The current situation and solutions to improve quality of human resources at New World Saigon hotel New World Saigon Hotel Human resources
HOTEL AND HOTEL BUSINESS
THE CONCEPTS OF HOTEL
The word hotel is derived from the French hotel , which refers to a French version of the townhouse The term hotel was used for the first time by the fifth Duke of Devonshire to name a lodging property in London sometime in AD 1760 Historically, in the United Kingdom, Ireland, and several other countries, a townhouse was the residence of a peer or an aristocrat in the capital of major cities The word hotel could have also derived from the hostel , which means “a place to stay for travelers”.
A hotel is defined by the British Law as a “place where travelers can receive food or shelter, provided he/she is in a position to pay for it and is in a fit condition to be received” Hence, a hotel must provide food (and beverage) and lodging to a traveler on payment, but the hotel has the right to refuse if the traveler is not presentable (either drunk, or disorderly, or unkempt) or is not able to pay for the services.
Alternatively, a hotel may be defined as “an establishment whose primary business is to provide lodging facilities to a genuine traveler along with food, beverage, and sometimes recreational facilities too on the chargeable basis” Though there are other establishments such as hospitals, college hostels, prisons, and sanatoriums, which offer accommodation, they do not qualify as hotels, since they do not cater to the specific needs of the traveler.
A hotel is an establishment that provides paid accommodation, generally for a short duration of stay Hotels often provide several additional guest services, such as restaurants, bars, swimming pools, healthcare, retail shops; business facilities like
Broadly speaking, a hotel is a managed building or establishment, which provides guests with a place to stay overnight – on a short-term basis – in exchange for money.
The precise features and services provided to guests can vary quite drastically from one hotel to another, and hotel owners generally aim to attract a particular type of customer through their pricing model and marketing strategy, or via the range of services they offer.
THE CONCEPT OF HOTEL INDUSTRY
What is the hotel industry? Put simply, the hotel industry is the section of the service industry that deals with guest accommodation or lodgings By most definitions, the hotel industry refers not only to hotels, but also to many other forms of overnight accommodation, including hostels, motels, inns, and guest houses However, it does not usually include long-term or permanent forms of accommodation Due to the nature of hotel services, it is strongly associated with the travel and tourism industry.
1.2.1 Types of Accommodation in the Hotel Industry:
It is important to understand that the hotel industry is a catch-all term, used to describe services related to guest accommodation With that in mind, it is worth noting that there are a variety of different accommodation types which fall under this umbrella term.
Some of the main types are described in more detail below:
The most common type of accommodation in the hotel industry, a hotel is defined as an establishment which offers overnight accommodation, meals, and other services They are mainly aimed at travelers or tourists, although locals may also use them Hotels provide private rooms, and almost always have en-suite bathrooms.
Bed and breakfasts, or B&Bs, are smaller establishments, which offer guests private rooms for overnight stays, along with breakfast in the morning Often, these establishments are converted from private homes and many B&B owners live in their property While they are often a budget option, high-end or luxury B&Bs do also exist.
Motels are a form of overnight accommodation tailored towards motorists For this reason, they are typically located conveniently by the roadside and offer ample free parking A motel will generally have a number of guest rooms and may have some additional facilities but will usually have fewer amenities than hotels.
“Botel” is the name given to a boat that has been adapted to offer hotel-style lodgings.
Many botels are permanently moored river boats, although others are converted ships, which are perfectly capable of travelling with guests on board They are especially popular in European cities with rivers or canals.
An inn is an establishment which provides temporary accommodation, usually along with food and drinks Inns are smaller than hotels, and are closer in size to bed and breakfasts, although inns are often slightly larger Guests are allocated private rooms and food options will usually include breakfast and dinner.
Resorts are commercial establishment, which will usually consist of a hotel and a variety of additional services and amenities, on site Guests will usually have access to lodgings, restaurants, bars, entertainment options, recreational activities, and shops, which can all be accessed without leaving the premises.
Popular among business travelers, serviced apartments are apartment-style lodgings, where guests benefit from a full range of services, such as room service, housekeeping, and laundry services Most serviced apartments also offer additional amenities, while the apartments themselves tend to be larger than most hotel rooms.
