MODULE NUMBER

MM11

MODULE NAME

HUMAN RESOURCE MANAGEMENT

COURSE LEADER

Dr Jochen Menges

AUTHOR:

Milena Milićević

HAND IN DATE

24 April, 2012

word count:

4056

I confirm that this submission is my own unaided work, except as specified below; all sources are fully acknowledged and referenced; the submission does not contain material that has already been used to any substantial extent for a comparable purpose.

Table of contents:

Business Model……………………………………………………………….……….3

Situation Analysis and Creating the Team of the Danube Ethno Oasis…………....…4

Recruiting and Selection……………………………………………………..………..7

Motivated Workers are Best Retained ………………………….…………………....10

Performance Analysis and Compensation Scheme…………………………………..11

Trained and Developed………………………………………………...…………….13

Conclusion and Thinking Long-Term………………………………………………..15

Appendix 1……………………………………………………...……………………16

*******

Appendix 9………………………………………………………...…………………27

Bibliography………………………………………………………...………………..30

2

Human Resource Strategy for a family Start-up in tourism:

Danube Ethno Oasis in Donji Milanovac, Serbia

Business Model

The family start-up company ‘‘Danube Ethno Oasis’’ (DEO) will be located in Donji

Milanovac (Lower Milanovac) as a small-scale ethno village and a DMO (Destination

Management Organization) with enough international expertise and local charm to

provide services such as: accommodation, restaurant, sightseeing, recreational and

extreme sports. Donji Milanovac, a Serbian town of 3000 people, is situated on the

992nd km of the Danube1 and has been offering tourism services in a slightly outdated

manner, i.e. not understanding fully the needs of modern foreign tourists who usually

stay in the Lower Danube Region around 2-3 days (Scientific Research Centre 2007b,

p. 4) and may not necessarily choose a luxurious mass-scale hotel for their

accommodation. Therefore, Danube Ethno Oasis will leverage on this current tourism

pattern, and the access to the Djerdap Lake and the Djerdap National Park, which is

on the UNESCO Tentative List of Sights2 to differentiate itself as a consumers’

choice. The company will develop its initial profitability as an intact destination for

passengers in Danube transit. It will strategically focus its business and human

resource operations on these values: positioning the hospitable face of the Danube

throughout the concept of sustainable tourism, engaging visitors in multifaceted

differentiation experience: home-made healthy food, adrenaline sports or tranquil

sightseeing in the untamed, protected natural resort. These values will be clearly

indicated to employees, visitors and general public on the company’s website, during

recruitment procedures and in interactions with guests so that fit of business and

human resource strategy is ensured.

1 http://www.mojdunav.com/?q=node/1020

2 http://whc.unesco.org/en/tentativelists/1693/

3

Donji Milanovac and the Danube Landscape on Wikipedia 3

Situation Analysis and Creating the Team of the Danube Ethno Oasis

In 2007 The Serbian Ministry of Economic and Regional Development proposed The

Serbia Tourism Strategy and the Master Plan of the Lower Danube Region for

improvements of economic potential and employment opportunities in the region.

(Macura 2010, p. 23) Authors of the Master Plan estimated that the initial initiative of

the Ministry of Tourism to provide trainings and further education for tourism

workforce was a good stepping stone in terms of two major priorities,

‘‘professionalization of human resources and enhancing service culture towards the

global market.’’ (Scientific Research Centre 2007b, p. 185) These principles

facilitated trainings for the skills which the workforce is mostly deficient of and

which should be delivered to the customers in a more consistent and branded manner:

equipping workforce with additional knowledge of foreign languages and soft skills,

improving their customer relations, marketing and budgeting skills (depending on the

relevance for their job), and training workforce for new sports.

The company’s objectives and Mission statement will shape its strategy and guide its

motivated, efficient team: ‘‘Danube Ethno Oasis (DEO) is a sustainable ethno resort

which provides unique and priceworthy stay and sightseeing. In this natural oasis you

3 http://en.wikipedia.org/wiki/File:Donji_Milanovac.JPG

4

will experience relaxed spells of time, extreme sports and Serbian authentic food as

our DEO team can greet you in more than 5 languages. You will travel with us to

‘‘the oldest known European human settlement Lepenski vir’’ (Misic 1980) that

celebrated 8000 birthdays; you will sail the water roads of the Roman Emperors in the

Djerdap, the largest natural park in Serbia 4 or enjoy unspoiled wildlife of the Djerdap

Gorge within our modern times. Thus, our DEO team becomes the indispensable

DEO (means: ‘‘part’’ in Serbian) of your enchanting experience.’’ This consistent

and appealing imagery will better position the Lower Danube destination in the minds

of international and domestic customers, and also establish our start-up company as

an attractive job-provider for the educated and cosmopolitan workforce in the region

that needs to boost investments and fully harness its tourism potential.

