Hilton Hotel UK - HRM of Hospitality Industry - Assignment Example

HRM of Hospitality Industry Hilton Hotel UK 11/16 Executive Summary Human resource management of hospitality industry holds high significance for business development and optimal operation of the organisation by freeing the management from conflicts, employee grievances and other related issues. The report discusses HR strategies, issues and recommendations for Hilton Hotel in the context of hospitality industry of UK. HR management of the hotel plays vital role in performing several tasks. HRM of Hilton Hotel endeavours to recruit the incumbents through a detailed process comprised of many steps. Then the employees are duly trained and developed to serve the organisation in their relevant capacities. The employees are rewarded and reinforced against their performances. The labour market of hospitality industry comes with greater supply than the demand while there is high rate of turnover. Hilton Hotel needs HR plan that is strategically fit with the needs of organisation so it may overcome the potential issues and enhance its services. HR management needs to forecast the internal and external supply and demand of the labour to design the recruitment process accordingly. It needs to increase employee engagement in all the processes and provide them career path to self actualise and grow. Comparing recruitment process of Marriot Hotel, Hilton Hotel and Holiday Inn, it is found that there is no significant difference in the process while the key focus is to hire people with right skill and for the long term; hence line managers are also indulged in the process. Table of Contents Executive Summary 1 Introduction 6 Role of Human Resource Management 6 Recruitment and Selection 6 Training and Development 7 Retention 7 Appraisal 7 Reward System 8 Team Work 8 Leadership 8 Employee Engagement 9 Grievance Management 9 Human Resource Plan 9 Organisational Vision and HRP 10 Analysis of Issues 11 Business Needs 11 External Factors 11 Internal Supply Analysis 11 Forecasting Requirements 12 Staffing Level 12 Staffing Mix 12 Organisation and Job Design 12 Available Resources 12 Net Requirements 13 Action Plans 13 Staffing Authorisation 13 Promotion and Transfers 13 Recruitment 14 Training and Development 14 Compensation and Benefits 14 Labour Relations 14 Current Employment Relation 15 Employment Relations Act 15 Employer Attitude and Trade Union 16 Employees 16 Effectiveness of Trade Unions 17 Employment Laws 17 National Minimum Wage 17 Pre Claim Acas Conciliation 18 Discrimination Questionnaire 18 Flexible Working 18 Financial Penalties 19 Sickness Absence management 19 Equal Pay Audit 19 Job Analysis 20 Job Description 20 Person Specification 20 Comparison of Selection Process 21 Marriot Hotel 22 Holiday Inn 22 Hilton Hotel 23 Conclusion 23 References 25 Introduction The hospitality industry comprises of hotels and restaurants mostly that serve public and keep staff to efficiently perform diverse tasks. Human resource is the most valuable asset of an organisation which is managed by a distinct entity called human resource management. HRM of a hotel or restaurant endeavours to free the organisation from conflicts and administers the tasks to optimally run organisation so it may expand and compete in the market (Boella et al. 2013). However it is found that there is lack of research in the service sector especially in hospitality industry which is the fourth largest industry of UK. This study attempts to provide detailed analysis of role of human resource management for entire industry in the UK in context with the laws and recommendations are provided to strategically manage the human resource in improved way. This study focuses on HR practices, roles and processes of Hilton Hotel as an example of hospitality industry of the country. Role of Human Resource Management As a human resource manager of a hospitality organisation, the role and purpose of HRM is to formulate and execute strategies that are best fit for the organisation so as to achieve efficiency and organisational objectives. A set of multiple HR activities and strategies is briefly discussed as follows: Recruitment and Selection The most important HR function of an organisation is to select right people for the right jobs keeping in view skills, aptitude, motivation, etc for the long run. This is a complete process comprised of several steps designed to filter and choose the right candidate (Nickson, 2007). Hilton Hotel focuses to hire people through testing, interviewing and screening; however it can further improve the process by applying psychometric tools so that the pool of applicants becomes large and candidates are systematically filtered in less time. Training and Development The existing and new employees need to be trained and equipped according to the dynamic external environment so as to effectively compete in the global and domestic market. Training Need Assessment (TNA) is a process to grasp the lagging skills and potential of the people in organisational context which helps to design training programs effectively (Kusluvan et al. 2010). Hilton Hotel has training programs mostly focused around customer services while management training, sustainability and competitiveness training can add value to human capital of the organisation despite keeping a single focus as it is reported