International Human Resource management - Essay Example

International Human Resource management Introduction International Human Resources Management deals with the implication of the general practices of human resources management pertaining to recruiting, staffing, training and development, compensation and other appraisal and evaluation methods carried out in the international context. Herein it reflects how the human resources managers spontaneously work to modify the practices to help suit the needs of the specific regions. The project deals with the study of a case of a hospitality management company, InterContinental Hotels Group (IHG) and reflects how the human resources management practices are carried out in the company relating to the different global regions. InterContinental Hotels Group (IHG) Company Overview The Hotel Company, InterContinental Hotels Group (IHG) boasts in continuing its operation spread around a global network of around 100 different regions through which it aims to render services to its visitors through a total number of 666,000 Rooms. Further the company spans its operation based on nine different Brands spread along an international framework. IHG operates on a business strategy aimed at identifying potential market regions and thereby enhancing its focus by conducting effective segmentation. The hotel company works on strategic brand enhancement functions through the process of extensive marketing and advertising and also based on generation of loyalty schemes. IHG continues with its international expansion spree based on both ownership and franchisee frameworks. Total number of professional staffing pertaining to the IHG Hotels operating in the international context amount to 17,600 people employed in strategic and operational departments (IHG, 2012). Markets Served The range of markets served by InterContinental Hotels Group span along the regions of America, Europe, American-European-African Nexus or AMEA and also encompasses Greater China. Total number of hotels encompassed by IHG in the global context range to 4,542 operating based on different brand portfolios (IGH-a, 2012). Current Global Position Pertaining to Global Ranking or Position IHG was found firstly to gain the award of Gifted Ranking in an evaluation made by the Digital IQ Index. The same Index related the hotel company to the Sixth Rank in comparison to around 52 other competing hotel brands (IHG-b, 2012). IHG’S Approach to Human Resource Management HRM in Hospitality Industry The recruitment of the people in the hospitality industries undergoes a process of evaluation of the personality traits and attributes of the individual to work in a challenging job atmosphere. Moreover the individual is subjected to different types of psychometric tests to understand the individual’s problem-solving and team building abilities. Similarly different types of amenities and benefits related to work-time flexibility along with bonuses and increments are rendered to motivate the individual. Opportunities for growth are framed through incorporation of training programs in the work culture along with encouraging the people to intercommunicate amongst each other. Moreover incorporation of a 360 Degree Appraisal Process coupled with Empowering Individuals to take managerial and strategic decisions and rewarding and recognising their abilities in team meets enhances the loyalty and commitment of the people (Nickson, 2012, p.14, 16). Current Approach to HRM Recruitment and Selection The Hotel Company recruits people through an online system wherein the skill sets of the local people where the hotel has its operations based in are matched with the vacancies available. This matching of the skills with the roles available creates an ideal blend of specialised domains in the company (IHG-c, 2012). Role Creation The HRM practices enabled at IHG focus firstly on role creation where different specialised roles are created and identified for different sets of employees depending on their skill sets and ability. The roles relate to direct operations to also other support functions relating to Accounting and Information Technology. Larger opportunities for growth are also available for these diverse range of professionals employed at different levels (IHG-d, 2012). Training and Communication Specialised training programs are created to enhance the skill sets of the different individuals employed in the different operational and support departments. Further additional training programs are also present for development of both business and managerial acumen of the people involved. These training courses are developed by the company by incorporating the views of several academicians related to the field of hospitality thus keeping with the latest demands and trends (IHG-e, 2012). Again the company management continually communicates with its employees through intranet systems and also inviting them to be a part of conferences, meetings and workshops held. Similarly the company also brings out in-house publications to effectively communicate with the employees about external changes (IHG-c, 2012). Salary and Benefits Moreover the company meets the salary and other financial needs of its employees by adequately forming salary structures compatible with the industry standards. Other types of amenities relating to medical, insurance, pension, leave allowances and other discounts are also rendered to the people to boost up their confidence and loyalty to the company. The people are also granted the opportunity of Flexible-Work Time thereby helping them to effectively function along their different units. Management of IHG also encourages the development of teams for effective functioning within the company (IHG-f, 2012). Performance Appraisal IHG incorporates