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Case Study
Translating Strategy into HR Policies and Practices Case
Questions
I. Draw a more simplified and abbreviated strategy map for the hotel Paris.
Specifically, summarize in your own words and example of the hierarchy
of links among the hotel’s HR practices, necessary workforce
competencies and behaviors, and required organizational outcomes.
The strategy Map of Hotel Paris
 Is to producing satisfied customers
(Requiring attending to all those activities where there is an opportunity to affect the
customer’s experience.
 Activities include getting the customer form airport and checked in,
 Cleaning the Room
 Picking up baggage and getting the guest checked out
Hierarchy
Employee’s competencies andBehavior
 The hotel’s required employees competencies and behavior would include “ High-
quality front-desk customer services,”
“Greeting guest at front door,” and “processing guest’s room service meals efficiently
“
All required Motivated, High-Morale Employee.
 Now HR manager’s task is to identify the human resource policies and activities that
will enable the hotel to produce their crucial workforce competencies and behavior.
 For example, she decides to institute practices to improve the disciplinary fairness and
justices in the company, with the aims of improving employee morale.
 Finally , Lisa decide to computerize the all these cause-and-effects links among the HR
activities , the work force behaviors, and the organizational outcomes, scorecard
software to present result on digital dash board.
Building a High-Performance work system
 High-Performance work system
President
Sales revenue to
$16 million in fiscal
year 2011
Vice president of
sales
“Double sales in
East, West, and
south regions”
Vice President of
production
“Add one new
production line at
plant”
Vice President HR
“Add, train
salesperson”
Sales Manager,
South Region
“Hire 4 new
salespeople
Add 18 customers
Sales Manager,
East Region
“Triple sales to
Gov. Agencies”
Sales Manager,
West Region
“Move 6 Nevada
salespeople to
California market”
Recruiting
Manager
“Identify and
attract 20 good
sales candidates”
Training Manager
“Train 6 new
salespeople and
retain all other
within 4
months”
 High-Performance Human Resource Policies
Metrics of Hotel Paris
Job analysis:
Employee with updated job
Description
Benefits:
Employee satisfied with benefits
Pay:
Workforce eligible for merit pay
Ethics:
Employee able to quote ethics code
Appraisal:
Employees getting feedback appraisals completed at time.
2-Using Table 3-1 and figure 3-9, listat least15 metrics the HotelParis could
use to measure its HR practices.
Overall HR Metrics
Overall employee turnover
What It Means: How many employees voluntarily leave your company each year?
a. Find Average # Employees
Average # Employees =
(Total # Employees Beginning of Year + Total # Employees End of Year) / 2
b. Tally up how many employees quit throughout the year
c. Divide “b” by “a” for the turnover rate.
Early turnover (employees leaving within 1 year)
How You Calculate It: Same as metric 1, but only use the number of people who have started
within the last year.
Cost of HR per employee
What It Means: If you have an HR person or more than 1 person, this is how much you pay the
HR team versus how many total employees you have.
How You Calculate It: The total salary & benefits package of your HR team divided by the
number of employees. This is an efficiency metric and your ratio will depend on your style of
business. For example, if you have all salaried, full time employees, you probably will need an
HR person by the time you hit 30-50 people; if you have a restaurant with a lot of part time
hourly staff, you might not need an HR person until far more due to their part time nature (i.e.
no benefits).
Training spent per employee
What It Means: How much money you spent on training for your employees.
How You Calculate It: Take how much money you spent on training and divide it by the
number of employees you had that participated in those trainings. This is also an efficiency
metric, as well as it can reveal uneven training spend. If you want to get fancy.
Diversity metrics
What It Means: You may be tracking this already if you have payroll software, recruitment
software, or HR software of some kind. If you have over 100 employees, you also need to
report your diversity numbers every September. You will want to track how many people self-
identify into the protected classes, like race and sexual orientation, across your employee base.
However, remember, no one is obligated to self-disclose their identification.
How You Calculate It: Do a survey on the basic protected classes for identification for every
employee. Here is a good resource for that if you have to file, but you also can use it as a sample
for what you should ask if you are smaller. You could try a free survey tool, like Survey
Monkey or Survey Hero, to collect your own anonymous data.
