The New Majestic Hotel

31 Bukit Pasoh Rd, Singapore. Tel: 65114700

High Staff Turnover

Case Analysis
The New Majestic Hotel is a multi award-winning 30-room boutique hotel with modern day technology but an old-world feel. It was built in 1928 as the Majestic Hotel but was recently sold and refurbished. It reopened in 2006 as The New Majestic Hotel to much acclaim. Recently, its owner, Mr. Loh Lik Peng, was faced with a higher then usual turnover of staff. Due to the tight labor market in the hospitality industry, workers come and go more easily. Recently, they lost the hotel manager, counter staff and the housekeeping lady. This was not good as the owner himself had to come down to the hotel to work.

Summary
The owner, Mr Loh LikPeng, would like to find ways to reduce the problem of high staff turnover. This, he feels, is very important it affects the quality of the hotel.

Time context
1928 - Majestic Hotel established 2006 - Re-opened as The New Majestic Hotel - President's Design of the Year Award - Architectural Heritage Award 2013 - Resignation of hotel manager, counter staff and housekeeping lady - Formulation of Detailed Action Plan - Implementation of Detailed Action Plan

Statement of the Problem

1.Higher than normal staff turnover in a highly competitive market 2.Quality of hotel and service affected

Objective
Mission - 1. To minimize staff turnover 2. To maintain quality and service standards Bachelor of Science Tourism and Principles of Management Vebalyn Celis Batalla

Vision

- 1. To have a happy and conducive workplace where the staff feel happy and proud to work in

Areas of Consideration
SWOT Analysis Strengths - 1. Nice, beautiful, friendly and conducive work environment 2. Very unique hotel 3. Part of 7-hotel chain Weaknesses - 1. Very small number of staff 2. Constraints by regulatory authorities on hiring

Opportunities - 1. To change human resource policies at start of labor crunch 2. To harmonies entire 3-hotel chain Human Resource policies Threats - 1. Potential staff resignation due to change in terms of employment 2. Potential further damage to quality and service

Detailed Plan of Action

1.To integrate entire chain's Human Resource database 2.To initiate central hiring and placement 3.To rotate staff amongst hotels within chain for more fun and diversity

Alternative Courses of Action

1.To have individual Human Resource programs to motivate staff 2.To build better relationship with network of recruitment agencies for faster hiring 3. go to church more often and pray harder

Contingency Plan
1.Increase overtime for existing staff to cover any manpower shortfall. 2.Shuffle any available staff between entire hotel chain

Recommendations
1.To proceed as per Detailed Plan as the current situation is just beginning and is expected to continue for years to come 2.Apply for government grants for productivity implementation programs Bachelor of Science Tourism and Principles of Management Vebalyn Celis Batalla

Conclusion
The issue of staff turnover is not new, but the tight labor market and government policies are. Upon successful implementation, The New Majestic Hotel and the other 3 hotels within the chain will have way better staff retention then before .. also, the owner, Mr Loh will not have to rush down to work anymore.

Bachelor of Science Tourism and Principles of Management

Vebalyn Celis Batalla