Hotel and Resort Industry in Indonesia

Question: Write a report about thehotel and resort industryin Indonesia. Answer: Introduction: The hotel industry is growing immensely in Indonesia. The hotel and resort industry thus need to implement effective human resource management within the business to lead the industry towards success. The human resource management within the business helps in providing the best service to the customers which further helps in gaining customer satisfaction towards the organization as a whole. The human resource management also helps in implementing a transparent communication system within the business organization which further helps in lowering the possibility of dispute or turnover rate as a whole. (Stone Dulebohn, 2013). The Fairmont Hotels and Resorts thus implements human resource management to establish its new subsidiary in remote areas named Komodo Island. It also provides eco-friendly service to the customers and helps in conserving the resource of energy in the country as well. The organization provides service to 19 different countries which further helps in the improvemen t of the business in the international competitive scenario as a whole. (Appelbaum Fewster, 2014) The Fairmont Hotels and Resorts are growing rapidly in the international market which helps in the globalization of the business as a whole (Rule Irwin, 2012). The industry also provides the best service to the customers and helps in preserving the environment of the country as well. The human resource strategy effectively helps in the improvement of the business operations in the market. The human resource management also implements effective retention strategy that helps in attracting more employees within the organization as a whole. .The motivational factor that includes the reward strategy helps in improving the quality of the service as well. Moreover the recognition and the attractive remuneration strategy also help in gaining more loyal employees which consequently helps the business corporate to lower the turnover rate as well. The limitation of the business is the selection of the remote areas which led to the turnover of the employees within the workplace (Appelbaum Fewster, 2014). The success of the business corporate also depends to a certain extent on the selection of the location of the new establishment. The remote location needs various other commodities that might help the industry to retain its position as the best service quality in the market. This would lead the industry towards the success in the competitive market. However, the limitations led the organization to affect the productivity of the organization which further led the company to face the challenge in retention of the employee towards the organization as a whole. Identification and Discussion of Key Issues: The hotel industry in Indonesia: The global hotel and resort industry refers to the leisure and recreational purpose towards the customers across the borders. Indonesia thus improves the hotel industry which further helps the business to gain the competitive advantage in the international competitive scenario as a whole (Ng et al., 2012). The hotel industry thus provides services to the customers regarding providing luxury rooms, eco- friendly environment, and comfort as well (Thite, 2012). This helps in the improvement of the company and also helps to increase the growth rate of the organization as a whole. The hotel industry like Fairmont Hotel and Resort thus establishes a business in Indonesia which helps to gain profitability in the market (Thamrin, 2012). This also helps the corporate business in improving the service quality towards the customers as well. The development of the hotel industry in new remote place also helps to attract more newlywed customers in order to maintain their privacy and thus helps in gaining sustainability of the business in a remote place as well (Rego et al., 2012). Indonesia also expands the business operations through providing best service in an island which further helps in gaining customers across the borders as well. This further helps in the improvement of the rate of employee satisfaction as well within the workplace. The employee satisfaction also helps the company towards organizational development which further helps to get exposure in the market as well. The industry thus emerges rapidly in Indonesia which provides with the best quality of service towards the customers and also helps to retain loyal customers as well in the market (Bevir, 2012). The hotel industry also helps the country to improve the economic condition through attracting more customers towards the organization as a whole. The economic structure of the country also depends largely on tourism industry. Thus, a newly established subsidiary in remote locations helps to add further va le towards the economic structure of the country as well. Thus, it helps the employees as well to get motivated more towards the organizational business and helps in retaining employees as well. The human resource management within the company effectively helps in the improvement of the service and productive quality as well (Zaied, 2012). The customers satisfaction helps in expansion of the corporate in the market as well (Bratton Gold, 2012). Thus, it helps the country as well as the business to retain its position in the international competitive market and also helps in gaining more loyal employees as well. Remote site and management challenges: The hotel and resort industry by their nature are considered to be risky, uncertain and complicated as well. The hotel industry in the market attracts more customers with their service, but the industry gets affected through certain factors in the market (Niu et al., 2012). There are certain factors that might lead the industry to face challenges in gaining loyal customers and also lowers the rate of turnover of employees within the workplace as a whole. The remote areas prove to be a challenge for the industry as it need to provide various luxurious commodities which make the industry