HRM Concepts at Hilton Hotel & Resort - Case Study Example

HRM concepts at Hilton Hotel & Resort Name Date Course Executive Summary Hilton Hotel & Resort was established in 1919 and operates in 78 countries including the United Kingdom. The PESTLE analysis indicates that the organization is utilizing the economic drivers for the purposes of meeting its HRM goals and objectives. The HRM models and theories point out that the organization has an effective means of carrying out its recruitment and selection process through the use of online means. The training at the organization is carried out through off-the-job and on-the-job means. The issues of cultural diversity are important to the organization and the employees are trained on aspects of cultural diversity. The HRM strategies of the organization are in line with the organizational strategies. It is also important to note that the organizational culture of the company is aligned to the HRM strategies with an aim of ensuring that it is able to meet its goals and objectives. The level of employee involvement at the organization is high which is a concept derived from the national culture. The organization rewards the employees for exceptional performance. The reward system utilizes the use of both financial and non-financial rewards for motivating employees. Effective communication is in place at the organization for ensuring that the performance review process is successful. It is recommended that the organization should enhance its HRM practices so as to ensure that it operations are effective. The organizational goals and objectives should be developed in consultation with the HRM personnel. Table of Contents Executive Summary 2 Table of Contents 3 Introduction 4 Economic Drivers that Influence HRM Strategies 5 PESTLE Analysis 5 HRM theories and models 7 Effectiveness of HRM strategies 9 Global approaches to HRM 10 HRM and organizational performance 11 Organizational, national and cultural specific issues 12 Management skills required in international business 13 Recommendations 15 Conclusion 16 List of References 17 Introduction Hilton Hotels & Resort is an international chain of full serviced hotels. The services are of high quality for the purposes of meeting the needs of the customers. The hotel operates in 78 countries in all the continents. It has been operating since 1919 when it was established (Hilton Hotel & Resort, 2015). Currently 540 Hilton Branded hotels operate all over the world. The hotels operate under independent operators although the quality of the services is high for all the Hilton branded hotels. The Hilton Hotel operates in the United Kingdom and it has several branches for the purposes of meeting the needs of the customers. It is also important to note that the Hotel is one of the best brands in the Hospitality industry. Hilton Hotel in United Kingdom is has highly qualified employees who are able to meet the needs of the customers. The hospitality sector has been growing over the past four years. Globalization is one of the major factors that enhanced the growth of the sector. The advanced technology as well as changes in the customer behaviors has impacted positively on the growth and development of the industry. In the United Kingdom alone, the industry experiences a growth rate of 5.6%. This can also be attributed to the increased rates in the country. On the other hand, it is also important to note that the industry is expected to experience a high growth rate in 2015. The paper discusses the human resource issues in relation to Hilton Hotel & Resort which operates in the Hospitality industry. Hilton Hotel & Resort in Egypt Economic Drivers that Influence HRM Strategies PESTLE Analysis Political The political environment in the United Kingdom is stable which has played an essential role in terms of ensuring that the businesses are able to grow (Mohan, 2014). Hilton Hotel & Resort has achieved a high level of growth and development due to the stable economic condition. This has enabled the organization to carry out its HRM practices effectively. On the other hand, it is also important to note that the stable political environment has been influential in the decision making process with regards to the operations of the hotel. However, it is also important to note that the HRM practices at the hotel are not influenced by the politicians. Economic The economic environment in the United Kingdom is currently stable despite experiencing recession at some point (Castells, et al, 2012). The stable economic environment has been influential in terms of developing strategies that are needed for success. The stable economic environment has resulted to a stable labour market which has influenced the recruitment policy of the employees. The employee pay at the hotel has been influenced by the stable economic environment. The salary packages for the employees are quite competitive. This is an indication that the HRM policies at the organization are influenced by the economic factors. Social The social factors in the United Kingdom have been a major growth driver for the hotel. This is considering that the hotel is in the hospitality industry. The customer behaviours influence the ability of the needs of the customers with regards to the Hotel. This has been influential in terms of developing the HRM practices in order to meet the needs of the customers. During the recruitment process, the hotel usually considers the social factors which drive the growth of the business. This is therefore an indication that the social factors drive the growth of the business. Technological Technology is a factor that has driven the growth of the hotel. This is considering that the level of technological advancement in the country is quite high (Mohan, 2014). The use of technology is usually used for automating the services at the hotel. On the other hand, it is also important to note to that the use of technology has improved on the provision of services. The HRM practices have also been influenced by the use of technology in terms of its operations. During the recruitment process, the ability of the employees to utilize technology is usually considered by the management. Legal In the United Kingdom, the legal system is just and the laws are applied equally to the business organizations. Hilton Hotel has always complied with the legal requirements when it comes to the labour issues. This has impacted positively on the growth of the hotel as it has been able to recruit highly qualified employees. The legal issues with regards to the employment rights have led to the development of a good relationship with the employees who have positively influenced the growth of the hotel. This is considering that the