HRM at Les Maisonnettes

1. HRM at Les Maisonnettes May 2009 IB Case Study Issues to Revise

2. Issues we need to consider • Sophie gets a lot of help with her business from her parents • She has several part time and 2 full time employees. • These come from the community, and are family friends with Sophie. This is why she has adopted a paternalistic leadership style.

3. Problems faced by Sophie • High levels of staff turnover punctuality • The Sanctuary recruiting more part time staff. • Having a large number of periphery and a small number of core workers is causing her problems. • Does this mean it is wise to recruit more part time – and students???? For a low starting salary as well. • She must manage her human resources more professionally and consistently. We could argue that her leadership style is not helping these problems.

4. Students in the summer or core staff? • The core staff have similar eco-tourism values, and they give her ideas about how to attract young eco-tourists to the area. This could open up opportunities for her. • Lower costs for summer staff – as their salaries will be low as they are students. • She covers a busy period (summer) and avoids recruiting permanent staff she may not need later on if she recruited summer staff. • They are young/fresh new ideas/eager to work (summer staff)

5. Students in the summer or core staff? • Core staff would be more committed to LM. They will be more professional as this is their career. • She may find it difficult to employ summer staff. • Core idea will be more expensive – as she will have to give career opportunities and an enhanced pay structure. • It may solve some of her problems if she increased her core workers – to make it more professional and avoid the current existing problems she is facing with part time staff.

6. Core versus periphery workers • Businesses have a core group of workers, which form the basis of its operations and a periphery, which consist of all other tasks needed to run the firm, but which are not central to the business.

7. Handy’s Shamrock Organization • Professor Charles Handy suggested that there were three parts to modern firms • ???. What were they?

8. Sophie’s leadership style • Sophie has adopted a paternalistic leadership style. • Definition: where managers and leaders treat their employees as if they were family members by guiding them through a process of consultation. In their opinion, they act in the best interests of their workers. • Write down five key features/traits of a paternalistic leader....

9. Paternalistic Leadership traits This style is derived from: • Mayo’s work on human relations and Maslow’s lower and middle order needs. • The approach is to consult with staff. • Usually there is emphasis on training and appraisal for personal development. • A paternalistic leader thinks and acts like a parent. He/she tries to do their best for their workers. • There may be consultation to find out the views of employees, but decisions are made by the head of the family.

10. Paternalistic Leadership Traits • This type of leader believes employees need direction but thinks it is important they are supported and cared for properly. • Paternalistic managers are interested in the security and social needs of their staff. • They are interested in how workers feel and whether they are happy in their work. • Nevertheless, it is quite an autocratic approach.

11. In Sophie’s case • She knows the staff well so feels that a paternalistic approach is best – as they are family friends. • It is not a large groups of employees so she can keep control with this paternalistic approach. • With this approach, she can care for them and look after their welfare, which will make them want to stay with her – and remain loyal.

12. However... • There have been problems with this approach: • Staff absences and poor punctuality. She has to cover their duties, and this takes her away from her core responsibilities. • Most of her staff are part-time, and are less likely to be motivated? They may need a more strict approach to get them to work. • As a paternalistic leader (just like autocratic leaders) she does not give employees control over decision making.

13. What factors affect leadership style? • The task in hand • The tradition of the organization • The type of workers • The group size • The leader’s personality • Group personality • time

14. Motivational Theorists • Read lines 93-113 of the case study carefully, outline which theorists we can apply to this case study. (leadership (HL) and motivational). • Evaluate the monetary and non-monetary rewards mentioned in the case study (if any). Which do you suggest could be used to solve Sophie’s problems?

15. Further ideas for revision Important suggested reading – notes to be made and applied to the case study: • Likert – leadership • Matrix structures • The informal organization • Minzberg/Peters