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SPA
Hints: a) It should be helpful that you investigate a bit more the SPA industry in the US. Are there
many Stand-alone Spas (Not belonging to a chain/franchise and not a service offered by a
hotel/casino)? What type of services do these provide?
b) You should also have a very clear idea, even a chart on your extra sheet, of what the business
strategy and the human resource management strategy of ARISE are.
Identification of Symptoms
For Thompson, the primary concern was the growing revenue; while Solti is
controlling costs.
Turnover of employees are influenced by uncontrollable variable such as
personal decisions of employees (non-work related).
PWC provide key services in the spa but would have slack time in their
schedules; having low productivity rate at that point. This is in contrary to the
proposal of increasing their salaries to strengthen the pool and retain.
There have been no clear job descriptions on other areas of responsibilities
in ARISE.
The All-Star Team plan has its own pros and cons, which makes it hard to
management to determine if its deemed successful or not.
The PWC relies heavily on the tips from their services and treat the tips as
part of their monthly package income.
Ethical Problems
Employee morale has been affected within the management team due to
work habits which can cause de-motivation
The company is not fair in providing ample break time for the PWCs as they
do multi-tasking of activities, which was supposedly the task of facilities
maintenance group
Sensitivity and respect to ones time is not being observed as this resulted in
late picking up of clients and overlapping of treatment hours.
Tipping affects income but been discouraged from destination spas such as
ARISE.
Problem Analysis
The solution of the problem must address the reasons for high employee
turnover of the spa, improvement of customer satisfaction and increase in
financial performance. The solution of the problem must also address the
employee morale improvement of the company.
Cons:
Increase in manpower expense and will require other sources of capital
due to loss in income.
The increase in benefit package may not guarantee retention and will
not be suffice to compensate for the expected tips of PWCs.
The increase in benefit package may not directly influence the
customer satisfaction rating of ARISE.
Turnout or impact to income is not yet foreseen
ACA #2: Keep the All-Star Team Plan and maintain the additional fee in the
fitness center
Pros:
Will increase employee morale and engagement as this promotes
healthy competition amongst employees
Management will be able to identify who are the key players and
potential leaders
Provides a different flavor of working together as a team which will help
achieve and deliver customer needs
Sharing of ideas and thoughts will come into play in most cases (i.e.
process improvement, suggestions, etc)
Group effort will be seen and peer pressure will increase (pressure in
proving ones worth and abilities)
The increase in fees will give a prestige and quality image of the
services and products that ARISE offers.
The increase in fees will cover for the income loss of ARISE,
financially.
Cons:
Other employees might not feel comfortable working in teams and
might result to de-motivation and decline in performance
Individual effort might not be seen by management and there will be
high instances of unequal work or labor.
Scheduling problems will start due to limited number of employees and
overlapping of schedules and availability.
Queuing problems will start for customers who have different
references.
Some customers may not be comfortable in group and would prefer the
individual treatment.
The additional fee may discourage customers going to ARISE.
ACA # 3: Revisit and reiterate the duties and responsibilities of a PWC and
the other positions in the spa
Pros:
There will be clarity in the roles and what are expected out of the
employees performance
KPIs are measured and from these detailed duties and responsibilities
that rewards are based
Employees will know their areas for improvement for they will know
their gaps in terms of competencies and skills
Employees can manage their own time and promote harmony in
ARISE
Cons:
Might not help eliminate slack time and employees may view
inequality in ARISE
There will be resistance to change for employees due to additional
work and responsibilities.
The additional work and responsibilities may require additional benefits
or compensations for employees of ARISE
Recommendations
ACA 1 : Retain Full-time Employees (PWCs) and improve the current benefits
package and ACA 2 Keep the All-Star Team Plan and maintain the additional
fee in the fitness center.
By keeping the full-time employees will keep the morale of the employees and
will save the company additional time and resources for the trainings of new
employees. In addition, the good feedback of the All-Star Team signifies that
the plan was successful and only needs improvement to fully utilize the plan.
While the plan for the additional fee in the fitness center will create a good
image and high quality for ARISE. In addition, the additional income will be
able to compensate for the increase in benefit packages of the employees
without the need of additional capital. The additional fee and increase in
package will increase morale for the employees and will give an image that
ARISE is improving internally and externally.
Action Plan
ARISE will start the additional of fee in the fitness center by the start of the
month. While at the same time, ARISE will announce by memorandum to
employees that an increase in benefit package will start by that month and
employees may see the increase on the month end salary.
The memo will ensure increase in morale of employees and will ensure that
the employees will work hard while looking forward for the increase by the
month end and in turn will increase the customer satisfaction ARISE gives to
customers.
The additional fee will cover for the additional cost of the increase in
employee benefit package.
ARISE can also promote a performance reward system for performing
employees by the end of the month.