1. MODULE NUMBER
MM11
MODULE NAME
HUMAN RESOURCE MANAGEMENT
COURSE LEADER
Dr Jochen Menges
AUTHOR:
Milena Milićević
HAND IN DATE
24 April, 2012
word count:
4056
I confirm that this submission is my own unaided work, except as specified below; all
sources are fully acknowledged and referenced; the submission does not contain material
that has already been used to any substantial extent for a comparable purpose.

2. Table of contents:
Business Model……………………………………………………………….……….3
Situation Analysis and Creating the Team of the Danube Ethno Oasis…………....…4
Recruiting and Selection……………………………………………………..………..7
Motivated Workers are Best Retained ………………………….…………………....10
Performance Analysis and Compensation Scheme…………………………………..11
Trained and Developed………………………………………………...…………….13
Conclusion and Thinking Long-Term………………………………………………..15
Appendix 1……………………………………………………...……………………16
*******
Appendix 9………………………………………………………...…………………27
Bibliography………………………………………………………...………………..30
2

3. Human Resource Strategy for a family Start-up in tourism:
Danube Ethno Oasis in Donji Milanovac, Serbia
Business Model
The family start-up company ‘‘Danube Ethno Oasis’’ (DEO) will be located in
Donji Milanovac (Lower Milanovac) as a small-scale ethno village and a DMO
(Destination Management Organization) with enough international expertise and local
charm to provide services such as: accommodation, restaurant, sightseeing,
recreational and extreme sports. Donji Milanovac, a Serbian town of 3000
people, is situated on the 992nd
km of the Danube1
and has been offering tourism
services in a slightly outdated manner, i.e. not understanding fully the needs of
modern foreign tourists who usually stay in the Lower Danube Region around 2-
3 days (Scientific Research Centre 2007b, p. 4) and may not necessarily choose a
luxurious mass-scale hotel for their accommodation. Therefore, Danube Ethno Oasis
will leverage on this current tourism pattern, and the access to the Djerdap Lake and
the Djerdap National Park, which is on the UNESCO Tentative List of Sights2
to
differentiate itself as a consumers’ choice. The company will develop its initial
profitability as an intact destination for passengers in Danube transit. It will
strategically focus its business and human resource operations on these values:
positioning the hospitable face of the Danube throughout the concept of sustainable
tourism, engaging visitors in multifaceted differentiation experience: home-made
healthy food, adrenaline sports or tranquil sightseeing in the untamed, protected
natural resort. These values will be clearly indicated to employees, visitors and
general public on the company’s website, during recruitment procedures and in
interactions with guests so that fit of business and human resource strategy is ensured.
1
http://www.mojdunav.com/?q=node/1020
2
http://whc.unesco.org/en/tentativelists/1693/
3

4. Donji Milanovac and the Danube Landscape on Wikipedia 3
Situation Analysis and Creating the Team of the Danube Ethno Oasis
In 2007 The Serbian Ministry of Economic and Regional Development proposed The
Serbia Tourism Strategy and the Master Plan of the Lower Danube Region for
improvements of economic potential and employment opportunities in the region.
(Macura 2010, p. 23) Authors of the Master Plan estimated that the initial initiative of
the Ministry of Tourism to provide trainings and further education for tourism
workforce was a good stepping stone in terms of two major priorities,
‘‘professionalization of human resources and enhancing service culture towards the
global market.’’ (Scientific Research Centre 2007b, p. 185) These principles
facilitated trainings for the skills which the workforce is mostly deficient of and
which should be delivered to the customers in a more consistent and branded manner:
equipping workforce with additional knowledge of foreign languages and soft skills,
improving their customer relations, marketing and budgeting skills (depending on the
relevance for their job), and training workforce for new sports.
The company’s objectives and Mission statement will shape its strategy and guide its
motivated, efficient team: ‘‘Danube Ethno Oasis (DEO) is a sustainable ethno resort
3
http://en.wikipedia.org/wiki/File:Donji_Milanovac.JPG
4

