Case Study Analysis

Case no.8
Submitted by
Ali
MBA-II SEC A

SUBMITTED TO

DR.FAREEDY
Qualitative statements

 The competitive strategy of hotel Paris is “To use superior guest service to differentiate the
Hotel Paris properties, and to thereby increase the length of stay and return rate of guests, and
thus boost revenues and profitability.”
 The ratios computed were generally similar to those of most competing hotels.
 The CFO authorized Lisa to design and propose a new benefits plan.
 She wanted to plan that contributed to improved employee morale and commitment.
 She wanted the plan to include elements that made it easier for employees to do their jobs.

Facts

 At least 60 % of employees consistently said they were deeply dissatisfied with the benefits they
were getting.
 They computed several benefits –related metrics for their firm, including benefits costs as a
percentage of payroll, sick days per full time equivalent employee per year, benefits
cost/competitor’s benefits cost ratio and workers compensation experience ratings.

Problems Identification

 Employees were dissatisfied with their salaries, which was hampering the quality of service they
were providing. This was resulting in to Hotel Paris not achieving its strategic goals.
 Employee commitment and employee morale were low since they were not motivated by the
benefit plans that were offered to them.
 The matrices that were calculated were very low compared to high performing business in the
services related organizations.
 Hotel Paris’s costs were running high due to high absenteeism rate in front line job employees,
which resulted in to higher overtime payments and temp workers cost.

Question 1

There are certain behaviors of the employees on which the company has to work in order to improve
the efficiency of the hotel. These behaviors include:

 Employee commitment
 Employee motivation
  Employee loyalty
 Reduce family related distractions
 Regularity and punctuality

The reason for choosing these particular behaviors is because employees are most easily distracted by
these. Problems of employee commitment and motivation are already prevalent in the case as it is
mentioned a lot of times that employees are not happy with their current benefits package. Apart from
that employee loyalty and family related distractions are chosen because if employees are not loyal to
the form then they would never given their full to the company. Also they have to work without any
distractions and this can only be achieved if the employees know that their kids are taken care of and
that the company would provide every service possible to make the employees comfortable. Regularity
and punctuality would mean that the employees would be there on time and they would give their
100% to the organization.

Question 2

Hotel Paris can offer different benefits to suites the needs of individual employees. Providing a flexible
benefit plan will help the organization meet each employee’s individual need and thus that can serve as
a motivating factor.

First of all in order to improve the employee commitment, morale and motivation, benefit plan should
be attractive to the employees so it can encourage them to work better. Group life insurance and social
security should be introduced for all the employees. When they will know that their future is secure,
their families will have financial security in case something happen to them, and above all by getting
these benefits it will develop a feeling in employees that the organization cares for them. Secondly one
of the major issues that need to be addressed were other family related distractions. Hotel Paris can
provide family-friendly benefits. This may include subsidized child care, which was mentioned in the
case as well. If employer will provide child care services at subsidized rates, employees can avail that
opportunity and come to work and perform efficiently, without worrying too much about children back
home.

Thirdly to reduce absenteeism, Hotel Paris is already thinking on lines of introducing a model based on
BeneTrade of Marriot Hotels. Employees will have an option to trade their sick leave for other benefits.
Perhaps, Hotel Paris can link other benefits such as subsidized child care benefits.