Human resource management is the process of hiring and developing an employees in order to they become more valuable to the organization. HR department is primarily concerned with the management of people within an organization and focuses on policies and on system. It includes several resources like job analyses, planning personnel needs and recruit the right people for right job. It also provide direction towards the accomplishment of managerial goal. The present case study is based on the managing human resources and to understand this, Huntsman Hotel plc case study is taking in to consideration. It is one of the top leading hotel in UK where it has offered wide range of services to the customer at affordable prices. Through this case study Huntsman has a poor reputation for managing its staff people. Most of senior position are hold for the family person and they have majority of remaining company shares.
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1. Identification of Huntsman Hotel HR issues
Every HR department faces problems both in running of their departmental functions and in the consistent enforcement of policies across the company. Above this case study they faces problem of high employee turn over rate especially at senior level management. Employees are the lifeblood of every company so that hotel needs to invest significant time and money in order to achieve maximum productivity. Employment retention is possible when fine balancing between the company culture, remuneration and their incentives. The second major challenge for HR department is to recruit attractive talent and retain for a longer time period. Hotel follows the flat communication structure where most of decisions are made by the director Giuseppe, they follows autocratic leadership style. They does not follow a fair remuneration structure it causes issues and conflicts between the employees sometimes it is the big reason for leaving the organization. Company expand its operations in France but they have not efficient staff for managing the operations and faces some problems regarding to customer services. Mangers and staff of a hotel is not flexible and they can't easy to move between countries. Some of staff members have problem to fluently speak in French. Management of people is the big weakness of an organization because it hampers the company productivity and morale. There are several competitors which includes Travelodge, Premier Inns and Ibis.
These competitors makes greater impact on the operational productivity and sometimes booking will be can-celled due inefficient service which damages the reputation and causes frustration among the staff members. Several staff members have not opportunity to held company shares because 51% of shares are held by the managing director of Huntsman is Giuseppee Salieri and remaining shares are held by the family people who hold the senior position in the hotel. Managing of people is the key weakness of hotel, they resist to adopt the changes and consequently they faces high rate of employee turnover which affects the hotel reputation along with productivity. They are very concerned about their recruitment and selection processes and to acquire attractive talent in order to improve the efficiency and staff can be redeployed in to different roles when shortage occur. Flatter communication channel is flow from top to bottom where decisions are taken by the top management of an organization. They also faces industrial disputes with Huntsman in past and try to improve relation in present. Sometimes junior staff faces favoritism issues and they are blamed for a wrong things. Shortage of staff in the France also a key issue for expanding the business because UK based mangers and staff members doesn't have an interest to go outside the country.
Training is an essential part for employee development in order to get best result from workforce so that hotel also suffer with those people and mangers who can't speak in France. Proper training program helps in to improvement in the language understanding and productivity of the customer service. Health and safety records helps in to keep employees safe at work and ensure about that company is meeting its legal obligations towards both of them. Hotel desire to reduce discrimination it will be required to demonstrate their progress towards their goal. Outsources of employees is the big task and present new challenges to meet the internal standards and requirements. Payroll department has responsibility to provide accurate payments to staff because some employees faces the fair remuneration about salary, benefits, bonuses all these things are distributed according to their dedication and competency which helps in to maintain morale and prevent future pay problems due to the dissemination employees are discourage towards the work. HR department provide interface between the company policies and staff. It is the department where queries are solved regarding to the issues, disputes and work related. Many of the weaknesses are exist in the employees skill which is Lack of soft such as creativity, adaptability or good interpersonal communication skill reduces the work quality. lack of technical expertise and work experience also create inefficiency in the desirableness of work.
2. Recommendations for a change in the existing work culture
Effective human resources management policies is the essential element for the success of any organization. A fundamental step in creating HR management policies and procedures is to develop a plan and all are working towards the same goal. Organization value is based on its human capital and their quality. HR functions are administrative focused functions which are the extension of business strategy. Huntsman Hotel faces employees turn over problem. They does not have an ability to retain the employees for a longer time period because they do not follow the fair remuneration and wages structure so that it creates the conflict among them which in turn to increases the high turn over ratio. The concept of favoritism also makes a negative impact on the employee productivity because this policy discourage the employees towards their dedication of work along with their competency level. Reward, bonus and other benefits should be provided on the the basis of their quality of work. Major part of company shares are hold by the managing director which is approximate 51% of total company and remaining shares are hold by the family members who hold senior position in the organization so that junior level of employees have less chances to held company share which reduces the self development opportunity.
Risk and reward should be emphasis on the employee work quality and their dedication towards the work. Compensation and benefit policies and procedures begin with developing compensation strategy. compensation plan should be documented along with functional steps for effective implementation which helps in to attract and retention of employees capacity. Effective compensation strategy makes distinct advantage over their competitors if below market compensation strategy influence the risk of high employee turn over and compromise with less qualified workers which reduces the customer service productivity. Effective recruitment and selection procedure creates the importance and value of an human capital. Recruitment procedure is not only based on the favoritism employment. Recruitment philosophy provides equal opportunity but it provides more specific recruiting procedures which includes identification of staffing need, job posting and interview steps. All these steps should be effectively followed for selecting the right people for right job at right time. Workplace policies and standard of operating procedures should be ethical in manner which reduces the situation of employee harassment. Working hours, pay information, benefits and performance expectations are core topics are included in the strategy planning of workplace. An equal employment opportunity policy and zero tolerance for discrimination or harassment should be a part of the organization code conduct. These policies helps in to provide a safe working environment in which employees feel like valued contributors. Language language barrier should be overcome by the extensive training program which enhances the employee capability and they can move outside the country without any hesitation like lack of knowledge, inefficiency in language understanding and other management problems.