5. which provides unique and priceworthy stay and sightseeing. In this natural oasis
you will experience relaxed spells of time, extreme sports and Serbian authentic
food as our DEO team can greet you in more than 5 languages. You will travel
with us to ‘‘the oldest known European human settlement Lepenski vir’’ (Misic
1980) that celebrated 8000 birthdays; you will sail the water roads of the Roman
Emperors in the Djerdap, the largest natural park in Serbia 4
or enjoy unspoiled
wildlife of the Djerdap Gorge within our modern times. Thus, our DEO team
becomes the indispensable DEO (means: ‘‘part’’ in Serbian) of your enchanting
experience.’’ This consistent and appealing imagery will better position the
Lower Danube destination in the minds of international and domestic customers,
and also establish our start-up company as an attractive job-provider for the
educated and cosmopolitan workforce in the region that needs to boost
investments and fully harness its tourism potential.
Ten employees of the DEO family business will integrate the Danube
Hosts/Hostesses role within their specific job requirements, which means they will
help out guests, serve food for them during meals, engage in their conversations,
perform short theatre or recital pieces according to the occasions and guests’ affinity.
Equipping all employees with the roles of the Danube Hosts/Hostesses will help
company create distinctive identity while promoting employees’ service (to customers
and external partners) and linking them to the Danube region, which already appeals
to the citizens of 10 countries and their guests. In pursuing differentiation and internal
labour orientation the company will turn our Danube Hosts into Committed Experts.
On the basis of competency modeling the following job specifications are required in
recruitment stage: (See Appendix 1 for Ad description)
1) Chief Executive and Human Resource Officer, Danube Host, general enquiries
and booking: Author of the essay
2) Chief Marketing, Merchandise and Finance Officer, Danube Host, general
enquiries and booking: Author’s brother, college degree in Economics, motivator,
shares the start-up vision, risk-taker with business intuition and perseverance
4
http://www.viminacium.org.rs/IRS/index.html?language=english
5

6. 3) Website and IT System Developer: has college degree in Information Systems/
Web Design Development and references that show experience in designing websites
for tourism associations and developing systems for financial management. Because
of the specific expertise required, the web designer will be hired externally.
Still, our 2-person team will build a relationship with the designer and create with
other employees the strategically integrated website sections about customized
booking, special offers, Danube gastronomy, nature, multimedia (to engage
customers) and additional recruitment (when business expansion arises). Employees
will also use intranet documents and customer service manual to maintain service
standards and have the blueprint of intangible company resources (values, brand, code
of conduct).
4-6) 3 Tour Guides to be Danube Hosts/Hostesses will be in charge of cultural
outings and event organisation at the Oasis venue and with external partners. One
Tour Guide, Danube Host/Hostess (who shows greatest managerial potential) will
be gradually involved in running of the accommodation, answering enquiries with
management and conceptualizing the long-term company strategy with other team
members.
7-8) 2 Welfare Officers to be Danube Hosts/Hostesses will promote healthy
lifestyle, sports; assist with medical help if needed and utilize networks with local
partners to take guests to the outsourced sport services should they have special
wishes. In the long-run those employees will be promoted in developing of the
regional Danube Adventure centre and strategy for customers’ welfare.
9-11) 3 Chefs to be Danube Hosts/Hostesses will be in charge of restaurant catering,
ambiance and serving guests on the grounds of their college education and mentorship
in cooking and preferably international experience. Long-term, these employees will
create and implement gastronomic aspects of company’s strategy as they start
organizing Danube cooking workshops.
Nickson warns us that in the reality of hospitality management the ‘‘front-line staff
often has the lowest status in the organization, and is being the least trained, and the
6

7. poorest paid within the company’’ (2007, p.5). Our DEO company will need to tackle
this and other challenges in tourism industry such as decreased motivation, high
turnover, lack of adequate payment and rewards, limited opportunities for
development in order to provide differentiation service and become profitable. The
DEO’s competitive advantage will therefore stem from the realistic messaging in
recruitment stage, strong internal culture of hospitality, family business,
empowerment and not servility, as well as working with long-term developed workers
who can be promoted from within rather than with part-time, seasonal workforce.
Management and tour guides will attract customers via online channels (website, blog
writing, promotions), collaborate with relevant local and state authorities, partner
cities and tourism associations within the Danube region and internationally. The
entire team will be encouraged to suggest improvements for the marketing strategy,
customer service and logistics.
Vertical strategic alignment will be ensured ‘‘between the Committed Expert HR
strategy and business strategy of differentiation throughout innovation’’ when the
workforce creates new services. (Stewart and Brown 2009, p. 528) However,
horizontal alignment between individual practices is important so that company
recruits the team players who can project consistent, positive guests’ experience, and
who can be subsequently assessed in performance appraisals on the basis of fair
competition and beneficial cooperation. Moreover, since service is intangible and
variable, and start-ups can perform chaotically, what will enable effective
implementation of differentiation strategy and organisation’s survival in harsh
currents is workers’ reciprocal interdependence and at the same time autonomy and
rigour. Only with such motivational job design and consistency customers and
evaluators can say, ‘‘I know what good service is when I see it.’’
Recruiting and Selection
After defining job specifications for the candidates in DEO team, we should formulate
selection criteria out of limited number of applications. When recruiting for a start-up,
it is crucial to understand that different types of people are motivated to work there
7

