RUNNING HEAD HOW IMPORTANT TRAINING AS A COMPETITIVE STRATEGY IS IN THE HOTEL INDUSTRY
DATE OF SUBMISSION:
Training is the process of imparting information or instructions to improve an employees performance .Training is becoming increasingly important to organizations in order to cope with more stringent performance requirements they are faced with in today’s market (Nguyen et al., 2010) .Training is important to both the employee as it results in career development as well as the employer as it leads to increased productivity from the employees. Although there are many advocates of training and its important role in improving firm performance, it has been criticized as faddish, or too expensive and not transferring to the job. In fact, some studies have failed to find the impacts of training on firm performance.
TRAINING CRUCIAL FOR HOTELS
Worldwide there are many prestigious luxury hotels such as the Ritz-Carton, Sheraton that guests can select from. Management in the hotel industry have identified that there is a very high correlation between the training as an organizational strategy and the organizations performance. As much as customers want to obtain value for their money they are willing to pay more to be associated with the best in the industry. The level of service a customer receives during there first visit to the hotel determines whether they return they become repeat customers or not and this can only be enhanced though training.
The hotels are using training to gain competitive advantage over the rest in the industry focusing on areas such as conflict resolution social skills and how to handle employee emotions as well as how to handle employees from different cultural backgrounds with different needs.
The training technique range from role plays on how to handle different situations to conferences focusing on employees at all levels. For instance the Ritz- Carlton group developed the Mystique technology program that can identify a client’s room preference allergies as well as services they have experienced before and trained al their employees on how to operate this technology consequently it become a requirement for all new employees joining the hotel.
The results of training can only be accessed based on client satisfaction which can be accessed through repeat customer or giving the clients questionnaires to access the kind of service they received and what improvements they would want incorporated in the service, employee performance and profitability of the hotel.
ISSUES AND ANALYSIS
The case has highlighted a few major issues such as how important training is in the hotel industry. Being majorly service oriented the quality of service highly influences the productivity of the hotel business hence emphasis on training to improve service delivery. Major luxurious hotel have adopted a training culture for their employees as a way of gaining competitive strategy over their counter parts in the industry. This issue is important because it helps the organization realize that meeting customer needs through high quality service delivery helps the organization achieve its goals of profitability and growth in the future.
Another issue is the strategies that the organization adopts in training its employees. The organization has to train its employees in a manner that would be disruptive to the day to day operations of the organization as well as in a manner that will be cost effective to the organization. It has to adopt strategies that will be incorporated into the organizations culture with ease otherwise it beats the purpose of training all together. This issue is important is important because it helps human resource management identify which strategies to adopt in training of employees. For instance the Ritz- Carlton adopted the train the trainer strategy instead of training all individual employees on their Mystique technology who then spread out and trained the rest of the employees. It would have been very disruptive to the operations of the Ritz- Carlton train all employees at once .They later adopted that requires all new employees to train on this technology before joining the hotel making it even more cost effective for the hotel.
How to measure effectiveness of training is also another issue highlighted in this case. Results of training can only be measured through customer satisfaction, increased profitability employees performing better. By identifying the factors above the employer will be able to establish areas that require training needs by assessing level of profitability after training feed back from customer as well employee performance ( through their level of motivation ).
Human resource manager have to incorporate measures that help them identify training needs whenever they arise through assessing factors such as employee morale , rate of employee turn over (no employee wants to remain in an organization where there is no growth and development) and overall employee productivity. This will help increase [productivity of each individual employee and in return the overall performance of the organization.
Human resource managers should identify which type of training (on-job or off job) and techniques are best suited for each department (role plays, conferences) this helps cater for each departments training needs sufficiently.
He/she should also come up with measures that establish how effective training is for instance profits productivity level improved after training.
Training is very important to any organization that wants to remain relevant in today’s market especially in the hotel industry. However when training is carried out in a haphazard manner its costs will out way the benefits making it irrelevant human resource management should therefore ensure that training is carried out in a manner beneficial to both the employee and organization.
Nguyen et al., Research & Practice in Human Resource Management, (June 2010).