The Human Resource Management Department
The human resource department of any institution has many delicate responsibilities. They are trusted with the duty of making sure that they are taking into account of all the Key Performance Indicators. Similarly, the Crossroads Hotel resource managers have to take into account the hotel’s indicators of performance. They include the general HR performance, the process of recruiting and hiring of employees, the development and training process, accrued benefits, and the compensation, relationships with the employees. Also, they will take a look at the management of human capital. They investigate the several competencies employed in the business to determine its performance. Such competencies will involve, analytical thinking, concept thinking, business decision, diagnostic gathering of information, entrepreneurial skills orientation, thinking forward, fostering of innovation, initiative business thinking, strategic decision making, orientation in expertise in technology. (KPI Management Solutions, 2016).
The Crossroads Hotel Managers will look into the following issues in the general analysis of the department. They need to determine its administration expenses related to each of its Firm-Wide Employee (FEW). They will do this by dividing the costs incurred with the total number of enterprise-wide. The following criteria are the calculation of human resource administration expenses as a percentage of the total number of the HR expenditures and compare it to the overall costs of the Department on the same term. The next is the Departments Head Count Ratio, by taking the total number of its enterprise-wide, divided by the total number of the Human Resource Firm Total Enterprises (FTEs). The other general indicator is the Human Resource levels of Management. They will equate the number of executive levels in the HR Department to the lowest levels of executives. Finally, the last general measure is the span control of the human resource; it includes the average number of the personnel’s of the human resource department that reports to the supervisor. (KPI Management Solutions, 2016).
The following key performance criterion is the evaluation of the metrics that were involved in the hiring and recruitment of employees. Is the average requisition days that are kept on hold by the managing directors, is calculated by the average number of job posting belonging to the director position level, postponed during the procedure of hiring. Similar to that is the name of positions of the top managers that were delayed during the recruitment period. They also determine the rate of employee turnover for the employee posting for staff levels postponed during the hiring period. Consequently, candidates that were interviewed per hire by taking the number of applicants who were interrogated divided by the summation of the employees who were retained by the enterprise. More to that, the HR departments estimate the costs incurred per hire acquired by the HR office so that they can fill one role availed by the firm. They also determine the rate at which external personnel’s are filling up the available vacancies. (KPI Management Solutions, 2016).
Furthermore, the volume of job posting of the hotel approximates the average number of new vacant positions which posted to the channel; the HR managers will analyze the available data sources that will put results into utilization in the acquisition of marketing information. Regarding the employee hiring, they determine the total number of interviews which were conducted within the trading period. Finally, they will estimate the amount of the senior departmental manager that was filled between the periods of January to March.
Crossroads Hotel has identified a comparison of their scale of pricing and management of their performance against their team of competitors. Competitive pricing strategy means the time at which the competitor prices their goods at a specific price. Pricing strategy exists in various forms on which organizations adopt; they include the total cost of producing the goods and services, the fee plus approach whereby, a prefixed margin of profit will match to the total cost of the product. Another pricing strategy employed is the demand price. The price established by the optimized relationships that exist between the products markup price, the volume produced, and the corresponding amount, where a certain percentage sums over the wholesale price of the product. There are several pricing strategies to be used, such as:
Premium Pricing- it is pricing goods using a high criterion. Such segments will work better in sections, and a company where there is a strong competitive advantage is in high existence. An example is the Porsche Cars and Gillette blades.
Penetration Pricing Strategy- This is setting prices of goods at a low price so that it can gain a larger market share quickly. For example, during the launching of a new product, let’s say chicken Crossroads Hotel will set it at a low price so that the customers to beware of it.
Economy Pricing Strategy- This is when the margins are thin, and overheads like marketing and advertising costs are relatively low. This medium will enable the Hotel to enlarge the vision of its product to aim its mass market and obtain a high market share.
The skimming strategy- this is when a product price is set at a high rate. At this time the competitors will reduce the costs of their goods. The idea of this is to maintain and recover funds to the maximum before the product, or the corresponding segment attracts new competitors who will also offer goods at that low rate. (The Economic Times).
Coming down to competitive pricing strategy, the behavior of purchasing of the firm’s customers is usually of an important criterion. Some factors that a firm takes into consideration are the production cost, the intensity of competition, and the sensitivity of prices. The Human Resource Managers needs to see that the business is making a profit and getting a sustainable competitive advantage, they set the price such that it compensates the cost of production, the incurring overhead costs, and it offers gains that will be suitable to the entity. For Crossroads to attain a sustainable position against their competitors, they will need to take into account the life cycle of the products and the stage of their product. They can ignore the competition if the products are new in its development stage. The HR managers should consider the possible factors that a competitor may take into account regarding the number of substitutes, and expansion of market share.
