Globalization in Human Resources - Coursework Example

Effects of Globalization on Human Resource Operations in the Hotel Industry Globalization has had a major impact on the running of the hotel industryin the UK and in the rest of the world. The operations of hotels have been gradually changing to accommodate the changes that come with globalization. The operational areas that have been affected by globalization in the hotel industry include (Go and Pine, 1995): competition, workforce management, travel patterns and company merges. This paper examines the extent to which globalization has affected human resource practices at the Intercontinental Hotel. I will use an ethnographic study analysis and literature to analyze how the impact of globalization has changed the management of the hotel’s human resources. Ethnographic study: Human Practices at the London Intercontinetal For this paper, I chose to observe the impact that globalization has on the day to day human resource management at the multinational Intercontinental Hotel. I visited the London Intercontinental Hotel for a week to make my observations. The Intercontinental Hotel is one of the major international Hotels that have operations in London. It is part of the Intercontinental group of hotels and is situated at the Hyde Park Corner on 1 Hamilton Place. I took notes and got different people’s perspectives on the issue of globalization and employee management at the hotel. I was able to learn that the hotel group has a standardized form of management for all its branches in the country. This is to say that the management practices and rules in the London branch are applicable to all the other branches in the UK.   From my observations of the day to day activities in the hotel, it was clear that the management and workforce there are very committed to the company’s well being. Being an international company, the Hotel’s operations reflect the management criteria followed across the world in all the other Intercontinental hotels. Human resource management, in particular is similar to HR management in other hotels, local and international. For instance, the management has adapted a multicultural form of management for the workforce. Many of the employees at the hotel are from a wide variety of cultures, mostly European cultures. By adopting a multicultural perspective of management, the London Intercontinental has been able to carry out its operations without having human resource problems that it cannot deal with. From what I observed at the London Intercontinental, the manager’s role is critical as it determined how the guests/ customers would be made to feel welcome. His role included making sure that things ran smoothly for the guest’s comfort. The manager also had the responsibility of ensuring that the hotel maintained a profitable operation. To ensure that the workforce remained motivated to offer the best quality services to customers, the hotels managers used a form of management that enabled them to understand the needs of each of the employees. A cross cultural style of management was followed in the company and open communication channels were available for the managers and employees to air their concerns. The hotel has a special training program for its workforce, which entails enhancing teamwork, interpersonal and other skills. I observed that the cross-cultural training program involves the employees interacting on a one to one basis with the hotel’s customers. Through the training program, the employees are gain skills that help them to understand cultures that are different from theirs. They have to gain some knowledge about three or four cultures in Europe and two from the rest of the world. This helps them to relate better with each other. Some of them speak multiple languages. Therefore, they can communicate effectively with their customers, some of who do not understand English very well. I observed that knowing a visitor’s language endeared the hotel to the customers and it was obvious that they were comfortable here. The customers who come to the hotel for accommodation, conferences and food services all come here for the quality of services offered. For them, value does not have to translate to low prices. Therefore the management and workforce at the Intercontinental are always on their feet to ensure that the customers’ needs are all met. Through teamwork, the workforce at the London Intercontinental is able to produce results that are in line with the company’s mission and vision. It is clear that the style of human resource management used at this hotel has enhanced its competitive advantage, making it one of the best 5-Star hotels in the world. Globalization and the Hotel Industry Globalization is the process of integrating international practices in different areas such as political, social and economic areas (Munoz, 2005). The hotel industry is one of those industries that can be said to be at the core of the process of globalization. It plays a big role in gathering people together in the global community. Many international hotels from time to time have had to consider the different implications that globalization has on the day to day operations of their businesses. The impacts of globalization in the hotel industry include: Exposure to a variety of cultures – globalization enables hotel managers to learn about and understand many different cultures. As they interact with people from wide variety of backgrounds, they are able to increase their knowledge and can therefore develop new markets in these cultures (Munoz, 2005). Larger market – globalization has greatly increased the customer base for hotel companies. People from all walks of life travel to different parts of the world for business, holidays and other reasons and most of them stay in hotels during the duration of their visits. The hotel industry gets most of its revenue from international visitors. Globalization has also enabled hotels to look for a wider market outside the companies’ countries of operation (Go and Pine, 1995). Increased competition – globalization has brought with it more players in the hotel industry. Today, many hotels are operating in more than one country, thereby increasing competition. Having this type of competition has enhanced innovation and creativity in the industry. Hotels, big and small, are always looking for new ways of winning more customers (ZhenJia, 2009). Technological advancement – globalization has led to the advancement of technology in the hotel industry as competition increases. Hotel companies are always on the lookout for anything new in the technological world which they can use to enhance their competitive advantage. The use of hi-tech facilities in the industry has led to the improvement of products and services offered in the hotels (Whitla, Walters and Davies, 2007). Variety of services – as the world becomes more and more globalised, people learn from other cultures and integrate those cultures into their own. The hotel industry has tapped into the international cuisine practice and many hotels are offering high quality international food services and other services to their customers (Knowles, El-Mourhabi and Diamantis, 2004). This is one of the means used by hotels to attract more customers. Cultural differences and Management in Hotels Globalization has led to the expansion of operations to many different countries. Today, a hotel company can have hundreds of hotels in different countries. This brings into perspective the issue of cultural diversity and its effects on management (Daneshku, 1998 and ZhenJia, 2009). Cultural differences affect different aspects of human resource management such as: decision making, motivation, productivity and communication. In a culturally diverse workforce, different individuals require different means and levels of motivation which are normally determined by their cultural orientation. To motivate the employees in a multicultural