Human Resources Management
This
is the science of allocating human resources among assorted
undertakings or company Constituents, maximizing the utilization of effective
man power to accomplish company goals; and giving the interest that are vital
in the maintenance of that workforce across identification of staffing
necessities, arranging and oversight of payroll and benefits, education and
expert progress, and administering their professional needs Cheung. C, Kong. H,
and Song, H., (2014). Young-Thelin, L., and Boluk,
K., (2012) cited by Scholarios, C (2004)
argues that the effective and competent placement of an organization's
human resources in the area of demand, and in ownership of the instruments,
training and skills needed to accomplish the task and Following improvements can
help to manage Cresta Hotel Group HRM issues.
Recruitment and selection
Forms
the foundation of the core activities and processes underlying human resource
management and such activities include the acquisition, training and development,
and rewarding performance of workers (Scholarios, C., 2004). A scope of
assessments in the selection process ought to be utilized to assess the work
benefits, personality, interpersonal skills and problem-solving skills of
possible employees to assess their ‘service orientation’ (Pride. W et al 2012).
However the Cresta hotel group identify human capital as key component, they
value its employees and endeavour to recruit and retain the best skills in
market. The success and sustainability of most organizations is directly
proportional to skills and competencies of the employees. Meanwhile Cresta
Group are doing similar as Hilton As one of the largest management companies in
the industry, they have over 665 managed properties and 100,000 team members to
maintain. Their (Cresta) main focus is on recruiting and retaining the
industry's finest team members. In Human Resources & Training, they believe
people are the key to providing an outstanding hospitality experience.
Training and development:
All
organisations today face rapid and often unexpected change. Giving employees
the knowledge, skills and attitudes to cope with change is not just good people
management; it is a prerequisite to survival and success, both personal and
business. This is the vital role of training in modern organisations. No longer
is training the preserve of specialists. It is an organisational
responsibility, shared by all those with an interest in making the most of the
human resource (Young-Thelin, L. and Boluk, K., 2012). However the focus for
developing human capital is based on training continues reviews of
compensations and benefits. It is through these standards that have earned
Cresta Hotel Group the reputation for consistency (Cresta Hotel Group, 2011).
Staff welfare and Development
All
organisations today face rapid and often unexpected change (Pride. W et al 2012).
Giving employees the knowledge, skills and attitudes to cope with change is not
just good people management; it is a prerequisite to survival and success, both
personal and business (Karatepe, 2011). In the quest of the Cresta group’s
drive to improve productivity for the employees, sports was identified as one
of the elements that’s play an important participating across the hotels, the
group has various sporting codes being played, soccer, volleyball, netball,
etc. The interaction between these groups is believed to impact positively on
employee’s motivation. This evidence group adherence to Werner’s quotes which
states that “One of the big issues human resources managers will have to think
about in the future is whether health care is or is not a natural right of
every employee”. The group also practice the same philosophy by Marriot Group
of building employee loyalty, pride, team spirit and morale of which begins by
meeting needs as basic as health care. Marriot founder William Marriot said it
best. “Take good care of your employee and they will take good care of the
customers”.
Employee engagement
By
pursuing larger involvement from employees the emphasis is on presenting
autonomy, creativity, cooperation and self-control in work processes. The use
of educative and participative mechanisms, such as team briefings and quality
circles are associated to adjustments in the organization of work that prop an
‘empowered’ environment.
Employee engagement is not a Human Resources initiative that
managers are reminded to do once a year. It's a key strategic initiative that
drives employee performance, accomplishment, and continuous improvement all
year long (González, S., (2004).
General employee engagement at various levels of the organisation has yielded
positive results for Cresta group. This has led to an improved customer focus. Good managers develop employees for tomorrow's
opportunities by encouraging them to work toward their full potential today,
argues Galang
(1999). Communicating with employees is essential to
showing your people that you are sincerely interested in them as individuals
(Marriot, J., 1987). The same author continues to say communication also means
listening to them if they have a problem with their job or management. Managers
need to frequently get their people together and ask them "How are we
doing?" and "What can we do to improve?" For the communications
process to work effectively, it's important to listen to and act upon the answers
to those questions.
Zheng, G., and Siu,
R. (2009) Drivers Of Job Satisfaction As Related To Work Performance In Macao
Casino Hotels. International Journal Of
Contemporary Hospitality Management, 21(5), 561-578.Available at:……[
CORPORATE SOCIAL RESPONSIBITY
The Cresta corporate social responsibility
programme concentrate on assisting the communities in which the group operates
through donations of various items. The group in its active involvement aid
social development and the protection of quality of life. The group believes
that goodwill and being good hearted may not be a core function in the business
but is central to their social license to do business. That is how the group
would donate various items including cash and charity.
