HUMAN RESOURCE MANAGEMENT OF FOUR SEASON HOTELS AND RESORTS

CE FOR PRINCIPLE OF HUMAN RESOURCE “FOUR SEASONS HOTELS AND RESORTS”

BY: LIAWATI RATNA WARDANI

9150034

NIKITA NAIR

9150423

SHREEJOY BHARAT

9150422

PARAG NARVEKAR

9150239

INTERNATIONAL UNIVERSITY OF BAD HONNEF

Four Seasons Hotels and Resorts as one of the world’s leading hotel management specializing in luxury resort properties is a Canadian international luxury, five-star hotel that work on hospitality industry. Four Seasons has been named one of the “100 Best Companies to Work For” by Fortune Magazine every year since 1998 and raking 47 in 2015 and lauded for having one of the lowest employee turnover rates in Hospitality Industry. The Company manages over 40 hotels and resorts in North America, Europe, Asia, Middle East, Australia, and the Caribbean. Isadore Sharp was a young architect Canadian businessman when he founded Four Seasons in 1960. Four Seasons Hotels and Resorts has Corporate Offices in Toronto, Canada and also has four regional offices in Dubai, Seattle, Singapore, and Washington. The future growth and success of Four Seasons depends on our ability to attract and retain the brightest and best college and university graduates. While students can pursue a career with us in a variety of ways, we regularly conduct on-campus interviews at hospitality institutions around the world. For students, Four Seasons hotel conducts a special program called as “Manager in Training (MIT)” program at Four Seasons is designed to give participants the tools they need to accelerate their careers and succeed as future leaders. In addition to operational exposure and training, MITs are exposed to valuable management experiences and project work, allocated a buddy and mentor, and provided with feedback throughout the program. Eligibility for this program is Work authorization in the location(s) applied to. A strong proficiency in spoken and written English is essential. How to apply Through recruitment events, e-mail, mail, phone, Fax or contact Four seasons locations directly. Note that initial contact with properties can only be made via regular mail, phone or fax. Other Programs There are a limited number of MIT openings each year in the Americas, but the growth opportunities within the Company are significant. Individual properties may recruit local graduates for their own direct hire or supervisor roles, please contact the hotel or resort of your interest directly for more information.

Internships Four Seasons offers global internship opportunities to undergraduates and graduates who want to get a head start in their career. Four Seasons is a growing organization and to identify the right people for their future, it is important to commence their search at an early stage. Internships offer students first-hand experience in what a career would be like with Four Seasons through exposure to various areas of a Hotel, Resort or our Corporate Office. If a student with a major in business or hospitality (preferred) who is interested in an exciting career in the field of hospitality and are looking to gain practical experiences while developing relationships with leaders in the field, an internship might be right for those students. Hotel Internships may also serve as a point of entry into the Manager in Training program. The Manager in Training (MIT) program at Four Seasons is designed to give participants the tools they need to accelerate their careers and succeed as future leaders. MITs are exposed to valuable management experiences, project work, mentorship and feedback throughout the program. Company culture Many years ago Four Seasons set out to create a corporate mission statement that would guide the actions of everyone in the organization. Their goals, beliefs and principles are the foundation of the work they do every day on behalf of their guests. The four seasons have chosen to specialize within the hospitality industry by offering only experiences of exceptional quality. The objective is to be recognized as the company that manages the finest hotels, resorts and residence clubs wherever we locate. Doing so allows Four Seasons to satisfy the needs and tastes of our discriminating customers, and to maintain our position as the world's premier luxury hospitality company. The company’s greatest asset, and the key to success, is the people. They believe that each and everyone needs a sense of dignity, pride and satisfaction in what they do because satisfying the guests depends on the united efforts of many. The company expects to achieve a fair and reasonable profit to ensure its prosperity and to offer long-term benefits to the hotel owners, customers and employees. The company receives guests and employees from every part of the world. The goal is that each person will feel respected and welcomed, and will sense the wish to understand and value each other’s differences. Four seasons always select and retain the best-qualified individuals based upon job-related qualifications and regardless of any protected group status under the law. This policy includes recruitment, selection, development, transfers, promotions, scheduling, learning assignments, discipline,

compensation, benefits and separation. They will not permit intimidation, coercion or harassment of any kind. Working condition 1. Complimentary stay. Rooms at Four Seasons aren’t just for guests. Each year, the company provides up to five nights gratis at any of its properties for employees, as long as they have worked there for at least one year.

2. Employees of the month—and year. Managers recognize outstanding employees every month. The title also makes an employee eligible for the coveted “employee of the year” award, which brings extra vacation days and complimentary rooms.