There are several strategies to be analyzed and implemented by the human resource managers to ensure that they have maximized their operational costs to generate revenue and minimize expenses such procedures include:
The strategy of corporate and cross-functional interactions- This strategy involves seeing to it that the organization is operating as a system of a body that is interconnected. The enterprise’s departments inter-depend with each other to remain healthy and achieve a desirable measure of outcomes. The different core strategies that are utilized by a business should ensure support to the policy of corporation and employ cross-functional operation.
The strategies to drive customer based approaches- the policy of operation should see to it that it includes all dimensions of plan that meets the diverse needs and desires of its target market. The performance was propelled by the entity, adopting strategies to assist in the evaluation and adapting to the changing surroundings. This will enable in tapping more competencies and support the development of new strengths on an ongoing base. During the evaluation process, a firm should keep a close eye to the trends of the market to take maximum advantages of emerging new unexploited opportunities and stay away from threats.
Development of the critical competencies- They are the strengths and the available resources that are possessed by a business. Though skills vary from company to market, they must include a team of well-trained staff, optimized firm location, and the marketing of financial expertise. By Crossroads hotel developing these competencies, they will be in a position to draw a pool of satisfied customers, development of products, and the construction of a healthy relationship with its stakeholders.
Competitive priorities of development- it comes along with the creation of corporate strategies, analysis of the market, the definition of core processes, and conduction of needs analysis. To create the range of priorities a business evaluates its costs of operation, the product, or service quality. Also, the time is taken in developing and deliverance of a good or service.
Product development strategy- a firm should consider the design, the added values, and also innovation during the development of new products. An enterprise has an option to become a leader by the introduction of new goods and services, wait for changes to be implemented on the market and improve on them or wait and see the rate of development of innovation in their market.
The managers at the Crossroads Hotel can employ several strategies to see that the business makes maximum revenue. They begin by identifying their crucial profit drivers, the leader’s design strategies to make them workable, without necessarily incurring extra costs. Making a firm profitable involves increasing the volume of sales revenue, decreasing operational costs, and benchmarking your firm to see that it is earning savings on your funds. They are prioritizing these strategies chosen to focus more on the important ones and weed out the unworkable approach.
The first strategy business managers can integrate increasing the volume of sales is by:
Boost the productivity of your support staff- This is attained by recognizing and rewarding any positive contribution in the staff reviews. Educating them on unique skills of boosting sales and the technique on upselling products so that customers can make multiple purchases on a single loop.
Development of new lines of products- this is surveying the customer’s preference and comment about the new products.
Finding new customers for your business- this strategy will ensure that you tap your customers that will enable your business to grow.
Explore new markets- The managers can carry out intensive market research to determine the capacity of your enterprise to expand into new territories.
Improving customer service- Boosting the level of customer service and adopting a staff training program to attract and retain new customers.
Providing discounts for your products- constant promotion to the products and offer products at a discount will tap your customer base.
Crossroads Hotel Resource Managers can decrease their cost margin by:
Save on the inventory- being in control of your business stock is an excellent position to enable streamlining of your business.
Reduction of direct costs- An example of direct damage is overhead costs, labor, and material cost. Maximization by selecting the best suppliers,
Shrinking the indirect costs- for instance minimizing on releasing too much waste, reducing errors during accounting by efficiently training your staff, and use of low-marketing cost techniques.
Reducing overheads- an example is by saving on energy or by opting for a low-cost energy source.
Benchmarking about key financials- performing a benchmark will enable the business firm to decide if they are spending too many resources on payment of debts, rent, and utilities.
In conclusion, the organizational leaders may decide to focus more attention on activities that will attract profits to the firm. It is done by listing the products and services that have a likely hood of attracting a large profit margin. Once they placed on the spotlight, then resources should be used at a higher concentration by achieving more top sales target for them. Results may need some reorganization to think of aspects from the company or even to design the strategies to give room for improvements. (Business Queen’s land, 2016).
References
Business Queens land (2016, June 16). Retrieved from https://www.business.qld.gov.au/running-business/finances-cash-flow/managing-money/more-profit/strategies.
KPI Management Solutions. (2016). Retrieved from www.kpims.co.za: http://www.kpims.co.za/kpi-category/kpis-by-job/hr-jobs/hr-manager/.
The Economic Times. (n.d.). economictimes.indiatimes.com. Retrieved from https://economictimes.indiatimes.com/definition/pricing-strategies.