Internal And External Factors Which Affect The Environment Of The Organisation
People management can be defined as managing people in an organization and this process includes different activities such as supervision of staff, conflict resolution, problem assessment, development of employee skills and knowledge and legal and ethical compliance in managing human resources (Longenecker and Fink, 2013). The current research report is based on people management and regarding this study Hilton hotel has been chosen and whole investigation will be based on this organization. Research will discuss some challenging issues which are faced by Hilton hotel. Study will describe the impact of these issues on performance of the company. Further, different appropriate strategies for managing all these issues are also described in the following paragraphs of the report. Research will use different tools and techniques for analyzing changes in the workplace.
Hilton hotel is one of the leading organizations of hospitality industry of UK. There are different internal and external factors which affect the environment of the organization. These changes affect the human resource management. Study will explain appropriate strategies for managing all these changes in an appropriate manner (Hilton hotel and resorts, 2015).
Labor force trends
Different trends of labor force affect the human resource management of Hilton hotel. Current labor trends focuses on aging workforce, racial diversity, high feminization of the workforce, shortage of skilled and experience employees and high demand of labors. All these issues affect individual as well as organizational performance of the Hilton hotel. All these trends create different issues for Hilton hotel (Brody, 2010). For example, aging workforce create force on organization to hire employees on the basis of their age. Including this, racial diversity and high feminization also affect the recruitment and selection process of Hilton hotel. In addition, as per the current trends lack of skilled and experienced employees is also one of the major issues which affect the quality of the services of Hilton hotel. It has indirect and negative impacts on performance of the company. Hilton hotel has expanded its business at international level so; it has increased the demand of labors. Therefore, all these are the major issues associated with the current trends of workforce of Hilton hotel (Pool and Sewell, 2007).
All these issues can be managed by using appropriate strategies such as management of diversity, work as a team, virtual teams, outsourcing of HR and open book management. Appropriate management of diversity will play very important role in increasing the productivity and efficiency of Hilton hotel (Hilton hotel and resorts, 2015). Work as team will improve the performance, quality, decision making process and speed of different functions of the organization (Teare and et al, 2011). Including this, Hilton hotel can also reduce the negative impacts of labor trends by using teleconferences, WebEx and online meeting of all those members who are operating business functions at different locations. Online meetings will reduce the cost of human resource department of the company. In addition, Hilton hotel can outsource the employees from another country it will help in getting skilled and experienced employees. Therefore, all these strategies will help in reducing the negative impacts of current labor trends (Zepeda, 2011).
Developments in employment law
Employment law can be defined as labor law which regulates rights and duties between employees and employer of an organization. Development in employment law helps in designing sales and secured workplace. All development in employment law are based on different terms and conditions of employment, minimum wage, working hours, health and safety, discrimination and child labor, etc. Further, employment law also focuses on collective bargaining and actions of trade unions. As per the employment law Hilton hotel should consider different acts such as Age Discrimination Act, Disabilities Act, Equal Pay Act and Human Right Act, etc (Zhang, Nie and Luo, 2009).
All these acts and laws of employment improve the recruitment and selection process of Hilton hotel. It will also augment the performance and quality of the services of Hilton hotel. But, on the other hand, frequent changes and development in employment laws will also affect the HR policies of Hilton hotel (Employment law developments in 2014 and 2015, 2015). For example, as per the employment law employer of Hilton hotel should assure about the health and safety of employees at workplace and regarding this company provides appropriate medical facilities and insurance facility to each and every personnel. But, it negatively affects the cost of the organization. Including this, as per the human rights act company provides permission to each and every person to use their smart phones and social networking sites at workplace. But, it harms productivity and quality of individual performance which influence the overall performance of Hilton hotel. Along with this, regular changes require to change the policies of organization in continuous basis which have direct impact on other functions of Hilton hotel.
Therefore, development in employment laws have lots of positive impacts on human resource management of Hilton hotel but these changes also have negative impacts on overall performance of the company (Employment law developments in 2014 and 2015, 2015).
Appropriate communication at workplace is very essential for improving the human resource management, productivity and quality of the performance of the organization. Hilton hotel is a leading organization of hospitality industry. There are different customers who belong to the different country so; organization hires employees from different locations. It helps in improving the communication with customers of the company. But, sometimes there are different problems which are associated with the workplace communication such as language barriers, personal issues, lack of motivation, lack of feedback and in appropriate leadership at organization (Yeo and Li, 2011).
Hilton hotel has diverse workforce which is beneficial for organization in different aspects but on the other hand language barrier among employees create a situation of low communication. Language barrier can create misunderstanding among employees at workplace which can raise conflicts among employees. Lack of communication will also harm the performance of the organization. So, for resolving such types of issues Hilton hotel uses universal language (English) for workplace communication. It helps in maintaining effective communication among employees of the firm. Lack of motivation in employees also increases the possibilities of poor communication at workplace (Schiavone, 2011). Due to the inappropriate leadership of supervisors company faces the problem in workplace communication. Therefore, all these issues associated with the workplace communication affect individual as well as organizational performance of Hilton hotel.
