Shangri-La Case Study

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1.0 INTRODUCTION: SHANGRI-LA HOTELS & RESORTS [pic] The hospitality industry constitutes an economic sector with the fastest growth worldwide. At present, the industry continues to receive recognition as a profitable and progressive industry. The hospitality industry offers diverse opportunities for employees and varied services and features to customers. This means that overall industry actual and potential provisions are unlimited, which accounts for continuous shifts or adjustments contributing to industry viability. Diversity in employment and service offerings of the international hospitality industry has resulted to the higher number of people employed in the hospitality industry more than in manufacturing firms.…show more content…
The culture also encouraged employees to take responsibility for customers’ satisfaction. Shangri-La Care Shangri-La Philosophy was to develop local talent to world class expectation. The company launched its culture training program. Care Module 1: Shangri-La Hospitality from caring people. Care Module 2: Delighting Customer Care Module 3: Recover to Gain Loyalty Care Module 4: Take Ownership Compensation System The three-tier compensation structure was designed to support organizational goals at various levels. At the first level, which included hotel general managers and division heads, compensation included a salary and a bonus. The bonus was tied to financial results (i.e., gross operating profit and gross operating revenue attainment) to help hotels reach goals. Compensation for the second tier, which included level two and three employees, was linked to financial results and, more specifically, to customer satisfaction and customer loyalty scores, which were key indicators of how well Shangri-La executed its strategy. In the third tier, which included level four and five employees, there was a common bonus pool that linked compensation not to individual performance, but to overall property performance. Career Path The company’s career path was designed to
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