Ten employees of the DEO family business will integrate the Danube

Hosts/Hostesses role within their specific job requirements, which means they will

help out guests, serve food for them during meals, engage in their conversations,

perform short theatre or recital pieces according to the occasions and guests’ affinity.

Equipping all employees with the roles of the Danube Hosts/Hostesses will help

company create distinctive identity while promoting employees’ service (to customers

and external partners) and linking them to the Danube region, which already appeals

to the citizens of 10 countries and their guests. In pursuing differentiation and internal

labour orientation the company will turn our Danube Hosts into Committed Experts.

On the basis of competency modeling the following job specifications are required in

recruitment stage: (See Appendix 1 for Ad description)

1) Chief Executive and Human Resource Officer, Danube Host, general enquiries

and booking: Author of the essay

2) Chief Marketing, Merchandise and Finance Officer, Danube Host, general

enquiries and booking: Author’s brother, college degree in Economics, motivator,

shares the start-up vision, risk-taker with business intuition and perseverance

3) Website and IT System Developer: has college degree in Information Systems/

Web Design Development and references that show experience in designing websites

4 http://www.viminacium.org.rs/IRS/index.html?language=english

5

for tourism associations and developing systems for financial management. Because

of the specific expertise required, the web designer will be hired externally.

Still, our 2-person team will build a relationship with the designer and create with

other employees the strategically integrated website sections about customized

booking, special offers, Danube gastronomy, nature, multimedia (to engage

customers) and additional recruitment (when business expansion arises). Employees

will also use intranet documents and customer service manual to maintain service

standards and have the blueprint of intangible company resources (values, brand, code

of conduct).

4-6) 3 Tour Guides to be Danube Hosts/Hostesses will be in charge of cultural

outings and event organisation at the Oasis venue and with external partners. One

Tour Guide, Danube Host/Hostess (who shows greatest managerial potential) will

be gradually involved in running of the accommodation, answering enquiries with

management and conceptualizing the long-term company strategy with other team

members.

7-8) 2 Welfare Officers to be Danube Hosts/Hostesses will promote healthy

lifestyle, sports; assist with medical help if needed and utilize networks with local

partners to take guests to the outsourced sport services should they have special

wishes. In the long-run those employees will be promoted in developing of the

regional Danube Adventure centre and strategy for customers’ welfare.

9-11) 3 Chefs to be Danube Hosts/Hostesses will be in charge of restaurant catering,

ambiance and serving guests on the grounds of their college education and mentorship

in cooking and preferably international experience. Long-term, these employees will

create and implement gastronomic aspects of company’s strategy as they start

organizing Danube cooking workshops.

Nickson warns us that in the reality of hospitality management the ‘‘front-line staff

often has the lowest status in the organization, and is being the least trained, and the

poorest paid within the company’’ (2007, p.5). Our DEO company will need to tackle

this and other challenges in tourism industry such as decreased motivation, high

6

turnover, lack of adequate payment and rewards, limited opportunities for

development in order to provide differentiation service and become profitable. The

DEO’s competitive advantage will therefore stem from the realistic messaging in

recruitment stage, strong internal culture of hospitality, family business,

empowerment and not servility, as well as working with long-term developed workers

who can be promoted from within rather than with part-time, seasonal workforce.

Management and tour guides will attract customers via online channels (website, blog

writing, promotions), collaborate with relevant local and state authorities, partner

cities and tourism associations within the Danube region and internationally. The

entire team will be encouraged to suggest improvements for the marketing strategy,

customer service and logistics.

Vertical strategic alignment will be ensured ‘‘between the Committed Expert HR

strategy and business strategy of differentiation throughout innovation’’ when the

workforce creates new services. (Stewart and Brown 2009, p. 528) However,

horizontal alignment between individual practices is important so that company

recruits the team players who can project consistent, positive guests’ experience, and

who can be subsequently assessed in performance appraisals on the basis of fair

competition and beneficial cooperation. Moreover, since service is intangible and

variable, and start-ups can perform chaotically, what will enable effective

implementation of differentiation strategy and organisation’s survival in harsh

currents is workers’ reciprocal interdependence and at the same time autonomy and

rigour. Only with such motivational job design and consistency customers and

evaluators can say, ‘‘I know what good service is when I see it.’’

