CASE Lockhurst Hotels International PDF

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CASE Lockhurst Hotels International ...

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Case title: Case Lockhurst hotels international I.

Short cycle process

I (Alex Jones) am the decision maker in the firm Lockhurst hotels international, vice-president of Canadian Operations. The issue at hand is that my director of Ontario (John Shipley) has been offered a job at another firm with a $20.000 increase in salary a year. Because of this I have to decide whether I want to increase his salary by $20.000, I could hire Jim Martin a former manager in the European hospitality industry, or finally I could decide to hire Don Mix, a general manager of one of the company’s largest hotels. I have to decide this before the 1 st of April 2019, as that is how long John Shipley has to accept the new job offer.

II.

Long Cycle process A. Issues

Basic problems regarding the case are that I have to choose whether to hire Jim Martin or Don Mix, or do nothing and wait and see if John Shipley doesn’t take the job. Intermediate problems include the increase of salary that hiring Jim Martin would have (increase of $25.000 from John Shipley’s last salary) as well as his abrasive personality, which could clash with the team. A positive in the long run is that he has a lot of experience. On the other hand, Don Mix would work for $10.000 less than John Shipley, but he would have to be trained which has its costs. B. Case Data Analysis One of the main issues is, I could decide to do nothing and see whether John Shipley will leave the company or stay. If he leaves then I have to replace him and I will choose between the 2 best candidates. Whether to choose Jim Martin, and increase his salary, but pay for experience. Alternatively, to choose Don Mix, and have a decrease in salary but have to train him. If he stays, I can decide to fire him for not being loyal to the company and think about leaving. I can decide to let him stay but penalise him (salary wise maybe), or have him increase his productivity. Finally, let him come back as if nothing happened.

C. Alternative Generation

1

As an alternative I could try and keep John Shipley in the company by offering him an increase in salary to incentivize him to stay. It may not need to be $20.000, as he might enjoy working at the company and gets along with everyone. There is a chance he may say no, and still decide to leave the company. D. Decision Criteria The criteria I will be taking into account are the increase or decrease in salary each person wants, their level of skill and experience and whether someone may need training and finally how they will get along with the rest of the team and the work environment they might create. E. Alternative assessment, John Shipley should be included

Jim Martin Don Mix

F.

Salary +

Experience + -

Personality N

Preferred Alternative

The preferred alternative is Don Mix, even though he will need training the work environment he will create can be more positive, and salary wise the company won’t need pay much, $10.000 less than John Shipley. Jim Martin would have brought a lot to the table but the environment he might create and the increase in salary are not worth it. G. Action and Implementation Plan The best action plan is to offer Don Mix the position of John Shipley before the 1 st of April. The problem is, if John Shipley says no to the job offer and wants to stay at the firm, but this is not an option the firm is willing to accept. Therefore, Don Mix has a high probability of accepting as it is a promotion for him, and will immediately start getting trained for the new position Assumptions: Some assumptions I have made are that if John Shipley is deciding whether or not to leave the firm, he has no loyalty to it, therefore coming back is not a desirable option for the firm. I have also assumed that training Don Mix is not going to be very costly for the firm and within a few months he will be as good as John Shipley previously with a margin to become better. Finally, I assume that Don Mix will have no problem accepting the position because it is an increase in salary for him, he has been loyal to the firm up to now, and he is going to receive training.

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