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Q1:Compare and contrast two companies in the same sector (hotels, restaurants,
and post-secondary institutions are good choices). Compare and contrast the HR
practices of a company using a low-cost provider strategy with one and using
differentiation strategy with the other company?
Low-Cost strategy VS Differentiation strategy
Low-cost Strategy
Low-cost strategy is being used by Chick Fil A. By keeping the price low and ensuring that it's
healthy as well, it has a wide variety of population in mind, Because of their prompt services and
top-notch customer support, they have managed to maintain a respectable place in the market.
As the job requires only the bare minimum of skills, the person is only paid the minimal wage.
According to Paul Jankowski Former Contributor May 30, 2019,09:48am EDT “Owners hire
managers to train store staff around personal goals for their positions. The increased buy-in
results in happier employees who provide a pleasant dining experience that keeps consumers
coming back.” The company also focuses on the use of fringe workers like part-time, retired and
students. For selection you can submit online forms on the company’s website or provide your
resume in the store. Many workers who work for the company for an extended period of time
are promoted to supervisor or other department heads. For compensation it is the minimum
wage in Canada for the associate however, after the person is promoted, it can raise up to $18
for shift leader. “There’s so much growth. You could start as a Team Member, then become a
trainer, then a lead — how much you put into it is how much you’ll receive. I think there’s a
home for everyone in a Chick-fil-A restaurant. Everybody will find a place that fits them”.
According to Angelique Sherrill, New York, NY(Website chick fil-a https://www.chick-fila.com).Training is brief and straightforward. Within a day or two, anyone can learn how to do
any job at Chick-fil-a.The management team conducts a performance evaluation once a year,
followed by the supervisors each month.
Differentiation Strategy:
The owner of this restaurant is Nusret Gökçe’s nickname Salt Bae a Turkish Butcher. Who got
famous by his unique technique of making steak. Sprinkling salt on it.This business is using
differentiation based strategy. It concentrates on a niche class that appreciates steak made with
the best beef available worldwide.“Mr. Bae owns a chain of 22 steakhouses around the world
called Nusr-Et, where you can purchase a 24 karat gold–wrapped tomahawk for about $1,160”.
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BY ALI FRANCIS September 9, 2022.When hiring, they must take into account a variety of factors
related to the individual. The workforce must be engaged with the company. On the customer's
table, some items are prepared in front of them. These ones require personnel training, and they
are always changing to reflect current market trends. Therefore, they need candidates who are
adaptable and quick learners. who can swiftly pick up new recipes and engage customers while
offering customized services. and also provide feedback later. These employees' pay rates would
still be low, but with time and experience, there may be opportunities for raises through
promotions. The customer's opinion of the employee who cooked in front of them is taken into
consideration during the monthly performance appraisal.
Q2:An economic trend to watch is the increasing price of fuel. Discuss how this
has impacted organizations. Can you predict how it will impact working patterns of
employees? What policies should the HR department develop in anticipation of the
continuing costs of commuting?
Impacts of rise in fuel pricing on organization
The increasing price of fuel has impacted organizations in many ways. Fuel price increases have
raised shipping expenses, which in turn have raised product prices. “A marked rise in oil prices
will contribute to a higher inflation level. This is because transport costs will rise leading to
higher prices for many goods Higher oil prices can lead to slower economic growth –
particularly a problem if consumer spending is weak.” 16 November 2021 by Tejvan Pettinger.
Since consumers won't want to drive, retail and other businesses in a similar field will transition
to online sales. Many items are made of synthetic materials or plastics that are partially derived
from petroleum and refined which would result in the increase of cost of these items. The auto
industry is concentrating more on creating fuel-efficient, hybrid, and electric vehicles as a result
of increased petroleum prices. It also has a significant effect on airlines, forcing them to raise
ticket prices and discouraging travellers. Which would lead to a decline in tourism and a fragile
economy.
Impact on working patterns of employees
The employees will find it challenging to commute to work while earning the same salary as
before when prices rise. It would have an influence on the company's total cost plan because it
will necessitate more compensation for the workers for fuel. The businesses will favour remote
work if it is possible. The business where the job is performed either on-site or through labour
would need to provide accommodations for the workers.
Policies of HR department
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HR policies will be focused on low-cost. For hiring the HR will then make sure if the work could
be done remotely. They would hire remote employees give them the tools they need to operate
from home, saving the company money on fuel reimbursement for the employee and making it
simpler to offer the facilities needed to house fewer workers at the workplace.
If the job requires on-site work, HR would prefer the employee lives in the same neighbourhood
or city, saving him money on fuel. For that they would have to keep an eye on the demographics
of the surrounding and provide opportunities. Less discretionary spending causes a reduction in
sales, which may limit a company's ability to hire.
Many job applicants must weigh the commuting expenses against the potential opportunity.
Some employees who have been offered other employment have been forced to turn them down
simply because the costs of commuting to and from work would devour such a sizable amount
of the pay.
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References:
Paul Jankowski Former Contributor May 30, 2019,09:48am EDT,
https://www.forbes.com/sites/pauljankowski/2019/05/30/how-one-chicken-chain-is-winning-big-acase-study-in-sticking-to-brand-values/?sh=3757dd557a3b
Angelique Sherrill ,New York, NY(Website chick fil-a https://www.chick-fil-a.com
ALI FRANCIS September 9, 2022 https://www.bonappetit.com/story/salt-bae-nusr-et-restaurants
16 November 2021 by Tejvan Pettinger
https://www.economicshelp.org/blog/1919/oil/effect-of-higher-oil-prices/
https://www.businessinsider.com/chick-fil-a-third-largest-fast-food-chain-us-sales-2020-5