What is it that Cresta is doing to
encourage corporate social responsibility
DONATIONS DONE BY CRESTA BETWEEN 2013 AND
2014
Sir Seretse Khama
memorial fund for people living with disabilities
RECEPIENT
|
ITEM
|
VALUE
|
Sir Seretse Khama
memorial fund for people living with disabilities
|
Cash
|
P65.000
|
Destitute in kalamare
|
House
|
P100.000
|
Dukwi Refugee Camp
|
Clothing and bedding
|
SP30.000
|
Lady Khama Charitable
organization
|
Cash
|
P20.000
|
Women shelter
|
Linen
|
P25.000
|
CUSTOMER RELATIONSHIP MANAGEMENT
According to Cresta Marakanelo Group
Chairperson Ms Maria Nthebolang emphasized that as a group thy have intended to
hire skilled personnel so that they would provide high levels of customer
service to their valued customers. Adding on what she said Mr Makaya also
commented that as a group they offer affordable services to their customers and
all the services are delivered accordingly since they have trained staff.
Cresta acknowledge the importance of
having skilled motivated and satisfied workforce as their staffs are the people
who interact with customers. The Cresta Marakanelo Group has continued to
benchmark itself against the leading brands and the standards required to be
customer focused, quality conscious, innovative and being responsible for its actions.
What is customer relationship management
and what is Cresta focusing on in terms of CRM?
According to Fickel (1999) CRM is a
combination of people, processes and technology that seeks to understand a
company’s customers. It is an integrated approach to managing relationships by
focusing on customer retention and relationship management
At Cresta Customer relationship management
is practised focusing on the following.
PRICING
Hotel tariffs are regularly published in
the hotel for the customers to see. There are different discounts levels for
their customers. Customers get different discount levels after a careful
assessment of their customers and the business they bring to the entity. The
group has a loyalty programme where cardholders get various discounts depending
on the product they want.
CUSTOMER INFORMATION SHARING
Group has various means of sharing
information with its stakeholders. One of the mediums is through the frequently
update website where new developments or new products will feature. Further the
group has got an in-house magazine called Cresta Calling where information is
relayed to the stakeholders.
FINANCE
Risk management is
the identification, analysis, assessment, control and avoidance, minimization
of unacceptable risk. They are three
levels of risk management such as; operational risk-that we face day to day in
the operation of hotels. Project risk when we start building a new hotel and
choosing when we are going to expand and strategic risk that has to do with
decisions about risk the company faces when it pursues its strategic objectives
(Nand 2011).
Chairperson of
Cresta group’s statement on annual report of 2013 stated that the group has
defined its model and approach to run its business more competently.
The Cresta Group’s (2013) total risk
management progamme focuses on the instability of financial markets and seeks
to minimize potential effects on the Cresta Group’s financial performance.
Senior management carry risk management under approved policies by board of
directors and it provides written principles for overall risk management.
Explain process of risk management?
The Cresta group of hotels board (2011)
provides written principles for overall financial risk management, as well as
policies covering specific areas, such as foreign exchange risk, interest rate
risk, credit risk, and investment of excess liquidity.
“Financial risk
management has received increased attention over the past years, the reason
for this is that
financial risks, though
they are not
a core competency of
non-financial firms, also
influence their business
operations to a
large extend (Triantis;
2000).”
Financial risks
can be of
different forms. There are external financial risks depending
on changes on financial markets and internal financial risks, where the business
itself is the cause of the risks (Eichhorn, 2004).Explain types of risks found
in Cresta group of hotels?
- Exchange rate risk -they happen when a business is involved in international business and the cash in or outflows are in a foreign exchange rate. As this rate is not fixed and cannot be fully estimated a likely change in a foreign exchange rate leads to the risk of changes in the amount of a to be paid / receivable and by that a vary in the sum of money the business has to pay / will receive. This risk is measured by the concept of transaction exposure (Armeanu and Bãlu, 2007).
- Interest rate risk –It is based on changes in interest rates and can be pragmatic in different forms. The first form refers to changes in interest rates in association with unpredictable loans and short-term financing. A rise in the interest rate leads to higher interest payments for the variable rate loan and more pricey follow-up financing. This decreases the company’s income and can in worst case it is lead to financial distress. Second, the vice versa case refers to cash positions of the company with a variable interest rate. A fall in this rate leads to a loss in earnings.
- Cash flow and fair value interest rate risk –According to Cresta group of hotels (2013) “interest rate risk starts from long-term borrowings, short-term bank deposits and bank overdrafts. Bank overdrafts are obtained at, and short-term deposits are placed at, variable rates that expose the group to cash flow interest rate risk. During the financial year, the group’s borrowings and deposits at variable rates were denominated in Botswana Pula. The group analyses its interest rate exposure on a dynamic basis”. Different scenarios are replicated taking into concern refinancing, regeneration of on hand positions, and alternative financing. Based on these scenarios, the group calculates the impact on profit and loss of a defined interest rate
INTERNAL CONTROL
Internal
control is generally defined
as a method, affected by an entity’s
board of directors, management and other
personnel, intended to offer sensible guarantee concerning the success of objective. How
internal control can help Cresta group of hotels
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