that skill gap is 21% in the industry (Hilton Hotel, 2014). Retention The employees once selected and trained become an asset for the organisation and they need to be retained to save cost and time. Currently the turnover rate for the industry is around 11% since last three years (BHA, 2014). Hilton Hotel should create loyalty among employees through motivation and offering better compensation than the competitors which will save the greater cost in long run. Appraisal Performance of employees is measured through appraisal process to ensure their fitness and efficiency. This function helps to provide information for the other HR functions of an organisation to take strategic remedial measures (Kusluvan et al. 2010). Hilton Hotel should employ bi annual appraisal system focusing to match behaviour and work quality in context of its vision and objectives. Contemporary 360 degree feedback process also helps to increase the extent of vibrant appraisal. Reward System Bonuses, rewards and recognition can help to motivate employees and increase their work efficacy. Employees should be rewarded for their additionally performed responsibilities and their quality of services must be recognised. Hilton Hotel has a culture for rewarding employees like retention bonus, performance award, etc (Nickson, 2007). HRM of the hotel should prioritise to nurture a culture of recognising efforts of employees in formal and informal ways so that they develop a sense of ownership within themselves. Team Work Team work is necessary for an organisation to integrate cohesiveness and synergise the processes of organisation. Hospitality organisations have several independent and semi-autonomous functional areas that require collaboration to accomplish the tasks. Therefore the functional and cross functional teams hold high significance to serve the customers and attain their goals (Boella et al. 2013). Hilton hotel needs to conduct ice breaking activities to enhance communication within the organisation and to enable collective thinking. Cross functional teams should be formed to maximise the customer satisfaction which is core of the industry. Leadership It is an attribute that distinguishes a prosperous employee from ordinary members of the organisation. It helps the leader to lead a team efficiently by positively influencing the processes and individuals. Leadership comes up with innovation and independence in critical thinking and decision making which is extremely important in the hospitality industry because of diverse situations faced every day (Kusluvan et al. 2010). Hilton Hotel should design training program to develop leadership potential among employees and give them due knowledge to implement decisions autonomously rather than wasting time in seeking hierarchic approvals. Employee Engagement Enhanced engagement of employees results in creating more autonomous, cooperative, self controlled and creative workforce to perform the work processes. Employees should be given sense of ownership and should be involved through participative and educative mechanisms like quality circles, briefings, etc to generate a supportive and empowered environment (Nickson, 2007). Hilton Hotel management should conduct periodic meetings and develop a feedback process to let the employees engage in decision making processes. Grievance Management Employee dissatisfaction stems out of grievances that need to be sorted out immediately to avoid turnover or escalating conflicts. Human resource management needs to listen to grievances of employees and provide them acceptable solution with assurance of avoidance in the future (Nickson, 2007). Hilton Hotel employees find the work overburdened and show dissatisfaction. The employees should be remunerated adequately and there must be distinct responsibilities of each employee to avoid conflict. Also there should be a way to register one’s grievance and to resolve conflicts that are not substantive. Human Resource Plan The external condition of labour market of hospitality industry is analysed briefly prior to formulate / suggest HR plan for the Hilton Hotel: Job separation means voluntary or involuntary termination of working relationship amid employee and employer. The tourism and hotel industry of UK has shown the highest rate of separation i.e. 3.1% while the level of education was seen the lowest i.e. 0.7%. The hospitality industry has generated around 27.7% of the total jobs growth during 2010 to 2012 (Onerec). More than 2.7 million people have been working in hotel and tourism industry of the country. This industry employs 10% of the entire workforce of the country and 53% students who leave school tend to choose hospitality sector as their career. It is seen that the competition has been increased in the industry and average number of candidates who apply for a job is 21 which was 15 in second quarter of 2010 and the trend is going up (BHA, 2014). It can be implied from statistics that the supply of labour in the industry is greater than the demand despite consistent growth in the industry. There are three major driving factors in the human resource planning which are: Reduced cost of labour Maximising labour determinacy through attitude than skills Optimising balance between flexible corporate needs and labour retention to manage workers’ mobility Keeping in view the external factors mentioned