Description
Background
This course project is an individual assignment. You will be preparing a compensation plan for a start-up boutique hotel chain preparing to launch in five locations across the country. These new hotels are currently under construction in Manhattan, Chicago, Miami, Houston, and Los Angeles, and are expected to open in about 5 months. The hotels are small, 50 to 100 rooms depending on the city, and luxurious. The hotels will appeal to a select clientele. The marketing approach taken by the hotels is being defined and is not part of this assignment.
The CEO of your new organization believes in a very collaborative approach to management. They also believe that everyone in the organization should be working on stretch assignments. Your task force is the first to receive this stretch assignment, which is the Course Project.
Process
You are to work to develop a recommendation for compensation packages for soon-to-be employees of the five hotels. The CEO has not been very clear about how the hotels will be staffed, figuring that you can figure out what the positions would be, leaving the number of employees in each position to be determined. They have directed that they want the hotel staff compensation to be higher than average, maybe in the top 25 percentile. They also want the compensation to be adjusted for the local cost of living. Everyone's compensation is to have some bonus potential based on the profitability of the locations at which they work.
Assignment
Although there could be several positions in a hotel, you are to concentrate on the four positions they deem most important to run the hotels. You are to develop a plan for total compensation of these four required positions; not just salary.
Your Course Project assignments consist of two parts
Week 4: Part 1 - Project Plan (100 points)
Research some ways of developing compensation plans. There is some good material on this in Chapter 7 of our text. A good example can also be found at the Society for Human Resource Management (SHRM).
Develop a strategy and plan for conducting the final recommendations, due in Week 8. Create an outline or table with the schedule of how the project will be done. Include a breakdown of the tasks, a date the tasks are to be completed. Create this in one Word document. Submit this assignment to Project Part 1.
One thing that you will probably need for your project is job descriptions of the four positions that will be the subject of your study. You can find job descriptions on the Internet. As long as you correctly cite your sources and appropriately identify quotations, you may use the descriptions verbatim.
The second part of the project is not due until Week 8, but you will want to work on the project over the intervening weeks. This is a substantial project and will take significant time a plan as appropriate. Part 1 is due in Week 4.
Grading Rubric for Part 1
CategoryDescriptionPointsDocumentation and FormattingA quality paper will be formatted as a report to management. The paper will also include a title page, proper in-text citations, and a reference page.10EditingA quality paper will be free from any spelling, punctuation, or grammatical errors. Sentences and paragraphs will be clear, concise, and factually correct. The paper will follow APA writing style.10ContentA quality paper will have significant scope and depth of research to support any statements. Relevant illustration or examples are encouraged. A quality paper will employ sound use of reasoning and logic to reinforce conclusions. The paper meets the length requirements. A quality paper will include the name, description, due date, and responsible party for each task. The tasks will be defined in sufficient detail to allow the paper's use as a project management tool.80TotalA quality paper will meet or exceed all of the above requirements.100
Week 8: Part 2 - Compensation Plan Recommendations (300 points)
The second deliverable for this project is due Week 8. Submit one Word document that consists of a report addressed to the CEO. The report is to contain the following.
Executive summary
A description of the project
The methodology that was used to complete the project
Job descriptions for your three chosen positions
The results of a compensation survey you conducted using sources available on the Internet
How your recommended compensations were calculated, including averages, adjustments for locations, and adjustment to create packages that were in the top 25% of industry compensation packages
Conclusion
Unformatted Attachment Preview
Explanation & Answer
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Compensation & Benefits
Name
Course code
Instructor
Institution
Date
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Executive Summary
The subsequent remuneration strategy for the management of the intended boutique hotel
chain to be opened in Manhattan, Chicago, Miami, Houston, and Los Angeles intends to enable
the human resource department to recruit professional workers and respond to the profession
occupying the luxury hospitality Industry. The compensation strategy is also established below
the cost strategy, a clear business objective of developing compensation packages that will place
this company in the upper quartile of market comparables (Sitopu et al., 2021). Through this
plan, employees’ remunerations are also catered to by offering competitive base pay that is
increased by the country's living standard and incentives or bonuses for performers' job power
employees. Other information collected and analyzed included compensation data and the use of
compensation theories in building compensation structures that are lasting and fair.
The estimated compensation of the General Manager is between 130,000 and 180,000
USD based on the location; the performance bonus is added at 30% in addition to the base pay.
This ensures that only the best talent is attracted by the compensation and will remain with the
company by earning the majority of the income from the revenue generated by the hotel and a
portion of the customers’ satisfaction. The expected remuneration was established to be: Base
salary of the Front Office Manager, $75000 – $95000. Apart from the base salary, a variable
bonus system of up to 20% of the base salary is tied to operation efficiency and quality of guest
services. This is a useful strategy to develop quality in delivering the guests, which is one of the
hotel's cardinal success factors.
The Executive Chef, responsible for developing the proposal of the hotel’s specialty,
earns $ 90,000 to $ 130,000 on the base wages and may incur a bonus of up to 25 % of the basic
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wages. Such bonuses are linked with customer’s attitudes towards the occasions for eating out
and the functioning of a kitchen in general. Training of the housekeeping manager is provided at
the cost of between $55,000 and $75,000 per annum, including a bonus of not more than 15
percent of the annual salary based on the ratings in cleanliness and customer feedback. These
packages ensure that all strategic areas are remunerated adequately and competitively, thus
helping enhance the high-performance culture.
Project Description
This project aims to develop a comprehensive compensation plan for a newly established
luxury boutique hotel chain preparing to open in five major cities: Manhattan, Chicago, Miami,
Houston, and Los Angeles. The percentage of rooms in each boutique hotel ranges between fifty
and one hundred, targeting the selective and well-to-do market segment that expects the best
relative to service delivery and hotel facilities. Because of these hotels' market position and
geographical situation, the CEO has established expectations concerning remuneration at the
75th percentile of the market rates (Cabezon, 2024). Work involves studying and evaluating
numerous complexities and planning strategies to determine the gains of offering quality talent
on top of the hotel's main goal: luxury and exclusivity.
The core process in this project is to determine the positions pertinent to the hotels'
effective operations and customer satisfaction. After thorough consideration, four positions have
been identified as critical: Some general positions available for employment in the hospitality
industry include General manager- Front office manager- Executive Chef- And housekeeping
manager. Such roles are important to ensure that targeted operational productivity and delivery
of services by the respective hotel chain are achieved (Ahmad & Scott, 2022). The details
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regarding the specified positions will be developed along with the activity list, academic need
profiles, and targeting indicators templates. The element under discussion is significant and
essential in the primary perspective since it focuses on the objectives of the job/position and,
coupled with that, creates the grounds for the further bench-making process.
This part is among the significant pillars of the research aspect of this study. Bureau of
Labor Statistics, SHRM, and all other sectorial databases will be used to conduct a detailed
compensational analysis. There is a need to gather up-to-date and accurate information
concerning the pay of similar roles in the hospitality sector. Also, the geographical position of
the hotels may influence the remuneration spectrum; thus, it has to be elastic enough to differ in
some living costs in such regions. Tools such as the Cost of Living Index for every city will be
used to adjust the base salaries to the current levels. Such a twofold strategy ensures that
compensation packages are highly competitive depending on the national or regional market and,
thus, the attractiveness of the hotel chain to markets.
First, among the compensation plan components is the provision of the performancebound plan. The CEO has suggested orderly ways of organizing the employees ‘bonuses linked
with the profitability of the hotel location (Cabezon, 2024). This way, the employees are
responsible and motivated since they are close to the hotel's performance. T...
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