The Evolution of Human Resource - Case Study Example

Service Level Agreement Report – Human Resource Management Student’s Name Course Tutor’s Name Date: HRM strategic plan and HRM’s implications to the organisation The saying among organisations that people are their greatest asset has become something of a cliché. As noted by Haines and Bandt (2004), organisations continually fail to develop systems that would support and connect HR practices to organisational objectives despite the apparent knowledge about the important role played by human resources. Using the example of Marriott Gold Coast Hotels, this paper will illustrate several aspects of HRM. HRM strategic plans are an illustration of the backward theory, where an organisation envisions an ideal future, and then plans its human resources and strategies in a manner that contributes towards the attainment of that future (Haines & Bandt 2004). At Marriott Gold Coast, HRM strategic plans are evident in the role that HR plays in supporting the hotel’s business goals (i.e. becoming the leading hotel in the region both in the quality of service provision and visitor numbers). The administrative functions of HR (e.g. recruitment, training, performance appraisals and compensation) are also geared towards realising the HRM strategic plan. The HRM’s implications to the organisation is that by recognising employees as a critical component towards attaining company goals, Marriott gold coast hotels have managed to develop its human resource towards supporting its business goals. == Four possible HRM structures and delivery options According to Vosburgh, Resorts and Mirage (2007), HRM can be structured to act as: i) a strategic partner; ii) a change agent; iii) an administrative expert; and/or iv) an employee relations expert. In the strategic partner structure, HRM can engage in strategic HR planning, culture and image management, and should also adopt the role of a business partner. If structured like a change agent, HRM would be responsible for talent management and staffing, training and development, and performance management. In the employee’s relations expert, HRM’s delivery options would include handling workers compensations, employee relations, labour relations, and diversity in the workplace. In an administrative expert structure however, HRM would adopt delivery options which include managing HR information systems, overseeing compensation and benefits or employee, and managing compliance. At the Marriott Gold Hotels, evidence of all the four structure can be seen. For example, the hotel perceives employees’ (associates’) empowerment as one way of increasing its profitability, and as such, it can be argued that the hotel’s HR perceives the associates as business partners. An administrative experts’ structure is also evident in the hotel through the HR department’s encouragement of associates to share in the company’s goals and missions, and the insistence that associates too should share their aspirations regarding the hotel. == Recommendations, justification for HRM structuring at Marriott Gold Coast Hotels In a study conducted by D’Annunzio-Green, Maxwell and Watson (2004) in the Marriot Gold Coast Hotels, it was found out that associates were divided into grades, with grade 1 and grade 5 being the highest and lowest grades respectively. While grade 1 associates are subjected to specific goals during performance appraisal, grades 4 and 5 associates “are assessed using less complex assessment forms” (D’Annunzio-Green et al. 2004 p. 140). Notably, the difference in the strategy used in employee appraisal has been criticised as passing on a message that could be interpreted as meaning that employees in grades 4 and 5 are less ‘important’ than their counterparts in higher grades. D’Annunzio-Green et al. (2004) specifically found fault with the different appraisal systems because all employees’ recruitment procedures at the Marriott Gold Coast were standardised regardless of the grades that new employees were joining. A recommendation to standardise the appraisal system for associates across all grades in the Marriott Gold Coast Hotels should therefore be adopted as part of the HRM structuring. In addition to bridging the perceptions regarding the importance of the different grades, the standardisation of the appraisal system will also ensure that employee performance is gauged similarly across all levels thus creating uniformity. Ideally, even associates in the low-grade levels will know that much is expected of them, and are therefore likely to improve their performances. == Legislation that must be understood by HR and line management Equal employment opportunity law: This is a law that seeks to ensure that employees are not discriminated, or denied working opportunities based on their race, ethnic origin, skin colour, gender, age, disabilities or religious beliefs or practices. The main purpose of the equal employment opportunity law is to ensure that all job seekers and employees have equal opportunities of getting jobs, and/or getting promotions at the workplace. Affirmative action: The affirmative action legislation requires employers to make extra effort to employ and promote people belonging to a specific minority/underrepresented group. Australia for example has the Workplace Gender Equality Act 2012, which requires employers to comply with specific gender equality indicators set for the workplace. Failure to comply with specific gender requirements means that an employer cannot be granted contracts by the Commonwealth, and is not eligible to receive financial assistance or grants from the Commonwealth (Australian Government 2012). Sexual Harassment legislation: The decision to impose duties to employers to eliminate sexual harassment was arrived at by a 2008 Senate Committee. In the Committee, it was decided that the Sex Discrimination Act 1984 was not as effective as it was initially meant to be, and as such, the committee members decided to shift the onus to employers (Mackay 2009). Under the positive duties requirement, the law requires employers to not only be proactive after a sexual harassment incidence has