8. than for an established multi-level corporation− start-up aspirants want to feel
involved in an entrepreneurial decision making and company development from the
onset; they usually have general knowledge rather than specific and should be flexible
to finish urgent and diverse tasks instead of being constrained by bureaucracy and
waiting on colleagues whose profiles suit more the task description. Therefore,
although our company will strategically attract Committed Experts to utilize their
specific skills, in the initial environment this strategy may shift and applicants will be
advised and expected to finish general tasks beyond their duties.
DEO management will use targeted skill scope strategy for more efficient and cost-
effective choice of candidates. The company will recruit on campus and present in
case study talks (even before the website is finished) the start-up’s narrative, its
exciting mission, potential challenges in order to spark candidates’ entrepreneurial
engagement. Also, college professors (of tourism, hospitality management,
marketing) will be encouraged to recommend the most adequate students for the
company to sift out. Managers can publish the intentionally creative, competitive and
entrepreneurial job postings on University Career Service websites, and throughout
student and regional web media since the company is outside of the major
employment city. These criteria should be included in job postings, HR strategy and
interaction with candidates, ‘‘job purpose, tasks involved, the duties and
responsibilities, the performance of objectives, the reporting relationships, the
remuneration package and working hours’’. (Heery and Noon in Nickson 2007, p. 91)
Once the adequate number of candidates submitted their resumes, cover letters in
English and work portfolios with references (pictures of dishes they created,
certificates from sport competitions or additional professional development), DEO
management should proceed with multiple hurdles approach and start short-listing
around 10 candidates for each position to be tested at the Ethno Village premises.
Iverson outlines criteria which can help recruiters to select most adequate candidates
during screening: ‘‘resume and application are visually meticulous, there are no
illogical breaks in work history; college major, previous skills and career objective are
appropriate for the job, grade point average is acceptable.’’ (2001, p 110)
8

9. In authentic working environment candidates will undertake a structured 30-minute
individual, behavioural interview (in the morning) and a group case study (in the
afternoon) in English or Serbian, given the appropriateness and candidates’ language
fitness. (See Appendix 2a for Behavioural Interview Questions and Appendix 2b for
Interview Checklist) The Five Factor personality test or other time-consuming pre-
employment tests will not be used because the data collected from structured
interviews and behavioural simulations is more relevant to performance in tourism.
Those applying for the chef’s position will be requested to conceive in a 3-4-person
team the authentic Danube menu, which they will prepare and serve to customers.
Tour guides and welfare officers will be given the customers’ profiles and the
overview of company’s values so that they can come up with innovative solutions
how to attract tourists first online and then in their programmes. (See Appendix 3 for
Customer Profiles) During the 20-minute brainstorming before 10-minute
presentations (or somewhat longer for chefs) teams will be receiving the suddenly
changed task input, ‘‘How would you respond now that the customer complains or
needs a change?’’ These activities will test applicants’ courteousness, adaptability,
initiative and prepare them to perceive themselves as interconnected to other teams
once they are hired.
To reach consensus and make a final selection, our two-person recruitment team can
use Fraser’s five-fold person specification model and give diverse weights for these
criteria: (Boella 1992, p. 75, Nickson 2007, p. 92)
1 Impact on others are similar to Rodger’s physical make-up: appearance, manners,
speech and the concept (Nickson et al in Nickson 2007, p. 93) of ‘looking good’ and
‘sounding right’. Our company will establish a standard against beauty bias as we will
hire people of exceptional abilities and charisma who can perform the job, but their
appearance will be of secondary importance.
2 Qualifications and experience correspond to Rodger’s dimension of attainments,
educational/professional qualifications and relevant work experience. Previous
achievements correlate with future performance, which is especially important when
the performance is defined by ‘‘output measures such as production or amount of
sales.’’ (Stewart and Brown 2009, p. 223)
9