Recruiting and Selection

After defining job specifications for the candidates in DEO team, we should formulate

selection criteria out of limited number of applications. When recruiting for a start-up,

it is crucial to understand that different types of people are motivated to work there

than for an established multi-level corporation− start-up aspirants want to feel

involved in an entrepreneurial decision making and company development from the

7

onset; they usually have general knowledge rather than specific and should be flexible

to finish urgent and diverse tasks instead of being constrained by bureaucracy and

waiting on colleagues whose profiles suit more the task description. Therefore,

although our company will strategically attract Committed Experts to utilize their

specific skills, in the initial environment this strategy may shift and applicants will be

advised and expected to finish general tasks beyond their duties.

DEO management will use targeted skill scope strategy for more efficient and cost-

effective choice of candidates. The company will recruit on campus and present in

case study talks (even before the website is finished) the start-up’s narrative, its

exciting mission, potential challenges in order to spark candidates’ entrepreneurial

engagement. Also, college professors (of tourism, hospitality management,

marketing) will be encouraged to recommend the most adequate students for the

company to sift out. Managers can publish the intentionally creative, competitive and

entrepreneurial job postings on University Career Service websites, and throughout

student and regional web media since the company is outside of the major

employment city. These criteria should be included in job postings, HR strategy and

interaction with candidates, ‘‘job purpose, tasks involved, the duties and

responsibilities, the performance of objectives, the reporting relationships, the

remuneration package and working hours’’. (Heery and Noon in Nickson 2007, p. 91)

Once the adequate number of candidates submitted their resumes, cover letters in

English and work portfolios with references (pictures of dishes they created,

certificates from sport competitions or additional professional development), DEO

management should proceed with multiple hurdles approach and start short-listing

around 10 candidates for each position to be tested at the Ethno Village premises.

Iverson outlines criteria which can help recruiters to select most adequate candidates

during screening: ‘‘resume and application are visually meticulous, there are no

illogical breaks in work history; college major, previous skills and career objective are

appropriate for the job, grade point average is acceptable.’’ (2001, p 110)

In authentic working environment candidates will undertake a structured 30-minute

individual, behavioural interview (in the morning) and a group case study (in the

afternoon) in English or Serbian, given the appropriateness and candidates’ language

8

fitness. (See Appendix 2a for Behavioural Interview Questions and Appendix 2b for

Interview Checklist) The Five Factor personality test or other time-consuming pre-

employment tests will not be used because the data collected from structured

interviews and behavioural simulations is more relevant to performance in tourism.

Those applying for the chef’s position will be requested to conceive in a 3-4-person

team the authentic Danube menu, which they will prepare and serve to customers.

Tour guides and welfare officers will be given the customers’ profiles and the

overview of company’s values so that they can come up with innovative solutions

how to attract tourists first online and then in their programmes. (See Appendix 3 for

Customer Profiles) During the 20-minute brainstorming before 10-minute

presentations (or somewhat longer for chefs) teams will be receiving the suddenly

changed task input, ‘‘How would you respond now that the customer complains or

needs a change?’’ These activities will test applicants’ courteousness, adaptability,

initiative and prepare them to perceive themselves as interconnected to other teams

once they are hired.

To reach consensus and make a final selection, our two-person recruitment team can

use Fraser’s five-fold person specification model and give diverse weights for these

criteria: (Boella 1992, p. 75, Nickson 2007, p. 92)

1 Impact on others are similar to Rodger’s physical make-up: appearance, manners,

speech and the concept (Nickson et al in Nickson 2007, p. 93) of ‘looking good’ and

‘sounding right’. Our company will establish a standard against beauty bias as we will

hire people of exceptional abilities and charisma who can perform the job, but their

appearance will be of secondary importance.

2 Qualifications and experience correspond to Rodger’s dimension of attainments,

educational/professional qualifications and relevant work experience. Previous

achievements correlate with future performance, which is especially important when

the performance is defined by ‘‘output measures such as production or amount of

sales.’’ (Stewart and Brown 2009, p. 223)

3 Innate abilities are similar to Rodger’s general intelligence and indicated problem-

solving skills, ‘‘thinking on one’s feet’’, along with responsiveness and courtesy

which are all highly important in service industry and start-ups.

9

4 Motivation describes a person’s determination to succeed in the workplace, which

becomes especially important when leveraging on non-monetary rewards to

incentivize employees and the start-up is going through turbulent times.

5 Adjustment represents personality factors such as ability to cope with change, stress

or high-maintenance customers and stakeholders.