Often confused with hostels, a hostal is a form of accommodation, primarily found inSpanish-speaking regions They resemble a budget hotel, offering either private
A hostel is a form of accommodation, typically aimed at those on a budget, where multiple guests sleep in different beds in the same living space Effectively, guests pay for a bed, rather than a private room, and hostels hold a particular appeal for those looking to meet new people Guests will usually share kitchen and bathroom facilities.
An apartment hotel is essentially an apartment building, which operates hotel-style services It provides a similar experience to renting an apartment, albeit with the option to check in and check out on demand, rather than signing a fixed term contract These hotels will generally also provide basic housekeeping services.
Often promoted on the basis of aspiration and luxury, boutique hotels are hotels that are situated within relatively small buildings In most instances, they provide guests with upmarket rooms and high-quality services Additionally, they often have a particular theme, and are commonly found in trendy, urban areas.
A condo hotel is a condominium building, which operates as a hotel, providing guests with the opportunity to rent a condominium unit for a short period of time They are almost exclusively found in cities, are especially popular in the United States and combine the holiday home experience with hotel-style service features.
The basic definition of an eco-hotel is a hotel, which has specifically taken steps to embrace sustainable living practices, in order to minimize the environmental damage they are responsible for They may priorities the use of local products, adopt recycling measures, focus on energy saving and use sustainable bed linen and towels.
Typically, a guest house is a private house, which has been converted for the specific purpose of providing guest lodgings It is common for the guest area to be kept
A holiday cottage, also known as a holiday home, is simply a cottage or small house, which is let to people on a temporary basis, for holiday purposes Essentially, a guest pays to use the property for a short period of time They are especially common the UK, US and Canada and a key advantage is the freedom they offer guests.
HUMAN RESOURCES IN HOTEL
1.3.1 The concept of human resources:
Any organization can also be formed by the people or members of its human resources.
Therefore, we can say human resources of an organization including all employees working in the organization, and human resources is understood as a human resource including physical and mental force.
Human resources are used to describe both the people who work for a company or organization and the department responsible for managing all matters related to when the value of labor relations began to garner attention and when notions such as motivation, organizational behavior, and selection assessments began to take shape in all types of work settings.
In other words, Human resources is the set of people who make up the workforce of an organization, business sector, industry, or economy A narrower concept is human capital, the knowledge and skills which the individual’s command Similar terms include manpower, labor, personnel, and associates or simply: people.
Human resources are important for the company for two reasons:
+ Human factor Influence Company’s economic They create and produce, products and services, control quality, place products, manage financial resources, and determine general strategy and organizational goals Without efficient human resource company would not be able to achieve its goals.
+ Human resources make great part of expenses in business dealing In west countries, especially in great companies, human resources expenses make 20–30 % of overall expenses, and sometimes it goes up to 50 % In the economies that are in transition, due to lower price for human resource, this percentage is lower, but not negligible.
(www.economy.rs) Company is successful and good only if its individuals are good As a creative and innovative part of each organization, people have leading role in creation and maintenance of its competitive advantage Only high educated, rightly motivated employees, with constant learning of new business skills, can respond to challenges implied by new business environment
Some companies consider its employees for energy source, and one of the main goals for this company is to make its employee’s healthy, satisfied and future focused, considering them for its greatest value.” (Lončarević, R., Mašić, B., Đorđević Boljanović J.,2007)
1.3.2 Human resources management in the hotel:
In the hospitality industry, one of the greatest difficulties is employee retention and satisfaction Reputation makes or breaks businesses in the hospitality industry, and with customer service as the crux of the industry, the employees are on the front lines.
Human Resource Management is an Integral and Significant Part of the Hospitality Industry Since Hospitality Service is all about providing better services to the consumer, the quality of hotel would depend on the employees, and who are considered as Brand Ambassadors of the property
Human factor plays an important role in the success of an organization This is particularly true in the case of hospitality industry When we speak of hospitality industry we normally think in terms of hotels and restaurants However, according to the Oxford English Dictionary, hospitality it means “the reception and entertainment of guests, visitors or strangers with liberality and goodwill.” To ensure that guests receive courteous and proper attention it is essential for organizations to have an effective personnel and Human Resource Management department This becomes more indispensable in the hospitality industry, since it is a people driven business which relies mainly on satiating the desires of the customers, for its success.
