Task 3 – Final Report

Title:
Strategic Human Resource Management Strategy for The European
Club-House
Introduction:
The European Club-house is a charitable organization named European Club-house, a non-profit,
which has been in operation in London giving hospitality and philanthropic services to the people
over the last century. Its sustainability is however threatened by dwindling membership, old
facilities, inefficient processes, and morale among the staff. The new CEO has introduced a
modernization programme and firstly the bar, restaurant and function rooms are being refurbished.
This report is a detailed Human Resource (HR) plan that will enable the modernization, cultural
and structural issues, and workforce alignment to organizational goals. It is also a critical analysis
of how organizational strategy, structure, and culture affect HR, how effective current HRM is,
and an offer of HR practices and relevant metrics to be implemented and monitored.

The Impact of Organizational Strategy, Structure,

and Culture on HRM (AC 4.1)

Organizational Strategy:
The approach of the Club-house is to transform business to earn more revenue and invest in its
philanthropic endeavour. For HRM, this means:
Hiring and developing human resources in new hospitality practices.
Adaptation of performance systems that are largely associated with service quality.
Change management without interfering with the services to the members.
Implication to HR: HR should become not an administrative one but a strategic partner whereby
people should be nurtured as competitive resources (Barney, 1991 - Resource-Based View).

Organizational Structure:
As it stands, the Club-house is very hierarchical with the decision-making process centralize
around the department heads. This puts off initiative and innovation.
Implication on HR: HR would be advised to foster a more flatter and participative design with
employees being empowered. The Club-house can be adjusted using the organizational theory
developed by Mintzberg where the structure needs to be changed to a more professional
organization instead of machine bureaucracy that discourages flexibility and engagement.

Organizational Culture:
It is a conservative culture that is not open to change. Old staffs are satisfied with the existing
processes and the young staffs feel uncontained because they have not received any recognition,
training and career development.
Implication on HR: Under the cultural model by Schein, HR should reconstruct assumptions
(instead of compliance, innovation), values (instead of hierarchy, teamwork), artefact (visible HR
policies, recognition programmers) in order to create positive culture.

Comprehensive HR Strategy (AC 4.2)

The HR approach to the Club-house should be integrated and address the areas of workforce
planning, recruiting, training, performance management, engagement, and change leadership.
Workforce Planning
Find the gaps of skills in hospitality, digital systems, and leadership.
Hire temporary employees in case of refurbishment.
Establish succession plans, especially of the retiring General Manager.
Recruitment and Selection
Recruitment based on competency was in line with the Equality Act 2010.
Branding of employers to recruit younger and motivated hospitality professionals.
Online recruiting systems to end up with manual recruiting systems.

Training and Development

Customer Service Training: Increase standards and be on par with competitors.
Digital Competence: Training of new reservation and payment systems.
Leadership Development: Participative management and decision making coaching.
Ongoing Learning: Forums, peer learning, and forums.

Performance Management
Establish an open evaluation system that is associated with KPIs.
Reward programmers (non-financial and financial).
Reward of the month, promotion and reasonable salaries.

Employee Engagement
Employee surveys and recommendation boards.
Open door communication policy.
Periodic recognition and team building.

Change Management
Focus on Kotter 8-Step Change Model: develop urgency, develop guiding coalition, communicate
vision, empower action, and establish change in culture.
Be open with the employees during refurbishment to minimize resistance.

Monitoring and Measuring HR Approaches (AC 4.3,

5.2, 5.3)
To ensure accountability, HR approaches must be implemented using relevant metrics.

HR Metrics for Monitoring

HR Approach Metric
Recruitment Time-to-hire, cost-per-hire, diversity ratio
Training & Development Training hours per employee, ROI on training
Employee Engagement Staff turnover rate, absenteeism, engagement survey scores
Performance Management % of completed appraisals, reward uptake
Customer Service Member satisfaction scores, complaints resolved

Monitoring Process:
Quarterly HR Reviews: Evaluate progress against KPIs.
Balanced Scorecard Approach (Kaplan & Norton, 1996): Align HR outcomes with financial,
customer, and internal process objectives.
Continuous Feedback: Staff and member surveys to track improvements.
Existing HRM Effectiveness at the Club-House (AC
4.4)
The existing HRM of the Club-house is minimalistic and more administrative:
Paper-based reservation and work force systems.
Absence of practical training and career advancement.
High hierarchy and low employee voice.
Motivation low, turnover of younger employees.
Poor reward and recognition schemes.
Assessment:
The existing HRM is inefficient in promoting organizational goals. It does not retain talent,
motivate employees, or even encourage innovation. The Club-House will be in danger of losing
more members, and deterioration of service quality without change.