10. 3 Innate abilities are similar to Rodger’s general intelligence and indicated problem-
solving skills, ‘‘thinking on one’s feet’’, along with responsiveness and courtesy
which are all highly important in service industry and start-ups.
4 Motivation describes a person’s determination to succeed in the workplace, which
becomes especially important when leveraging on non-monetary rewards to
incentivize employees and the start-up is going through turbulent times.
5 Adjustment represents personality factors such as ability to cope with change, stress
or high-maintenance customers and stakeholders.
Motivated Workers are Best Retained
Upon employees’ signing up of contract and arranging details for a probation 3-month
period, they will be socialized at the orientation meeting. (See Appendix 4 for
Orientation Checklist and Appendix 5 for Contract Parameters) At this event founders
will inform employees about their most important commitment factors such as: work
requirements and pace aligned with employees’ skills, provided benefits and
development opportunities, ways of satisfying customer needs, care for work-personal
life balance (Management Review, 1999, p. 9 in Iverson 2001, p.165), as well as
about established performance measures and specific grievance and disciplinary
procedures, which hopefully should not be conducted. Employees will also get the
guidance about these aspects via interaction, intranet, and the customer service
manual. (See Appendix 6 for the Customer Service Manual) They will be requested to
sign the form which confirms that they have read the material and will work in
accordance with the aforementioned principles.
In order to retain high performers and facilitate growth, the management should
match employees’ diverse goals with incentives they seek and align them with
company’s long-term strategy. On the basis of McClelland’s Acquired Needs Theory
we can differentiate among: need for achievement, power and affiliation. Those
wanting promotion will be driven by the need for power and should be given
opportunity to influence others as they ‘‘improve customer service, train new
employees or act as shift leaders.’’ (Iverson 2001, p. 160) Those motivated by
achievement will want to learn continually in demanding tasks and can be responsible
10

11. ‘‘for creation of new menu items, training manuals, customer newsletter, assessment
of company technological needs.’’ Employees who highly need affiliation and strong
relationships with customers and colleagues should be encouraged to use their
communication skills and affection in planning special events and asking customers
about improvement of service.
Management should recognize employees for the quality work and encourage the
culture of praise and sincere thanking. Employees may create newsletters and press
clipping of Danube Hosts/Hostesses for group and individual achievements which
will empower employees in representing company. In creating publicity for major
highlights, local media and other relevant organisations can be contacted. Employees
can also serve on the meetings when top managers are not available and should be
consulted for innovations: such as changes in menu, uniforms or new service. (Iverson
2001, p. 166-7) To encourage intrinsic motivation the reward scheme does not have to
be only monetary (such as annual and spot-bonuses), but also praise or special
incentives: event tickets, beauty vouchers or Christmas gifts.
Performance Analysis and Compensation Scheme
Effective management of employee performance reduces turnover, increases job
satisfaction and service quality. Three performance dimensions will be important in
our evaluation: task, citizenship and counterproductive performance. (Stewart and
Brown 2009, p. 289) In the start-up setting employees should score high on
procedural knowledge and interpersonal citizenship behaviour, whereas
organizational citizenship behaviour will speed up efficient operating of the business
unit if an employee notifies that a task must be delegated due to unforeseen
circumstances. Counterproductive performance will be prevented since the recruiting
stage and later fostered by establishing a strong culture of loyalty and disciplining
workers if needed. (See Appendix 5 for Discipline procedures in the contract)
The company will base its performance system on customers’ input because the
‘‘customer is always involved in service process and the quality of service can be
checked only after its delivery.’’ (Kandampully J., et. al. 2001, p.117) Demand
11

12. variability will influence both the ethno village operations and evaluation of
performance management. April-September is the most popular time for Danube
discovery via cruising and other transports, whereas short stays outside June-August
vacation period will usually happen in the weekends. During those periods and in
check out times (typically morning) the anonymous customer feedback can be
obtained in paper version or on the screen for improving satisfaction and further
market segmentation. (See Appendix 7b) Our questionnaire, available in Serbian and
English, will reflect ‘‘our organization’s culture, industry and location’’, provide
space for giving narrative comments, minimize ability for the response ‘not enough
info’ and scale how important each service segment or skill are for the customer.’’
(Bentley 2012) The collected customer satisfaction data provided via purchased
computer-based tool will guide management to decide in which areas to improve
service and how to set more specific goals. New and returning customers will be
surveyed again after around six months on how those specific goals are met, whereas
employees will receive partial or entire bonus depending on to which extent
objectives are met.
Because start-up environment requires a lot of employees’ initiative and autonomy
and managers cannot be as often present to track down events, employees will be
encouraged to write down critical incidents for both achievements and areas that need
improvement. Employees can also report to supervisors ‘‘their list of specific goals,
career map or career development plan which defines what behaviours and self-paced
learning will lead their current position to the aspiring one’’. (Iverson 2001, p. 171)
For increased trust and greater involvement of employees, managers’ performance
should be also evaluated every 6 months via dimensions of BARS framework. (See
Appendix 7a) for dimensions of performance evaluation of workers and management
and 7b) proposal of customer satisfaction feedback)
In compensating employees DEO will have lead-the-market strategy in order to retain
best performers in the industry with substantial labour costs. Gain sharing and
individual bonuses would be a reward for improved company’s profitability: e.g.
increasing number of customers by 20% in non-peak months, serving above 50 meals
per day, decreasing level of spent energy or customers’ complaints. Pay-for-
performance scheme will be avoided because it may hamper team spirit, indispensable
12