Motivated Workers are Best Retained

Upon employees’ signing up of contract and arranging details for a probation 3-month

period, they will be socialized at the orientation meeting. (See Appendix 4 for

Orientation Checklist and Appendix 5 for Contract Parameters) At this event founders

will inform employees about their most important commitment factors such as: work

requirements and pace aligned with employees’ skills, provided benefits and

development opportunities, ways of satisfying customer needs, care for work-personal

life balance (Management Review, 1999, p. 9 in Iverson 2001, p.165), as well as

about established performance measures and specific grievance and disciplinary

procedures, which hopefully should not be conducted. Employees will also get the

guidance about these aspects via interaction, intranet, and the customer service

manual. (See Appendix 6 for the Customer Service Manual) They will be requested to

sign the form which confirms that they have read the material and will work in

accordance with the aforementioned principles.

In order to retain high performers and facilitate growth, the management should

match employees’ diverse goals with incentives they seek and align them with

company’s long-term strategy. On the basis of McClelland’s Acquired Needs Theory

we can differentiate among: need for achievement, power and affiliation. Those

wanting promotion will be driven by the need for power and should be given

opportunity to influence others as they ‘‘improve customer service, train new

employees or act as shift leaders.’’ (Iverson 2001, p. 160) Those motivated by

achievement will want to learn continually in demanding tasks and can be responsible

‘‘for creation of new menu items, training manuals, customer newsletter, assessment

of company technological needs.’’ Employees who highly need affiliation and strong

10

relationships with customers and colleagues should be encouraged to use their

communication skills and affection in planning special events and asking customers

about improvement of service.

Management should recognize employees for the quality work and encourage the

culture of praise and sincere thanking. Employees may create newsletters and press

clipping of Danube Hosts/Hostesses for group and individual achievements which

will empower employees in representing company. In creating publicity for major

highlights, local media and other relevant organisations can be contacted. Employees

can also serve on the meetings when top managers are not available and should be

consulted for innovations: such as changes in menu, uniforms or new service. (Iverson

2001, p. 166-7) To encourage intrinsic motivation the reward scheme does not have to

be only monetary (such as annual and spot-bonuses), but also praise or special

incentives: event tickets, beauty vouchers or Christmas gifts.

Performance Analysis and Compensation Scheme

Effective management of employee performance reduces turnover, increases job

satisfaction and service quality. Three performance dimensions will be important in

our evaluation: task, citizenship and counterproductive performance. (Stewart and

Brown 2009, p. 289) In the start-up setting employees should score high on

procedural knowledge and interpersonal citizenship behaviour, whereas

organizational citizenship behaviour will speed up efficient operating of the business

unit if an employee notifies that a task must be delegated due to unforeseen

circumstances. Counterproductive performance will be prevented since the recruiting

stage and later fostered by establishing a strong culture of loyalty and disciplining

workers if needed. (See Appendix 5 for Discipline procedures in the contract)

The company will base its performance system on customers’ input because the

‘‘customer is always involved in service process and the quality of service can be

checked only after its delivery.’’ (Kandampully J., et. al. 2001, p.117) Demand

variability will influence both the ethno village operations and evaluation of

performance management. April-September is the most popular time for Danube

11

discovery via cruising and other transports, whereas short stays outside June-August

vacation period will usually happen in the weekends. During those periods and in

check out times (typically morning) the anonymous customer feedback can be

obtained in paper version or on the screen for improving satisfaction and further

market segmentation. (See Appendix 7b) Our questionnaire, available in Serbian and

English, will reflect ‘‘our organization’s culture, industry and location’’, provide

space for giving narrative comments, minimize ability for the response ‘not enough

info’ and scale how important each service segment or skill are for the customer.’’

(Bentley 2012) The collected customer satisfaction data provided via purchased

computer-based tool will guide management to decide in which areas to improve

service and how to set more specific goals. New and returning customers will be

surveyed again after around six months on how those specific goals are met, whereas

employees will receive partial or entire bonus depending on to which extent

objectives are met.

Because start-up environment requires a lot of employees’ initiative and autonomy

and managers cannot be as often present to track down events, employees will be

encouraged to write down critical incidents for both achievements and areas that need

improvement. Employees can also report to supervisors ‘‘their list of specific goals,

career map or career development plan which defines what behaviours and self-paced

learning will lead their current position to the aspiring one’’. (Iverson 2001, p. 171)

For increased trust and greater involvement of employees, managers’ performance

should be also evaluated every 6 months via dimensions of BARS framework. (See

Appendix 7a) for dimensions of performance evaluation of workers and management

and 7b) proposal of customer satisfaction feedback)

In compensating employees DEO will have lead-the-market strategy in order to retain

best performers in the industry with substantial labour costs. Gain sharing and

individual bonuses would be a reward for improved company’s profitability: e.g.

increasing number of customers by 20% in non-peak months, serving above 50 meals

per day, decreasing level of spent energy or customers’ complaints. Pay-for-

performance scheme will be avoided because it may hamper team spirit, indispensable

for smooth customer service and because required ROI for decent wage will not be

realistic for demands of the industry, especially in the initial stage.