3. Celebrations of success. When a worker moves up, or on to another resort, everyone gets together and celebrates. Colleagues present going-away gifts and a signed and framed photo of the hotel. Promoting internal transfers is an important Four Seasons’s policy.

4. Development programs. How does Four Seasons keep up its distinguished standard of service? Endless training, in short. The company offers a variety of mentorship programs and commits to providing at least 10 hours of instruction per employee annually. New hires receive a workplace initiation and safety training; new managers enroll in orientation programs; and other staff members learn skills in areas like spa, culinary and pastry, and restaurants.

Training and Development At Four Seasons, each learning activity is aimed at impacting the guest experience and supporting the culture of the Company. For training to add significant value, each function in a Four Seasons hotel or resort strives to enhance the quality, retention and application of learning in the workplace, thereby creating a "learning organization. These solutions may not always be training solutions, however, but could be related to management, morale, equipment or systems. Supervisory and Management Training. : Four Seasons has long recognized the need to promote people from within and to have programs designed to thoughtfully and strategically develop a workforce of highperforming managers worldwide.

New Manager Orientation. : Four Seasons provides a tailored, management-specific orientation for all managers who are either new to Four Seasons or newly promoted from within. Development Planning: Every year, managers receive a Development Plan to help them achieve their performance goals. The plan is tailored to each manager’s needs, and can include some or all of the following: Management Development Program. : The Management Development Program is a series of Management Development modules designed to provide training in essential business skills that are deemed necessary for success at Four Seasons. Non-management staff are encouraged to continually improve their specialized skills and are given opportunities to develop a career within Four Seasons through skills training and ongoing product training. Standards Training Program. : The "Standards Training Program" has been developed to assist in the training of new Four Seasons employees, newly promoted/transferred employees, and as an overall refresher for all employees. This program focuses on teaching employees various skills, standards, and safety practices associated with their position. Ongoing product and departmental training. Four Seasons believes that continuous training at all levels of the organization is essential to guarantee the continuous success of the Company.

WORKFORCE PLAN Four Seasons Resort Bali, Indonesia is about to open for business. The incomparable island beauty serves as stark contrast to the hotel's makeshift training center—an old, dreary elementary school building with bare, low-wattage light bulbs hanging from the ceiling. Mediocre ventilation has made the room hot and still. The Peace Corps-like setting seems a world away from what will soon be one of the globe's top-rated resorts. When Michael Burchett, general manager for the hotel's opening, and the other Four Seasons hotel managers embarked on creating this first-class resort at Jimbaran Bay, Bali. The area's luxurious whitesand beaches and lush tropical rain forests couldn't hide the challenges they'd soon encounter. They knew that creating paradise wouldn't be easy, but they didn't know just how daunting it would be. It took all of their HR know-how, cultural skill and interpersonal sensitivity to make it work—first at the Bali Resort, then a few years later at The Regent Jakarta hotel on the island of Java. Indeed, they did make it work— and on a world-class level. Meeting high service expectations When opening a hotel that's known worldwide for having the highest quality of customer service, there's no room for error. Hotel staff must be outstanding and respond correctly every time. Clerks at the front

desk must coordinate rooms to exact customer specifications; staff who deliver room service must not only cook excellent food to order, but also must deliver it quickly and present it superbly; concierge, bellstation attendants, waiters, fitness center and pool attendants must respond to a wide range of customer requests—and everyone must be friendly and engaging. And to top it off, they must achieve these standards in an environment. The HR issues encountered in creating this atmosphere were numerous. To begin with, the hotel (both then and now) has two types of staff—expatriates and local hires. In addition, there were myriad challenges of bringing local hires' skills up to world-class level. From recruiting to training, from recognition to performance appraisals. Burchett (General Manager) and his HR staff had to operate in a workplace in which the view of the situation was often as obstructed as the view of the ocean through giant vines and elephant-ear plants. They couldn't take for granted that what had worked in Chicago or Sydney would work in Indonesia; they had to discern the distinctness in this environment—the individual and cultural issues—to determine how they'd construct and implement HR policies and how they'd treat people so they'd feel motivated and feel like they were dealt with fairly. Transforming a remote island village into a Garden of Eden. Although there were more than 10,000 applicants eager to fill the 580 jobs, virtually none were able to speak English, and many didn't have any concept about world cuisine and western customs. In fact, many of the Balinese applicants had never even left their island, meaning training had to begin at a more basic level than usual. Traditional corporate training methods were fairly useless in educating the indigenous population to ‘Four Seasons's standards, because most of the training was geared to young Americans with some college education. In fact, the only thing the Four Seasons training staff could count on from the beginning with the Indonesian employees, and the Balinesse people especially, was their cultural predisposition to be gracious and hospitable. In other words, the concept of service didn't have to be taught —just refined. From book learning to communication As problematic as cultural-based differences might have seemed, fully 90 percent of the HR staff's training difficulties revolved around communication. Because the official language of the hotel chain is English, there's an English-speaking policy-all employees must demonstrate a minimum level of proficiency. So, developing communication skills began at the hiring phase. Instead of trying to hire local people with English skills and knowledge of western idioms, the HR staff had to go a different route with

