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Case Study:<br/>The New Training Program<br/><br/><br/>The PC Hotel

competitive strategy is to use superior guest service to differentiate the PC Hotel properties,
and to thereby increase the length of stay and return rate of guests, and thus boost revenues and
profitability. HR Manager Mr. Khan must now formulate functional policies and activities that support this
competitive strategy by eliciting the required employee behaviors and competencies. As he reviewed his
company's training processes, Mr. Khan had reasons to be concerned. For one thing, the PC Hotel relied
almost exclusively on informal on-the-job training. New security guards attended a 1-week program
offered by a law enforcement agency, but all other new hires, from assistant manager to housekeeping
crew, learned the rudiments of their jobs from their colleagues and their supervisors, on the job. Mr. Khan
noted that the drawbacks of this informality were evident when he compared the PC Hotel performance
on various training metrics with those of other hotels and service firms. For example, in terms of number
of hours training per employee per year, number of hours training for new employees, cost per trainee
hour, and percent of payroll spent on training, the PC Hotel was far from the norm when benchmarked
against similar firms. Indeed, as Mr. Khan and the CEO reviewed the measures of the PC Hotel current
training efforts, it was clear that (when compared to similar companies) some changes were in order.
Most other service companies provided at least 40 hours of training per employee per year, while the PC

Hotel offered, on average, no more than 5 or 6 hours. Similar firms offered at least 40 hours of training
per new employee, while the PC Hotel offered, at most, 10. Even the apparently good metrics comparisons
simply masked poor results. For example, whereas most service firms spend about 8% of their payrolls on

training, the PC Hotel spent less than 1%. The problem, of course, was that the PC Hotel training was non-
existent. Given this and the common sense links between (1) employee training and (2) employee

performance, the CEO gave his go-ahead for Khan and his team to design a comprehensive package of
training programs for all PC Hotel employees across the globe.

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