Time to hire/average time to hire
What It Means: Recruiting processes can take far too long at some companies and it can mean
that you lose talent. Having a recruitment process is around 4-6 weeks to fill positions is
desirable in order to save time and money. The time to hire is from when a candidate starts the
interview process until they accept your offer.
How You Calculate It: Look up the number of days that each job you offered took to be filled
from the time the candidate started interviewing, and then divide it by the number of jobs.
Offer acceptance ratio
What It Means: This is a simple metric of how many people you offer jobs to accept them
versus how many decline. This will tell you if your offerings are off- i.e. compensation is too
low, no benefits, etc…
How You Calculate It: Divide the number of offers accepted over the number of offers given.
Performance management yield ratio
What It Means: This is a measure on how many people are performing at a high level per your
performance review system.
How You Calculate It: Unless you have a performance management system in place with a
quantified scoring system this one will be hard to calculate. If you have a point’s review system,
you will want to figure out the cut off for an above average performer, i.e. 70 out of the 100
points, and then calculate how many employees meet that out of the total number of employees.
Average time until promotion
What It Means: This is how long it takes for an employee to either be promoted for exceptional
success. It sounds like an odd metric, until perhaps you think of how many people leave you
around the 2-5 year mark after not getting a promotion!
How You Calculate It: Take your employee base and calculate how long it took for any of them
to be promoted, and if they have been. If you don’t do promotions, consider doing this
calculation with pay raises instead. Then divide the amount of time by the number of employees
that were promoted (or given a raise).
Revenue or profit per employee
What It Means: Another straight-forward metric, this is a truly important one for small
businesses. You will want to make sure you aren’t over or under staffed by using this metric,
as well as you should have some perspective on your overall bottom line with your employee
base.
How You Calculate It: Calculate your yearly or monthly revenue or profit and divide it by your
number of employees.
Overtime cost
What It Means: This is pretty simple- how much do you spend in overtime wages per year?
Does it go up each year? This can tell you if you are under or over staffed as well as if you
should consider an employee scheduling software or time and attendance software to help
remedy this.
We also recommend using payroll software that will automatically run reports like this for you.
How You Calculate It: Add up your overtime wages paid each year, or over a set period (you
could even do this every month).
Timesheet/scheduling match
What It Means: Here you are looking for the number of hours needed to be in alignment with
the number of hours worked. This can also give your insight into over or under staffing, or
absenteeism rates. This is most useful for retail shops, restaurants, and other shift based sales
businesses.
How You Calculate It: Calculate the number of hours that should be worked in one week if all
shifts are covered. Calculate the number of hours actually worked that week, and notice the
difference. Your goal should be less than 5% difference.
Healthcare costs per employee
What It Means: Another straightforward metric, you will want to make sure you are spending
an amount that you are cognizant of and that is in your budget for healthcare.
How You Calculate It: Measure what you contribute to your employees’ healthcare over a
month or a year and divide it by the number of your employees who are utilizing your
healthcare.
Billable hours per employee
What It Means: If you have a small project management firm, or marketing firm, or another
business where you bill out to clients, you will want to use this metric to figure out if your
staffing is in alignment with your client needs. Law firms also commonly use this and have a
minimum number of hours per lawyer needed each month.
HR Metric Company Goal(s) It
Could Link To
What You Want to See
Overall employee
turnover
Reducing costs
Improving morale
Improving
communications
Better
employee/manager
relationships
Reduced turnover number from year to year;
ideally, your voluntary turnover is 10% or less
(i.e. people who have to move away)
How You Calculate It: You can do this over a week, month, or other set period of time. Take
the number of hours you billed out and divide it by the number of your employees. You will
want something around 35 hours billable per week minimum for full time
Above average
performance yield
ratio
Increasing revenue
Increased client
satisfaction
Improving morale
Overall better company
organization
More high performers each year (which you
could see via performance review scores)
Revenue per
employee
Increased revenue
Business or financial
stability
Increased sales
Higher revenue per employee is the goal
(without working your people into the
ground!)