above, following is devised HR plan for the Hilton Hotel: Organisational Vision and HRP Human resource planning must be well aligned and be integral part of vision of the organisation such that the strategies and plans support to accomplish long term organisational objectives. Vision of Hilton is hospitality, integrity, leadership, teamwork and ownership which must stay as focal point in the planning process (Hilton Hotel, 2014). Analysis of Issues First step in HR planning is to analyse the situation (internal and external) and identify the issues. Business Needs The need of organisation must be assessed to grasp the current scenario of employees, their skills and fitness with the dynamic internal and external environment of the industry (Bharwani et al. 2012). Hilton Hotel is struggling to retain employees like other hospitality organisations. It also needs to dynamism and self motivation in the employees to manage global expansion. External Factors Hospitality industry of UK has been rapidly growing and competition over all job positions is also increasing. Another factor is high rate of job turnover and job separation which is detrimental for the organisations (Caterer News). Hilton Hotel has been facing competition in the UK and around the world and rival firms attempt to hire experienced staff at higher wages. There is dearth of branding experience in the industry that the company also faces. Internal Supply Analysis This analysis helps to recognise the valued human capital as well as the gapped skills and required positions and manpower in the organisation (Bharwani et al. 2012). Hilton Hotel is under staffed and lacks skills like independent decision making, handling diverse customers and situations, etc. Forecasting Requirements This is the second step in HR planning that helps to determine the equilibrium of future supply and demand of workforce. Staffing Level The organisation is analysed whether it is understaffed, overstaffed or at appropriate level at current time and in the future as well (Boella et al. 2013). Future forecasted levels are quite important for the organisation to plan workforce. Staffing Mix Hard and soft skills of the staff are analysed so that the skill gap is found and future skill need is incorporated in the workforce plan. Qualities, attributes, behaviour and attitude of employees are also assessed in the step (Boella et al. 2013). Hilton Hotel needs to apply certain psychometric tools to assess behaviour and work quality of the employees to identify and develop the missing attributes in the organisation. Organisation and Job Design All key positions are analysed to identify whether additional responsibilities need to be assigned or if there is any need to mould the roles and responsibilities of personnel. De-layering and rightsizing is also the part of process (Nickson, 2007). Hilton Hotel needs to assess hierarchies and roles to assign vertical as well as horizontal workload along with job rotation. Available Resources Physical resources like capital, current capacity, expansion plans, etc are studied to find adequate resources for hiring, training and rewarding employees accordingly. Dearth of resources may hamper the HR planning a great deal (Kusluvan et al. 2010). Hilton Hotel keeps separate funding for the process of training, rewarding and compensating that needs to be channelized in order to be invested at right HR venture. Net Requirements Staff requirements, skills, roles and responsibilities and available resources are listed and compiled to formulate the third and final step to execute action plan accordingly. Action Plans First two steps of HR planning help to diagnose issues that are endeavoured to rectified in the final step which is discussed as follows: Staffing Authorisation HR department needs to seek authorisation to hire new candidates in terms of number of positions to be filled and the job roles as well. Usually executives or the board authorises this process (Bharwani et al. 2012). HRM of Hilton Hotel also seeks approval before staffing; however web based authorisation process is suggested to keep the vacant positions and roles updated and are approved in least time. Promotion and Transfers Before hiring, the organisations may attempt to transfer the roles or place / positions of the existing employees as a reward or reinforcement so that the net requirement may be brought forward to hire certain number of people with peculiar skills (Bharwani et al. 2012). Hilton should perform this action based on periodic appraisal of the employees but the core of process is to encourage employees even if they lag in performance. Recruitment Once hiring is authorised by the executives / board, next is to hire the right candidates out of large pool of applicants. Hilton Hotel should develop a database of candidates who apply for the jobs and the database should be filtered so potential candidates remain in focus for hiring at any stage. Recruitment committee should be formed by taking one member from each key functional area so that the knowledge, skills and abilities of candidates are appropriately judged (Hiltonworldwide, 2014). Training and Development This is an investment over employees that benefit the organisation in the long run. With the help of performance appraisal, training needs can be assessed and programs are then designed accordingly (Hiltonworldwide, 