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Importance of Human Resource Management | Impact of Right Strategies

697 Downloads1 I Published: 26 Oct ,2019

Introduction

Resources are required for implementing business strategies in an effective manner. Some important resources that are required by almost all functioning industries is money or capital and human beings or workforce. Hilton Hotel has gathered brand value because of its high end services to customers with efficient human resource management strategies. This report helps in understanding various aspects of human resource management with a glance over their functions and roles in Hilton Hotel. From development of employee legislation to imparting effective training and development sessions, human resource management handles it all. This assessment will help in gathering understanding about these facts. An informative section about job description and person specification is also provided in this report. This content presented in the report shall help in developing an insight about the practises of human resource function in an organisation like Hilton Hotel.

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Task 1

1.1 Role and purpose of HRM

Human resource management (HRM) is an important function of every business organisation. To sustain in highly competitive markets, companies have to develop their human resource efficiently. The essence of this management function lies in handling employees or entire workforce in such a way that business processes are not hindered. HRM has a well defined set of responsibilities and function (Fee, 2014). These are defined below:

  • Recruitment
  • Staffing
  • Training employees
  • Developing policies and regulations
  • Managing employee demands and needs
  • Planning retention strategies

It is not possible for business authorities to look after every minute activity that is going in the internal business environment (Armstrong and Taylor, 2014). Hence, a separate functioning department exists in some form or the other in Hilton Hotel that looks after employees' professional actions and reactions. Being a part of service industry, Hilton has to maintain good relations with both internal stakeholders and external stakeholders so that growth of business is not disrupted. HR has to play its specific role in developing productive workspace. These roles are defined below:

  • Collaboration with coordination is essential when smooth execution of business operations is concerned. The significance of collaboration is felt when certain operation is hindered or mismanaged. For instance: when HR advises manager of Hilton Hotel Stratford to schedule everyday activities in advance so that next day operations are not chaotic. Effective collaboration with manager helps HR to keep a check on day to day activities.
  • An important role of HR is to build commitment of employees towards the company. Hilton's vision and objective cannot be achieved if people do not hold commitment towards workplace. HR drives workforce with a positive spirit and encouraging words that develops responsibilities amongst employees. Individuals start developing organisation oriented priorities rather than self-centred attitude (Purce, 2014).
  • Core competencies of a company are essential whenever Hilton is subjected to competition. HRM is the key to develop employee capabilities and competencies. If individuals are addressed to opportunities that will help in improving skills and knowledge, then internal competency of Hilton will increase.

It is clearly understood from above described facts that HRM plays an important role in the development and growth of organisation. From quick implementation of changes to planning and utilising human resource all these functions are effectively fulfilled. But it necessary every individual to understand the importance and purpose for which this body or function is imbibed in structure and operations of Hilton or any other service industry company (Swart and Kinnie, 2014).

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Purpose of HRM:

Staffing, recruiting, compensation management, handling employees and their requirements, appraisal management, etc. are certain functions of HRM. This governing body of Hilton functions with principles and ethics that are guided by legal structure of the company. The main purpose is to guide individuals about the policies and rules which are defined for maintaining discipline and decorum inside the organisation (Jackson, Schuler and Jiang, 2014). Scope or opportunities is considered to be one of the driving or motivational forces that keeps workforce aligned with company in critical circumstances. Organisational structure of multinationals is defined in such a way that right from the lowest level or position employees can explore and develop their skills for grabbing maximum opportunities. Integration with high levels of cooperation is the motive behind designing of HRM strategies (Riley, 2014). This serves their purpose of supporting Hilton in creating a qualitative and quantitative working environment that will yield great outcomes in the form of high customer satisfaction.

1.2 Human resource plan

Analysis of demand and supply

Hilton Hotel Stratford operates in hospitality industry. Considering the supply and demand, it has been found that in the UK, the demand is outpacing the supply growth (UK hotels forecast, 2016).

  • Situation analysis: In order to create a human resource plan, it is important for Hilton Hotel to thoroughly analyse the external factors. Hospitality industry has a highly competitive environment which is significantly impacted by the advancements in technology. Through this environmental scanning, technological advancements have been identified as an opportunity for the hotel which can be tapped by developing a skilled and trained workforce (Budhwar and Debrah, 2013). At the same time, Hilton hotel faces threat from fierce competition that prevails in the hospitality industry.
  • Internal analysis: At this step, it is required that the organization should focus upon competencies of employees and composition of workforce. It also includes the culture of the hotel.
  • Forecasting demand: The HR plan for Hilton Hotel Stratford needs to forecast the labour demand and supply predictions. There is high labour demand which is greater than the supply.
  • Forecasting supply: Based on the characteristics of the labour market, the forecasting of supply is done. These include the mobility of labour, education level, demographic trends and government regulations.
  • Action plan: The plan is prepared after the current workforce inventory has been compared with the labour forecast. This aspect stresses on the workforce size of Hilton hotel, the gaps related to skills and position types.

