□ Based in central London the European Club was founded in 1900. The club is a non-profit
making charity whose good works for the last 100+ years include offering scholarships for
gifted children from poorer countries the opportunities to study in the UK. The Charity is
governed by a Board of Trustees who also form part of the Board of Directors. The CEO sits
on the Board of Directors whilst the General Manager and Club Secretary report into the
CEO. The vision and mission statement is represented as “High quality hospitality at
affordable prices.” A statement of values has been an agenda item for almost a year but has
not been actioned.
□ Revenue for the charity is derived from the operation of the central London clubhouse
(situated in a fashionable street in Mayfair London W1) containing a very ‘old fashioned’
and largely unused waiter service cocktail bar, The Fox and Hound and 50 seat restaurant,
The Dining Rooms, 4 function rooms (no in-built meeting room equipment) and a number
of bedrooms (50) which it lets to club members for a highly subsidised amount of just £75
per night. Many of these rooms have not been refurbished in quite a while.
□ The building itself has a certain faded grandeur but is in need of some much needed
planned and reactive renovation and maintenance to furniture, fixtures and fittings. Some
of the systems in the Club, including reservations and front office, are still on Excel
spreadsheet functions. A manual process is used for creating reservations for the
bedrooms, restaurant and bar and function rooms. There is however an online payment
system used but there are three separate systems, one for each department. Wifi is
available throughout the Club.
□ Many of the staff have been there for many years and the way things operate have not
changed much for a long time. Whilst familiar and comfortable with the current ways of
doing things, the staff often moan about the amount of time it takes and the inefficiency of
the systems in place. There is a very defined hierarchy and staffing structure in the
departments. The organisational chart below details the restaurant, bar and event
management departments.
□ Staff are not encouraged to make decisions without reference to the head of
department nor are they encouraged to put forward new ideas for enhancing or
improving practice. Any changes to practice are often from the top down and staff
opinions are rarely sought.
□ Morale, as measured by a small yearly staff survey, appears low, and many of the
younger staff leave after just a couple of months citing lack of opportunities and poor
training as a cause. The survey also shows that staff are not happy with their manager
and feel that they do not get praised or rewarded when they do a good job.
□ The previous CEO had been with the charity for some 30 years and very much left the
management of the club to the General Manager, who also retires later this year. The
new CEO of the charity believes that there is a lot more that might be achieved, and
good works undertaken, if the operation itself makes more money to invest into the
charitable works, and she firmly believes that the organisation is underperforming and is
□ Membership of the club has been falling steadily over the past five years and now stands
some 50% of its original membership. A recent member survey shows significant
complaints about the conditions of the facilities, especially the restaurant and bar which
the members use to entertain as well as the drop-in customer service as well as the
general lack of organisation.
□ The CEO has approached you and wants to employ your HR consultancy services to
address the strategic HR issues around a modernisation plan for the restaurant and bar
facilities of the club. The modernisation and renovation programme will includethe
□ The refurbishment of The Fox and Hound Bar, the Dining Room and the function rooms
□ Training and development of all staff on the new processes connected to the Bar, Dining
room and function rooms.
□ The refurbishment has been given to an architectural firm that will employ
its contactors and manage all the building work. They have promised to
work to the project deadlines. Naturally this will mean the members of the
club paying more for the services; however, this will bring the charges in
line with similar institutions and facilities. The CEOs biggest concern is how
to undertake this project with the minimum of disruption to both members
and staff. It is not an option to shut the club down completely during the
project. Business as usual, as much as possible, must be maintained.

□ Scenario: The CEO has asked you to prepare a 15-minute PowerPoint
presentation for the Board of Directors “selling” your consultancy services.
You still need to pitch for the contract since the two other board members
will be involved in the decision.
□ Instruction: Prepare a presentation in which you should:
□ Explain the importance of Strategic Human Resource Management (HRM)
(AC 1.1) and how you could add value to the Club. You should discuss how
strategic HRM could be linked with other departments. (AC1.2) Explain the
strategic human resources services you could provide to the Club and their
purposes (AC 1.3)
□ Analyse the factors that the Club should consider before embarking up the
renovation and restructure. (AC 2.1)
□ Determine some preliminary HR requirements for the organisation
considering the new contract. (AC 2.2)
□ The Board is likely to ask questions – so be ready to answer any questions
that may arise.


Sample Answer

Sample Answer


Modernizing the European Club: A Strategic HR Approach

Thesis Statement

The European Club, an esteemed charity organization in central London, is in need of a strategic human resource management (HRM) overhaul to revamp its operations and facilities. By implementing strategic HR practices and aligning them with other departments, the Club can enhance employee morale, improve operational efficiency, and elevate member satisfaction.

Importance of Strategic HR Management

Strategic HRM plays a pivotal role in driving organizational success by aligning human capital with the overall business strategy. At the European Club, strategic HRM can add value by transforming outdated practices, fostering a culture of innovation and empowerment among staff, and ensuring that employees are equipped with the necessary skills to deliver high-quality service. By linking strategic HRM with other departments such as operations, finance, and marketing, the Club can create a cohesive approach towards achieving its vision of providing high-quality hospitality at affordable prices.

Strategic HR Services for the Club

1. Training and Development: Implementing training programs to upskill staff on new processes related to the renovated facilities will enhance service quality and efficiency.
2. Performance Management: Introducing performance appraisal systems to recognize and reward employees for their contributions will boost morale and retention rates.
3. Change Management: Developing strategies to manage organizational change effectively during the renovation project to minimize disruptions and maintain business continuity.
4. Talent Acquisition: Implementing recruitment initiatives to attract and retain top talent in key positions to drive the Club’s growth and sustainability.

Factors to Consider Before Renovation

1. Member Feedback: Addressing member complaints about facility conditions, service quality, and organization to ensure that the renovation meets their expectations.
2. Employee Engagement: Involving employees in the decision-making process and seeking their input on the renovation plan to enhance buy-in and commitment.
3. Financial Implications: Analyzing the financial impact of the renovation project on membership fees, operating costs, and revenue generation to ensure sustainability.
4. Timeline and Resources: Assessing the availability of resources, project deadlines, and potential challenges to effectively plan and execute the renovation.

Preliminary HR Requirements for the Organization

1. Communication Plan: Developing a communication strategy to keep employees informed about the renovation project, changes in processes, and expected outcomes.
2. Training Needs Analysis: Conducting a thorough assessment of staff training needs to tailor development programs that align with the new operational requirements.
3. Employee Engagement Initiatives: Implementing initiatives such as feedback sessions, team-building activities, and recognition programs to boost morale and foster a positive work environment.
4. Succession Planning: Identifying key roles within the organization that require succession planning to ensure continuity and stability during leadership transitions.

In conclusion, by embracing strategic HRM practices, the European Club can embark on a successful modernization journey that not only enhances its physical facilities but also revitalizes its organizational culture, empowers its employees, and elevates its member experience. Let’s work together to transform the European Club into a beacon of excellence in hospitality and charity work. Thank you for considering our consultancy services.


– Human Resource Management: A Strategic Approach (David M. Lepak, Mary Gowan)
– Strategic Human Resource Management (Jeffrey A. Mello)





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