been reported, but also proactive towards preventing such harassment from occurring. Marriot Gold Coast Hotels prides itself as being an equal-opportunity employer, hence the indication that it meets the equal employment opportunity law requirements. Additionally, the hotel has a social-inclusion policy, which promotes affirmative action for women especially by allowing them flexible work hours and paid maternity leaves among other things. The hotel also has a sexual harassment policy, which indicates the rules of unacceptable sexual behaviour in the workplace among employees. == Section 5: A HR plan that supports a strategic plan Marriott Gold Coast Hotel’s strategic plan is geared towards helping the organisation become the leading hotel in the region both in the quality of service provision and visitor numbers. To date, Marriott has used a strategic plan in its hiring and recruitment practice that seeks to attain a strategic HR fit for the organisation by hiring associates with the right set of skills for the available job vacancies. Notably, as revealed by one of the HR managers in the hotel, the recruitment and hiring process is becoming too engaging, something that consumes valuable time from the HR department; time which would otherwise be spent attending to internal HR-related activities and processes. A HR plan has therefore been devised, where Marriott Gold Coast Hotel will outsource the recruitment process. The aim of the HR plan is to reduce the amount of time that the HR department spends on recruitment and hiring, while still retaining the quality of new associates. The plan seeks to attain the following objectives: Identify a HR firm that offers outsourcing services and engage it for the same The HR department should retain the ultimate decisions regarding which associates to hire. Ensure that newly recruited employees attain organisational fit Associated performance indicators for the above HR plan include: A comprehensive understanding about Marriott and the associates that the hotel needs to attain its business strategy A safeguard to ensure that associates recruited by the contractor are what the organisation needs should indicate that the contractor does indeed recruit good associates. The safeguard will involve an arrangement that requires the contractor to refer all recruited associates to an in-house HR manager at Marriott, who will have the responsibility of selecting and hiring the new associates. The quality and performance of new associates will improve (or at least remain at par with what in-house recruitment was able to achieve) The HR department at Marriott will have more time to handle other HR-related issues more comprehensively. == Service Level Agreement for recruiting services by Marriott Gold Coast Hotel to XYZ HR provider In this service level agreement, Marriott Gold Coast Hotel is the “Consumer”, while XYZ HR Provider is the “Provider”. The agreement between the Marriott and XYZ is that the former will outsource its recruitment services to the latter. XYZ has agreed to undertake a comprehensive acquisition of knowledge from Marriott in order to enable it recruit associates who fit into the HR strategic plan of the organisation, and the larger organisational strategic plan. Client’s (Marriott’s) issues Marriott wants to outsource its recruitment activities and processes to XYZ Marriott wants its standards of recruitment to be upheld or enhanced Marriott wants to retain the selection and hiring process Marriott will require XYZ to recruit, shortlist and forward candidates to its in-house HR department, who will then select and hire the ideal candidates. XYZ’s responsibilities (things to deliver) Quality shortlisted candidates who can fit into Marriott’s HR strategic plan Standards of service provision XYZ is expected to provide Marriott with candidates who are qualified, motivated and willing to work in indicated associate positions. Ideally, the turn-down rate of XYZ-shortlisted candidates by the Marriott’s HR manager should be less than 10 percent annually. In short, XYZ is expected to understand Marriott’s HR requirements at any given time, and provide skilled people who can effectively satisfy such requirements. Marriott’s responsibilities Marriott Gold Coast Hotel has the following responsibilities under this agreement: Alert XYZ whenever a vacancy that needs to be filled arises Specify the exact qualifications and requirements needed for candidates that would take up a job position Take up the selection and hiring process after XYZ refers candidates to them Pay XYZ for services Non-performance by either Marriott or XYZ Non-performance by either party will lead to the cancellation of this service level agreement. The mutually beneficial nature of this agreement requires that each party plays its rightful duties. Expectations If expectations on either side are not met, a meeting between the two sides will be convened to discuss the issue. Ideally, the two parties should reach an amicable agreement about how to resolve the issue. Failure by Client to meet their responsibilities/obligations If Marriott does not meet its obligations, XYZ will not shoulder any liabilities for the same. In cases where Marriott fails to pay for services rendered, XYZ will provide a written notice to request for the same. Further failure by the client may lead to XYZ escalating the issue to be handled through a legal (court) process. References Australian Government 2012, ‘Workplace gender equality act 2012’, ComLaw, viewed 22 March 2013, < http://www.comlaw.gov.au/Details/C2012C00899>. Bandt, A & Haines, S. G 2004, Successful strategic human resource planning, Systems Thinking Press, San Diego. D’Annunzio-Green, N, Maxwell, G, & Watson, S 2004, Human resource management: international perspectives in hospitality and tourism, Cengage Learning EMEA, London. Mackay, A 2009, ‘Recent development in sexual harassment law: towards a new model’, Deakin Law Review, vol. 14, no. 2, pp. 189-217. Vosburgh, R M., Resorts, M, & Mirage, M 2007, ‘The evolution of HR: developing HR as an internal consulting organisation’, Human Resource Planning, vol. 30, no. 3, pp. 11-23. Read More