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In this regard, the following human resource plan can be prepared for Hilton Hotel Stratford:

  • Determining human resource needs: Hilton Hotel is required to increase the size of workforce. This is justified on the basis of the increase in demand. Moreover, external analysis also indicates that in order to match the demand, the number of employees need to be enhanced (Wilton, 2016).
  • Determining recruiting strategy: A combination of internal as well as external recruitment strategies need to be undertaken by Hilton hotel in order to increase the size of the workforce. This will comprise of recruiting through recruitment agencies as well as opting for internal promotions.
  • Selection: The selection needs to be multi phased so that rightly skilled people are recruited for the various newly created posts in the hotel. Face- to –face interviews will essentially be a part of the selection process.
  • Training and development: The HR plan of Hilton hotel will essentially comprise of training and development. This is justified as the existing as well as the newly recruited employees will have to be trained in using the technology in order to keep pace with the trends in the hospitality industry.
  • Determination of compensation: This is the next step of HR plan where compensation will be determined on the basis of the government regulations as well as the job position (Hollenbeck and Jamieson, 2015). It is justified so that Hilton hotel does not lose its staff to the competitor organizations.
  • Performance appraisal: The last step of the HR plan will comprise of developing standards so that performance of the employees can be rated.

Task 2

2.1 Current state of employment relations

Multinational organisations like Hilton must always remember one particular fact before devising new strategies and that is effective employee relations. No strategy or action plan can be successful until and unless workforce support is achieved. Several times, business authorities ignore this point of remembrance and get lean in their profit oriented mindset that they forget to maintain their relations with employees (Hoque, 2013). Hence, HRM function is developed in Hilton Hotel Stratford. Hotel industry is entirely service oriented. They have to develop human relations in the most effective manner when sighting growth and huge profits. For understanding the concept of effective employment relations in Hilton Hotel the following example can be considered.
Senior management holds the manager accountable for any delay in operation or function. Hence, they scold and mistreat the manager which tends to create a drift amongst these two levels. The manager will further misbehave with respective employee because of whom this situation has occurred. Furthermore, that employee may develop a negative perception towards complete organisation as result he/she may either leave the company or create negative group-ism in organisational culture (Stone, Deadrick and Johnson, 2015). Henceforth, it becomes essential for the company to maintain and develop healthy employee relations.

The current state of employment relations in Hotel industry is quite brittle and brisk. Being a labour intensive sector, separate trade unions and employer organisations have been established for managing the needs and requirements of people who are giving their services in some form or the other (Stredwick, 2013). European Industrial Relations Observatory (EIRO) is an organisation that monitors hotel and service industry workers and their working conditions in the member states of European Union. The existence of such regulatory bodies enables workers to confront their business authorities about poor working conditions or unfair wages without any fear of oppression. There are various elements that can affect the balance of employment relations in countries (Björkman and et. al., 2013). It can be discrimination on the basis of gender, age, religion or changing lifestyle. Growing population means people require more money to sustain their needs. This can be met if companies have appropriate wages defined in their financial and economic structure.

Hilton's business expansion plans cannot be implemented smoothly if there is no healthy employment relations. Workforce oppression, discrimination or negative politics are the factors that needs to be controlled. It will not only ruin employee relations but also retard growth and development of the company (Kehoe and Wright, 2013). Workplace relations are developed when leaders are effective. Current business environment has leaders that have transformational characteristics. Unlike historic leaders, they believe in overall development rather than individual benefits. This attribute of their helps employees to figure their place in the company. Moreover, they develop a sense of respect towards functioning of Hilton is leaders are transformational.

Modern world civilisations believe in equal opportunities to everyone without discriminating on the basis of any subject. The concept of sustainability in competitive markets has also influenced business organisations to develop strategies in such a manner that people, profits and the environment are under control and nobody is harmed or abused in any way (Rothenberg, Hull and Tang, 2015). Hence, these aspects describe that current status of employment relations in the hotel industry is quite healthy and modifying into a friendly one.