2014). Hilton Hotel should focus to develop strong management team and lagging skills like branding, customer management, etc. Compensation and Benefits The hired employees should be offered a competitive compensation along with fringe benefits so that they are retained in the organisation and never feel de-motivated or grieved to work at lower wages than the industrial benchmarks (Kusluvan et al. 2010). Hilton Hotel should offer higher compensation for branding experienced personnel as the skill is lagging at the moment in the industry. Labour Relations Management of an organisation needs to keep a healthy relationship with the employees by listening to them and providing them space to express their grievances and act to resolve their conflicts in least time (Nickon, 2007). Hilton Hotel should conduct formal and informal gatherings to the workers break ice and be more expressive and participative. Current Employment Relation The concept of employee relation has been changed with time and now the meaning is different from the past when employee relation was termed as union relation. In contemporary mode, the employee relation is more individualistic than unionised due to declining trend in union density. Following is analysed situation of employee relation from different dimensions in the hospitality industry of UK and the potential impact over Hilton Hotel: Employment Relations Act Main objective of this act is to minimise the extent of conflict between employees and employers and to promote a sense of partnership for the long run. The act also provided statutory route for the recognition of union by introducing works council. It extended rights of individual employees and set minimum wage of an employee across the country so that it came in proximity with the social policies of European Union (Legislation UK). The act has left a net positive impact over the hospitality industry as the employees feel more empowered while the influence of unions has also been curtailed a great deal. Hilton Hotel aligned its wage standard with the national minimum wage band which did not add too much to its cost as the company has already been offering competitive wages. However the workers became more motivated and loyal to the company. Employer Attitude and Trade Union The attitude of employers is quite negative towards the trade unions. Entire hospitality industry has been characterised by single view regarding the role of trade unions and the employee relationship is seen irrelevant of association with any union. Therefore organisation management remains hostile towards union activism and attempts to keep non-union policy in the organisation. Even most of progressive employers tend to disregard the role of trade union as they like to keep room for creating intra-organisation conflict for attaining more diverse and creative ideas while trade unions come up with a unitary view against an issue with low level of flexibility (Nickson, 2013). Hilton Hotel does not directly discourage trade unions rather it attempts to provide effective grievance management to the employees to decrease the role and influence of trade unions. Employees Hospitality industry has diverse workforce that is comprised of different ethnic groups, nationalities and genders. Traditionally all the groups are not associated with trade unions. Hospitality industry of the UK is found to be on top of all sectors when it comes on personal productivity of the employees. According to a study, those employees maximise their psychological capital of success and stay motivated and those are the happiest people found at work. Thus there is no major grievance or trouble for the employees in the sector that they require collective strength to attain their due rights (Nickson, 2013). Hilton Hotel endeavours to keep employees happy through addressing their grievances, engaging them in decision making and listening to their feedbacks. Additionally it should offer incentives based on attaining targets like revenue, number of served customers, profit per share, etc which will help to retain the employees and gain their loyalties. Effectiveness of Trade Unions GMB and Transport and General Workers Union (TGWU) have recently made efforts to organise the sectors and sub-sectors of hospitality industry. However trade unions have been found ineffective to formulate strategies for organising the hospitality sectors. Trade unions have not been able to positively influence the catering and hotel industry and there is no solid evidence found pertaining to success or achievement of trade unions in the industry. Hence the marginal presence of trade unions in the hospitality industry shows relatively low strength and the employees are also least interested to be members of such bodies (Nickson, 2013). Employment Laws Employments laws have been changing with a rapid pace in the country, hence it requires employers to stay updated and review their current employment contracts and policies. Recently employment laws have been amended and the government has tried to assure that employees may get their due rights and the extent of exploitation by employers may be reduced (Gov.uk). Some recent legislative developments in context of human resource management of the hospitality industry and specifically of Hilton Hotel are discussed as follows: National Minimum Wage National minimum wage has been