Case Study 6-20

Case Study 6-20

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CASE STU DY #2
Winning the War for Talent:The Mandarin Oriental’s Talent Management System
olleagues 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
dition, 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
ture,”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 eas-
market. But the company’s leaders also strongly believe in establish- ily, either by transferring someone from a different hotel or promoting
ing 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 sys-
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
pany relies on a global approach to talent development. With more appraisals with more care.
than lo,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
6.] 9. 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, http://www.hrmasra.coml
reSpOnSlVeneSS? case-studieslmandarin-oriental-talent-everywherel40527/, accessed March 25, 201 3.
6-20_ Why wauid it be important for Mandarin Oriental to have an Schein,A. (2013). Mandarin Oriental International Limited. Hoover’s Online, http:/l
imeg rated HR dam base? subscriber.hoovers.comlH/cornpany36oloverview.html?cornpanyld=1 01 774000000000,
accessed March 25. 2013.
6-21. What are the benefits for Mandarin Oriental executives? What amt, Freyemuth, 1., & Hanscome, R. (March 14, 2013). Magicquadrantfortalent
are the benefits for Mandarin Oriental employees? management suites. Gartner Research, IDzGOOZZ7698.
6-22- What further uses could be possible for the date in this itéfiiiif‘tifpflm$2231223£i2ild125l£tt£ttézifm’izfizifi’tfé‘liié_
system? approved_lM_0121 .pdf, accessed March 29, 201 3.
ed byJiYeon Baek (christ’ne.bnc@grrail.com) 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

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Introduction to Managing lnforrnation Technology, First Custom Edition, by Wallace and Kroenke. Published by Pearson Learning Solutions. Copyright © 2015 by Pearson

Education. Inc.

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