THE QUALITY OF HUMAN RESOURCES IN THE HOTEL
1.4.1 Some criteria for accessing quality of human resources:
The quality of human resources is an integrated concept, including the characteristics of physical, intellectual, moral and qualitative states It represents a certain state of human resources as both a special material object and the subject of all economic activities and social relations.
Intelligence, qualifications, and physical strength are three important factors to evaluate the quality of human resources.
The health status of human resources:
The health of human resources is a state of physical well-being as well as human spirit.
To reflect that, there are many performance indicators such as: measurement standards for height, weight, internal and external senses, neurology, psychiatry, ear, nose, throat…
The physical of human is influenced by living standards, health care and individual training A healthy body, adapted to the living environment, the energy it produces will meet the requirements of a particular activity Physical fitness determines the capacity
The culture level of human resources:
Cultural level of human resources is the employee's understanding of the knowledge It is not only about the field of nature but also includes the field of society To a certain extent, the cultural level of the population represents the intellectual level of a country.
In other words, culture level is also determined by the general knowledge of science, the level of professional knowledge, work experience skills and the ability to think and judge of each person It is formed and developed through education and training as well as the production process.
Professional qualifications of human resources:
Professional qualifications demonstrate understanding, ability to practice on the skills of hotel career It is also trained professionally at high school, vocational school, colleges, or university…The professional qualifications of human resources can be evaluated by:
+ The number of well - trained and untrained workers.
+ Structure of trained labor: training level and the degree.
In addition, the quality of human resources can also be considered through the indicator expression of the employee's ability and quality.
1.4.2 The basis for assessing the quality of human resources:
Sphere of services is one of the fastest growing sectors of the global economy.
Companies operating in this field need to constantly improve their activity as an emerging market causes the influx of new competitors and at the same time provides an opportunity to form a sustainable competitive advantage One of the most important factors of company’s competitiveness is the quality of services provided to consumers, which directly depends on the personnel Thus, the effective human resources management is becoming one of the most important functions of organization
Each hotel has different business goals, so the basis for assessing the quality of human resources to meet that goal also has distinctive features However, hotels are often based on one the following bases:
+ Based on the business plan that the direct manager gives and requires the quality of human resources: including the necessary knowledge, skills, the steps to working… assess the quality of current human resources, compare, and give the number of
+ The change of the market - customers: as we know, the increasing of fierce competition forces each enterprises need to improve and evaluate the quality of its current human resources, find out the limitations or weaknesses of the current human resources, give the requirements for the quality of human resources and make the action plans and follow up properly.
1.4.3 The Methods of assessing the quality of human resources:
For a business to grow, it needs to analyze what is working well in the company, and which areas require improvement
An employee performance review is a valuable tool for the success of a business and its workforce.
The employee performance assessing process is crucial for organizations to boost employee productivity and improve their outcomes Performance appraisals are an annual process where an employee’s performance and productivity is evaluated against a predetermined set of objectives Below is five different ways to assess the employee in the company:
Management by objectives (MBO) is the appraisal method where managers and employees together identify, plan, organize, and communicate objectives to focus on during a specific appraisal period After setting clear goals, managers and subordinates periodically discuss the progress made to control and debate on the feasibility of achieving those set objectives.
This performance appraisal method is used to match the overarching organizational goals with objectives of employees effectively while validating objectives using the SMART method to see if the set objective is specific, measurable, achievable, realistic, and time sensitive.
At the end of the review period (quarterly, half-yearly, or annual), employees are judged by their results Success is rewarded with promotion and a salary hike whereas failure is dealt with transfer or further training This process usually lays more stress on tangible goals and intangible aspects like interpersonal skills, commitment, etc are often brushed
A more detailed employee performance evaluation approach is 360-degree feedback.
This form of appraisal takes feedback from all those the employee would be in contact with daily for work-related activities It includes colleagues, subordinates, project- partners, senior managers, and more.
This process gives an all-round insight into employees, especially if there are big teams and quality programs running in the company The HR teams, in conjunction with the immediate supervisor of the employee, usually run this exercise.
360-degree feedback can be divided into 5 broad steps:
THE CURRENT SITUATION QUALITY OF HUMAN RESOURCES
GENERAL INFORMATION OF NEW WORLD SAIGON HOTEL
Opening day: 08 October 1994 First 5–star hotel in Vietnam Sellable Rooms: 533
Owner: Saigon Inn Hotel Co - Joint Venture between Saigon Tourist Holding Company and New World Development Co., Ltd.
