TABLE OF CONTENTS

1. Executive summery
2. Case study
3. Question No. 01
4. Question No. 02
5. Question No. 03
6. Question No. 04

EXECUTIVE SUMMARY
Purpose

Purpose of this case study is to identify and analyze key problems in planning and
mistakes in recruitment process. And find out what are the solutions and
recommendations can provide to overcome such problems.
Methodology
Find out what are the key problems, issues, recruitment methods Viraj used.
Findings

Mr. .Viraj has no practical knowledge on Sri Lankan job market, labour market,

HR environment and rules and regulations.

He recruited 350 peoples in 2 months, It is practically impossible.
He made a wrong decision by giving a chance to resigned people, He dont know

for what reason they resign.

Low occupancy rate of 15%, service reduction level of 5% and high LTO of 16%.

Recommendations and Conclusion

At least 5 months should be taken for recruitment and selection process, with
proper selection process.
Aptitude Test, Practical Test
Retired employees can be taken to head of departments. As they are
experience ones. Resign people can be given more training as per the better
man hotel future.

If the hotel can implement the above recommendations it can be more productivity
and profitable.

Question No. 01 Analyze and identify issues involved in the case.

b. Problem Statement
1. Low commitment of the top management

In this case late recruitment of the Head of HR shows the low commitment of the
top management and they did not have much concern about the need and the importance
of HR because they have commenced construction of 02 luxury hotels in hill Country and
Eastern Coast 03 years before but exactly two month before opening the hotels in January
2009, Viraj Gupta joined the group as the Head of HR. If they can start the construction
03 years before why they cant recruit a Head of HR earlier.

2. Head of HR did not have enough knowledge about Sri Lankan HR context
Practice of HR in U.S.A & Sri Lanka is totally different so he have to practice HR
in Sri Lankan context. If he do this he need the practical industrial experience, current
situation of hotel industry, labour market, HR culture & environment, rules and
regulations, and specially the labour law of Sri Lanka but in this case Head of HR did not
have enough knowledge about these.

3. Head of HR had only 02 months left to recruit 350 employees

It is practically impossible to recruit 350 employees in 02 months.

4. Do not have enough employees according to the yield pyramid

Recruitment process not match with the yield pyramid. According to yield
pyramid, for recruiting 350 people there should be 8400 candidates but there is only 1200
potential candidates.

5. Poor response in Trincomalee Hotel

Very poor response received for the vacancies in the hotel in Trincomalee.
It shows there was a problem in the Recruitment Process & especially in the methods of

recruitment. Head of HR did not have a Strategic plan to overcome the problems in
Recruitment such as war period, & the location is in Tricomalee.

6. Given the chance to resign & retired employees

It was a wrong decision. Retired employees mean the employee after the
age of 50 / 55. Hotel industry required young employees because they a very smart and
have personality. Head of HR did not know the reason why they resigned if someone
leaving the organization that mean he did not like to work for above organization or job
dissatisfaction so if we recruit these employees what will happen to the organization.

7. 5% of vacancies were not filled

He was able to fill only 95% of the vacancies that means 5% of vacancies are not
filled it means organization need another 17 employees.

8. Paying little attention to selection process and induction phase

9. Poor performance
Both hotels recorded a very low occupancy rate of 15% even at the peak season
periodic guest survey indicated that alarming 5% reduction of service levels in Colombo
hotel. Turn over recorded all time high of 16% in both new hotels.

10. Long serving staff members resigned

Long serving staffs are very important asset for the organization because they
have the required knowledge, skills, & good attitude to perform the job well, they have

get used to the organization policies, procedures, rules & regulations, and culture that
why it was a big loss for the organization.

11. Young employees formed a union

12. Employees issues

Those who are from the university did not have the enough experience, and they
are young graduate, & interns and they wanted to join at the middle management. Asking
for higher service charges & benefits such as staff transport.

13. Warning letters & preparing lengthy reports

Senior management team received regular warnings from corporate head office in
Bombay and Viraj spend many hours preparing lengthy reports to top team about the poor
performance of the hotel staff. If they get regular warnings then they get demotivated.
Head of HR have to spend his time on strategic planning to overcome the poor
performance not in preparing reports.

Question No. 02 Describe the key phases in HR planning and explain the short
comings in the planning process of Agra hotel chain which expected to expand
their business within next two years.

The key phases in HR planning

1. Analyzing organizational objectives and plans

03 years ago commenced construction of 02 luxury hotels in Hill Country and Eastern
Coast. It shows organizational / corporate objective and plan is business expansion.

2. Convert corporate objectives to HR objectives

Organizational / corporate objective and plan is business expansion to do this they
need employees so to recruit them Mr. Viraj Gupta joined the group as a Head of HR
is the HR objective.

3. Preparing HR inventory
The main purpose of HR Planning is to avoid over-staffing & under-staffing. For this
a stock of existing manpower has to be assessed. Manpower inventory refers to the
assessment of the present and the potential capabilities of present employees
qualitatively & quantitatively.

4. Forecasting HR needs or demands

He had to recruit 350 employees to operate 02 hotels.

5. Expected loss of manpower

Potential losses may be caused by death, disability, dismissals, resignations,

promotions, transfers, retrenchments or lay off, terminations, ill health, absenteeism,
deputation etc.