12

Employees who will work at DEO and in a sustainable tourism town will be also

motivated by other factors than money. Company will listen to the needs of workers

for work-life balance and gather them in nature for team buildings, exercising, bicycle

tours, greening the workplace; it will reward successful quitting of smoking;

encourage healthy staff-made meals, and provide benefits package depending on

workers’ motivation and interests. When employees stay longer than a year in a

company, they will start to get payments for their pension fund and medical

insurance.

In terms of culturally sensitive tipping which Nickson defines as ‘‘internationally

recognizable’’ (2007, p. 206) our company will neither restrain nor encourage guests

for this policy as service will be included in the bill, but employees will be obliged to

utmost collegiate behaviour on this note, as well.

Trained and Developed

Training and development will be another way to create satisfied workforce and

customers when internal mentoring or external trainings happen and social distance

between workers gets erased. Management should be sensitized to everyday

coachable moments in situations when employees ‘‘demonstrate a new skill or

interest (which can stimulate them to get involved in additional responsibilities), when

they ask about earlier events, new organization practices or development

opportunities, when their dissatisfaction or questions should be solved and followed

up.’’ (Iverson 2001, p. 186) This ‘‘regular coaching’’ is also beneficial because it

contextualizes employees’ performance before providing general, more extensive

feedback based on standardized criteria in performance appraisals. Depending on the

season and job dynamics, every month employees will present to their colleagues 15-

minute findings about the job and relevant skills in order to encourage peer mentoring

and unified experience of common mission and improved guest satisfaction. It will be

important to codify our company’s competitive advantage i.e. exquisite service

aspects of Danube Hosts/Hostesses in order to systematically pass business and HR

strategy to new workforce throughout expansion.

13

Concerning official training programmes, DEO employees should especially work on

their customer care skills, entrepreneurship, operation management (for restaurant and

accommodation) and marketing. According to UNWTO et. al. report from 2011, local

government with tourism stakeholders in Lower Danube will set up The Service

Centre for Human Resources Development Programme to provide specific workshops

which will emphasize how diverse Hosts can meet guests’ expectations and which

important improvements this destination needs. (See Appendix 8 for costs of training

and the relevant workshops marked with a line) This programme, organised with local

and international stakeholders, should last several days, whereas its usefulness and

instructors should be evaluated in a questionnaire feedback. Nickson suggests that

(2007, p. 164) some of the best ways to implement learned is via ‘‘structured

exercises and case studies’’ which is a better option than examining participants.’’

Budget resources will be often allocated to development so that our employees get

training in other Danube countries and internationally on tendencies in sustainable

tourism, their field, soft skills, managerial potential and growth of small businesses.

Networking opportunities, knowledge transfer and challenges will also intrinsically

motivate our workers during domestic and regional competitions (in gastronomy,

extreme sports, tour guiding) and when they present on managers’ behalf at tourism

fairs and conferences.

Conclusion and Thinking Long-Term

In conceptualizing long-term business and human resources strategy it is important to

recall that our company will go through several stages of its life cycle. The greatest

priorities in the DEO’s entrepreneurial stage will be hiring adequate candidates whose

performance will be appropriately measured and paid for and that the organization

manages to survive and grow due to understanding of market forces. (Stewart and

Brown 2009, p. 7) In the communal stage DEO can focus on innovation in services

such as business expansion of entertainment and sport facilities, as well as providing

gastronomy and relaxation experience along the differentiation dimension. DEO will

work on enhancing employees’ sense of belonging as it facilitates the strategic fit

14

among newly hired employees, additional workforce in season times, and the

organization’s mission. Then, in the formalization stage the company should increase

its efficiency and deal with possible ‘‘decline in motivation as hiring, training and

compensation become formalized.’’ (Stewart and Brown 2009, p. 7) Elaboration stage

will require renewing DEO practices to the accelerating changing environment in

tourism sector: more frequent use of digital media and shared content when choosing

travel destination, search for more sustainable resorts, traveling larger distances and

staying shorter time spans in one transit place. In the long-run with enough

profitability our employees will be promoted to design new facilities

and improve services. (See Appendix 9 for Value Chain and Employees’

Involvement in the Long-term Strategy)

Iverson estimates that committed workers who see alignment between the company’s

and their objectives ‘‘do their job as if they owned the company’’, which becomes a

significant source of competitive advantage in times of high turnover, rivalry among

companies and general shortage of qualified workers. (2001, p. 165) Our family

company will pursue this path and closely cooperate with relevant local and

international stakeholders personally and online so that the provided infrastructure

offers unified experience of hospitality and good organization from the moment the

guests arrive in the Danube region and along the all dimensions of their value chain.