13. for smooth customer service and because required ROI for decent wage will not be
realistic for demands of the industry, especially in the initial stage.
Employees who will work at DEO and in a sustainable tourism town will be also
motivated by other factors than money. Company will listen to the needs of workers
for work-life balance and gather them in nature for team buildings, exercising, bicycle
tours, greening the workplace; it will reward successful quitting of smoking;
encourage healthy staff-made meals, and provide benefits package depending on
workers’ motivation and interests. When employees stay longer than a year in a
company, they will start to get payments for their pension fund and medical
insurance.
In terms of culturally sensitive tipping which Nickson defines as ‘‘internationally
recognizable’’ (2007, p. 206) our company will neither restrain nor encourage guests
for this policy as service will be included in the bill, but employees will be obliged to
utmost collegiate behaviour on this note, as well.
Trained and Developed
Training and development will be another way to create satisfied workforce and
customers when internal mentoring or external trainings happen and social distance
between workers gets erased. Management should be sensitized to everyday
coachable moments in situations when employees ‘‘demonstrate a new skill or
interest (which can stimulate them to get involved in additional responsibilities), when
they ask about earlier events, new organization practices or development
opportunities, when their dissatisfaction or questions should be solved and followed
up.’’ (Iverson 2001, p. 186) This ‘‘regular coaching’’ is also beneficial because it
contextualizes employees’ performance before providing general, more extensive
feedback based on standardized criteria in performance appraisals. Depending on the
season and job dynamics, every month employees will present to their colleagues 15-
minute findings about the job and relevant skills in order to encourage peer mentoring
and unified experience of common mission and improved guest satisfaction. It will be
important to codify our company’s competitive advantage i.e. exquisite service
13

14. aspects of Danube Hosts/Hostesses in order to systematically pass business and HR
strategy to new workforce throughout expansion.
Concerning official training programmes, DEO employees should especially work on
their customer care skills, entrepreneurship, operation management (for restaurant and
accommodation) and marketing. According to UNWTO et. al. report from 2011, local
government with tourism stakeholders in Lower Danube will set up The Service
Centre for Human Resources Development Programme to provide specific workshops
which will emphasize how diverse Hosts can meet guests’ expectations and which
important improvements this destination needs. (See Appendix 8 for costs of training
and the relevant workshops marked with a line) This programme, organised with local
and international stakeholders, should last several days, whereas its usefulness and
instructors should be evaluated in a questionnaire feedback. Nickson suggests that
(2007, p. 164) some of the best ways to implement learned is via ‘‘structured
exercises and case studies’’ which is a better option than examining participants.’’
Budget resources will be often allocated to development so that our employees get
training in other Danube countries and internationally on tendencies in sustainable
tourism, their field, soft skills, managerial potential and growth of small businesses.
Networking opportunities, knowledge transfer and challenges will also intrinsically
motivate our workers during domestic and regional competitions (in gastronomy,
extreme sports, tour guiding) and when they present on managers’ behalf at tourism
fairs and conferences.
Conclusion and Thinking Long-Term
In conceptualizing long-term business and human resources strategy it is important to
recall that our company will go through several stages of its life cycle. The greatest
priorities in the DEO’s entrepreneurial stage will be hiring adequate candidates whose
performance will be appropriately measured and paid for and that the organization
manages to survive and grow due to understanding of market forces. (Stewart and
Brown 2009, p. 7) In the communal stage DEO can focus on innovation in services
14

15. such as business expansion of entertainment and sport facilities, as well as providing
gastronomy and relaxation experience along the differentiation dimension. DEO will
work on enhancing employees’ sense of belonging as it facilitates the strategic fit
among newly hired employees, additional workforce in season times, and the
organization’s mission. Then, in the formalization stage the company should increase
its efficiency and deal with possible ‘‘decline in motivation as hiring, training and
compensation become formalized.’’ (Stewart and Brown 2009, p. 7) Elaboration stage
will require renewing DEO practices to the accelerating changing environment in
tourism sector: more frequent use of digital media and shared content when choosing
travel destination, search for more sustainable resorts, traveling larger distances and
staying shorter time spans in one transit place. In the long-run with enough
profitability our employees will be promoted to design new facilities and improve
services. (See Appendix 9 for Value Chain and Employees’ Involvement in the Long-
term Strategy)
Iverson estimates that committed workers who see alignment between the company’s
and their objectives ‘‘do their job as if they owned the company’’, which becomes a
significant source of competitive advantage in times of high turnover, rivalry among
companies and general shortage of qualified workers. (2001, p. 165) Our family
company will pursue this path and closely cooperate with relevant local and
international stakeholders personally and online so that the provided infrastructure
offers unified experience of hospitality and good organization from the moment the
guests arrive in the Danube region and along the all dimensions of their value chain.
Such integrated approach will help our company to become more profitable and to
expand from a hospitable oasis and a committed start-up into a sustainable, relaxing
resort with par excellence service.
15

