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Unit 21 Strategic Human Resource Management Assignment - Hilton
Diploma in Business
Unit Number and Title
Unit 21 Strategic Human Resource Management
Human resources are the most important aspects in any of the organisation and play a major role in carrying out the business effectively. The strategic human resource management is been defined as an approach being used to manage the human resources which contributes in the achievement of the organisational goals with a strategic framework. The approach basically concentrates on the long term issues of the people, identifying the resources for future needs and concerns about the quality, value and structure of the business. Therefore, the present report is been carried out with the purpose to understand the concept of strategic HRM and relate them with the functionalities of the Hotel Hilton. Hotel Hilton is a leading hotel chain being situated in UK (Chathoth,2016). The report would help in evaluating the external and internal business environment of Hotel Hilton so that to identify the factors affecting its functionalities. It would the evaluate various human resources policies and procedures in context to the operation of the hotel and would even make relevant recommendations stating the initiatives to be made to retain and attract the human resources for the hotel.
Task 1: Analysis of the internal and external environment of Hotel Hilton
The analysis of external and internal environmental conditions helps an organization identify the factors which might influence its functionalities and performances to the great extent. The environmental analysis is been mainly considered as a strategic tool which is been carried out by various organization behaviour in various fields. The analysis mainly includes the levels of opportunities or threats which are been presented by the factors and affect the business operations of the hotel (Truss.et.al, 2013). The evaluation even contributes in the decision making process by the authorities and make better strategies out of the same. The strategies are been aligned with the environmental factors within the business. The environmental analysis is mainly classified in two types, i.e. internal and external environmental analysis. The external environmental analysis is been considered as a study and the evaluation of the macro environmental factors, competitor analysis in context to the growth standards of an organization. It has been found that the macro-environmental forces are the dimensions in the wider society that influences the firms within itself. It largely focuses on the future prospects of events while the internal environmental factors are the aspects which occur within the business organization. It has been identified that the internal factors of an organization are easier to be controlled as compared to the external factors. In order to carry out an internal environmental analysis of Hotel Hilton, SWOT analysis would be used and for external environmental analysis PESTLE would be carried out. SWOT analysis of Hotel Hilton is as follows:
Table 1: SWOT analysis
The PESTLE analysis is mainly a strategic analytical tool which is the combination of political, economic, social, technological, legal and environmental factors. The pestle analysis of Hilton Hotel would include the evaluation of the possible effects of the factors on the performances of the hotel and its long term growth prospective. The external environmental analysis of Hotel Hilton is as follows:
- Political factors:It has been found that it is very much important for the organization to acquire politically stable environment in order to have a sustainable growth. In context of UK, it has been seen that UK had relatively moderate political stability which allows the organization to carry out the operations and gain profits out of it. It has been identified that the political conditions of the country could impact the business activities of the Hotel and could even lead to either profits or losses. The risks and threats of the terrorism act would likely lead to the reduction in the number of tourists to London and would negatively impact the performances of Hilton and its specific target market (Yi.et.al, 2016). However, it has been identified that UK is been listed among one of the most prosperous and influential nation in the entire world and plays a remarkable role on the international stage.
- Economical factors: The economy of UK is highly developed and thus provides with the opportunities to enhance the functionalities of the business. The economic factors mainly includes the economic growth, tax rates, inflation, interest rates, wage rates, fluctuation in exchange rates, etc. which impacts the functionalities of the Hotel Hilton to the great extent. It has been found that the changes in the interest rates or the exchange rates could directly impact the pricing policies of Hotel Hilton in either positive or negative manners and in making appropriate decisions along with the functionalities.
- Social factors:These factors mainly indicate the cultural aspects, growth rate of population, health and safety concerns, diverse demographics, etc (Della Corte, 2016). which could influence the operation of the Hotel effectively. It has been identified that London is been known for its cultural diversification and thus supports the organization in dealing with the same. The performances of Hotel Hilton could be impacts through different preferences of the customer from diverse background and would thus require making the strategies accordingly. The increased health concerns among the people had made Hilton focus on the quality food and deliver the best services to the customers.
- Technological: Technology is one of the most important factors in the current time as it would help in bringing the advancements in the business activities and ensure the higher customer satisfaction out of it (Lin, 2016). It has been identified that making use of the technological aspects the management of Hilton would be able to innovate is business like providing online booking services, websites, etc. which would help in establishing its roots in the industry and acquire wider area of customer segments.
- Legal:In terms of legal factors, the government of UK had levied various legislations which enable the Hotel to carry out its operations easily. It is very much important that the management of Hotel Hilton must abide by the rules and legislations of the government concerning the health and safety, customer rights protection, minimum wage rates ac, etc. these legislations could lead to severe penalties if violated any of the acts of the government.