Such integrated approach will help our company to become more profitable and to

expand from a hospitable oasis and a committed start-up into a sustainable, relaxing

resort with par excellence service.

15

Appendix 1: Ad description in English to be posted in student and local internet media and via University Career Service portal

Fancy working in tourism? You prefer natural environment to the concrete jungle? You want to be involved in a start-up’s growth, not work for a big corporation? You think the Danube and Eastern Serbia are hidden gems in the customers’ mind?

If you are saying ‘‘Yes!’’ now, nodding and smiling, apply for the job in our…your…tourism company Danube Ethno Oasis (DEO) in Donji Milanovac.

We look for these profiles:

3 Tour-guides to be Danube Hosts/Hostesses for cultural outings and event organisation at the Oasis venue and with external partners:-University graduates (preferably The Faculty of Tourism and Hospitality Management, Arts, History)-Fluent in English and/or other foreign languages-Experience in communicating internationally and with clients (volunteered, studied abroad)-Team-oriented, flexible, nature and culture lovers, motivated to work in a sustainable town -Playing an instrument, acting in the drama club, having artistic flair or other hobbies are advantages

2 Welfare Officers to be Danube Host/Hostesses:-University graduates (The Faculty of Sports Education or Medicine)-Promote healthy lifestyle and sports-Willing to assist with medical help if needed -Fluent in English and/or other foreign languages-Patient, approachable and willing to organize gliding, archery, bicycle and walking tours, extreme sports and rafting in our team or with other local sport associations

3 Chefs to be Danube Hosts/Hostesses: -College education in cooking and international experience, -Received mentorship in prestigious restaurants -Flexible, creative, good at multitasking-Communicating in English and/or other foreign languages is an asset-Willing to organize Danube cooking workshops and to get engaged in serving guests.

We offer the following benefits:-Competitive Remuneration Package: Salary above the industry average for 6-day work week, including 1-2 late evenings.-Standard health insurance, pension schemes and 28 days of vacation-Group and individual bonuses-Training in your priority field-Exposure to international clients and diverse partners-Ability to make contribution in company’s growth-Fitness facilities and special gifts

Show us your rigour, team orientation and creativity in your application. Submit a two-page resume in English, portfolio of your work, relevant references in Serbian or English and a one-page cover letter in English indicating why you are the right candidate for us and why we are the right company for you. In your cover letter structure your answer around these questions: 1 What do you expect from working in the Danube Ethno Oasis?2 How would you contribute to the company’s growth, increasing number of customers and their satisfaction in the role you apply for? 3 Describe how you overcame one challenge or failure in your life so far and how what you learned from it can help you in professional and personal life?4 What is the tourism in the Lower Danube region missing and how would you improve the situation?

16

N.B. Although this ad will encourage people of diverse ages to apply, our

management team believes that in reality the final recruited workforce will be of more

homogeneous age and marital status (recent graduates and unmarried) because job is

performed in a small town and a nature-loving setting which may require relocation.

Appendix 2:

A) Sample of Behavioural Interview Questions: adapted from Iverson 2001, p. 118

-Please describe a situation when you worked with very little supervision. What did

you learn from it and how did you feel?

-Give an example of a time when you performed more than was required of you to get

something done.

-Describe how you built up motivation within a team.

-How did you achieve your earlier goals and on the basis of which parameters you

knew that the goal was accomplished?

-Tell me about your previous relationship with your supervisor (at job or university).

-Describe the result after you took the risk for team’s decision.

- How did you improve operations in your last job and what was the outcome?

B) Tourism start-ups –Interview Checklist

Our structured and behavioural interview should contain both open-ended and probing

questions that aim at specific answers. This checklist adapted from Iverson (2001, p.

121), Boella (1992, p. 85-86) and the website Business Tools helps us stay structured

during the interview and rate the candidates on the scale 1-10. Criteria in the checklist

are based upon job specifications and economic rationale for start-ups in tourism, and

upon completing separate profiles candidates can be compared.