amended and from October 2014, minimum wage for people aged 21 and above will be £6.50 per hour while £5.13 for workers aged between 18 and 20. Hospitality industry has not been primarily impacted by such an increment in the wage as the cost is covered up due to inflationary trend in the sector ( Acas). Hilton Hotel complies by legal wage benchmarks and revises pay structure to align with industry and government minimal limits. Pre Claim Acas Conciliation From April 2014, it has become mandatory to early conciliation (EC) through Acas in a period of one month prior to launch the claim in Employment Appeal Tribunal. If the early conciliation fails or any party refuses to accept the solution, then the matter can be preceded to the tribunal (Acas). Hilton Hotel been positively impacted by the change as this will help to reduce the cases of conflicts and it will save much of expense in shape of claimed money. Discrimination Questionnaire From April 2014, the section 138 of equality act has been demolished that demanded discrimination questionnaire and employees can obtain discriminative information from employers to use as evidence for proceeding in the tribunal. Hilton Hotel has been to assure to diversity and equality in the organisation and has shown this in the vision statement as well as in practice (Cox, 2014). However the company has to review the historic cases and events to avoid any future case of discrimination. Flexible Working From April 2014, any employee with service period of 26 weeks and above can request for flexible working hours. The law has introduced statutory code for allowing flexible working hours. Hospitality industry has been affected by the decision as mostly the organisations operate 24/7 and workers perform their duties in the shifts (Gov.uk). Hilton Hotel should rotate the schedule shifts of the employees so they may not feel retardation and it should deny any other unjustified request of flexible working hour by providing a business reason given by the statutory code. Financial Penalties From April 2014, the tribunal has discretion to impose penalty on the employers who lose their case and the tribunal can give monetary value to the non financial claims (Cox,2014). Hilton Hotel should make radical changes in grievance management and 360 degree feedback process so that the conflicts are resolved within the organisation to save repute and financial loss. Sickness Absence management The govt. Endeavours to launch sickness absence management by providing free occupational health assistance to the employers and employees. The purpose is to help the sick workers to get back to work after getting right treatment (Acas). Hilton Hotel has seen high job turnover like rest of the hospitality industry, hence it should provide work flexibility to avoid stress and keep the employees in sound mental and physical health while this legislation has a positive impact as the govt. Shares responsibility of the employer. Equal Pay Audit From October 2014, govt. Agencies will review and audit the pay structure of all employers and if the employers found guilty of practicing inequality in terms of pay, will be penalised. This step is to assure avoidance of gender based discrimination in any organisation (Acas). Hilton Hotel has a vision of equality and diversity at workplace; however the need is to further review the pay structure to align with the legal requirements. Overall, the legislation has no net impact on the hospitality industry as the wage rate is same for all except experience and skills that count for additional wages. Job Analysis Job analysis is comprised of three main parts including research, job description and person specification. The latter two are briefly discussed below: Job Description Job description describes the job by including many things like job summary, key responsibilities, content, identification data, organisational data, etc. Every organisation has different standard format for the job description which cannot be generalised. Hilton Hotel gives such a job description that is compact and complete and the company market its global presence and goodwill through the job description as well (Martin et al. 2010). For example the job opening announced at official website1 of Hilton Hotel is comprised of its qualities and features of services along with job details. It begins with job title, location, address and timing (full time). Then there is description about service quality and brand experience of the company in a way to display what the organisation expects from the incumbent, followed by key responsibilities and required skills. At the end company gives a brief about the offered benefits like rooms, food and other services for the employees at reduced cost which works in dual function as it markets the services of company. The company should apply contemporary tools like including role profile and key accountabilities that measure the job performance. This will help to identify competencies for a specific job. Person Specification Person specification often known as personnel specification defines the ideal person for a job. Person specification comprises of education, experience, skills, knowledge, competencies, etc with the sole purpose of setting minimum requirements for an applicant to be considered for the vacant positions and it can be different from person specification