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Improving Performance at the Hotel Paris:
The New Employee Testing Program The Hotel Paris's competitive strategy is "To use superior
guest service to differentiate the Hotel Paris properties, and to thereby increase the length of
stay and return rate of guests. and thus boost revenues and profitability.HR manaser Lisa Cruz
must now formulate functional policies and activities that support this competitive strategy and
boost performance by cliciting the required employee behaviors and competencies.
As she considered what to do next, Lisa Cruz, the Hotel Paris's HR director, knew that
employee selection had to play a role. The Hotel Paris currently had an informal screening
process in which local hotel managers obtained application forms, interviewed applicants, and
checked their references However, a pilot project using an employment test for service people
at the Chicago hotel had produced startling results Lisa found consistent, significant
relationships between test performance and a range of employee competencies and behaviors
such as speed of check-in/out, employee turnover. and percentage of calls answered with the
required greeting She knew that such employee capabilities and behaviors translated into the
improved guest service performance the Hotel Paris needed to execute its strategy. She
therefore had to decide what selection procedures would be best.