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Transcription of this question: 3.DalesDales is a public limited hotel chain operating in a highly competitive tourism market. Dales ispositioned as a high-price and high-quality chain. The majority of its staff are on permanentcontracts, but wage rates at Dales are below the average for the hotel industry. Consequently,staff turnover is high. Recruitment is difficult due to the number of hotels in the areas where Daleshotels are located and the wages paid.In 2010, in order to remain competitive, Dales outsourced the cleaning of hotel rooms to Wire.Outsourcing reduced the cost of cleaning rooms for Dales from 5% of total revenue per room to2%. Net profit after tax and interest increased and share prices rose by 10 0/0.Initially, Wire paid cleaners at Dales a low wage of:• $6 per hour for 8 hours, 5 days per week.Cleaners cleaned, on average, 13 rooms per day.In 2016, Wire introduced a piece rate system:$2 is paid per room cleaned.• Cleaners have a target of 20 rooms per day, 5 days per week.In recent years, newspaper reports highlighting poor pay and working conditions have damagedDales’s brand image. Recent customer feedback has also highlighted concems about food quality,room cleanliness and poor customer service at Dales hotels. Room bookings fell during the sameperiod. Profits in 2016 decreased from $24 m to $4 m.The current contract with Wire is up for renewal. Dales is considering insourcing.(a)(c)Outline two common steps taken by a business in recruitment.Explain two disadvantages for Wire of introducing a piece rate system of wagesfor its cleaning staff.Calculate the financial impact on cleaners employed by Wire from the introduction(iii)of the piece rate system in 2016 (show all your working).Calculate the change in cleaning costs per room from the introduction of thepiece rate system used by Wire.Recommend if Dales should stop outsourcing the cleaning of hotel rooms.[2][2][2][10]

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