The Oz Resort Scenario Oz Resort is part of a chain of resorts owned and managed by Holiday Fiji Ltd. Oz Resort, located in Nadi, the western tourist town of Fiji. Oz resort has an annual turnover of F$45.2 million. It is a large resort by Fijian standards, boasting 500 rooms and recreational facilities including an 18-hole golf course, children’s activity programs, water sports (for example, scuba diving, parasailing, water-skiing, jet-skiing), horse-riding, tennis, bush-walking, several restaurants and a night-club. Oz Resort won an industry award five years ago for the quality of service. On the wall of the resort lobby is a large plaque with the inscription ‘People are the Key to Success’. Oz Resort has 260 employees, of whom 40 are permanent, and 220 are temporary. Most of the temporary staff is university students recruited through personal recommendations. No formal skills or qualifications are required, as staff receive firm-specific training to enable them to develop career paths. Some employees’ accommodation is provided in dormitory huts next to the amenities block. Employees are provided with uniforms (hot pink bicycle shorts and t-shirt). 4 In July 2000, there was a change of management at Oz Resort due to the previous manager being promoted to be HR Director of Holiday Fiji Ltd. The new Resort Manager, Ratu Nalaba Burelevu, was recruited from a competitor resort where he had created record profitability. By October 2001, Ratu Nalaba introduced some changes that had worked well in his last position. The changes were introduced without consulting staff. To cut costs, staff are now required to pay for their uniforms and to pay for the use of any of the sporting facilities offered by the Resort. At the same time, working hours per month have been increased with no accompanying pay increase. Employees are also required to work harder due to a new policy of not replacing staff who leave the resort. There has been some resistance from staff to these changes and staff turnover has increased to 30 percent p