Environment Improving morale
Reducing employee
turnover
More teamwork
A continuously “better” or high-functioning
environment (hard to measure, but you know if
you are in one or not)

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HRM Case STUDY Qusetion AND Answer

  • 1. Case Study Translating Strategy into HR Policies and Practices Case Questions I. Draw a more simplified and abbreviated strategy map for the hotel Paris. Specifically, summarize in your own words and example of the hierarchy of links among the hotel’s HR practices, necessary workforce competencies and behaviors, and required organizational outcomes. The strategy Map of Hotel Paris  Is to producing satisfied customers (Requiring attending to all those activities where there is an opportunity to affect the customer’s experience.  Activities include getting the customer form airport and checked in,  Cleaning the Room  Picking up baggage and getting the guest checked out
  • 2. Hierarchy Employee’s competencies andBehavior  The hotel’s required employees competencies and behavior would include “ High- quality front-desk customer services,” “Greeting guest at front door,” and “processing guest’s room service meals efficiently “ All required Motivated, High-Morale Employee.  Now HR manager’s task is to identify the human resource policies and activities that will enable the hotel to produce their crucial workforce competencies and behavior.  For example, she decides to institute practices to improve the disciplinary fairness and justices in the company, with the aims of improving employee morale.  Finally , Lisa decide to computerize the all these cause-and-effects links among the HR activities , the work force behaviors, and the organizational outcomes, scorecard software to present result on digital dash board. Building a High-Performance work system  High-Performance work system President Sales revenue to $16 million in fiscal year 2011 Vice president of sales “Double sales in East, West, and south regions” Vice President of production “Add one new production line at plant” Vice President HR “Add, train salesperson” Sales Manager, South Region “Hire 4 new salespeople Add 18 customers Sales Manager, East Region “Triple sales to Gov. Agencies” Sales Manager, West Region “Move 6 Nevada salespeople to California market” Recruiting Manager “Identify and attract 20 good sales candidates” Training Manager “Train 6 new salespeople and retain all other within 4 months”
  • 3.  High-Performance Human Resource Policies Metrics of Hotel Paris Job analysis: Employee with updated job Description Benefits: Employee satisfied with benefits Pay: Workforce eligible for merit pay Ethics: Employee able to quote ethics code Appraisal: Employees getting feedback appraisals completed at time. 2-Using Table 3-1 and figure 3-9, listat least15 metrics the HotelParis could use to measure its HR practices. Overall HR Metrics Overall employee turnover What It Means: How many employees voluntarily leave your company each year? a. Find Average # Employees Average # Employees = (Total # Employees Beginning of Year + Total # Employees End of Year) / 2 b. Tally up how many employees quit throughout the year c. Divide “b” by “a” for the turnover rate. Early turnover (employees leaving within 1 year) How You Calculate It: Same as metric 1, but only use the number of people who have started within the last year.
  • 4. Cost of HR per employee What It Means: If you have an HR person or more than 1 person, this is how much you pay the HR team versus how many total employees you have. How You Calculate It: The total salary & benefits package of your HR team divided by the number of employees. This is an efficiency metric and your ratio will depend on your style of business. For example, if you have all salaried, full time employees, you probably will need an HR person by the time you hit 30-50 people; if you have a restaurant with a lot of part time hourly staff, you might not need an HR person until far more due to their part time nature (i.e. no benefits). Training spent per employee What It Means: How much money you spent on training for your employees. How You Calculate It: Take how much money you spent on training and divide it by the number of employees you had that participated in those trainings. This is also an efficiency metric, as well as it can reveal uneven training spend. If you want to get fancy. Diversity metrics What It Means: You may be tracking this already if you have payroll software, recruitment software, or HR software of some kind. If you have over 100 employees, you also need to report your diversity numbers every September. You will want to track how many people self- identify into the protected classes, like race and sexual orientation, across your employee base. However, remember, no one is obligated to self-disclose their identification. How You Calculate It: Do a survey on the basic protected classes for identification for every employee. Here is a good resource for that if you have to file, but you also can use it as a sample for what you should ask if you are smaller. You could try a free survey tool, like Survey Monkey or Survey Hero, to collect your own anonymous data. Time to hire/average time to hire What It Means: Recruiting processes can take far too long at some companies and it can mean that you lose talent. Having a recruitment process is around 4-6 weeks to fill positions is desirable in order to save time and money. The time to hire is from when a candidate starts the interview process until they accept your offer. How You Calculate It: Look up the number of days that each job you offered took to be filled from the time the candidate started interviewing, and then divide it by the number of jobs.
