HRM Case Study
RestaurantCo is a large group of hotels which has around 300 branches across UK and employee strength of 7000. They have started with a few outlets in 1990’s and have later on expanded its operations where they have been following a franchisee model. With the increase in the level of operations and the spread of the branches across the country, the HRM practices has also changed a lot which demanded it to be more holistic in nature. Most of the operational decisions are being taken centrally by the senior management but the operations staff at the branch level also had a fair degree of autonomy which they can exercise in managing their day to day affairs.In this report we would look at the situation in which the business is currently at and identify various strengths and weaknesses in its current approach in managing the situation. This would require a detailed analysis of the current corporate hierarchy, the EIP programs and various other initiatives that has been rolled out by the management. The complexity in managing various small business units and driving them towards achieving the common goal of the company is a difficult task to say the least. With this analysis we would be able to understand the factors that need to be focused on in order to ensure better productivity and thus increased bottom line profits.
Being a large restaurant chain they have to ensure that they monitor various stores based on their requirement. One of the key strengths that they have is that they have localized managers who would be taking the decisions for the stores individually. Even though there are flaws in the system, when the managers demand more autonomy on some of the issues, still this system works mainly because of the fact that the store managers would be the best ones to judge the situations and take decisions accordingly (By, Burnes & Oswick, 2011, p.7). There have been many HR initiatives that have been taken by the company to train these managers and later on take them to the next level of getting them involved in the operational decisions. Having a centralized control on key operational issues also is one of the main strengths in the current setup mainly because they would be able to make the necessary changes based on what the company goals are and looking at the current market situations. One improvement that they can make in the current setup is to involve the store managers while taking these decisions which would give those ideas as they would be the best judge on how these factors are going to affect their everyday operations.