2.2 Effects of Employment law

Employment laws are developed by the judiciary of the country for safeguarding individuals at workplace. There are variety of legislations and policies that are defined only for the welfare of the employees. HRM practises are largely impacted by Employment laws and legislation. These effects can be positive or negative depending on the acceptance of employees and the organisation. Since, Hilton's newly developed branch in Stratford shall only function smoothly if there are certain laws and rules that will abide every functioning individual irrespective of their working position (Chuang, Chen and Chuang, 2013).

Workplace in hotel or service industry is subjected to abuse and harm continuously. This can be internal or external depending on the source through which abuse or harm is goiung to take place. Certain criminal activities can take place from client side or from one employee to the customer or even between employees of the company. HRM helps in managing such issues through employment law. Basically,employment agreement is a legislation that is to be agreed by every individual when they get the offer letter or official joining letter for Hilton. It consists of various clauses and important rules which that potenti9al employee has to follow during his/her working tenure (Sparrow, Brewster and Chung, 2016). Despite of being a private sector organisation, Hilton holds the responsibility of safeguarding its existing employees and customers from different kinds of threats.

Human resource management is positively affected by anti-discriminatory laws, wage and hour law, leave provisions policies, healthcare and safeguarding laws. When a person is being discriminated on the basis of race, colour, gender or any other thing then, he/she has the right to complain and file a legal suit against respective individual or organisation according to these laws. The Age Discrimination in Employment Act helps human resource management to handle the cases that involve discrimination and exploitation. On the other hand, leave provisions in the employment act allows employees to take certain amount of leaves which are permissible at the government side (Heizer and Barry, 2013). HRM is responsible for allocation of leaves and holidays according to the office structure of Hilton. Such laws affects HRM to take appropriate decisions which are in accordance with the leave provisional laws. The Fair Labour Standards Act (FLSA) monitors this attribute of workforce. Companies are bound to pay employees an extra income for overtime and extra hours they spend in the office. Furthermore, any sort of violation if witnessed can lead to heavy monetary loss for the company.

The affects of employment law on human resource management is felt by Hilton in the form of more strict workspace. Discipline and obedience is generated amongst employees when they have a pressure of being punished and condenmend if found guilty of any unethical practises. The responsibility of human resource managers increases as they will be held accountable if acts and policies that are implemented by country government are not followed effectively (Smith and Maull, 2014). Moreover, corporate social governance idea can be visualised into active reality if employment laws are followed and implemented as an integral part of human resource management strategies. Hence, hotel industry is bound to follow the laws and regulations strictly without any form of lineage or extra leverage for special cases.

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Task 3

3.1 Job description and person specification

Hilton Hotel Stratford may or may not require new candidates for handling certain operations. When placing an advertisement at different portals, there are two important things that need to be considered (Sallis, 2014). These are job description and person specification. Here, these two elements are described for the job position of banquet manager in the hotel.

Job Description

Job Title: Banquet manager
Reports To: Sales and Food manager
Position Summary:
Banquet manager is a person who has to look after the events and conferences that will tale place in the Hotel. He has a responsibility of collaborating food and beverages supply to clients according to their demands and conditions. The individuals working at this position have to look after trainees and new recruits, develop daily operations schedule for his subordinates and must care for house activities that will take place.
Duties and Responsibilities:
Following set of duties and responsibilities have to be fulfilled by the person working as a banquet manager.

  • Manage and control budgets that are allocated to food, beverage and labour that is involved in the banquet.
  • Meet everyday deadlines and schedule objectives in most ethical form.
  • Supervising and coordinating with different functions that are engaged with banqueting.
  • The banquet manager has to be assured and informed about any sort of changes that are made in the planned events and conferences.
  • Actual function budget sheets must be prepared and forecasted for getting the vision of approximate expenses which will be involved in both client side and hotel side.
  • Inventory records, labour costs and food costs are to be maintained and recorded.
  • Entire banqueting facility has to be supervised and monitored effectively without compromising hotel standards and customer requirements.
  • Communication channels must be developed and maintained by banquet manager for correlating different operations and people that are employed for the same.
  • Working with head Chef and head server for ensuring proper arrangement and achievement of customer specifications.

