The paper "The Chelmsford Hotel - Human Resource Management" is an outstanding example of a management assignment. There exist a number of family-owned businesses such as the one, in this case, The Chelmsford Hotel and they are faced with a number of benefits and at the same time with a number of drawbacks. A major benefit of a family-owned business is that it has next-generation ingenuity. A great number of organizations are bound to lose their competitive advantage and mostly when the leaders lose their touch with the much younger generation in the market.
A family business will likely keep its edge naturally and more so when they bring in the next generation to the business (Cadden & Lueder, 2012). For example, this seems to be an advantage at The Chelmsford Hotel since they are already grooming their next generation to manage their business in the years to come. Based on the case study Michael who is Chad’ s and Cindy’ s son has already graduated with honors and he now works as the sales and operations associate at the Chelmsford Hotel.
Brandon who is Michael’ s brother is already enrolled in the culinary arts program. The case study also states that Julie who is Jeff’ s daughter is almost finishing her studies and Jeff believes that she will be the next CEO and thus the need of a solid background in all the aspects of managing the hotel. Another benefit is that there is a lot of loyalty (Cadden & Lueder, 2012). The family-owned business seems to be ideal since the members of the family will form a grounded and loyal foundation. This case seems to be depicted well by Michael, Cindy and Jeff since they spend a lot of time in managing the business. There also exist some drawbacks to the family business and a major one is that possible inadequacy.
This means that some family members may even be promoted even when they lack the essential skills for the job (Cadden & Lueder, 2012). This is evident when Mildred a long-serving housekeeping employee states that “ Jorge is a brother-in-law to Dale in catering, and Dale is Cindy Mitchell's brother. So there you are. Of course, Jorge got the job.
He's practically related to the top. ” Another drawback is that there may be succession dispute among the family members. This drawback will eventually occur in the future since Jeff thinks that her daughter Julie is well suited for the CEO post and at the same time Cindy and Chad believe that their son Michael should be the one taking up that post. A major way of capitalizing on the benefits and eliminating or minimizing the drawbacks is ensuring that promotion is done based on merit as opposed to promotion based on who you are related to on the top.
By doing so, this will ensure that there are less conflict between the employees since the right mode and manner of promotion was applied when promoting employees. Additionally, the next generation of employees who are likely to take up the business should be groomed at an early stage by being engaged in the day to day running of the organization. This will play an essential role by ensuring that they have adequate knowledge to run the organization in the future since they will have a substantial amount of knowledge in relation to the business and be able to handle challenging situations when they arise (Collings & Wood, 2009).
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