unique from the other hotel industry (Lim Ling, 2012). The remote industry may also affect the productivity which further affects the employee satisfaction level within the workplace. Thus, it led the business to suffer a loss which consequently affects the organizational success in the market (Zaied et al., 2012). The corporate business implements effective motivation strategies that might overcome the challenging phase and led the organization to attract more customers as well. The effective human resource management helps the organization to use the remote location as their USP, which helps to retain their position in the market as a whole (Bimber et al., 2012). This also helps the organization to stand as a unique location, and the service may add up to their prime location as well. Thus, it also helps the organization to gain more loyal customers which further helps in the development of the business as a whole. The business with the effective implementation of the marketing strategy also helps in the improvement of the customer rate and helps in the growth rate of the company as well (Hendry, 2012). The industry thus with effective marketing strategies helps in providing the customers with comfort and quick service that add success towards the competitive organization in the international market as well. Risk associated with remote hotel industry: The Fairmount Hotel and resort industry in Indonesia face several challenges regarding retention of the staff in the market. This led the business to get affected by the challenges which further led towards the turnover of employees within the workplace as a whole. The selection the remote location of Fairmount Hotel and Resort industry in Komodo Island face certain challenges which affect the productive rate of the employees a well in the market (Buller McEvoy, 2012). Thus, it led the business towards the risk factors which further affects the brand value of the organization as a whole (Brewster et al., 2016). The risk factor gets highly associated with the industry regarding staffing as well. The location may prove to be a challenge to attract customers which further led the business towards decreasing the economic growth of the organization as well (Jiang et al., 2012). The remote location may also lead the business to lose the loyal customers within the organization and helps in lowering the efficient employees as well. The remote hotel industry also may get affected by the various situational factors which affect the organization internally and externally as well. The internal factors may face risk like employee turnover which affects the productivity of the organization as a whole. The remote place Komodo Island thus affects the Fairmount hotel and resort industry to retain more loyal employees within the organization as well (Daft, 2012). The remote industry also affects the satisfaction level of the employee within the workplace which helps the company also to increase the turnover rate of the employee within the workplace. The remote industry also gets affected regarding service provided by the industry and affects the economic condition of the industry as well (Mathis Jackson, 2012). The remote location thus affects the customer satisfaction and further affects the productivity of the company as well. This helps the company towards improving the service of the organization towards the custome rs and helps in gaining competitive advantage as well (Banfield Kay, 2012). The effective human resource management within the organization thus helps in the improvement of the company and also helps in gaining more loyal customers towards the organization as a whole. Effective HRM practice: In organization, especially in hotel industry Human Resource Department plays a major role on which the rise or fall of that organization entirely depends. For Fairmount Hotel and Resort, it is paramount that their human resource management work effectively in order to meet their organizational goals in Komodo Island National Park of Indonesia. Currently the organization is facing some issues while recruiting eligible and qualified employees in the company. On the other hand, organizations are also unable to retain their old employees. This is the main reason that the productivity of Fairmount Hotel is going down and the customers are not getting satisfied by the services provided by the organization (Hong et al., 2012). Therefore, the authority of the organization will have to implement an efficient human resource management. In order to implement an effective human resource management, the authority of Fairmount Hotel will have to put skilled and well-rounded staff with a reputation of being trusted with important confidential information. The department will have to help Fairmount to grow their organizational culture in a way that will be similar with the culture of Indonesia and Komodo Island (Jamali, El Dirani Harwood, 2015). Besides, in order to deal with the employee retention problem, human resource department of the organization will have to implement motivational systems such as employee reward system. Besides, work place diversity is another option that the human resource department of the organization can implement in order to gain competitive advantage over the existing market rivals (Yang et al., 2012). High-involvement work system: The human resource management helps in improving the organizational structure which further helps the business to retain the staff more towards the organizational structure and also helps in gaining competitive advantage as well (Lepak et al., 2012). The effective system also helps to involve the employee more towards the productivity that helps in improving the profit rate of the Fairmount Hotel and Resort industry as well. The management of the business also helps in the development of the involvement of the work system which helps in gaining more loyal employees within the workplace as a whole (McShane Von Glinow, 2012). The involvement of the work system helps in the improvement of the business which further led the organization towards