  • 5. Offer acceptance ratio What It Means: This is a simple metric of how many people you offer jobs to accept them versus how many decline. This will tell you if your offerings are off- i.e. compensation is too low, no benefits, etc… How You Calculate It: Divide the number of offers accepted over the number of offers given. Performance management yield ratio What It Means: This is a measure on how many people are performing at a high level per your performance review system. How You Calculate It: Unless you have a performance management system in place with a quantified scoring system this one will be hard to calculate. If you have a point’s review system, you will want to figure out the cut off for an above average performer, i.e. 70 out of the 100 points, and then calculate how many employees meet that out of the total number of employees. Average time until promotion What It Means: This is how long it takes for an employee to either be promoted for exceptional success. It sounds like an odd metric, until perhaps you think of how many people leave you around the 2-5 year mark after not getting a promotion! How You Calculate It: Take your employee base and calculate how long it took for any of them to be promoted, and if they have been. If you don’t do promotions, consider doing this calculation with pay raises instead. Then divide the amount of time by the number of employees that were promoted (or given a raise). Revenue or profit per employee What It Means: Another straight-forward metric, this is a truly important one for small businesses. You will want to make sure you aren’t over or under staffed by using this metric, as well as you should have some perspective on your overall bottom line with your employee base. How You Calculate It: Calculate your yearly or monthly revenue or profit and divide it by your number of employees. Overtime cost What It Means: This is pretty simple- how much do you spend in overtime wages per year? Does it go up each year? This can tell you if you are under or over staffed as well as if you should consider an employee scheduling software or time and attendance software to help remedy this. We also recommend using payroll software that will automatically run reports like this for you.
  • 6. How You Calculate It: Add up your overtime wages paid each year, or over a set period (you could even do this every month). Timesheet/scheduling match What It Means: Here you are looking for the number of hours needed to be in alignment with the number of hours worked. This can also give your insight into over or under staffing, or absenteeism rates. This is most useful for retail shops, restaurants, and other shift based sales businesses. How You Calculate It: Calculate the number of hours that should be worked in one week if all shifts are covered. Calculate the number of hours actually worked that week, and notice the difference. Your goal should be less than 5% difference. Healthcare costs per employee What It Means: Another straightforward metric, you will want to make sure you are spending an amount that you are cognizant of and that is in your budget for healthcare. How You Calculate It: Measure what you contribute to your employees’ healthcare over a month or a year and divide it by the number of your employees who are utilizing your healthcare. Billable hours per employee What It Means: If you have a small project management firm, or marketing firm, or another business where you bill out to clients, you will want to use this metric to figure out if your staffing is in alignment with your client needs. Law firms also commonly use this and have a minimum number of hours per lawyer needed each month. HR Metric Company Goal(s) It Could Link To What You Want to See Overall employee turnover Reducing costs Improving morale Improving communications Better employee/manager relationships Reduced turnover number from year to year; ideally, your voluntary turnover is 10% or less (i.e. people who have to move away)
  • 7. How You Calculate It: You can do this over a week, month, or other set period of time. Take the number of hours you billed out and divide it by the number of your employees. You will want something around 35 hours billable per week minimum for full time Above average performance yield ratio Increasing revenue Increased client satisfaction Improving morale Overall better company organization More high performers each year (which you could see via performance review scores) Revenue per employee Increased revenue Business or financial stability Increased sales Higher revenue per employee is the goal (without working your people into the ground!) Environment Improving morale Reducing employee turnover More teamwork A continuously “better” or high-functioning environment (hard to measure, but you know if you are in one or not)