Management Company: Rosewood Hotel Group
Address: 76 Le Lai Street, Ben Thanh Ward, District 1, Ho Chi Minh City, Vietnam
Website: https://saigon.newworldhotels.com
1.5 The process of forming and developing of New World Saigon Hotel:
With a history of more than 40 years and owning more than 58 hotels in 19 countries, Rosewood Hotel Group is listed among the top 5 most luxurious hotel brands in the world voted by The Luxury Travel Expert Hotels in the Rosewood Hotel Group system always affirm their class with a unique and luxurious design Furthermore, they localize their services to bring distinctive, pure and deeply personalized travel experiences to each customer
Rosewood Hotel Group is in the top 5 most luxurious hotel brands in the world voted by The Luxury Travel Expert in 2019
This company was founded in Dallas, Texas in 1979 by Caroline Rose Hunt, the daughter of tycoons about the oil field - H.L Hunt The company was sold by Rosewood Corp and Maritz, Wolff & Co in 2011 to New World Hospitality for $229 million along with five properties sold for $570 million.
Caroline Rose Hunt established Rosewood in 1979, aspire to create luxury hotels that offer thoughtful personalized services A year later, Hunt converted the mansion of Texas cotton magnate Sheppard King into the first hotel of Rosewood, The Mansion on Turtle Creek, located in the upscale Turtle Creek neighborhood.
Previously, Rosewood Hotel Group was the branch hotel management of New World China Land, a subsidiary of New World Group In June 2011, the company announced that it had entered into a purchase agreement to acquire Rosewood Hotels & Resorts from Rosewood Corp and Maritz, Wolff & Co.,
Rosewood Hotel Group, a privately-owned company, is one of the world’s leading hospitality groups, encompasses five brands: ultra-luxury Rosewood Hotels &
Resorts® in North America, Caribbean/Atlantic, Europe, the Middle East and Asia; contemporary upper-upscale New World® Hotels & Resorts in Greater China and Southeast Asia; KHOS™, a dynamic global business lifestyle hotel brand; Carlyle &
Co., a modern and progressive private members' club; and Asaya, an integrative wellness concept Its combined portfolio consists of more than 35 properties in 19 countries The group’s expansion is distinguished by its approach to creating strong, modern, and differentiated brands, its focus on design and innovation, and a commitment to a very bespoke and personal approach to hospitality. culture, history and geography of each locale Led by a team of seasoned industry veterans Rosewood’s acclaimed attention to detail, proactive approach to environmental sustainability and dedication to Relationship Hospitality has earned numerous awards and accolades.
+ KHOS: Leave everything you know about hotels outside the door at KHOS, a brand- new hospitality concept that combines tastefully appointed guest rooms with free- flowing social hubs Where local residents and global travelers alike are invited to explore, collaborate with, and recover amidst a vibrant local culture and people Created for creators, KHOS is a space to engender trailblazing ideas for a global class of change-makers.
+ New Word Hotels & Resorts: We are inspired by emerging Asia’s energy, dynamism and unique style of thinking, doing and being In return, we do our best to inspire others – in art, design and new ways of seeing things There is always a nod to our Asian roots, but our eyes are very much focused on our Asian future.
+ Carlyle & Co.: Carlyle & Co is a modern, progressive club inspired by the easy- going glamour of New York’s iconic hotel, The Carlyle, A Rosewood Hotel and featuring its legendary Café Carlyle A one-of-a-kind live entertainment destination A more culturally and intellectually rewarding way of life, with experiences ranging from the familiar to the truly once-in-a-lifetime Carlyle & Co brings together a community as convivial as it is eclectic, with nothing to prove and much to share A members’ club that ignites passion, opens the mind and stirs the soul.
+ Asaya: A thoughtfully designed lifestyle space for you to nourish, learn and grow, encouraging restoration and enjoyment amid an open environment.
Rosewood Hotel Group, one of the world’s fastest growing hotel companies, encompasses 58 hotels in 19 countries across multiple brands With established locations in North America, Europe, Asia, the Middle East and the Caribbean/Atlantic, Rosewood Hotel Group is pursuing an aggressive expansion strategy with nearly 40 new hotels currently under development.