the expansion of the operations in the market as well. Motivation and Reward - The involvement helps the employee to get motivated more towards the organizational development and helps in gaining competitive market as well. The motivation of the employee helps in retaining more skilled employees and thus also helps to provide best service to the customers as well. The implementation of the human resource management also helps in the performance appraisal of the employee which keeps motivating employee and thus help in retention of the employee as well. The implementation of the human resource management helps in the improvement of the organization which further helps in attracting more employees within the workplace as well (Brynjolfsson Hitt, 2013). This also helps in the development of the organization and also helps in attracting employees towards remote areas as well. Reward and Recognition - The recognition within the workplace also helps in which further helps in the retention of the staff as well. The involvement also helps to motivate more employees within the Fairmount Hotel and Resort industry and thus increase the growth rate of the company as well (Long et al., 2012). The work system also helps in improving the quality of the production which adds value to the organization as a whole. The implementation thus helps in rewarding the employees which further helps in motivating employees within the workplace (Zarsky, 2012). This also may lead to the recognition of the employees which motivate and satisfy more employees within the workplace as a whole. The d This helps in the development and also helps in improving the growth rate of the employee and also helps in motivating more employees as well. The employee satisfaction also helps in the improvement of customer satisfaction which helps in the success of the Fairmount Hotel and Resort industry as well in the market (Lasserre, 2012). This helps in the expansion and helps in the organizational success as well. The high involvement of the employee also helps in the organizational development and thus led the organization towards the profitability as well. Attraction and Retention Strategies: Employee attraction and retention strategies include three types of processes which are process from organizational context, employment practices and community and social concerns. In organizational context, if reputation and culture of an organization is comfortable and amicable then it is obvious that employees will never quit their jobs. Fairmount already has a good reputation all over the world; however, they will have to enhance their organizational culture so that local employees can feel comfortable with it. With this, high quality leadership, quality management, good communication system, excellent ethics and professional standards can also help the organization to attract and retain its employees (Roundabout, 2016). Performance Appraisal - Employment practices within an organization includes monetary reward systems such as bonus, increments, high payment for overtime can attract new employees. On the other hand non-monetary systems such as health insurances, long holiday leaves, transportation system and recognition can also motivate the employees to work harder. A motivated employee never quits his job and always deals with any complex situation with excessive care (qtic.com.au, 2016). Training and Development - Training and skill development facilities can also make the employees feel that the organization is thinking about them. This will flourish loyalty among the employees and loyal employees always stay with their organization. Fairmount can also follow the same path as providing extra payment to the employees will not be a hard job for their because of strong financial background. On the other hand, it is not easy for the local employees to understand what type of services the organization want to provide to its customers without proper training sessions. Therefore, conducting training sessions would help the organization in both ways. Community social concerns are another part where Fairmount can play a major role in Indonesia. Nowadays, most of the leading organizations play a huge role while contributing to a country where they doing their business. Fairmount can also use their most strong organizational achievement which is eco-friendly operations in all of their hotels around the world in order to promote sustainability in Indonesia (Hutchings et al., 2011). This will not only impress the internal and external stakeholders but also will impress the Government of the country. They can also run an event to minimize the unemployment level of the country. These initiatives would help the authority of Fairmount to attract potential customers and to retain its existing employees. Conclusion: From the discussion it is clear that in spite of having a strong background and financial support, Fairmount is unable to retain its staff in Indonesia. This clearly shows that the local people is either not liking the organizational structure or not liking the amount they are receiving as salary. Therefore, it is high time for the company to enhance their organization structure by implementing things which are comfortable to the local people. Besides, if people are leaving because of salary problems then Fairmount will have to consider a raise in their payment system. Besides, if the organization does not want to implement a rise, then they can implement strategies such as bonus, payments for overtime and incentives. The human resource management effectively helps in the development of the Fairmount Hotel and resort industry in the international scenario. The human resource management also helps in the organizational success through the effective implementation of the motivation strategy as well. The motivation strategy thus includes the reward and recognition of the employee who helps in effective retention of the employee as well. The recognition strategy thus helps in the satisfaction of the employees which also add to the motivation level of an employee as