Hard Rock\'s example in a production firm Everyone—managers and hourly employees

Question

Hard Rock's example in a production firm Everyone—managers and hourly employees alike—who goes to work for Hard Rock Cafe takes Rock 101, an initial 2-day training class. There they receive their wallet-sized “Hard Rock Values” card, which they carry at all times. The Hard Rock value system is to bring a fun, healthy, nurturing environment into the Hard Rock Cafe culture.* This initial course and many other courses help employees develop both personally and professionally. The human resource department plays a critical role in any service organization, but at Hard Rock, with its “experience strategy,” the human resource department takes on added importance. Hard Rock ValuesPreview the document Long before Jim Knight, manager of corporate training, begins the class, the human resource strategy of Hard Rock has had an impact. Hard Rock’s strategic plan includes building a culture that allows for acceptance of substantial diversity and individuality. From a human resource perspective, this has the benefit of enlarging the pool of applicants as well as contributing to the Hard Rock culture. Creating a work environment above and beyond a paycheck is a unique challenge. Outstanding pay and benefits are a start, but the key is to provide an environment that works for the employees. This includes benefits that start for part-timers who work at least 19 hours per week (while others in the industry start at 35 hours per week); a unique respect for individuality; continuing training; and a high level of internal promotions—some 60% of the managers are promoted from hourly employee ranks. The company’s training is very specific, with job-oriented interactive DVDs covering kitchen, retail, and front-of-the-house service. Outside volunteer work is especially encouraged to foster a bond between the workers, their community, and issues of importance to them. Applicants also are screened on their interest in music and their ability to tell a story. Hard Rock builds on a hiring criterion of bright, positive-attitude, self-motivated individuals with an employee bill of rights and substantial employee empowerment. The result is a unique culture and work environment which, no doubt, contributes to the low turnover of hourly people—one-half the industry average. The layout, memorabilia, music, and videos are important elements in the Hard Rock “experience,” but it falls on the waiters and waitresses to make the experience come alive. They are particularly focused on providing an authentic and memorable dining experience. Like Southwest Airlines, Hard Rock is looking for people with a cause—people who like to serve. By succeeding with its human resource strategy, Hard Rock obtains a competitive advantage. It is one thing to read about the Hard Rock Café and to identify some of their jobs as production-based. Compared to factory assembly line and other physical production firms, there are real differences in the complexity and scope of activities performed by individual workers on a day-to-day basis. Think critically and, perhaps, pessimistically, about the following discussion questions.

1. How would Hard Rock's value system work for automobile assembly line workers?

2. How would Hard Rock's value system work for Wal-Mart workers?

3. In an era of intense competition and focus on costs and productivity, is it possible to incorporate elements of service-based firms into all jobs, or just some?

Explanation / Answer

1

Hard Rock's value system will not work for automobile assembly line workers in factory assembly line and other physical production firms due to difference in focus on end product and the way of working in delivering the end product.

In a production line, set of sequential operations is established in a factory where materials are put through a refining process to produce an end-product that is suitable for onward consumption; or components are assembled to make a finished article. The primary benefit of assembly lines is that they allow workers and machines to specialize at performing specific tasks, which can increase productivity. Large-scale assembly lines can allow for mass production of goods that would not be possible if products were made from start to finish by a single worker. The high productivity of mass production can also result in lower cost per unit produced than other manufacturing methods.

There is no room for individuality or bring your own way of doing tasks. Employees needs to be able to follow instructions and steps and not deviate from them. Selection of employees needs to be done in such a way that they will be able to repeat the same process and steps over and over again without loss of interest in their jobs.

Using an assembly line in the manufacturing process is needed as a regimented production process helps ensure a uniform product. In other words, the products made by an assembly line are not likely to exhibit much variation. If one worker created an entire good scratch, his product might be significantly different from the goods produced by another employee.

The end product is not about creating an experience for a customer but the the focus is on creating a uniform product. Scope of activities is well defined and employees need to follow and adhere to that. Any deviation from scope of activities will disrupt the process and the end product will not be uniform and productivity will decline and cost of operations will increase.

2

Hard Rock's value system will work for Wal-Mart workers due to similarity in focus of serving the customers and delighting the customers with a good service experience. Walmart can benefit if the human resource startegy focusses on hiring people who like to serve. With proper job training the workers at Wal-Mart can be trained to focus on providing an authentic and memorable shopping experience.

Like Hard Rock Cafe, Wal-Mart can  build on a hiring criterion of bright, positive-attitude, self-motivated individuals and plan an appropriate on-boarding training schedule suited for retail sales. And allow for substantial employee empowerment so that each employee can bring their individulaity to full play while telling a story as they interact with customers and influence their choices of products and brands.

Applicants can also be screened on their interest outside of work and then Wal-Mart can build Outside volunteer work activities especially designed to encourage & foster a bond between the workers, their community, and issues of importance to them.

Creating a work environment above and beyond a paycheck is a unique opportunity.Outstanding pay and benefits are a start, but the key is to provide an environment that works for the employees. This includes benefits that start for part-timers who work a certain minimum hours per week that works for them (while others in the industry start at 35 hours per week)

Work culture needs to inculcate a unique respect for individuality; continuing training; and a high level of internal promotions so that everyone can build careers with the organisation instead of having to go out to grow in their corporate careers. Hard Rock’s strategic plan includes building a culture that allows for acceptance of substantial diversity and individuality. Wal-Mart can adopt this way of working too.

3

In an era of intense competition and focus on costs and productivity, it is possible to incorporate elements in service-based firms into all jobs where employees directly serve the customer or jobs where customer is the end of the chain or jobs which are customer facing.

In incorporating the elements of respect for individuality; continuing training; good work culture that fosters high employee engagement through variety of programmes like high level of internal promotions , flexi working options, and volunteer work, the service based organisations will ultimately lower costs of operations through lower turnover of employees. Where employee turnover is high, the organisations incur huge costs in hiring and training employees and it takes a long time for employees to produce results that add to the bottom line of the organisation.

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.