relationship between the employees and the management influences the performance of the employees. Environmental The environmental subsystems in the United Kingdom are aimed at promoting a safer environment. The growth and development of an organization is dependent on the activities that it carries out in order to promote the environment. The HR department usually complies with all the requirements regarding the environment. The hotel is involved in corporate social responsibility activities for the purposes of promoting environmental activities. The brand image of the hotel has also grown due to its activities that promote the environment. HRM theories and models Hilton Hotel & Resort is considered as one of the admired companies in the world. As a result of this, most of the people are always interested in working for the hotel. On the other hand, it is also important to note hotel requires highly qualified employees. During the recruitment process, the hotel usually uses the online method. The advertisements are usually made online and the applicants can also apply online (Hilton Hotel & Resort, 2015). On the other hand, a job portal has been created for the purposes of enabling the potential candidates to post their CVs. This has played an important role in terms of ensuring that a high number of people are attracted. Interviews are usually carried out through the use of different means including the online means. The online means usually involves the use of the Skype to conduct the interviews. Shortlisting of the applicants is usually carried out before the interviews. In some instances, the hotels usually apply the tests for the purposes of selecting the employees. It is also important to note that the recruitment and selection process at the hotel is usually transparent. This has played an important role in terms of gaining the confidence of the candidates who are involved in the process. It is also important to note that the process of recruitment and selection at the organization is usually carried out by highly qualified personnel. In some of the instances, the external recruitment agencies have been used for the purposes of recruiting employees to the organization. The Munro Frasier Five Fold grading system plays an important role in terms of analyzing the HRM practices such as recruitment (Armstrong & Taylor, 2014). The grading system has five main factors that are usually applied to the human resource concept. The first factor is the impact on others which involves speech and manner. In terms of the recruitment and selection process at the hotel, the process has positive impacts on the people involved including the candidates. In terms of the acquired qualifications, education, vocational training and work experience is usually considered. This is considering that such factors results to the recruitment of highly qualified employees. In terms of innate abilities, the employees who are recruitment have to be ready to learn. The recruitment of highly motivated employees at the hotel is also an indication that the process is aimed at ensuring that the hotel is equipped with highly qualified employees. The adjustments that are made by the organization are aimed at ensuring that the process is flexible and hence ensuring that the process meets the needs of the candidates. The recruitments and selection process at the hotel is therefore effective and this plays an important role in terms of wing the trust of the candidates as well as the other stakeholders. Effectiveness of HRM strategies At Hilton Hotel and Resort, the Human resource management department has put in place measures to ensure that the needs of the employees are met. Employee commitment is one of the main factors that determine the level of productivity of the employees (Weske, 2012). The Hotel has usually motivates the employees for the purposes of ensuring that they are committed to the organization. High levels of motivations create a sense of belonging which impacts positively on the commitment of the employees. Flexibility at the organization is usually attained through developing schedules that are friendly to the employees and hence promoting flexibility. Flexible working arrangements are in place at the organization for the purposes of ensuring that the employees are able to perform their duties effectively. On the other hand, it is also important to note that the organization values the concepts of quality and strategic integration. Different quality measurement methods are in place at the organization for the purposes of ensuring that the services offered by the employees are of high quality. The concepts of strategic integration are also achieved through teamwork among different professionals at the hotel. A reward system is in place at the organization for the purposes of appreciating the employees who come up with exceptional performance. The use of financial as well as non financial methods of rewarding the employees is in place at the organization. Rewarding the employees plays an essential role in ensuring that the employees are motivated (Berman, et al, 2012). A high level of motivation usually results to improved performance. The HR concepts are also applied at the organization during the recruitment process for the purposes of improving on effectiveness. Highly qualified employees are usually involved in the recruitment process for the purposes of ensuring that the process met the required standards. Evaluations are usually carried out with regards to the process for the purposes of determining its efficiency. The results of the evaluation in most cases are usually used for making improvements during the next recruitments and selection process. The efficiency of the recruitment process has played an important role in ensuring that all the candidates are satisfied with the process. According to the human resource management theories, a recruitment process is considered effective only when the candidates are fully satisfied with the process. Global approaches to HRM The approach to human resource management globally differs from one organization to the other. The differences are mainly for the purposes of meeting the goals and objectives of the organizations. Depending on the nature and needs of the organization, the HRM approaches differs globally. Training and development is one of the main aspects of HRM and it is applied by all the organizations including Hilton Hotel & Resort. The needs of the organization usually lead to differences in the training and development. At Hilton Hotel, the training is usually carried out on the job and of the job. The major area for the training of the employees is in the area of culture and customer care. This is considering that the hotel