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Shangri-La Hotel

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by

Nicole Frison

on 31 July 2013

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Transcript of Shangri-La Hotel

Background/Current Situation
Strategy
Recommendations
Global Function and Practices
Analysis and Evaluation
International with emphasis towards global
High level of HQ control
Corporate provides templates
Adaptation at each hotel unit

Expatriates

Increase global presence
expansion
Differentiation strategy
"Asian hospitality"

Sustainability
Individualized projects
at every hotel
Give back to local community/environment
Sydney
Hong Kong
Ghana
Paris
Vancouver
Presented by: Nicole Frison, Gurneet Takhar, Peter Feng, Zelene Zhou, and Kareen Sin
Agenda
1. Company Background
2. Current Situation
3. Strategy
4. Global HR Function and HR Practices
5. Analysis and Evaluation
6. Recommendations
Background
Today's Shangri-La
* Manages and operates over 78
hotels and resorts

* 41,500 employees worldwide

* High staff-to-guest ratio

* On average, 1.5 staff per guest
Financial Performance
In 2012..
* Revenues Increased by 7.5%
* Net Income Increased by 26%
* Return on Equity Increased to 5.5%
* Leading Asian luxury brand hotel

* Founded in 1971

* Philosophy:
"Shangri-La From a Caring Family"

* Fast paced expansion in Asia-Pacific region
* early 2000s: Global Expansion

* Shangri-La Academy in 2004
Global HR Function
Corporate
HR
Local HR
Local HR
Local HR
* Each hotel receives directions from HQ on
required HR practices

* Each hotel can tailor aspects of HR based on
cultural and institutional factors

* Requires approval from Corporate HR
* Global Director of HR communicates with local
HR Director to ensure consistency
Staffing and Recruitment
* Corporate HR appoints expatriates to hold key decision making positions

* North American Tigers Program in 2006

* Recruit Host Country Nationals to fill middle to lower tier positions
* Selected by local HR Managers or HR Directors
* Selection criteria provided by Corporate HQ
* Competency-based assessment and
interview model
* List of qualities for the "right attitude"
* Younger age groups
* 48% of all Shangri-La employees aged 20-30
Corporate Level
Business Level
Training and Development
* Talent management and promotes internally

* Shangri-La Academy and online courses

* "Shangri-La Care Programme"

* Consistency and standardization of service quality, brand, cultures and practices

* Corporate HQ is the central knowledge hub
* specifies content and orientation of training
Performance Management
Compensation and Benefits
* Standard reviews twice a year

* Structure and content of reviews derived from
Corporate HR

* 360 Degree Feedback
Evaluation Program
(Standard)

* Competency based and
key performance
indicators
* Based on local labour market and company performance

* Standardized three-tier compensation structure
Level 1
Level 2 & 3
Level 4 & 5
Bonus: Financial Results
* Base Salary and Bonus Component
* Fringe Benefits
Bonus: Financial Results and Customer Satisfaction
Bonus: Common Pool on Overall Hotel Performance
Special Thanks to Luisa Gil, Service Manager - Human Resources at Shangri-La Hotel Vancouver!
Strengths
Aligning IHR practices with business strategy

Open communication channels

Flexible and open to new ideas

The Shangri-La Academy
talent development

Alternative web-based training
Problem Identification
High employee turnover

Cultural differences
Cross-cultural training
Compensation

Labour market composition

Talent management
Evaluation
Effectiveness of IHR functions?
2. Adopt a more Localized Compensation System
1. Implement a Comprehensive Cross Cultural Training Program
3. Partnerships with Local Hospitality/Tourism Universities or Colleges
Moderately effective
* High context culture vs. Low context culture

* Increase the weight of individual-performance related
bonuses and shrink the proportion of basic salary

* Localize incentives and fringe benefits

* Standardize the criteria used to determine reward levels

* Feasible but should not be over-weighted
* Mitigate culture shock

* Reduce expatriate failure

* Facilitate knowledge transfer

* Seminars, Online Lessons, and Interactive Role-Playing
Activities

* Managers from both sides should be involved

* Limitations: The effectiveness and results may be difficult
to access
* Attract students with hospitality education background

* Workshops, internship program

* Reduce hiring costs

* Target qualified students for future training
opportunities

* Limitation: short-term answer, brain drain
The Shangri-La Hotel & Resorts Experience
Full transcript