable was arranged to work continually eight hours per day with

an extra hour after shifts for add-ons tasks Therefore I am so exhausted that I can not enjoyed

a break time

Alternative solution : For now, the business head needs to host a meeting with line managers, supervisors and indicate the problem Do not overload current staff is one significant move that needs to be taken instantly by line executives in the business team Negotiating with customers is also one of the most significant components Dealing with the timeline that we can deliver to them because of the current resources, explain the service delivery process at hotel clearly to them and convince them so that people in the team won't be over-stressed

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Benefits:

• Supervisors can assess the workload of team and individuals, then give feedbacks

and encourage them to work better

• Knowing their true roles and responsibilities, gaining experiences in dealing with

issues and conflicts

• Identifying the employees‟ needs and help them plan their career path as well as

develop their strengths

• Good supervisors with proper training can be able to lead their staff to perform

better that can help the whole team reach their targets

• Establish the relationship with their peers and staffs, gain the trust and support from

them As the result, it helps to reduce employee turnover that leads to improve the

business of hotel

Cost:

The training cost for people management on customer service so that they can have

better deal with guetsts and allocation skills to have better arrangement with internal

team The below cost is VND 3,300,000 and VND 50,000,000 in total for 15

supervisors at front office base on the training report from Human Resource Department

Table 3 Training costs for supervisors on obtaining the customer service and

allocation skills

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5.2 Alternative solution 2:

Reorganize training sessions on time management and task leadership

Current status : Employees believe that time and task management abilities are not priorities compared to the urgency of the project Once the training is completed , they will not be able to participate and no more session will be open and in the long run, they will certainly lack the time or task management abilities If they don’t equip themselves with those abilities, they won’t know how to manage their work effectively It is necessary to reorganize this training and to provide some more mandatory and useful training sessions for them to join The business can therefore demonstrate care for employees and also for their long term career

After the training, the manager must follow up on the advancement, offer advice on those results and assist them if there are any problems From that, the staff will feel the manager caring , they will have a motivation to perform even better

In addition, instead of organizing formal training, more sharing sessions should be held so that senior officials can share their knowledge, advise front line staff solving the problems or manage their time and mission when implementing the initiatives Time & task management for all executives to acquire more understanding requires to

be performed in repeat In addition, coaching preparation must efficiently involve all executives to guarantee that they are capable of managing, coaching and encouraging team members Because they deal directly the workload with their guests and allocate

it to team members it is essential for them to know how to manage it efficiently

Benefits

o Because they have the opportunity to equip themselves with the necessary abilities , they will perform better and more efficiently in work

o Spend time to invest about raising the quality of their work, not just too focus

on solving day-to day tasks, but also helps take back the hotel value

o Give the line manager an opportunity to look at their staff and comprehend their challenges more From that, they can provide more effective coaching to staff Cost:

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The evaluation and training cost per person is VND 2,600,000 based on the quotation from HR

Table 4 Training costs per business partner for time & task leadership

(Source: Accounting Department)

To sum up, it is essential to look at these with two alternative methods as above and decide which one is the most effective solution Every alternative solution will assist to fix the problem in each aspect They are assigning or allocating the suitable workload

to team members by line executives, re-organizing the time and task management training session , arrange some more mandatory and useful training sessions for both staffs and supervisors to join

For the first one is line executives assign a suitable workload to team members To guarantee this solution is effective and precision is not measured, in some instances , the team requires to meet guests and serve as many guests as possible to guarantee revenue growth To that end, this solution is not really long term viable In addition, the proposed cost of training managers is not worthwhile for skills and the return on investment can not satisfy expectations of hotel performance

After considering their benefits and expenses, it could be seen that the application of renew training session for supervisors should be given priority This session offers leadership abilities, performance evaluation, methods and instruments to enhance internal relationship between leaders and staffs