1. As Jacky Amzallag, what problems do you currently face? How do you feel about the future?
A. As Jacky Amzallag, the problems currently faced are as follows:
i) The biggest problem for Club Med is the turnover of the newly recruited GOs, whose number stands at 50% which has been the highest in many years.
ii) Another major problem at the operation level of the company is the cultural differences between the American and European GOs as the Club expanded into the Western Hemisphere.
iii) A problem relating to the company’s personnel policies is that of rotation of the hired GOs across all the villages in which Club Med operated which resulted in temporary dip in guest satisfaction ratings.
iv) A problem in the recruitment process would be that all the candidates were interviewed by Jacky himself and the expertise of the respective Chiefs of village were not taken into consideration.
v) The time delay between recruitment and ‘shipment’ of the GOs was a major problem.
vi) The Chiefs were given complete autonomy in firing hired GOs and no exit interview was conducted for GOs who quit.
2. Is Go turnover really a problem at Club Med? What are the pros and cons of high turnover? Conceptually, what are the quantifiable and non-quantifiable costs of turnover?
A. Club Med is a service organization where customer interaction is of utmost importance. The GOs were majorly responsible for all the work in these clubs across villages in various countries. They were responsible for mingling with the guests and their fruitful interaction ensured customer satisfaction.
The turnover in these organizations would be expected to be high as it involved frequent rotation of jobs across locations. The company policy of rotation did not seem to work as the GOs were unhappy about changing their locations and the teams of their work. But there were also GOs who were happy about the rotation as it would give them a chance to see the world and work with a new set of...