17

Interview Checklist Date:

Candidate Name: Interviewed by:

Rank on the scale 1-10, indicate yes/no, write details where appropriate Candidate 1

1. Meets educational criteria

Type of education: Achievements:

2. Meets experience criteria

Type of experience: Achievements:

Personality:

3. Professionalism and high integrity

4. Courteous and efficient service skills

5. Persuasive verbal communication and good manners

6. Motivated for improvement and has long-term goal orientation

7. Enthusiastic and entrepreneurial

8. Able to work in the team effectively and enthusiastically

9. Able to fit into company’s culture

10. Tolerant to risk and perseverant

Level of additional skills:

11. Knows foreign languages

12. Computer literate

13. Interesting hobbies

Present circumstances:

14. His/her terms of employment are mutually acceptable with ours

e.g. pay hours

holidays benefits (yes/no)

15. Currently unemployed (yes/no)

16. Needs notice period (yes/no)

17. Has clean driving licence (if required)

18. Has good health record (yes/no)

19. Other appointments pending

20. Reasons for wanting this position

21. Recommended for final round (yes/no)

22. Gave permission for contacting referees (yes/no)

18

Appendix 3: Customer Profiles for Recruitment Case Study and

Company Strategy

In providing tailor-made service our employees will need to understand the lifestyle

profile of customers visiting the region, which Spanish MDG Achievement Fund

systematically explained. (2011, p. 81)

19

Appendix 4: Orientation checklist for new employees in the industry

This orientation checklist adapted from Boella (1992, p. 98-99) will help management

in communicating succinctly and memorably human resource and business strategy at

the orientation meeting.

20

Appendix 5 Parameters in the Employment Contract

Adapted from: Nickson, D. 2007, p. 272. and Issuing employment contracts:

http://www.nowletsgetstarted.co.uk/checklist_for_employing_staff.aspx

After selecting candidates and doing background-check the contract should be

signed with the following parameters:

The Danube Ethno Oasis, an ethno village and Destination Management

Organization, recruited ……………………………………… (the name of the

employee) on ……………………………. (the date their employment started).

Gross salary per year above the industry average in the Serbian region is 8000 €

according to the study of UNWTO, et. al. (2011, p. 46.)

Salary will be paid monthly in two installments (on the 1 st and 15th day of the

month) and individual/group bonuses and incentives will be provided when

appropriate and on the basis of criteria agreed upon.

When profitability increases according to the set target, employees will share

profit and obtain group and individual incentives.

Working week will be limited to 49 hours a week including the weekends

and certain people such as welfare officers may work two shifts a day. In each 7-day

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period, one free day will be guaranteed to workers and 11-hour rest period between

two days. However, in the working day longer than 6 hours, workers will be entitled

to a rest break of 20 minutes.

Because of the start-ups demanding nature, working hours will be prone to

change and employees will be encouraged to flexibly and regularly fix the hours

with the management. Here are the provisional working hours:

-Working hours for chefs (including serving meals and eating with the guests/ or at

the same premises when appropriate; work with managers on establishing cooking

workshops, gastronomy pages on the website): 7-14h, 12-19h, 18-01h

-Working hours for tour guides (including visits to cultural monuments, serving meals

and eating with the guests/ or at the same premises; administrative work with

managers on website, advertising, strategy): 10-16h, 17-24h

-Working hours for welfare officers (depending on the activity and commuting, along

with work with managers on strategy and advertising, serving meals and eating with

the guests/ or at the same premises): 7-11h, 14-18h, 20-24h

28 days will be paid holiday entitlement for the workers and they will have

the standard amount of the days for sick leave. Medical insurance and pension

scheme will be provided after employee’s first year with the company. If employees

wish to terminate their employment, they will have 6 months of notice period.

If need arises following disciplinary and grievance procedures will be

administered: verbal warning, couching and counseling, written warning. (Boella,

1992 p. 99) N.B. Concerning disciplinary measures, most companies terminate the

contract if three written warning notices are issued within a year-suspension-

termination. (Iverson 2001, p. 239-241)

Appendix 6

The following aspects will be included in our Customer Service Manual and they

will be guiding dimensions for assessing employees’ performance:

Adapted from:

http://www.allbusiness.com/company-activities-management/operations-

customer/10207159-1.html

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Overall customer relations objectives and standards

How to talk to customers (Some of the suggestions will be ‘‘Greet our

customers with a smile and: Welcome to the Danube Ethno Oasis! Please have

a look at the menus. […] Use the guest’s name at least two times during

check-in.’’ (Iverson 2001, p. 185)

How to present materials to customers and colleagues (from handouts and

fliers to menus)

How to answer product/service/business questions

How to proceed if you cannot answer a question

Where to locate useful information for customers

How to inform customers about changes to the facility, products, or services

How to increase selling of services

How to deal with customer complaints or comments

How to help customers with special needs or with disabilities

How to gather and evaluate customer feedback

How to encourage return of customers (immediately after their departure and

while keeping in touch)