Following policies and structure are to be used are beneficial for employees in way tom retain the employees for a longer time period. Employee compensation, bonus and wages program should be made according to their qualification and their competency level of work. They want to invite larger hotel group for the takeover of the hotel in the next few years where ventures have need for capital injection for the survival of business activities in order to some sort of profit and make sustainable image in market place. Huntsman Hotel manager Giuseppe decided that half on the new hotels will be establish in France but managing of staff in France is a critical task and no one staff member of UK wants to go outside the country because they have some kind of language problem and their cultural issue which are not in favorable of nature. Human resource management is not only engaged for securing and developing the talent of individual employee but also be concerned about the communication and coordination between the employees in order to nurture organizational development.
The basic responsibility of HR department is job analysis and staffing, effective utilization of workforce, monitors the work performance in order to give individual feedback and provide reward according to their performance. Human resource maintenance facilities are engaged by the health and safety administration usually entails with the federal laws which protects the employees from the hazards at workplace. Reward system are typically managed by the HR department as well as other function. It is an essential feature for the retention of employees in which organization provide reward to their employees against their work performance in past and gives incentives for higher performance in the future.
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3. Implications related to the management people at Huntsman hotel
From the given scenario HR person main role has moves beyond the personnel management- routine activities such as administration of payroll and benefits but it plays a pivotal role in developing people strategy which supports the organization business goal. The most valuable resource for an organization is its human capital, Human resources policies provides the workplace structure and guidelines for the most effective use of human capital. The implications of human resources policies means utilization of human capital in right in right way in form of better human engagement, effective job satisfaction and most important facor is impressive bottom line.
Recruitment and selection- Policies regarding to recruitment and selection are the framework for taking decisions in process of hiring. It is established by the person who have knowledge about the employment law and shape the policies based on the federal, state and local regulations for employment practices. The recruitment and selection are to be framed in order to provide equal opportunity to everyone. It is essential for building a productive workforce which helps in retention of employment.
Training and development-Training and development policy provides benefits to its workforce and organization. Organization appoints the qualified and expert trainer that offers the training regarding to the skill improvement, professional development and leadership training all these key element helps in the success of an organization. It is important for demonstrating the company interest in employees developmental needs like french language and other country organizational structure it helps in when expanding the business operations across the globe. Its main motive is to enhancement in the skill level at the workplace and deliver effective services to its customers which increases the productivity.
Workplace safety- Health and safety policies are to be designed in order where employees feel comfortable with company policy and protect against well being. All the safety and health policies are framed under consideration of federal and state regulations which are governed by agency like United state occupational safety and health administration. Safety policies are regarding to the workplace violence and gives the reward for employees for injury free month. Strict guidance are to be given for safety at workplace which helps in to wastage of human capital.
Performance management- Company mangers are responsible for the effective circulation of necessary tools and information which helps them in understanding for company performance expectations. Human resource policies are an essential part for supervising and management of duties. Performance management is the integral tool for the success of an organization it is a ongoing or continuous process for monitoring and evaluating the individual and group performance. It the describes the qualitative performance in order to create effective goal attainment. Performance management policies establish a platform for recognizing the individual employee contribution in the goal. Due to this company can achieve high productivity in customer service and job satisfaction along with less turn over rate. Developing and implementation of human resource policies are essential responsibility for HR. Implications of the recommendations are fruitful which helps in reducing risk and increases return. It can be useful for future development and enhancement in the revenue for the better position in the market place. Analytical skill also be enhances with the performance management in makes a positive contribution in the success of an organization.
All the human resource activities are monitor and explore by the management of people which provides the integration in the whole over activities. Use of various tools and techniques helps in expansion of several business activities in order to create wider network and serve to the mass people in order to generate larger revenue. Human resources gives various strategic tools for the improvement in the existing services and provides development guideline in order to achieve to accomplishment certain task. Several tools and techniques are to be used for the extensive development of human resource principles and policies which provides guidelines for the effective completion of project. All the recommendations are successfully implement which creates healthy and sustainable environment at the workplace of an organization. Organization value is based on its human capital and their quality. HR functions are administrative focused functions which are the extension of business strategy. Compensation and benefit policies and procedures begin with developing compensation strategy. Effective compensation plan may be documented along with their suitable functional steps in order to for effective implement ion along with attract and retention of employees capacity.
From the above stated case study, it can be concluded that management of personnel is the key component for the success of an organization. In case of Huntsman Hotel it face the problem of high employment turn over ratio which reduces the productivity of customer service. It has contained several factors that cannot be controlled by the firm. These have made both positive and negative impact over the companies. Fair remuneration program to be adopted by the firm which attracts the personnel and helps in to retain for a longer time period. effective training and development program provides opportunity towards the enhancement in the work related knowledge, reduces the language barrier and self development opportunity as well helps in the organizational growth. Hotel wants to invite the takeover large group for the capital injection which helps in smooth functioning of day to day operations and provides lifeblood for the survival in the market place. Flatter organization structure is also a complicated because all the decisions are made by top authority some times it creates delay in the decision making which hamper the productivity so that democratic type leadership style to be used for timely functioning with greater productivity but all functions are monitors by the top level authority.
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