an online performance appraisal process where the performances of the people are reviewed against pre-set objectives and are conducted in a bi-annual fashion. Moreover the online performance appraisal operates in a 360 Degree manner incorporating self, peer and managerial reviews (IHG-c, 2012). Evaluation of Future Changes InterContinental Hotels Group focuses on enhancing its Human Resource Management practices through incorporation of effective intranet systems that help the people residing at the head quarters to get a detailed feedback from personnel employed in different global branches. Similarly the feedback mechanism is focused on strengthening to gain effective information from external markets to effectively plan for succession and reward generation processes (HR.Com, 2005). Staffing Consideration of IHG for Expansion Needs Impact of External Factors on Human Resource Policies of Hotels The integration of the global workforce owing to incorporation of regions to world trading and political bodies has led the organisations operating in the dimensions of tourism and hospitality to incorporate a diversified pool of employees and managerial staffs. Moreover social and demographic changes coupled with the increase in the level of migrant workforce have required the hotel companies to introduce new job roles in the concern. Henceforth a large number of new jobs are being continually created to absorb this rising population of skilled labour sets transmigrating amongst different regions. Changes in labour policies pertaining to European regions with regulations introduced pertaining to wage and union systems and Labour Rights are causing the development of new industrial relation policies in the ambit of hospitality industries (Nickson, 2012, p.71-74). Staffing Issues at IHG IHG is found to honour the employment legislations pertaining to different regions where it has set up its branches to build up effective employment relations with the employees and governing bodies. Moreover the hotel company provides an enhanced focus relating to the well being of the employees through creation of an amicable and safe work environment. It also works to embrace criticisms and feedbacks from the employees. In a recent staffing issue it is found that InterContinental Hotels Group has rightly obliged with the changes brought about in the wage legislations in United Kingdom to inculcate the system of living wage. Development of the current policies and standards relating to the wage and salary parameter making them at par with industry and economic standards of the region reflects on the focus on employee rights by InterContinental Hotels Group. The company management avidly works to help the employees gain the right compensation for overtimes rendered along with adequately paying them based on their performance levels at the workplace. Thus the hotel company reflects a employee-friendly face in tending to follow with regulatory changes pertaining to employment legislations issued by the government body of the region along with enhancing the safety and quality of work life sets in its different global branches (IHG-c, 2012; IHRB, 2012). Conclusions and Recommendations InterContinental Hotels Group operates along different regions of the world rendering hospitality services to diverse consumer groups. The hotel company is observed to follow the different tenets of human resources management relating to recruitment, staffing, training and development, compensation and performance evaluation and appraisal systems. However, InterContinental Hotels Group need to carry out effective human resources audit relating to the rendering of effective compensation packages at par with the industry and economy standards and thereby to enhance the development of the living standards of its staff. References HR.Com, 2005. InterContinental Hotels Group Selects HRM Connect to Support Succession Planning and Rewards [Online]. Available at: http://www.hr.com/SITEFORUM?&t=/Default/gateway&i=1116423256281&application=story&active=no&ParentID=1119278117389&StoryID=1119654872765&xref=http%3A//www.google.co.in/url%3Fsa%3Dt%26rct%3Dj%26q%3D%26esrc%3Ds%26source%3Dweb%26cd%3D1%26ved%3D0CB8QFjAA%26url%3Dhttp%253A%252F%252Fwww.hr.com%252Fhr%252Fcommunities%252Fhris_erp%252Fintercontinental_hotels_group_selects_hrm_connect_to_support_succession_planning_and_rewards_eng.html%26ei%3DSoOOUKf2IY6srAf8joCQBw%26usg%3DAFQjCNFvrDyFVW4P2HXdbGFnWlckMnNong [Accessed October 30, 2012]. IHG, 2012. Overview [Online]. Available at: http://www.ihgplc.com/index.asp?pageid=16 [Accessed October 30, 2012]. IHG-a, 2012. IHG hotel and room world stats [Pdf]. Available at: http://www.ihgplc.com/files/pdf/factsheets/factsheet_worldstats.pdf [Accessed October 30, 2012]. IHG-b, 2012. InterContinental Hotels & Resorts Awarded Top Ranking in Digital IQ Index [Online]. Available at: http://www.ihgplc.com/index.asp?PageID=414&NewsID=2780 [Accessed October 30, 2012]. IHG-c, 2012. Our people [Online]. Available at: http://www.ihgplc.com/index.asp?pageid=758 [Accessed October 30, 2012]. IHG-d, 2012. Our Roles [Online]. Available at: http://www.ihgplc.com/index.asp?pageid=570 [Accessed October 30, 2012]. IHG-e, 2012. Training & development [Online]. Available at: http://www.ihgplc.com/index.asp?pageid=576 [Accessed October 30, 2012]. IHG-f, 2012. Salary and Benefits [Online]. Available at: http://www.ihgplc.com/index.asp?pageid=577 [Accessed October 30, 2012]. IHRB, 2012. InterContinental Hotels Group pledge to adopt London Living Wage [Online]. Available at: http://www.ihrb.org/news/2012/intercontinental-hotels-group-pledge-to-adopt-london-living-wage.html [Accessed October 30, 2012]. Nickson, D., 2012. Human Resource Management for the Hospitality and Tourism Industries. United Kingdom: Elsevier. Read More