How to advertise company’s service through formal channels (traditional

media, internet) and informal channels (word of mouth)

How to improve company’s environmental responsibility

How to cooperate with local community, external partners and administrative

stakeholders

How to promote innovation and creativity in the company

How to show initiative in developing one’s own and team members’ potential

Appendix 7

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A) What variables to measure when assessing performance

According to the licensed producer of 360-degree Performance Feedback and Boella’s

proposal (1992, p. 105) employees can be rated on Behaviorally Anchored Rating

Scale in this format. Likert 5-point scale will be adapted for the following dimensions

and results will be aggregated. (Bentley T. 2012, text from the website video) In the

initial stage customers will evaluate employees and service, whereas employees will

self-monitor their performance. Those findings, plans for improvement and

supervisor’s feedback with relevant comments and these 7 dimensions following

below will be combined to provide complete performance appraisal, rather than using

360 degree feedback.

To encourage workers’ initiative, management should be also evaluated in open

communication around these dimensions, ‘‘communication skills, handling guest

complaints and promoting guest relations, developing marketing strategies and

monitoring sales programmes, motivating and modifying employee behaviour,

implementing policy, making decisions, and delegating responsibilities, monitoring,

operations and maintaining product quality and handling personnel responsibilities.’’

(Nickson 2007, p. 180)

The Supervisor’s Appraisal Form

Personal details

Name Length of service

Job position

not sure (n/a)/ strongly disagree/ disagree/ neutral/ agree/ strongly agree

1Business skills and experience:

formulates strategic goals and objectives,

proactive (responds to opportunities, solves problems)

2 Professional and technical skills:

ethically meets job requirements

anticipates problems and proposes solutions

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3 Departmental requirements:

successfully works in his team,

manages well resources (given funds, people, equipment),

adaptable to change,

has entrepreneurial attitude to meeting customers’ needs

4 Teamwork and leadership:

helps people accomplish goals together as a high-

performing team,

fair in assigning challenging tasks to department members,

sensitive to gender/cultural differences

5 Interpersonal credibility:

shows empathy to co-workers,

patient with those who do not understand,

positive under difficult circumstances,

keeps his/her commitments

6 Communication and negotiation skills:

effective at communicating plans, information,

perspective in spoken/written form,

good at adjusting his/her style to different needs,

effectively negotiates disputes with others

7Development potential:

intellectually capable of performing well in the job,

shows genuine appreciation for honest feedback,

willing to learn even from mistakes,

shows evidence of growth and development as an expert

Training needs in present job:

General salary and improvement recommendation:

Employee’s comments:

B) Customer Satisfaction Feedback

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The guiding feedback from Boella (1992, p.251) can provisionally be adapted and

shortened on certain dimensions to encourage improvements both in service and

human resources, with space left for customer comments:

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Appendix 8: Training costs and plan for workshops in Service

Centres for Human Resources Development Programme

This content is adapted from UNWTO, Spanish MDG Achievement Fund, Tourism&

Leisure Advisory Services (2011), p. 64. The relevant column lists cost of

Workshops if training programmes are held in the regional, newly built Service

Centre. We will prefer this external training option, subsidized by our local

government, rather than the extensive training scheme within our organisation as we

lack resources for such thorough endeavour at the initial stage and this local initiative

will provide inputs from wider contacts and potential business partners.

In this case the strategy proposes that expenses be covered by the Service Centre and

the workshops marked with a line can be relevant for our business model:

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Appendix 9- Value Chain and Employees’ involvement in the Long-

term Strategy

Spanish MDG Achievement Fund (2011, p. 81) estimated that these values are

significant when analyzing development in rural tourism sector. Our human resources

strategy will be aligned with these elements as we recruit, train, evaluate and

compensate our Danube Hosts/Hostesses so that they provide exquisite experience

along these dimensions of the value chain in teams or with our external partners.

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According to Scientific Research Centre of The Faculty of Economics, University of

Belgrade. (2007 b) in 2020 short vacations will encapsulate 24% of tourism profit,

whereas 16% will belong to sightseeing vacations. As our company

grows, our employees will be given promotion opportunity to design

new facilities and service improvements: e.g. Adventure Centre by

Welfare Officers, Danube Bicycle and Historic Tours by the entire

team and Tour Guides, Danube Gastronomic House by Chefs. The

projection of costs for some of the facilities is given in this excerpt

from Volume IV: Implementation Plan (2011, p.55) which will help us in thinking

strategically together with our employees, our greatest brand, and stakeholders in our

community.

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УКУПНО НОЋЕЊА 179.027 100% 494.155 100% 984.150 10

30

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