CASE STU DY:
Winning the War for Talent: The Mandarin Oriental’s Talent Management System
Colleagues is the term that the Mandarin Oriental Hotel relies on SuccessFactors’ cutting edge human capital management.
Group uses to refer to employees, and a major goal for (HCM) system, which was purchased by SAP in 2012 to replace SAP’s this luxury chain is to recruit, train, and retain the most aging HR system.
Productive people in the hospitality industry. Starting in 7963 with a The HCM system provides the building blocks to assess each col-single luxury hotel in Hong Kong called the Mandarin, the company league’s performance, and it also adds a means to determine career expanded slowly, acquiring a stake in the landmark Oriental Hotel in development paths and training needs. Both staff and managers can Bangkok. That hotel first opened in 1865 and enjoyed a grand tra- input information about performance, and they can add notes about addition, having survived several wars and hosted countless authors, development plans so that colleagues know what they should do to celebrities, and government leaders. advance their careers.
Over the years, the Mandarin Oriental Hotel Group grew to over The system also supports succession planning, because every 40 properties in more than 25 countries, with T5 more in development individual ‘3 capabilities and career progression are easily accessed.
in locations such as Doha, Qatar, and Shanghai, China. Each hotel is This helps managers see functional areas that might lack depth, and as distinctive as the first two. The company does not want a “monocul- in which a sudden departure of a key employee could be a serious future,”so each property takes on its own personality to match the local setback. if there is no one with the knowledge and skills to step in easy market. But the company’s leaders also strongly believe in establish- ily, either by transferring someone from a different hotel or promoting clear standards and performance indicators for every position and someone locally, the chain is taking a risk.
Job function. The Hotel Group’s HR department in Hong Kong oversees Group Director of HR Paul Clark says, “The system is doing the the process so that, for instance, the chef at the Mandarin Oriental job of tracking careers with the [Mandarin Oriental] group. It helps in Singapore will meet the same standards as the chefs in Boston, us to determine who is ready for the next career step and then we Bangkok, and Bermuda. Locally each hotel ’3 human resources team actively promote internal/WA major advantage is that colleagues are can tweak policies and procedures, especially because employment well aware that they have attractive career opportunities, and they laws and cultural factors differ. But the underlying standards are global. know what training they need to pursue them. A side benefit of systems.
To manage this empire and ensure that every hotel contributes tems such as this is that the emphasis on career development and to its reputation for unsurpassed customer satisfaction, the com- interactivity increases the motivation of executives to do performance company relies on a global approach to talent development. With more appraisals with more care than 10,000 colleagues speaking many different languages in Asia, Companies may never actually win the war for talent, but they Europe, the Americas, Middle East, and North Africa, the company mustengage in itcontinuallyto attractand retain the mostproductive implemented a specialized talent management system. The system people. Talent management systems can help them do that.
Discussion Questions
How does the talent management system heip Mandarin Sources: Freyemuth, J. (September 13, 2012). ImpactofSuccessFactors Acquition on Oriental balance the needs of global coordination and local W’s “FM SFa‘egy- Gamer Resea’ch’ ‘0350023567‘1
Mandarin Oriental: Talent everywhere. (March 201 0). HRM Asua, https://www.hrmasra.comlreSpOnSlVeneSS? case-studieslmandarin-oriental-talent-everywherel40527/, accessed March 25, 201 3.
Why wauid it be important for Mandarin Oriental to have an Schein,A. (2013). Mandarin Oriental International Limited. Hoover’s Online, http:/limeg rated HR dam base? subscriber.hoovers.comlH/cornpany36oloverview.html?cornpanyld=1 01 774000000000,
accessed March 25. 2013.
What are the benefits for Mandarin Oriental executives? What amt, Freyemuth, 1., & Hanscome, R. (March 14, 2013). Magic quadrant for talent are the benefits for Mandarin Oriental employees? management suites. Gartner Research, IDzGOOZZ7698.
What further uses could be possible for the date in this system? approved_lM_0121 .pdf, accessed March 29, 201 3.
Baek (christ’[email protected]) on 2/22/2015 from 53.46.200.50 authorized to use until 7/30/2015. Use beymd the auttnrized user or valid subscription date represents a copyrigtt violation.
Introduction to Managing lnforrnation Technology, First Custom Edition, by Wallace and Kroenke. Published by Pearson Learning Solutions. Copyright © 2015 by Pearson Education. Inc.