16. Appendix 1: Ad description in English to be posted in student and
local internet media and via University Career Service portal
Fancy working in tourism? You prefer natural environment to the concrete jungle?
You want to be involved in a start-up’s growth, not work for a big corporation? You
think the Danube and Eastern Serbia are hidden gems in the customers’ mind?
If you are saying ‘‘Yes!’’ now, nodding and smiling, apply for the job in our…your…
tourism company Danube Ethno Oasis (DEO) in Donji Milanovac.
We look for these profiles:
3 Tour-guides to be Danube
Hosts/Hostesses for cultural outings
and event organisation at the Oasis
venue and with external partners:
-University graduates (preferably The Faculty
of Tourism and Hospitality Management, Arts,
History)
-Fluent in English and/or other foreign
languages
-Experience in communicating internationally
and with clients (volunteered, studied abroad)
-Team-oriented, flexible, nature and culture
lovers, motivated to work in a sustainable town
-Playing an instrument, acting in the drama
club, having artistic flair or other hobbies are
advantages
2 Welfare Officers to be Danube
Host/Hostesses:
-University graduates (The Faculty of Sports
Education or Medicine)
-Promote healthy lifestyle and sports
-Willing to assist with medical help if needed
-Fluent in English and/or other foreign
languages
-Patient, approachable and willing to organize
gliding, archery, bicycle and walking tours,
extreme sports and rafting in our team or with
other local sport associations
3 Chefs to be Danube
Hosts/Hostesses:
-College education in cooking and
international experience,
-Received mentorship in prestigious
restaurants
-Flexible, creative, good at multitasking
-Communicating in English and/or other
foreign languages is an asset
-Willing to organize Danube cooking
workshops and to get engaged in serving
guests.
We offer the following benefits:
-Competitive Remuneration Package:
Salary above the industry average for
6-day work week, including 1-2 late
evenings.
-Standard health insurance, pension
schemes and 28 days of vacation
-Group and individual bonuses
-Training in your priority field
-Exposure to international clients and
diverse partners
-Ability to make contribution in
company’s growth
-Fitness facilities and special gifts
Show us your rigour, team orientation and creativity in your application. Submit a
two-page resume in English, portfolio of your work, relevant references in Serbian or
English and a one-page cover letter in English indicating why you are the right
candidate for us and why we are the right company for you.
In your cover letter structure your answer around these questions:
1 What do you expect from working in the Danube Ethno Oasis?
16

17. 2 How would you contribute to the company’s growth, increasing number of customers and their
satisfaction in the role you apply for?
3 Describe how you overcame one challenge or failure in your life so far and how what you learned
from it can help you in professional and personal life?
4 What is the tourism in the Lower Danube region missing and how would you improve the situation?
N.B. Although this ad will encourage people of diverse ages to apply, our
management team believes that in reality the final recruited workforce will be
of more homogeneous age and marital status (recent graduates and unmarried)
because job is performed in a small town and a nature-loving setting which may
require relocation.
Appendix 2:
A) Sample of Behavioural Interview Questions: adapted from Iverson
2001, p. 118
-Please describe a situation when you worked with very little supervision. What did
you learn from it and how did you feel?
-Give an example of a time when you performed more than was required of you to get
something done.
-Describe how you built up motivation within a team.
-How did you achieve your earlier goals and on the basis of which parameters you
knew that the goal was accomplished?
-Tell me about your previous relationship with your supervisor (at job or university).
-Describe the result after you took the risk for team’s decision.
- How did you improve operations in your last job and what was the outcome?
B) Tourism start-ups –Interview Checklist
17

18. Our structured and behavioural interview should contain both open-ended and probing
questions that aim at specific answers. This checklist adapted from Iverson
(2001, p. 121), Boella (1992, p. 85-86) and the website Business Tools helps us
stay structured during the interview and rate the candidates on the scale 1-10.
Criteria in the checklist are based upon job specifications and economic
rationale for start-ups in tourism, and upon completing separate profiles
candidates can be compared.
Interview Checklist Date:
Candidate Name: Interviewed by:
Rank on the scale 1-10, indicate yes/no, write details where appropriate Candidate 1
1. Meets educational criteria
Type of education: Achievements:
2. Meets experience criteria
Type of experience: Achievements:
Personality:
3. Professionalism and high integrity
4. Courteous and efficient service skills
5. Persuasive verbal communication and good manners
6. Motivated for improvement and has long-term goal orientation
7. Enthusiastic and entrepreneurial
8. Able to work in the team effectively and enthusiastically
9. Able to fit into company’s culture
10. Tolerant to risk and perseverant
Level of additional skills:
11. Knows foreign languages
12. Computer literate
13. Interesting hobbies
Present circumstances:
14. His/her terms of employment are mutually acceptable with ours
e.g. pay hours
holidays benefits (yes/no)
15. Currently unemployed (yes/no)
18