- Environmental: The environmental factors include the climatic conditions, increased cost of resources, etc. which would impact the hotel Hilton in many ways. The changes in the climatic condition would highly impact the productivity of the Hotel as it would lead to the reduction of the number of customers and tourists from the other nations (Phillips and Phillips, 2016). However, it has been found that the climatic conditions of UK is usually appropriate for the tourism and attracts the tourists towards it.
Task 2: Evaluate a variety of human resource policies and procedures.
The strategic human resource management is a wide spread aspect which help an organization in various ways in order to meet their performances and objectives. It has been identified that there are wide ranges of the Strategic human resource management models which would help in providing an objective representation of the management issues in the organization. In context to the functionalities of Hotel Hilton, it has been found that the models would be contributing in identifying various aspects of the hotel and would lead towards the improvement where required. There are mainly 13 strategic human resources management models which could be used by the management of the hotel Hilton effectively (Rao, 2014). The models are as following:
- Corporate strategy: This particular strategy is been formulated at the top managerial level and is been mainly influenced by the internal and external business environment forces both.
- Internal environment: This model plays a vital role in devising a corporate strategy along with the business strategy.
- External environment: It has been found that there are some external factors which affect the business strategies also. The most remarkable factors of this model are competition and governmental regulations which plays the most significant roles.
- Business strategy: Business strategy of Hilton is been formulated as soon as the corporate strategy is been developed. This strategy is been formulated for each and every business unit depending upon its overall objectives (Dunn, 2015).
- Human resource strategy: It has been identified that the major function of strategic human resource management devising a well pictured HR strategy including the job design and HR planning approaches specifically.
- Employee separation: Employee separation is basically a process which is a key strategic issue for the division as the employees leaves the organization smoothly but with this, the operations do not suffer or the professional relationships of the employees do not get hampered.
- Laws regulating employees: This model indicates that the regulating authority enforces the prohibitions on various aspects such as recruitment, promotion, pay scale, etc. of the organizations and thus the SHRM activities are been affected (Jackson.et.al, 2014).
- HR information systems (HRIS): It has been that it is very much important to acquire relevant information in order to formulate effective HR strategies in the business. With the help of an effective HRIS, the decision makers of hotel Hilton might develop human resource strategy and carry out different HR functions.
- Staffing: Staffing is mainly defined as the acquisition of the human resources for the vacancies of the organization. It has been found that efficient employees must be recruited through the effective staffing program.
- Training:Training is also an important part in SHRM as it is a process of escalating the knowledge, skills, efficiencies and changing the attitude of employees for achieving the desired goals properly (Purce, 2014).
- Performance management: The effective performance management systems are being required for the enhancement of the employment results and the assessment of both organizational and individual needs along with the plans for the future progress.
- Compensation: This is another most important and complicated task of SHRM as it is very much important to develop a well-accepted compensation plan.
- Labor relations: A good industrial .climate is very important for smooth running of the organization. Harmonious labor-management relations might help Hotel Hilton in an enhanced manner.
In addition to this, with the arrangement of the human resources in the hotel Hilton it is required to understand various human resource policies and procedures which would lead to the improvement of the existing operation and make new initiatives towards the same (Mello, 2014). It has been found that by implying various human resources policies and procedures into the functionalities of the hotel the management would be able to convey the values and expectations of the procedures carried out in the business. It would help in implementing the best practices into the business operations of the hotel. The HR policies are been divided into two major parts i.e. on the basis of source and on the basis of description. On the basis of sources the policies are further classified as; originated policy, implicit policies, imposed policies and appealed policies while on the basis of description includes general policy and specific policy.
Task 3: Recommendation
Human resources management is been considered to be the most important aspects in any of the organization as they helps in contributing in the achievement of the desired objectives and success over the business. Human resources are the major assets of an organization and require to be paid enhanced attention over them and retain them for the longer periods of time. In order to attract and retain the resources in Hotel Hilton it is very important to adopt various initiatives so that to make them contribute in the enhancements in the performances of the hotel effectively. There are various factors which influence the employee retention and ensure effective outcomes with the same (Truss.et.al, 2013). Hotel Hilton must keep these factors in mind while carrying out the recruitment process for the resources so that to attract and retain them for the longer periods of time and motivate them towards the achievement of the set goals. By adopting new approaches of HRM, Hotel Hilton would be facilitated in attracting new resources and retain the existing one effectively. It has been recommended that the management of Hotel Hilton must keep some of these factors so that to attract and retain the resources for its functionalities and the enhancement of the performances:
- Well defined career path:It has been commonly observed that the individual whether fresher or experienced is keen towards having a well define career path so that to grow eventually (Scully.et.al, 2013). It is very much important for the management of Hotel Hilton to display various examples of having an effective leadership which would facilitate them towards the growth. This aspect would attract the resources in large numbers and make them inclined to be a part of the hotel.
