Content
Introduction
Objectives
Background
Analysis and Impacts of Problems Facing Recently
Theoretical Background
Forecasting Personnel Needed
Payrolls Estimation Methods
Methodology
Forecasting Personnel
Payroll Estimation Methods
References
Introduction
This project is going to work on the Human Resource Department of a deluxe hotel in Landau Island in her expansion. Due to the Hong Kong Disneyland opened last year, and there was a positive forecast of business in this theme park. Although there are some hotels nearby, it was still not enough to satisfy the demand of tourists. So now we decided to expand our hotel by building one more tower.
In the following, we will focus our human resources planning on how to estimate the additional staff needed, the payroll cost and the cost of benefit in the future.
Objectives
1) To draft the organizational chart for the expanded wing of the hotel.
2) To estimate the required employees in the hotel expansion of 200 rooms through a systematical way.
3) To budget the payrolls and benefits required in the future in fulfilling the increase of employees.
Background
Our hotel is a deluxe hotel; it is located in Landau Island. Because of positive forecast of business by Hong Kong Disneyland, so we decided to expand the hotel size from 300 rooms to 500 rooms. We decided the future plan is to build up another tower with 200 rooms, adding facilities: a deluxe spa, a Japanese restaurant and an Italian restaurant. This tower is planned to be completed by January 2007.
Actually the main problem we facing is the Hong Kong Disneyland as it is the main competitor for our hotel. Hong Kong Disneyland has two hotels in the park. As this is a new theme park with well-known international brand in Hong Kong, this could attract tourists to go. As a result, we decide to expansion.
We planed to build up another tower, adding more facilities. This was due to raising demand, and these also can have competition with Hong Kong Disneyland. Our aim was providing high quality service to our customers. So that we had to ensure there would be quality staff to provide such services.
There will be more attractions in Landau Island in the future, such as Tung Chung Cable Car. Together with the existing ones, like Grant Buddha, Po Lin Monastery and Landau Peak. We believed these could raise the number of tourist to the region and to us.
Analysis and Impacts of Problems Facing Recently
After the opening of Hong Kong Disneyland, it was forecasted that there would be a positive growth rate on the numbers of tourists. This would also increase relatively the demand of hotel accommodation in the future. As our company decided to expand the hotel size from 300 rooms to 500 rooms, we predicted that it would be a shortage of labor to run the hotel in daily operation. A proposal would need to be done on determining the no of shortage employees, the additional payrolls and benefits in the expansion. However, there are a series of problem presented during planning.
First, we needed to analysis what kinds of job position were necessary to fulfill, junior or senior. Different departments may have different ratio of additional staff. Some department may need to merge.
Second, in the financial aspect, it was significant to make a judgment about setting budget cost. We should have a well-planned budget on the cost of hiring staff in paying them salary and benefits. The purpose of budget setting is to prevent over budget in the estimation of the payroll cost for the staff and cost of benefits.
For further consideration, we should decide what method and criteria will be used as selecting a right employee. It will take a long time in the selection process. We should also calculate the leading time to the whole recruiting procedure.
Theoretical Background
In the theoretical background, we review the relevant literature relating to the forecasting personnel needed and payrolls estimation methods.
Forecasting Personnel Needed
According to the Dressler (2000), there were several methods to forecast the employee needs: They were Trend Analysis, Ratio Analysis, Scatter Plot, using computers to forecast personnel requirements and managerial judgment.
Firstly, Trend analysis was the study of variations in the firm’s employment levels over the last few years to predict future needs. Thus human resources management might compute the number of employees in a firm at the end of each of the last five years, or perhaps the number in each subgroup (like sales, production, secretarial, and administrative people) at the end of year. Secondly, Ratio analysis was another technique for determining future staff needs by using ratio. For example, sales volume and the number of employee required. Thirdly, Scatter plot showed graphically how two variables such as a measure of business activity and firm’s staffing levels are related. Fourthly, using computers to forecast personnel requirements could help to determine the future staff needs by projecting sales, volume of production and personnel required to maintain this volume of output, using software packages. With programs like these, employer could quickly translate projected productivity and sales levels into forecasts of personnel needs, and estimate the effects of various productivity and sales level assumptions on personnel requirements. Another one was managerial judgment. The manager made the decision rather than the systems in considering the situation of each individual department. The manager may also fulfill the additional personnel needs through internal transfer. The main task for the manager is determining which current employees might be qualified for the new position. Mostly manager used several manual devices to track employees, such as position replacement card and personnel replacement chart which show the present performance for each position’s potential replacement. It helped the managers to replace the positions by current employees. Another possible method was the bottom up approach which forecasted the number of employee from the most basic level in the whole organization. For example, from the operational level to head of operation department to back offices to middle management and push upwards to determine the needs.
Payrolls Estimation Methods
Recently, there are several approaches established for calculating the pay rates of employees and they were summarized by Dressler (2005). The following were the summarized steps mentioned by Dressler (2005). Altogether 5 steps were needed in estimating the pay rates. First is the salary survey. This was a formal or informal searching of data from other sources, other firms’ offers. By choosing a benchmark jib, it could help to estimate the rest of the positions according to its relative worth to the organization. Second is job evaluation. This was the step after you have the benchmark. Jobs were evaluated by determining its worth to the organization. A formal and systematic way could be set up in this stage in order to have a clear mind of the factors affecting the estimation. Several methods could be used in the job evaluation. The most commons were ranking, job classification, point method and factor comparison. Ranking was the method to rank all the jobs into order and set salary according to it. Job classification was the method to classify job according to their natures and difficulties Point method was quantitative one that evaluated by marks. Factor comparison was similar to ranking but for more kinds of jobs. The third one was to group similar jobs into pay grades in terms of the points get fro m last step. The fourth set was to assign pay rates to each pay rates. Then, use current wage curves to show the average current rates for the grades. The last step was the fine-tune pay. Using pay ranges which was the vertical grading instead of one rate in this step enabled organization to attract experienced employees with higher pay to come. There were also other factors that affect the fine tuning, such as equal opportunity issues, government policy and local labor law.
Methodology
Forecasting Personnel
In this research, we are going to use the trend and Bottom-Up Approach to determine the needed personnel for the expansion of the hotel. First of all, we would use trend method. We would gather the information from HOT to know about the rough idea of the personnel needed for such high end hotel. Secondly, we would use the bottom-up method to count about the personnel needed for each individual department. This could help us to have a clearer picture of the personnel needed and budget the cost in the future.
Payroll Estimation Methods
In estimating the payroll, we would gather the information through the internet firstly. That information from the job hurting websites could give us brief impression of the market salary of each position nowadays. Secondly, we would use both classification and point method at the same to draw the detail encountering of each position. Dressler’s (2005) 8 points of grade definition would used as a blue print to encounter the decision criteria needed for estimating payrolls and point method would be used to grade for each criteria. This method could us to have a clear and systematic way to estimate the payroll at one time. Thirdly, we draw a salary curve by the information gathered through the internet as a benchmark and calculate the salary for each position needed to calculate as we don’t have real information from the company. Finally, we would fine-tune the salary into ranges in order to have the flexibility of getting the potential personnel into the organization.
Credit:ivythesis.typepad.com
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