Changes in technologies also create different issues regarding the people management of Hilton hotel. Due to the technological changes company needs to adopt new and latest technical equipments for improving productivity at workplace. But, this change increases the requirements of skilled and experienced labor that can use latest technological equipments in effective manner. Along with this technological advancement increases the needs and requirements of skills among employees which will also augment the cost of training and development program of the company. Including this, these changes increases the investment of Hilton hotel in projects of latest technology (Cooke, 2012). It has negative impacts on total cost as well as financial position of the organization. Therefore, technological changes have positive and negative influence on people management of Hilton hotel. For managing these issues company should make appropriate arrangements of training and development program for employees as well as for reducing training cost company should hire skilled and experienced employees for organization. In addition, using investment appraisal techniques Hilton hotel can invest money in most profitable project (Managing human resources, 2013).
The employment relationship
There are different issues which can affect the employment relationship such as lack of motivation, termination, inappropriate policies and performance management and rewards system, etc (Zhang, Nie and Luo, 2009). Hilton hotel uses appropriate techniques for improving the employee’s motivation at workplace such as appropriate allocation of roles and responsibilities among employees on the basis of their skills and knowledge. In addition, company has used appropriate policies for rewards system, performance analysis and other evaluations. It will help in increasing the satisfaction level of employees as well as develop effective relationship with them (Hilton Worldwide in Travel and Tourisms, 2014).
Major political factors include Political situations of different places of UK, threat from terrorism, policies of EU and instability in political position of the country (Lucio, 2013).
Economic situation of nation, rate of inflation, exchanges rates and money supply all these factors can influence the performance of Hilton hotel.
Demographic changes at national and international level, changes in life style, taste and preferences, changes in society values and high role on social media in society development are the major social factors which affect Hilton hotel (Jetmore, 2005).
Changes in technologies, high use of internet in business and online booking system are the major technical factors.
Changes in employment law, rules and regulations in UK and consumer protection acts are considered as major legal factors which can influence the services and operations of Hilton hotel (Zhang, Nie and Luo, 2009).
Major environmental factors include change in weather condition, natural disaster and sustainability of the organization (Tracey, 2012).
Pestle analysis has helped in determining the major changes which are taking place in external environment of the organization. It has reflected that, company is facing the high competition from its competitors such as Milestone and Marriot, etc. Including this, due to the low economic position of nation suppliers of Hilton hotel has increased the rate of raw materials. Fluctuations in exchange rate have reduced the money supply and foreign direct investment of international shareholders. Due to the technical advancement, company needs to adopt electronic customer relationship management system which increases the total cost of the organization. Therefore, external environment of Hilton hotel is facing different changes which can affect the performance as well as human resource management of the Hilton hotel (Tams, 2008).
Analysis of the internal and external environment have reflected that, major reasons behind the changes in internal environment include the changes in current labor trends, technological advancement and changes in rules and regulations of employment law. All these reasons have direct impact on internal environment of Hilton hotel.
As per the above discussion, different political, economical, technological, social, legal and environmental factors are the major reasons behind the changes in external environment of Hilton hotel (Gropu, 2013).
Due to all these changes in internal and external environment of business, human resource management of Hilton hotel has faced some consequences. Change management is one of the major consequences for Hilton hotel. Including this, due to the changes in labor trends, company faces problem in recruitment and selection process. Along with this, technological advancement increases the training needs of employees which led increment in cost of human resource management of Hilton hotel. In addition, changes in employment laws require appropriate considerations of all rules and regulations which lead to changes in human resource management policies of the company (Gravells, 2010).
All these changes and consequences at workplace can be managed by using appropriate strategies and actions (Catano, 2013). Company can use appropriate process for recruitment and selection process including job analysis, descriptions and specification. In addition, company should hire those employees who have appropriate skills and experience of latest technologies. It will reduce the cost of training and development program. Including this, at the time of development of employment policies Hilton hotel needs to consider all recent changes in employment law which will help in increasing the satisfaction level of employees towards the job. Therefore, by using all these actions and strategies organization can manage all changes at Hilton hotel (Agha, 2001).
The current research report has concluded that Hilton hotel has faced changes in internal and external environment of the company due to different factors. These changes influence recruitment and selection process, change management process, staffing, training and development program and cost of the organization. Along with this, different issues associated with the labor trends, employment law, communication, technology advancement and employment relations also influence the HRM department of Hilton hotel. Company should use appropriate tools and techniques for managing all these changes and issues. According to the report company can use effective recruitment and selection process with job description and specification which will help in hiring skilled people that will also reduce the training cost of the organization.
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