- Work relationship: The employee retention is been also affected due to the work relationship which includes a managerial support and the relations with the co-worker. The management of Hilton must ensure the development of positive relationships with the employees by establishing a fair and nondiscriminatory environment, allowing flexible working and the work life balance which would motivate and retain the employees to the larger extents.
- Compensation:Compensation is been considered to be the largest and most effective part of the employee retention process as it provides with a motive to work and develops a positive attitude towards the job (Allen, 2016). It mainly includes salary, bonuses, wages, vacations, allowances, various perks, etc. Hotel Hilton must ensure that the employees are been provided with the appropriate amounts of remunerations based on their performances and hard work.
- Organization environment: This is also an important factor which leads to the higher employer turnover as it is very much important to provide a positive and healthy work environment so that to make the employee comfortable and satisfied with their jobs. It has been identified that Hotel Hilton must ensure some of the activities at the workplace so that to make the environment suitable for the employee and retain them effectively. The management of the hotel must provide the employees with the ample number of opportunities of growth; appreciate their work, a friendly and cooperative surrounding, etc. This would make the employee feel positive and enthusiastic towards their goals.
However, managing human resources requires having an effective planning and strategies in order to establish an efficient environment and extract the desired levels of outcomes. Attracting and retaining the employees is been considered to be a complex task and thus strategic human resources management would contribute in the establishment of various initiatives and make better use of the resources at the workplace specifically (Su.et.al, 2015). In addition to this, there are various barriers to implement the initiatives such as cultural differences, various legislations, etc. It has been found that there are numerous employees in an organization from diversified cultural backgrounds which many times restrict the management to develop a homogenous environment and establish a common uniformity. Various working practices and legislations also limit the organization to carry out any of the initiatives such as working flexibility or any other freedoms.
With the above report it has been found that the strategic human resource management is an approach which is being used to manage the human resources which contributes in the achievement of the organisational goals with a strategic framework. It has been found that the analysis of external and internal environmental conditions helps an organization identify the factors which might influence its functionalities and performances to the great extent. The report revealed that the increased health concerns among the people had made Hilton focus on the quality food and deliver the best services to the customers. Even it has been identified that it is very much important that the management of Hotel Hilton must abide by the rules and legislations of the government concerning the health and safety, customer rights protection, minimum wage rates ac, etc. these legislations could lead to severe penalties if violated any of the acts of the government. Moreover, it has been also acknowledged that there are wide ranges of the Strategic human resource management models which would help in providing an objective representation of the management issues in the organization. It has been even recommended that by adopting new approaches of HRM, Hotel Hilton would be facilitated in attracting new resources and retains the existing one effectively.
Books and journals:
Ahsan, L., Qazi, B. and Syed, S., 2014. Strategic Management of Multinational Companies: Case of Hilton.
Allen, D.G., 2016. Retaining Talent: A guide to analyzing and manageing employee turnover. SHRM Foundation’s effective practice guidelines series society for human resource management.
Chathoth, P.K., 2016. Historical evolution of hotel chains. The Routledge Handbook of Hotel Chain Management, p.27.
Della Corte, V., 2016. The strategic environment of hotel chains. The Routledge Handbook of Hotel Chain Management, p.57.
Dunn, W.N., 2015. Public policy analysis. Routledge.
Jackson, S.E., Schuler, R.S. and Jiang, K., 2014. An aspirational framework for strategic human resource management. The Academy of Management Annals, 8(1), pp.1-56.
Kolios, A. and Read, G., 2013. A political, economic, social, technology, legal and environmental (PESTLE) approach for risk identification of the tidal industry in the United Kingdom. Energies, 6(10), pp.5023-5045.
Lin, X., 2016. Strategy Analysis of a Boutique and Lifestyle Hotel: A SWOT Analysis (Doctoral dissertation, California State Polytechnic University, Pomona).
Mello, J.A., 2014. Strategic human resource management. Nelson Education.
Phillips, J.J. and Phillips, P.P., 2016. Handbook of training evaluation and measurement methods. Routledge.
Purce, J., 2014. The impact of corporate strategy on human resource management. New Perspectives on Human Resource Management (Routledge Revivals), 67.
Rao, T.V., 2014. HRD audit: Evaluating the human resource function for business improvement. SAGE Publications India.
Scully, J.W., Buttigieg, S.C., Fullard, A., Shaw, D. and Gregson, M., 2013. The role of SHRM in turning tacit knowledge into explicit knowledge: a cross-national study of the UK and Malta. The International Journal of Human Resource Management, 24(12), pp.2299-2320.
Su, Z.X., Wright, P.M. and Ulrich, M.D., 2015. Going Beyond the SHRM Paradigm Examining Four Approaches to Governing Employees. Journal of Management, p.0149206315618011.
Truss, C., Shantz, A., Soane, E., Alfes, K. and Delbridge, R., 2013. Employee engagement, organisational performance and individual well-being: exploring the evidence, developing the theory. The International Journal of Human Resource Management, 24(14), pp.2657-2669.