heavy, intensive English training from the beginning. The idea was to create a learning center that would allow the employees to teach themselves an unfamiliar language. Once hired and trained, they begin the course, which takes them from the first to the fifth level. When employees move to each new level, they receive a certificate and monetary incentive. The Self Access Learning Centre has grown considerably. Three years later, the Balinesse staff is dedicated not only to serving its patrons, but also to being capable of speaking and communicating to meet just about any traveler's needs. Moreover, as the hotel industry in Asia continues to expand, these trained and talented individuals have skills that are needed throughout the region. Compensations and Benefits The compensation they are using In Four Seasons Hotels and Resort United States are quite the same as other multinational company around the world. The direct components itself are salaries, commissions, bonuses and gainsharing at the end of the year. However the indirect components are calculated based on the length of the time that employee had work and also their position in the company. The components such as vacations, breaks and holiday are based combination between the government and company policy; the insurance policy itself are based on positon; security plans for pensions is also based on the government regulation on the area. The last components of the indirect compensation is employee service which the company see based on their interest of how they maintain their employee by giving recreational program and more education for the benefit of the company. For further explanations, we will use the department of sales and marketing in Four Seasons.

DIRECT

INDIRECT

Wages/ Salary

Time not worked : Vacations, breaks, holidays

Bonus

Insurance plan : medical, dental, life.

Gainsharing

Security plan : pensions.

Commission

Employee services : Educational Assistance, Recreational program

Example calculation of Direct Compensation of Director of Sales and Marketing in Four Seasons Hotels and Resort. Table 1.

1. 2.

SALARY BONUS PROFIT

45000 1000

144500 49.000

3. 4. 5.

SHARING COMMISSION TOTAL PAY

500 0 47000

24500 59500 174000

on the Table 1, the are 2 elements that look like the same but have totally different meaning. First element is commisions, commision is one of the compensation that the company gives to the employees based on the percentage of the sales price. And profit sharing is pays that the company gives to the employees based on quarterly or annually company’s profit. Table 2. 1. SALARY 2. BONUS PROFIT

51000 3000

144000 41.000

3. SHARING 1000 18500 4. COMMISSION 5. TOTAL PAY 57500 167000 Example calculation of Sales and Marketing Director at Hilton Hotels USA If we compare between Table 1 and Table 2, both of those data are belong to Director of sales and Marketing in different company. Eventough they have the same occupation, duties and job description the take home pay for them basicly based on the company’s regulations and how good is the employee’s performance.

In Four Seasons Hotels and Resort, each employee have rights to receive Monetary compensation such as direct and indirect compensation as we discussed it earlier, and Non-Monetary compensation such as social, psychological rewards, respect from others and opportunities to self development. In the Department of Sales and Marketing, Four Seasons Hotels and Resorts apply the Incentive Pay Strategy in order to make the employees improve their productivity, well motivate, and will give their best performances in their jobs. This strategy can give a lot of advantages for the company as well. SOURCES 1. Werner, S. , Schuler, R., Jackson, SE. (2012). Human Resource Management Eleventh Edition International Edition. Canada : South western Cengage Learning. 2. http://www.salarylist.com/company/Four-Seasons-Hotels-Salary.htm?page=7&order=4 3. http://www.payscale.com/research/US/Job=Sales_Director/Salary 4. http://reviews.greatplacetowork.com/four-seasons-hotels-and-resorts 5. http://www.fourseasons.com/about_four_seasons/ 6. http://www.prnewswire.com/news-releases/four-seasons-hotels-and-resorts-named-to-fortune-listof-the-100-best-companies-to-work-for-300046109.html 7. http://www.encyclopedia.com/topic/Four_Seasons_Hotels_Inc.aspx#1 8. http://press.fourseasons.com/newsreleases/2013/07/four_seasons_hotels_and_resorts_receives_six_1_ran/ 9. http://www.payscale.com/research/US/Employer=Hilton_Worldwide/Salary/by_Job 10. http://www.fortune.com/