Sonia Cheng Chief Executive Officer
Sonia Cheng leads a team of seasoned industry professionals and is responsible for overseeing the group’s expansion regionally and internationally She is also principal director of hotels of New World Development Company Limited and executive director of New World China Land
Before joining Rosewood Hotel Group, Ms Cheng worked with a major international investment bank and a global American private equity firm, specialising in real estate investments She is a member of the Advisory Committee on Hotel and Tourism Management at The Chinese University of Hong Kong, the Y Elites Association, the Young Presidents’ Organisation, the Hong Kong United Youth Association and the Eleventh Guizhou Municipal Committee of The Chinese People’s Political Consultative Conference.
This is the developing history of Rosewood Hotel Group:
1.5.2 ABOUT NEW WORLD SAIGON HOTEL:
New World Saigon Hotel is the preferred choice of international business travelers and group customers seeking first-class facilities.
When opened in October 1994, New World Saigon was the first international five-star hotel in Ho Chi Minh City Over the years, the hotel has built its reputation and credibility in the local market through successfully servicing government delegations, high profile guests and business travelers.
Located downtown Ho Chi Minh City, New World Saigon Hotel is a mere 20minutes drive from Tan Son Nhat international airport, amid a bustling neighborhood of restaurants and entertainment venues, within walking distance to museums, places of cultural interest, and steps away from the famous Ben Thanh Market, the central bus station, making it a perfect location to explore the city with multiple event venues, a casual all-day restaurant, a sophisticated Chinese restaurant and a vibrant lounge for late night enjoyment.
Offering the largest room inventory with a total of 533 rooms and suites, the hotel is the preferred choice for business and leisure travelers seeking for first class facilities.
New World Saigon Hotel find their own pleasure in anticipating our guests’ needs, fulfilling their requests, and making a real connection so that they can relax and feel comfortable The hotel was designed to meet the needs and expectations of all their guests, whether they’re traveling for business or pleasure It became their retreat, a place where they’ll find the convenience, privacy, comfort and care that makes every stay a pleasure and life look a little brighter.
SOME SOLUTIONS TO IMPROVE QUALITY HUMAN RESOURCES
Human resource recruitment and selection
The selection of human resources is very important, it directly affects to labor quality.
Attracting, hiring and retaining the best hospitality talent is more of an art If recruitment process has been done effectively, it means the hotel can get reduction of time, saving training costs This is the first step to improve the quality of labor, it is the basis to maintain stabilize the quality of human resources Controlling the process of recruitment harmoniously is especially important; making sure all employees are treated equally, employment tests are administered, and specific rules are applied during promotions The management must be transparent in the choices they make.
The Goals of this solution:
- Focus on the selecting of employees with high quality from the beginning: employees have professional expertise, experience, and have good foreign language ability.
-The number of employees specialized in hotels and tourism increased by 50%.
Currently, the hotel only applies the interview method to candidates By this method, although it has many advantages, can evaluate the total ability of interviewers, save time and money, but sometimes it cannot be evaluated accurately because it belongs to personalize of the interviewer Therefore, in addition to following the correct steps in the recruitment process, it should be done with the test to assess the candidate's ability in different forms for each different position Instead of just face-to-face interviews, the hotel can conduct tests of professional skills of candidates.
For the candidates applying the positions of restaurant operations, receptionist, room service, guest service, operator…should be checked the skills and solve problems by the cases study
For example: Interview the candidates for receptionist position, besides checking the problem with the guests, how to write an email professionally, even plays role as a receptionist to check – in or check out for guests…
Regarding foreign languages ability, to ensure the foreign language proficiency of employees, the recruitment department has can set requirements for foreign languages based on standard frameworks such as TOEIC or IELTS Depending on each position, the English certificates could be required as below:
+ Housekeeping department: TOEIC 400 or equivalent IELTS result.
+ F & B department: TOEIC 500 or equivalent IELTS result.
+ Front Office department: TOEIC 600 or equivalent IELTS result.
+ Administrative department: TOEIC 550 + Other Back of house departments have a minimum TOEIC 400 or equivalent IELTS result.