well. This also helps in the organizational development and success as a whole. The retention of the employee also helps in the growth of the business and thus helps to increase the productivity rate of the company as well. The best service and the quality production help the organization to gain competitive advantage and help in the organizational expansion in the market as a whole. This also helps in the sustainability of the business in the market. Recommendation: The corporate sector needs to implement marketing strategy that helps in the business world towards the development as well. The human resource management also helps in the employee retention which further helps to increase the employee growth rate as well. This further helps the organization Fairmount hotel industry to gain the competitive advantage as well. The various factors affect the profit rate of the organization that may help in retaining employee more towards the industry as a whole. The corporate also helps to gain loyal customers with improved service quality and helps in retaining its position in the market as a whole. The human resource management also helps in the organizational success in terms of implementing effective motivation strategy. The retention strategy includes the reward and recognition strategy that further helps in lowering the attrition rate of the employee as well. Reward strategy also helps the employee in motivating more towards the organization as a whole. The motivation also helps in attracting more employees and thus solving the issue faced by the Fairmount industry as a whole. This helps to retain employees and helps in lowering the turnover rate of the employee as well. Thus, it also helps in attracting more customers and gaining loyal customers more towards the business as a whole. The marketing strategy also helps in the development of the growth rate of the business and further helps in gaining competitive advantage as well. The promotional strategy helps in gaining more loyal employees and further helps in getting more exposure in the market as a whole. This also helps the company to retain its position in the market and helps in motivating more employees to restrain within the workplace as well. Thus, it helps the organization to gain expansion in the international scenario and helps in retaining staff as well. The marketing as well as effective human resource strategy thus helps the business to overcome the challenges in the market and gain sustainability as well in the international market. Reference List: Albrecht, S. L., Bakker, A. B., Gruman, J. A., Macey, W. H., Saks, A. M. (2015). Employee engagement, human resource management practices and competitive advantage: An integrated approach.Journal of Organizational Effectiveness: People and Performance,2(1), 7-35. Appelbaum, S. H., Fewster, B. M. (2014). Safety and customer service: contemporary practices in diversity, organizational development and training and development in the global hotel industry.Management Research News,27(10), 1-26. Banfield, P., Kay, R. (2012).Introduction to human resource management. Oxford University Press. Beadles, I. I., Aston, N., Lowery, C. M., Johns, K. (2015). The impact of human resource information systems: An exploratory study in the public sector.Communications of the IIMA,5(4), 6. Bratton, J., Gold, J. (2012).Human resource management: theory and practice. Palgrave Macmillan. Brewster, C., Mayrhofer, W., Morley, M. (Eds.). (2016).New Challenges for European Resource Management. Springer. Buller, P. F., McEvoy, G. M. (2012). Strategy, human resource management and performance: Sharpening line of sight.Human resource management review,22(1), 43-56. Delahaye, B. (2015).Human resource development. Tilde Publishing. Hong, E. N. C., Hao, L. Z., Kumar, R., Ramendran, C., Kadiresan, V. (2012). An effectiveness of human resource management practices on employee retention in institute of higher learning: A regression analysis. International journal of business research and management, 3(2), 60-79. Hutchings, K., De Cieri, H., Shea, T. (2011).Employee attraction and retention in the Australian resources sector. Journal of Industrial Relations, 53(1), 83-101. Jabbour, C. J. C., de Sousa Jabbour, A. B. L. (2016). Green human resource management and green supply chain management: Linking two emerging agendas.Journal of Cleaner Production,112, 1824-1833. Jamali, D. R., El Dirani, A. M., Harwood, I. A. (2015). Exploring human resource management roles in corporate social responsibility: the CSRà ¢Ã¢â€š ¬Ã‚ HRM coà ¢Ã¢â€š ¬Ã‚ creation model.Business Ethics: A European Review,24(2), 125-143. Jiang, K., Lepak, D. P., Han, K., Hong, Y., Kim, A., Winkler, A. L. (2012). Clarifying the construct of human resource systems: Relating human resource management to employee performance.Human Resource Management Review,22(2), 73-85. Lepak, D. P., Liao, H., Chung, Y., Harden, E. E. (2012). A conceptual review of human resource management systems in strategic human resource management research.Research in personnel and human resources management,25(1), 217-271. Lim, L. J., Ling, F. Y. (2012). Human resource practices of contractors that lead to job satisfaction of professional staff.Engineering, Construction and Architectural Management,19(1), 101-118. Long, C. S., Perumal, P., Ajagbe, A. M. (2012). The impact of human resource management practices on employees turnover intention: A conceptual model.Interdisciplinary Journal of Contemporary Research in Business,4(2), 629-641. Mathis, R. L., Jackson, J. (2012).Human resource management: Essential perspectives. Cengage Learning. McShane, S., Von Glinow, M. (2012).Organizational behavior. McGraw-Hill Higher Education. Ng, T. W., Feldman, D. C. (2012). The effects of organizational and community embeddedness on work-to-family and family-to-work conflict.Journal of Applied Psychology,97(6), 1233. Niu, K. H., Miles, G., Bach, S., Chinen, K. (2012). Trust, learning and a firm's involvement in industrial clusters: a conceptual framework.Competitiveness Review: An International Business Journal,22(2), 133-146.