usually attracts visitors from different parts of the world with diverse cultures. All the visitors at the hotel have to obtain high quality services without any barriers including that of culture and hence the importance of the training programs that are usually carried out at the organization. Globally other forms of training are also in place for different reasons and this includes the in-house training. The training and development in some of the organizations are mainly for the purposes of enabling the employees to enhance their knowledge and skills with regards to the use of the new technology (Ulrich, 2013). Constant changes are also taking place within the industry and hence the importance of using different approaches when dealing with the HRM practices. HRM and organizational performance The organizational performance is dependent on the HRM practices and hence its relationship with the organizational performance. The human resource management department plays an essential role in terms of supporting the activities of the organization. The HRM function usually determines the ability of the organization to meet the goals and objectives that have been put in place through the utilization of the human resources. The participation of the employees in the activities of the organization is one of the important functions of HRM. According to the theory of employee participation, the level of participation of the employees plays an important role in terms of determining the organizational performance (Mello, 2014). The organizational performance is always good in the organizations with a high level of employee participation. At Hilton Hotel, the organizational structure is flexible and it allows for the participation of the employees in the decision making process. This has impacted positively on the organizational performance of the hotel. Rewarding the employees is an important function of HRM. According to the theory of reward system, the rewards play an essential role in ensuring that the employees improve on their performance. An improvement in the performance of the employees usually translates to the improved performance in the organization. This is therefore an indication that HRM contributes to the organizational performance. At Hilton Hotel, the organizational performance is usually improved through the reward system which is a core function of HRM. This has played an important role in enhancing the brand image of the organization due to its good performance. Organizational, national and cultural specific issues The HRM strategies play an essential role in ensuring that the organization is able to carry out its activities effectively. The HRM strategies of an organization are usually influenced by the national culture in the specific country that it operates. The national culture can be identified with the people living in the particular country. It is therefore important for the strategies of the organization to be in line with the national culture. The organizational culture of Hilton Hotel is influenced by the national culture in United Kingdom. On the other hand, it is also important to note that Hilton Hotel is a chain company and its parent company is based in the United States of America. The general mindset of the people in the United Kingdom is different from that of the parent company. This has affected the way the company operates including the hiring of the local employees. The mindset of the people also affects the motivation of the employees. According to the theory of rewards system, different rewards can be used for the purposes of motivating different group of employees (Mathis & Jackson, 2011). This is also influenced by the national culture of the country. In the United Kingdom, most of the employees are motivated by non-financial rewards and this is linked to the national culture of the country. As a result of this, the human resource management strategy is influenced by the national culture. The link between the organizational culture and the national culture has played an essential role in ensuring that the organization is able to meet the needs of the employees. The citizen involvement in the activities of the government is one of the characteristics of the national culture in the United Kingdom. The citizens are usually consulted during the decision making process in relation to crucial matters (Cashmore, 2013). This characteristic of the national culture has influenced the organizational culture at Hilton Hotel. The level of involvement of the employees in the matters and operations of the organization is quite high. This is therefore an indication that the organizational culture is influenced by the national culture in United Kingdom. The levels of transparency with regards to the operations of the hotel have been enhanced through the involvement of the employees in its operations. The organization I the United Kingdom carries out its operations independent of the parent company. As a result of this, it is able to fully understand the needs of the local employees working for the hotel. However it is also important to note that the company has some of the expatriates who are skilled in different areas. The main challenge in dealing with the expatriates is the cultural diversity. The cultural diversity makes it difficult to apply some of the concepts to all the employees. The organizations usually provide the employee training on the issues of cultural diversity for the purposes of dealing with the challenges of cultural barriers. This is also considering that the employees are supposed to serve customers from diverse backgrounds and culture. Hilton Hotel & Resort usually receive visitors from different parts of the world who are from diverse cultures and backgrounds. Management skills required in international business Performance management skills are important for the managers in terms of ensuring that they have received adequate support during the process. Performance appraisal is an important tool that usually used for the purposes of determining the performance of the employees. A manager requites good communication skills so as to interact with the stakeholders during the process and win their support. The presence of communication enables the employees who are among the most important stakeholders to understand how the process will be conducted. People skills are also useful during the process as the process will mainly involve interactions with the employees and other stakeholders. Measuring the performance of the individuals is important to the organization in terms of determining whether they have met the required targets or not. It is through the performance measurement that the organization is able to identify