19. 16. Needs notice period (yes/no)
17. Has clean driving licence (if required)
18. Has good health record (yes/no)
19. Other appointments pending
20. Reasons for wanting this position
21. Recommended for final round (yes/no)
22. Gave permission for contacting referees (yes/no)
Appendix 3: Customer Profiles for Recruitment Case Study and
Company Strategy
In providing tailor-made service our employees will need to understand the lifestyle
profile of customers visiting the region, which Spanish MDG Achievement Fund
systematically explained. (2011, p. 81)
19

20. Appendix 4: Orientation checklist for new employees in the industry
This orientation checklist adapted from Boella (1992, p. 98-99) will help management
in communicating succinctly and memorably human resource and business strategy at
the orientation meeting.
20

21. Appendix 5 Parameters in the Employment Contract
Adapted from: Nickson, D. 2007, p. 272. and Issuing employment contracts:
http://www.nowletsgetstarted.co.uk/checklist_for_employing_staff.aspx
21

22. After selecting candidates and doing background-check the contract should be
signed with the following parameters:
The Danube Ethno Oasis, an ethno village and Destination Management
Organization, recruited ……………………………………… (the name of the
employee) on ……………………………. (the date their employment started).
Gross salary per year above the industry average in the Serbian region is 8000 €
according to the study of UNWTO, et. al. (2011, p. 46.)
 Salary will be paid monthly in two installments (on the 1st
and 15th
day of the
month) and individual/group bonuses and incentives will be provided when
appropriate and on the basis of criteria agreed upon.
 When profitability increases according to the set target, employees will share
profit and obtain group and individual incentives.
 Working week will be limited to 49 hours a week including the weekends
and certain people such as welfare officers may work two shifts a day. In each 7-day
period, one free day will be guaranteed to workers and 11-hour rest period between
two days. However, in the working day longer than 6 hours, workers will be entitled
to a rest break of 20 minutes.
22

23.  Because of the start-ups demanding nature, working hours will be prone to
change and employees will be encouraged to flexibly and regularly fix the hours
with the management. Here are the provisional working hours:
-Working hours for chefs (including serving meals and eating with the guests/ or at
the same premises when appropriate; work with managers on establishing cooking
workshops, gastronomy pages on the website): 7-14h, 12-19h, 18-01h
-Working hours for tour guides (including visits to cultural monuments, serving meals
and eating with the guests/ or at the same premises; administrative work with
managers on website, advertising, strategy): 10-16h, 17-24h
-Working hours for welfare officers (depending on the activity and commuting, along
with work with managers on strategy and advertising, serving meals and eating with
the guests/ or at the same premises): 7-11h, 14-18h, 20-24h
 28 days will be paid holiday entitlement for the workers and they will have
the standard amount of the days for sick leave. Medical insurance and pension
scheme will be provided after employee’s first year with the company. If employees
wish to terminate their employment, they will have 6 months of notice period.
 If need arises following disciplinary and grievance procedures will be
administered: verbal warning, couching and counseling, written warning. (Boella,
1992 p. 99) N.B. Concerning disciplinary measures, most companies terminate the
contract if three written warning notices are issued within a year-suspension-
termination. (Iverson 2001, p. 239-241)
Appendix 6
The following aspects will be included in our Customer Service Manual and they
will be guiding dimensions for assessing employees’ performance:
Adapted from: http://www.allbusiness.com/company-activities-
management/operations-customer/10207159-1.html
• Overall customer relations objectives and standards
• How to talk to customers (Some of the suggestions will be ‘‘Greet our
customers with a smile and: Welcome to the Danube Ethno Oasis! Please have
23

24. a look at the menus. […] Use the guest’s name at least two times during
check-in.’’ (Iverson 2001, p. 185)
• How to present materials to customers and colleagues (from handouts and
fliers to menus)
• How to answer product/service/business questions
• How to proceed if you cannot answer a question
• Where to locate useful information for customers
• How to inform customers about changes to the facility, products, or services
• How to increase selling of services
• How to deal with customer complaints or comments
• How to help customers with special needs or with disabilities
• How to gather and evaluate customer feedback
• How to encourage return of customers (immediately after their departure and
while keeping in touch)
• How to advertise company’s service through formal channels (traditional
media, internet) and informal channels (word of mouth)
• How to improve company’s environmental responsibility
• How to cooperate with local community, external partners and administrative
stakeholders
• How to promote innovation and creativity in the company
• How to show initiative in developing one’s own and team members’ potential
Appendix 7
A) What variables to measure when assessing performance
24