Person Specification-Banqueting manager

Work Experience: Minimum of 5 years experience in banqueting and events industry as a manager or team leader.
Education/Qualification: A post graduate degree in management of business entities with first class percentage is necessary. Graduates with ample experience can also apply.
Skills and abilities:

  • Planning and scheduling efficiency.
  • Time management skills are a must.
  • Knowledge of relevant industry with limited understanding of basic work laws and legislations.
  • Technical capabilities like basic computer operations, Microsoft office usage, internet surfing.
  • Delegation abilities with effective communication skills.
  • The person has to be good enough in judging competencies or flaws in the organisation which means body language expert.
  • Organisational skill with efficient problem solving is required.

3.2 Selection processes

Recruitment and selection is a human resource management function. The nature or procedure of selection of individuals in different industries is different. It entirely depends on the requirement and eligibility criteria of every business organisation. Service industry involves real time communication and interaction with customers (The Role of Human Resource Management in Organizations, 2017). Hence, the most important aspect of job criteria is effective communication skills. Being more precise, selection process of Hilton is quite different from Red Carnation Hotel and Marriott. Following comparative table depicts this difference.

Hilton Hotel Red Carnation Hotel

Hilton Hotel has a rigid selection process with multiple stages build to get best candidate profile.
Since, the organisation holds a brand reputation; it becomes important for the company to recruit individuals that have efficient skills and sufficient knowledge to perform their job.
The selection process in Hilton is divided into six main stages that are:

  • Notification
  • Reviewing
  • Screening
  • Personal interviewing
  • Background verification
  • Selection.

Red Carnation Hotel is a British multinational company functioning in the Hotel industry. The selection process of this organisation is quite simple and flexible depending on the requirement of the company.
It is segregated into three steps that is:

  • Screening
  • Interviewing and
  • Selection

Many times, organisation faces situations where reference or influence of people also leads to selection of certain candidates.

This comparative table depicts that Hilton's selection process is quite complex and involves multiple stages. The reason behind such procedure is the need for highly skilled staff. Being a luxurious hotel, the clients or customers that will opt for staying or acquiring services of Hilton Stratford will also belong to high income group. Hence, employees that are going to handle the clients also must be efficient and talented enough. Every worker that functions in a business is a representative of the company. They are equal contributors in developing corporate image of organisation in competitive markets. The screening and background verification stages depict that there is organisation performs double check in selecting deserving candidates (Six Main Functions of a Human Resource Department, 2017).

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On the contrary, Red Carnation Hotel has an entirely different selection procedure. The company functions to sustain in highly competitive markets. People with a strong referential background are considered for a particular position without performing any regulatory step. This depicts that recruitment and staffing process of human resource management is not ethical when considering Red Carnation Hotel. The selection process has only three basic steps and no complications are assisted with these. But the only thing that is common between these two organisations of hotel industry and that is personal interview. This stage of selection process is designed for understanding the vision and capabilities of potential candidates with close examination. It helps in selecting only those individuals that depict the will and desire to work with particular companies (UK hotels forecast, 2016).

It is important for human resource management of Hilton to understand organisational requirements and then select an individual. Apart from brand reputation there are many more elements engaged with recruiting and selection of an individual. These include resource investment, utilising time in training new entries, allocating certain resources for the benefits of new employees, etc. If wrong or incapable candidates are recruited then, company shall suffer loss in terms of resources. Hence, human resource management has to take at most care in developing selection strategies and processes for gaining best individuals for entire team.

Conclusion

Human resource management can be efficiently applied to functioning structure of the company when business authorities develop appropriate strategies. This report help in understanding the functions and specific roles of HRM when applied to Hilton Hotel Stratford. Moreover, basic aspects of employment relations and laws with their effects on human resource practises is also discussed. Following these factual information, a job description and person specification is also provided regarding the job of a banquet manager. This report helps in understanding the selection process in Hilton Hotel and Red Carnation Hotel along with their basic differences. It can be inferred from all such data that HRM helps in serving customers with consistency and efficiency which in turn results in meeting business objectives.

References

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  • Chuang, C. H., Chen, S. J. and Chuang, C. W., 2013. Human resource management practices and organizational social capital: The role of industrial characteristics.Journal of Business Research. 66(5). pp.678-687.
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  • Sallis, E., 2014.Total quality management in education. Routledge.
  • Smith, L., Maull, R. and CL Ng, I., 2014. Servitization and operations management: a service dominant-logic approach.International Journal of Operations & Production Management. 34(2). pp.242-269.
  • Sparrow, P., Brewster, C. and Chung, C., 2016.Globalizing human resource management. Routledge.
  • Stone, D. L., Deadrick, D. L. and Johnson, R., 2015. The influence of technology on the future of human resource management.Human Resource Management Review. 25(2). pp.216-231.
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