the strengths and weakness of the employees (Pedersen & Thibault, 2014). This information can be used for the purposes of developing the training needs of the employees. At Hilton Hotel, performance management is usually carried out every year and this is for the purposes of determining the performance of the employees. Through performance management, the employees who are performing well are usually promoted for the purposes of ensuring that their skills are utilized better. Performance management also enables the organization to terminate the contract of the employees who are not performing their duties as required. Performance management is a crucial task for an organization and it requires diverse knowledge and skills in order to satisfy all the stakeholders. Meeting the needs of all the stakeholders during the performance appraisal is a difficult process and hence the need for managerial skills. This is also common in the United Kingdom where the labour unions are known for resisting the performance appraisal process. Performance appraisal is also beneficial to the employees and the organization in terms of promoting trust. According to the concepts of human resource management, performance appraisals have to be carried out in a fair and transparent manner so as to avoid the incidences of lack of trust and satisfaction in the process (Buller & McEvoy, 2012). At Hilton Hotel & Resort, the employees are usually involved in every step of the process for the purposes of ensuring that lack of trust is eliminated. This has played an important role in ensuring that the employees are satisfied with the process. The performance appraisals results can be used for the purposes of determining employee compensations which is beneficial to the employees. Performance appraisals also provide the organization and the employee an opportunity for consultations for the purposes of setting the goals and objectives. The negative perceptions that are associated with the performance appraisals have been eliminated at the organization through involving the employees and providing accurate feedbacks. It is also important to note that feedback and communication is useful in ensuring that the employees are confident with the process. Recommendations The HRM practices at Hilton Hotel & Resort have played an important role in enabling the organization to meet most of its goals and objectives. It is recommended that the organization should utilize a broad range of economic drivers for the purposes of meting its goals and objectives. All the organizational goals and the strategies should be aligned t the goals and objectives of the human resource management. It is recommended that the human resource management department should be consulted during the process of establishing goals and objectives. It is recommended that the organization should enhance its recruitment and selection process so as to attract a wide range of candidates. The use of the online means should continue being utilized by the organization. It is recommended that the training and development of the employees at the organization should be carried out on a continuous basis. This is for the purposes of ensuring that they are fully equipped with the latest knowledge and skill regarding the industry. It is also recommended that the organization should continue rewarding the employees for good performance as a means to motivating them. The issues of cultural diversity should also be prioritized at the organization for the purposes of meeting all the needs of the employees and customers from diverse cultures. The level of employee involvement should be enhanced so as to ensure that the employees are fully involved in the operations of the organization. It is recommended that communication should be enhanced during the process of performance appraisal. Conclusion In conclusion, it is evident that the concepts of HRM play a significant role in ensuring that Hilton Hotel & Resort is able to meet its goals and objectives. The organization has utilized most of the economic drivers for the purposes of developing its HRM policies. It is evident that the HRM strategies of the organization arte effective in terms of recruitment and selection. The efficiency of the recruitment and selection process has played an important role in ensuring that the organization is able to recruit highly qualified employees. It is evident that the global approach to HRM differs globally depending on the needs of the organization. The training and development practices are different from one organization to the other including Hilton Hotel & Resort. It is evident that the reward system at the organization is effective in terms of motivating the employees. The organizational culture of the organization is related to the national culture which is useful in ensuring that the needs of the employees and other stakeholders are met. It is evident that the organization recognizes the importance of cultural diversity. This is considering that the hotel usually receive visitors from diverse cultures. The presence of a performance of an organization has also been enhanced by the presence of a performance management system. It is evident that the performance appraisal system at the organization is aimed at ensuring that the organization is able to improve on the performance of its employees. List of References Hilton Hotel & Resort, 2015, About us, Retrieved on 30th March 2015 from, . Hilton Hotel & Resort, 2015, Careers, Retrieved on 30th March 2015 from, . Mohan, J, 2014, A United Kingdom: economic, social and political geographies, London: Routledge, London. Castells, M, et al, 2012, Aftermath: the cultures of the economic crisis, Oxford University Press, Oxford. Cashmore, E, 2013, United Kingdom?: Class, race and gender since the war, Routledge. Armstrong, M, & Taylor, S, 2014, Armstrong's handbook of human resource management practice, Kogan Page Publishers. Weske, M, 2012, Business process management: concepts, languages, architectures, Springer Science & Business Media. Berman, E, et al, 2012, Human resource management in public service: Paradoxes, processes, and problems, Sage, London. Ulrich, D, 2013, Human resource champions: The next agenda for adding value and delivering results, Harvard Business Press, Harvard. Mello, J, 2014, Strategic human resource management, Cengage Learning, London. Mathis, R, L, & Jackson, J, 2011, Human resource management: Essential perspectives, Cengage Learning, London. Pedersen, P, M., & Thibault, L, 2014, Contemporary Sport Management, 5E, Human Kinetics. Buller, P, F, & McEvoy, G, M, 2012, Strategy, human resource management and performance: Sharpening line of sight, Human Resource Management Review, 22(1), 43-56. Read More