25. According to the licensed producer of 360-degree Performance Feedback and Boella’s
proposal (1992, p. 105) employees can be rated on Behaviorally Anchored Rating
Scale in this format. Likert 5-point scale will be adapted for the following dimensions
and results will be aggregated. (Bentley T. 2012, text from the website video) In the
initial stage customers will evaluate employees and service, whereas employees will
self-monitor their performance. Those findings, plans for improvement and
supervisor’s feedback with relevant comments and these 7 dimensions following
below will be combined to provide complete performance appraisal, rather than using
360 degree feedback.
To encourage workers’ initiative, management should be also evaluated in open
communication around these dimensions, ‘‘communication skills, handling guest
complaints and promoting guest relations, developing marketing strategies and
monitoring sales programmes, motivating and modifying employee behaviour,
implementing policy, making decisions, and delegating responsibilities, monitoring,
operations and maintaining product quality and handling personnel responsibilities.’’
(Nickson 2007, p. 180)
The Supervisor’s Appraisal Form
Personal details
Name Length of service
Job position
not sure (n/a)/ strongly disagree/ disagree/ neutral/ agree/ strongly agree
1Business skills and experience:
formulates strategic goals and objectives,
proactive (responds to opportunities, solves problems)
2 Professional and technical skills:
ethically meets job requirements
anticipates problems and proposes solutions
3 Departmental requirements:
successfully works in his team,
manages well resources (given funds, people, equipment),
adaptable to change,
has entrepreneurial attitude to meeting customers’ needs
25

26. 4 Teamwork and leadership:
helps people accomplish goals together as a high-
performing team,
fair in assigning challenging tasks to department members,
sensitive to gender/cultural differences
5 Interpersonal credibility:
shows empathy to co-workers,
patient with those who do not understand,
positive under difficult circumstances,
keeps his/her commitments
6 Communication and negotiation skills:
effective at communicating plans, information,
perspective in spoken/written form,
good at adjusting his/her style to different needs,
effectively negotiates disputes with others
7Development potential:
intellectually capable of performing well in the job,
shows genuine appreciation for honest feedback,
willing to learn even from mistakes,
shows evidence of growth and development as an expert
Training needs in present job:
General salary and improvement recommendation:
Employee’s comments:
B) Customer Satisfaction Feedback
The guiding feedback from Boella (1992, p.251) can provisionally be adapted and
shortened on certain dimensions to encourage improvements both in service and
human resources, with space left for customer comments:
26

27. Appendix 8: Training costs and plan for workshops in Service
Centres for Human Resources Development Programme
This content is adapted from UNWTO, Spanish MDG Achievement Fund, Tourism&
Leisure Advisory Services (2011), p. 64. The relevant column lists cost of
Workshops if training programmes are held in the regional, newly built Service
Centre. We will prefer this external training option, subsidized by our local
27

28. government, rather than the extensive training scheme within our organisation as we
lack resources for such thorough endeavour at the initial stage and this local initiative
will provide inputs from wider contacts and potential business partners.
In this case the strategy proposes that expenses be covered by the Service Centre and
the workshops marked with a line can be relevant for our business model:
Appendix 9- Value Chain and Employees’ involvement in the Long-
term Strategy
Spanish MDG Achievement Fund (2011, p. 81) estimated that these values are
significant when analyzing development in rural tourism sector. Our human resources
28

29. strategy will be aligned with these elements as we recruit, train, evaluate and
compensate our Danube Hosts/Hostesses so that they provide exquisite experience
along these dimensions of the value chain in teams or with our external partners.
According to Scientific Research Centre of The Faculty of Economics, University of
Belgrade. (2007 b) in 2020 short vacations will encapsulate 24% of tourism profit,
whereas 16% will belong to sightseeing vacations. As our company grows, our
employees will be given promotion opportunity to design new facilities and service
improvements: e.g. Adventure Centre by Welfare Officers, Danube Bicycle and
Historic Tours by the entire team and Tour Guides, Danube Gastronomic House by
Chefs. The projection of costs for some of the facilities is given in this excerpt from
Volume IV: Implementation Plan (2011, p.55) which will help us in thinking
strategically together with our employees, our greatest brand, and stakeholders in our
community.
29

30. УКУПНО НОЋЕЊА 179.027 100% 494.155 100% 984.150 10
30

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