6. Analyze HR supply
- Internal sources
- External sources

7. Estimating HR gaps
A comparison between the existing workforce and the projected workforce demands
should be made, to identify the gap between the demand and supply of workforce. It
will reveal either surplus or deficit of workforce in future. Gaps may occur in terms of
knowledge, skills and aptitudes. These gaps may be bridged by training &
development.

8. Action planning
Head of HR organized 02 college recruitment fairs to attract the young graduates to
take up positions in the upcoming hotels with collaboration of leading universities in
both areas. He opted for a newspaper advertisement for walking interviews.

9. Monitoring & control

Once action plans are implemented, the HR structure & system need to be reviewed
& regulated periodically.
The monitoring & control phase involves allocation & utilization of HR over time.
-

Control of HR costs is another important aspect of monitoring & control

In this case only a handful of young interns & graduates were turned up at the fair &
all of them wanted to join at the middle management level where he had some
opposing thoughts. He was able to recruit all 120 personnel for majority of vacancies
in walking interviews. Very poor response received for the vacancies in the hotel in
Trincomalee. 5% of vacancies were not filled.

Explanation of short comings in the planning process of Agra hotel chain which
expected to expand their business within next two years.

1. Preparing HR inventory (Skills inventory) Head of HR did not have a stock of existing HR. That means knowledge levels,
special qualifications, skills, attitude of the employees.

2. Expected loss of manpower

Even though he forecast the HR need / demands he look for the expected loss of
manpower. So high labour turn over 16%, & resignation of long serving staff would
have a big impact.

3. Analyze HR supply
He did not look for the supply of knowledge, skills, and attitudes internally and
externally.

4. Estimating HR gaps
Head of HR did not compare the gap between HR needs or demands & HR supply
because he did not have the HR supply so it may cause to surplus or deficit.

5. Monitoring & Control

Organizations do monitoring & control even though they did the HRP process very
well but here Head of HR did lots of mistakes in the HR planning process but he did
not do the monitoring & control. It shows the poor practice of HRP process.

Question No. 03 List down internal and external recruitment methods and
explain 02 methods, each along with case examples.

RECRUITMENT METHODS
Recruitment process

Job specification

Job description

Single recruitment
specification

Identify suitable
candidates

Review and shortlist

Select candidate

Negotiate employment
contract

Sell the job

Internal recruitment methods

-

Promotion
Transfer
Intranet
HRIS
Newsletter
Notice boards
Circulars
Job posting

External recruitment methods

- Internet
- Newspaper Advertisement
- Job fairs
- Job agencies
- Graduates
- Training centers
- Walk-in-interviews
- Job bidding

Recruitment methods used in the above case

Internal Recruitment
Rejoin resign and retired employees Its cost effective but we dont know the reason
why they resigned from the hotel.
Transferring loyal employees from Colombo Time saving method but may cause
employee un-satisfaction and employees will demotivate.

Advantages

Limit adjustment time

Reduce turnover

Offer appropriate remuneration

By using this method, he could able to find employees to Trincomalee hotel,

which was difficult to find enough people to fill all the vacancies.

Disadvantage

No new or fresh ideas are brought into the organization

The number of applicants from which to choose may be limited.

Promotion of an internal employee could cause resentment amongst other

employees, who may feel they deserve the post more than the promoted
employee.

External Recruitment
Two college recruitment fairs It will be not successful because only a few turned and
expected to join middle management.
Newspaper Advertisement for walk-in-interviews It is a good and easy method but not
suitable for to level posts.

Question No. 04 Discuss the proposed selection method/s you will follow
(Recommendations), if you have been assigned to head the selection committee to
identify potential employees for newly opened hotels.

Selection
Selection is a process of picking individuals with requisite qualification and

competence to fill jobs in the organization.

Selection VS Recruitment
Recruitment is the process of searching the candidates for employment and

stimulating them apply for jobs in the organization WHEREAS selection involves the
series of steps by which the candidates are screened for choosing the most suitable
persons for vacant posts.

Selection process

The selection process differs among organizations and between two different jobs
within the same organization. It basically depends on the management policies and the
size of operation.

Selection methods

Application forms and CVs.

Interview methods- stress, competency based, behavioral.

Reference checking.

Work sample.

Test methods- ability, aptitude, personality, psychometric test.

Assessment centers.

Presentation method.

Group discussion.

Online screening and short-listing.

Informal meetings.

Physical/ medical examination.

General selection process

1.Preliminary Interview
2.Selection test
3.Employment Interview
4.Reference and background analysis
5.Selection Decision
6.Physical Examination
7.Job offer

8.Employment Contract
9.Evaluation

Viraj has selected straight away 120 people from1200 applicants. He has only done for
external recruited people majority interviewed and offer the job. Internal employees
straight away transfer to newly opened hotel without any consideration. Instead of the
informal selection method company can use formal method which suitable for hotel
industry.
According to this case two months are not enough to recruit such a big amount of
employees.
recruitment and selection process
1. Application screening and short listing.
2. Employment test.

3. Reference checking
4. Selection decision.
5. Medical examination.
6. Job offer.
Recommend; At least 5 months should be taken for recruitment and selection
process, with proper selection process.

Walking interviews are not suitable for this situation.

Its a huge time wastage and also there could have unwanted applications.
Recommend; Aptitude Test, Practical Test

Retired and resign employees re-join to the company.

 Old ideas are coming and existing employees can be demotivated and
frustrated. These things would be affected to the employee relationship.

Recommend; Retired employees can be taken to head of departments. As they are

experience ones. Resign people can be given more training as per the better man
hotel future.