A new Dallas-based health and beauty spa aims to use a highly distinctive human resource system as the foundation of its competitive strategy. By encouraging employees to act as "personal wellness coaches" (PWCs) with high commitment and broad responsibilities, the leadership intended to provide a level of client service that would justify premium rates. However, the system is not working. Issues include: tips are lower than expected, reducing expected compensation; scheduling issues create bottlenecks; and the level of commitment varies among PWCs. The result is a high employee turnover rate, and departing employees take an average of 35% of their client base with them when they go. Now, with financials for the spa's second year completed, the VP of spa operations, the VP of business operations, and the CEO must evaluate what is and what isn't working.
A brand new hotel has opened with a new service strategy: import to America Asian-style service using a butler-like employee group called the personal valets. To achieve this high level of service, the hotel has paid great attention to its human resource policies, believing that the quality of its service will depend on the quality and motivation of the people, It articulates a series of employee "rights," which it tells employees are enforceable in court. Upon opening employees are excited and highly motivated but soon morale and quality problems develop. The students must evaluate the hotel's human resource management theory and practice in light of these problems.
A manager is confronted with a choice between promoting a man, recommended through a careful evaluation process, or a woman, who scored slightly lower in the same process, and who is seen as a trouble maker. Appendix summarizes legal issues in affirmative action decisions.
Material on 1984 negotiations between General Motors and the United Auto Workers, background for a film on the negotiations. Film available from California Newsreel in San Francisco.
Brings the history of People Express up to the summer of 1986. Raises the question of whether its innovative human resource policies were successful pr problematic.