In addition, many companies around the world get the advance to create future human resources by some programmed such as Career Talk (links with the university to introduce about hotel to students…), or human resources department representatives come to university to introduce about the hotel and job opportunity; sponsoring excellent students while still studying at the school…So after each course, the hotel can add to its resources elite staff without the cost of selection, this is also an effective method in improving the quality of human resources that the hotel should consider.
Expected effectiveness of the solution:
With this selection solution, if candidates meet all the requirements with professional skills and qualifications foreign language proficiency, they will be selected So that it can make the increasing of the number of professional associates in the hotel This solution will solve the problem of shortage of qualified staffs for the hotel.
In order to deliver a high service quality that directly affects customer satisfaction there must be budget for training and development A detailed analysis of which skills need to be trained to deliver outstanding quality can help the organization to turn happy guests into loyal guests.
The professional skills to serve guests are particularly important, especially New World guests, the way to handle guest’s complaint…always focusing on Therefore, human resources department usually organize the training classes, but most lessons are theory and focusing on the introduction of new products For example: F&B training usually introduce some type of new Wines (Red wine, white wine, sparkling wine…), introduce new menu, new promotions…instead of skills training such as how to serve the guests, how to open wine, how to clear the table, how to serve tea and coffee…Therefore, this article will suggest some methods to solve the current issue to improve the human resources quality.
The Goals of this solution:
- Training professional skills for all associates.
- Ensuring all associates could do the same way, strictly follow up the LQA (Leading Quality Assurance) and LSOP (Local Standard Operation).
Training on job is not a new training method, many hotels has applied this method It means the training process during the working time And the trainers are the supervisors and managers of the associates While staffs do their job, for example: do the checking – in, checking – out process, serve the breakfast, serve the dinner, exchange money, handle complaints, serve the drink to guests… supervisors and managers should observe and record the mistakes in the process Then, the supervisory will explain why they need to improve and the way how to do Ask staffs observe carefully and re – practice until they could do perfectly The advantage of this method is detecting of deficiencies in the staff's professional skills and correct them right away However, this method requires supervisors and managers must clearly know the process and well-trained in skills.
New training methods are continuously designed to adapt to the ever-changing environment in hospitality industry One of the methods is called cross-training, in which employees are trained to work in more than one department
In literature, cross-training is shown to be highly beneficial in hotel industry because it is an effective solution to seasonality, demand variability, and labor shortage It increases share knowledge and transparency in all departments, which subsequently leads to better training is not for every employee because some people prefer to work sorely in their fields of expertise, and it is costly to cross-train all staffs Therefore, the question of how many employees and who are chosen to cross-train should be revised care-fully by hotel managers
The hotel can organize a cross-training for Reception staff at the Residence Club Lounge and for F&B employees at Meeting and conference Managers acknowledged the importance of multi-skilled employees, and they are willing to develop a cross- department working environment Cross-training is more preferred in Front office and F&B department; and not all employees chose to work at other departments.
New World Saigon Hotel is managed by Rosewood Hotel Group - a large corporation with a network of 5 – star hotel all over the world In ASEAN countries, this group also manages many hotels That is an advantage for the associates working at the hotel when applying task force at another hotel especially in the framework of ASEAN countries.
Task force allows hotels, hotel ownership and hotel management companies to take the time to find the perfect permanent person for the open role while fulfilling the ongoing roles responsibilities and revenue generation.
4 Benefits of salary, bonus, and remuneration regimes:
-Encourage and motivate the working spirit of the staff -Increasing long-term employee engagement with the hotel
About salary: in addition to the current basic salary policies, hotel should have more subsidy for staff such as:
+ Extra pay for associate who work overtime (in case managers request they stay late to work).
+ In the hospitality industry, the customer service is especially important Hotel can encourage staffs having the best customer services by prizes For example: if staff has the compliment from guest (guest mentions the name of staff) in TripAdvisor,Booking.com, Expedia, Agoda, Fan Page Facebook of hotel, or the written letter from guests…hotel should give them some gifts; voucher; compliment letter from GM or
+ Reward for activities launched by the hotel such as: the Photo contest, the Video contest, 8/3 activities: cooking contest, amazing race…, 20/10 activities, decoration notice board contest, recycling contest…
+ Gift voucher (supermarket voucher), hamper… for special occasion such as yearend party, public holiday (30/4; 1/5; 2/9; Hung King’s Day…).
Expected effectiveness of the solution: