MPHR7113 Assignment: Strategic HR Analysis of Golden Heritage Café (HRM)

TITLE: GOLDEN HERITAGE CAFÉ

Golden Heritage Café’s humble beginnings date back to 1944, in a coffee shop started by Tan Chong Wei, who served coffee, tea, eggs, and toast. Golden Heritage International was incorporated in 2001 in Singapore and currently operates 32 outlets in Singapore along with 27 franchise outlets across Asia.
Its overseas outlets are located in Indonesia, Taiwan, Japan, South Korea, Vietnam, and the Philippines.

Golden Heritage has cultivated a family-style work environment and practices a well-established “promotion-from-within” policy. The company places a strong emphasis on teamwork, encouraging employees to assist one another across outlets and departments. The top management act as role models,
reinforcing the teamwork culture within Golden Heritage. Furthermore, the organization has a flat structure, fostering an environment where staff feel comfortable approaching their superiors to discuss issues or share suggestions for improvement.

Job openings for outlet staff are advertised in Chinese and English newspapers, as well as through recruitment notices at their outlets. Applicants who respond to these advertisements undergo two rounds of interviews—one with the senior area manager and another with the operations manager. Job applicants are primarily screened for their level of commitment and willingness to work shifts.

Additional desirable attributes include integrity, diligence, and honesty. Prior experience in the food and beverage industry is not considered essential, as Golden Heritage believes that with commitment and eagerness to learn, applicants can easily be trained to acquire the necessary skills. Successful
candidates go through two weeks of training and serve a probationary period of three months.

Most of Golden Heritage’s Singapore-based outlet staff are aged above 30, as mature workers often display stronger work attitudes and greater job commitment. The majority of the outlet staff are Singaporeans, with a smaller proportion from Malaysia and China. Most workers are full-time employees, supplemented by part-time staff during vacations or instances of illness. Operating hours typically span 7 A.M. to 11 P.M., and staff work staggered shifts. Each outlet has approximately 10 staff working per shift. By emphasizing attitude and character during the selection process, Golden Heritage has built a workforce characterized by loyalty, honesty, and diligence. These traits are considered key criteria for promoting outlet staff to store managers. Such practices have cultivated a positive workplace atmosphere, ensuring staff satisfaction and commitment to the company, which Golden Heritage believes translates into excellent customer service.

Golden Heritage faces recruitment challenges, particularly in finding workers with the right attitudes. While the technical skills required can be taught with relative ease, some applicants express unwillingness to work shifts, creating difficulties in staffing. However, shift work is unavoidable in the food and beverage retail industry.

Questions:

1. Evaluate Golden Heritage Café’s focus on hiring workers with the right attitude over prior experience. How does this approach align with the organization’s long-term goals, and what potential risks might this strategy entail? (Requires a critique of their hiring philosophy, with analysis of alignment and challenges.) (25 Marks)

2. Assess the effectiveness of Golden Heritage Café’s teamwork culture and flat organizational structure in fostering employee satisfaction and operational success. What improvements, if any, could be made to strengthen this culture further? (Requires evaluation of teamwork practices and recommendations for enhancements.) (25 Marks)

3. Critique the emphasis on mature workers and full-time staff in Golden Heritage Café’s workforce strategy. Should the company diversify its workforce composition to include more younger or part-time workers? Why or why not? (Requires thoughtful analysis of their workforce strategy and justification of changes.) (25 Marks)

4. Analyze Golden Heritage Café’s recruitment and training practices in addressing staffing challenges, such as shift work. What additional strategies or innovations could be implemented to ensure long-term success in recruitment and retention? (Requires critical evaluation of current practices with creative solutions.) (25 Marks)

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