Connection between Strategic Business and HRM

(AC 5.1)
HRM should be in line with the business strategy of the Club-house modernisation and revenue
maximization.
Business Strategy Objective: Contemporaneous facilities and lure members.
HRM Role: Hire and educate personnel to provide improvements on hospitality services.
Business Strategy Objective: Become more financially sustainable.
HRM Role: Introduce workforce efficiency, cut costs of turnover, use living wage as a motivator.
Business Strategy Objective: Build brand image.
HRM Task:
Build culture of customer service, provide quality service on a regular basis.
This is mirror of the most suitable approach of HRM, whereby the HR practices are directly
connected to the business objectives.

Creating, Assessing, and reviewing a Leadership

Strategy (AC 5.3)

Leadership Strategy Development:

Vision and Values: Have a clear values statement (teamwork, service excellence, integrity).
Leadership Training: The departmental heads will be given programmes to promote participative
management.
Succession Planning: Recruit and develop internal talent to become future leaders.
Strategy Leadership Surveillance:
Leadership appraisal ratings.
Trust and satisfaction of management survey among the staff.
Increased turnover reduction was associated with better management behaviour.
Leadership Strategy Evaluation:
Connect leadership performance with level of satisfaction among the members and financial
performance.
Test leadership effectiveness using 360-degree feedback.
Strategy review annually to refine the leadership development initiatives.

Recommendations

Embrace a Strategic HRM Framework:

Leverage the Harvard model to ensure your HR policies are in sync with your organizational
goals.
Revamp the Organizational Structure:
Shift towards a more participative, team-oriented management style.
Adopt Modern HR Systems:
Go digital with reservations, payroll, and HR data management.
Invest in Training:
Prioritize enhancing service quality, leadership skills, and IT proficiency.
Boost Employee Engagement:
Create recognition programs, offer career development opportunities, and improve
communication channels.
Incorporate CSR and Ethics:
Commit to practices like a living wage, diversity, and sustainability.
Focus on Leadership Development:
Foster a culture that values empowerment, innovation, and accountability.

Conclusion:
The European Club-House is at a pivotal moment. With a rich history and a mission rooted in
charity, it’s now grappling with dwindling membership, outdated systems, and a lack of
engagement from its staff. To navigate this challenge, a strategic HR approach is crucial for
modernizing operations, boosting efficiency, and restoring its reputation.
In this report, we’ve laid out a thorough HR strategy that tackles key areas like workforce
planning, recruitment, training, performance, and engagement. We’ve highlighted how HR aligns
with business strategy, underscored the significance of culture and leadership, and provided
metrics to track progress.
If this strategy is put into action successfully, the Club-House won’t just upgrade its facilities; it
will also cultivate a motivated, skilled, and engaged workforce—setting the stage for long-term
sustainability and renewed loyalty from its members.

Harvard Reference List

Books
Armstrong, M. and Taylor, S. (2023) Armstrong’s Handbook of Human Resource Management
Practice. 16th ed. London: Kogan Page.

Boxall, P. and Purcell, J. (2016) Strategy and Human Resource Management. 4th ed. London:
Palgrave Macmillan.

Bratton, J. and Gold, J. (2017) Human Resource Management: Theory and Practice. 6th ed.
London: Palgrave Macmillan.

Dessler, G. (2020) Human Resource Management. 16th ed. Harlow: Pearson.

Schein, E.H. (2017) Organizational Culture and Leadership. 5th ed. Hoboken: Wiley.

Kotter, J.P. (2012) Leading Change. Boston: Harvard Business Review Press.

Mintzberg, H. (2009) Managing. San Francisco: Berrett-Koehler.

Journal Articles:
Barney, J. (1991) ‘Firm resources and sustained competitive advantage’, Journal of Management,
17(1), pp. 99–120.
Guest, D.E. (2017) ‘Human resource management and employee well-being: Towards a new
analytic framework’, Human Resource Management Journal, 27(1), pp. 22–38.

Huselid, M.A. (1995) ‘The impact of human resource management practices on turnover,
productivity, and corporate financial performance’, Academy of Management Journal, 38(3), pp.
635–672.

Purcell, J. (2014) ‘Disengaging from engagement’, Human Resource Management Journal, 24(3),
pp. 241–254.

Ulrich, D. and Dulebohn, J.H. (2015) ‘Are we there yet? What’s next for HR?’, Human Resource
Management Review, 25(3), pp. 188–204.

Reports and Guidelines

Chartered Institute of Personnel and Development (CIPD) (2022) People Profession

2030: A collective view of future trends. London: CIPD.

Chartered Institute of Personnel and Development (CIPD) (2023) Employee

Engagement and Motivation. London: CIPD.

UK Government (2010) Equality Act 2010. London: The Stationery Office.

Frameworks / Models Used

Kaplan, R.S. and Norton, D.P. (1996) The Balanced Scorecard: Translating Strategy
into Action. Boston: Harvard Business School Press.

Harvard Business School (1984) Harvard Model of HRM. Boston: Harvard Business
School.