of other organisations. Apart from minimum requirements, several other things are also presented that forms the basis to prioritise applicants and it can also serve as a caution note for the recruiters. Person specification can be applied to develop a well thought out application form to derive the required information in order to shortlist the best suitable candidates (Martin et al. 2010). Example of person specification applied by Hilton Hotel as mentioned on the official website2 is considered for analysis to suggest improvement. The website states that Commis Chef needs to prepare high quality cuisine to maintain tradition of excellent guest service and the incumbent must be self motivated, able to work in team and have the potential to sustain and perform under high pressure and diverse circumstances. Hilton Hotel should be specific in providing the terms like x years of relevant experience, personal qualities, specific knowledge, etc to attract most appropriate pool of candidates for the job. Comparison of Selection Process The recruitment and selection process carried out in the entire hospitality industry is somehow similar. Currently the trend of systematic recruitment process has been adopted by the organisations, has helped to acquire right people for the right job. Hospitality industry has been facing challenge of high turnover rate; hence human resource management has been very keen to identify candidates who probably work for long term in the organisation (Nickson, 2007). Following is a comparison of recruitment process of three hotels of hospitality industry of UK: Marriot Hotel Marriot Hotel has a uniform recruitment and selection process throughout all branches across the globe. As a first step, the company advertises the vacant positions on official website3 and social media by creating job description and person specification. The candidates are required to create account on their website in order to apply for a position. The application form is comprehensive for mining data to shortlist the candidates. Job description is provided with all aspects like the potential difficulties in the job. Shortlisted candidates are then called for first interview followed by one or two more interviews to assess skills, behaviour and IQ by line manager and HR manager. The successful candidates are offered job on probation period along with contract terms. The company keeps record of potential candidates in the database for future hiring. However remuneration and other benefits of the job are not mentioned along with the vacancies that may refrain many potential candidates from applying the job. Also there is nothing mentioned in the process of securing an employee for long term to reduce usual turnover in the industry. Holiday Inn Holiday Inn keeps a simple yet complete process of recruitment and selection. Like many, it also advertises jobs on the official website4 and asks the candidates to create account in order to apply. The application form comprises of detailed person specification and numerous questions to determine the right candidate for long term job to avoid high turnover ratio. The submitted application forms are scrutinised against the job and highly potential candidates are shortlisted. The shortlisted candidates for the interview are considered as finally selected because the application form is meticulously designed to assess adequacy of candidates. However due to increased competition over all the jobs in hotel industry, interviewing has become necessary to further screen among the best chosen incumbents. Selected candidates are then called for medical examination prior to placement. Hilton Hotel Hilton Hotel has a recruitment process based on several steps. Vacancies are posted on official website of the company and candidates are required to create account for applying jobs. Initial screening of the applicants is performed after the deadline and the shortlisted candidates are contacted for a comprehensive interview. The interview panel consists of HR manager and line manager who further filter the shortlisted candidates based on interview performance (behaviour, skills, knowledge, etc). The successful candidates are then called for psychological simulation tests to find the suitable candidate who can work in given circumstances and is self motivated with appropriate attitude and aptitude (Hiltonworldwide, 2014). Finally selected candidates are then medically examined and are offered contract terms and are hired on probation period. The above comparison of recruitment process of the three international hotels reveals that there is no significant difference in the process as the challenges in the entire industry are similar for all the operating organisations. However Hilton Hotel has been found with the prolonged but systematic process of recruitment and selection. Conclusion As a consequence, the hospitality industry of UK has been enjoying a significant growth trend and the organisations are nationally expanding their operation. Simultaneously there are several challenges faced by the industry like job separation, high turnover and severe market competition. Hilton Hotel has also been facing the similar challenges and it needs to focus on human resource development in order to retain the brought up skills in the organisation. 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