setting, it is important for managers to understand the needs of each of every one of the employees (Brotherton, 2003). This means that the managers have to be able to understand the cultures represented in the company for them to know how best to motivate their employees. Motivation of employees is closely tied with their productivity. With the right kind of motivation for employees, it is easy to enhance performance and therefore increase productivity within the company. Decision making and communication are important aspects of any business environment (Go and Pine, 1995 and Pizam, 2005)). The managers need to make important decisions which should enhance the company’s competitive advantage and increase its output. In a multicultural work environment, it is very important for everyone to understand each other if the decisions made are to have the desired effect. Understanding different cultures in the organization will help the managers and employees to have an effective communication channel (Lattin, Lattin and Lattin, 2002). This will make it possible for everyone in the company to be actively involved in decision making, which should help in improving operations. Effects of Globalization on Human Resource Operations in the Intercontinental Hotel As with all hotels that have international operations, the Intercontinental Hotel has felt the impact of globalization on its daily operations. In the hotel industry today there are a number of trends that are shaping the global market. These trends determine to what extent international companies can compete with each other at the local and international scene. Internationalization of business and lifestyle At the London Intercontinental, it is clear that the level of business operations and lifestyles are in line with global expectations. The kind of services that are available here are also those that are found in most of the world’s top-class hotels (Daneshku, 1998). The hotel caters to a customer base comprised of people from all over the world. The services offered have to reflect the kind of lifestyles of everyone who comes to the hotel. The internationalization of business involves cross-border workforce training to ensure that there is ample support for operations within the hotel. Empowerment of Employees and Managers The London Intercontinental pays a lot of attention to its workforce. At the management level, the workforce receives traineeship on cross-cultural management strategies so as to ensure that the hotel’s managers are able to deal with the needs of each of the cultural-divergent employees. The employees themselves have a training program that enables them o enhance their teamwork and interpersonal skills. These two skills are crucial in the day to day running of a hotel business (Litteljohn, 1997). The employees need to work efficiently together and they also need to know how to deal with customers at all levels. The interpersonal skills that they gain from the various training sessions also help the employees to have good working relationships with each other. Since they are mostly from different cultural backgrounds, the employees are able to create harmony among themselves when they learn how to understand each other through these sessions. Diversity The human resources at the London Intercontinental are characterised by many things, but of those that stands out is their diversity. The changes in world travel have led to a change in the way hotel companies normally respond to the needs of its employees and customers. The management of the company encourages inter-cultural understanding (Brotherton, 2003 and Whitla, Walters and Davies, 2007). The employees understand each other, despite the fact that they have different cultural backgrounds. This has placed them at an advantageous position in the market, since customer from all over the world would want to be in a hotel where they feel they will be understood and treated like they are at home. The diversity in the workforce composition of the London Intercontinental shows that the hotel has opened its doors to customers and guests from all over the world. Global Services In order to satisfy the needs of all its wide range of customers, the London intercontinental has gone a niche higher than most of its competitors by offering world-class services (Daneshku, 1998 and Pizam, 2005). To do this, the human resource department is always looking for innovative ways of motivating its workforce in order for them to offer high quality services. Human resource development is critical in the hotel company, with many employees having to go through rigorous training to enable them gain the skills required in their job areas. As part of an international company, the London Intercontinental has put measure sin place to ensure that its workforce can deliver the quality of services that are offered in other world-class hotels in the country and around the world. Perhaps it is due to globalization that the London Intercontinental is a market leader today. Globalisation has enhanced the quality of services offered at the hotel. It has enabled the hotel to embrace global business practices that make it attractive to a wide range of customers from all over the world. Some of the global business practices that the hotel has adopted include having a diverse workforce that works under cross cultural management of culturally conscious managers (Litteljohn, 1997). The cross cultural management practices that the London Intercontinental has adopted have played a pivotal role in placing the company at the top of the competition. Hotel companies that are planning to have a global presence must ensure that they prepare their workforce for a global market first. Conclusion Globalization has truly had a lasting impact on the day to day operations in the hotel industry. Hotel companies have had to change their operational strategies to align them to the expectations of global trends. The situation is not any different at the London Intercontinental Hotel, which is part of a multinational chain of hotels. To leave up to its name as a global company catering to a worldwide market, the hotel’s management has put in place mechanisms to ensure that services are attractive to anyone who might want to use them. The human resource management at the hotel is at the forefront in ensuring that the employees are well equipped to offer quality services to the hotel’s customers. The management style at the London Intercontinental is a cross-cultural one. The employees who come from different cultures enjoy working conditions in which they are very comfortable. There is a clear channel of communication between the managers and the workforce. This has enhanced understanding between the management and the workforce. It has also enhanced communication among the employees themselves. This style of workforce management has played a big role in the quality of services that are available at the hotel. The customers are normally made to feel welcome and valued. Each of the employees understands his or her role in ensuring that everything runs smoothly in the hotel. Globalization requires cross cultural management in international companies for them to offer quality products to their customers. The global market expects to be given high quality services, no matter the cost. In the hotel industry, globalization has enhanced cross-cultural management, which has led to customer satisfaction and productivity within the workforce. References Brotherton, B. 2003. The International Hospitality Industry: Structure, Characterics and Issues. New York: Butterworth-Heinemann. Daneshkhu, S. 1998. “Hotels Globalization is the name if the Game”. Financial Times, June 18, pg. 02. Go, F.M. and Pine, R. 1995, Globalization Strategy in the Hotel Industry. London: Routledge Knowles, T., El-Mourhabi, J. and Diamantis, D. 2004. The Globalization of Tourism and Hospitality: A Strategic Perspective. London: Sage. Lattin, G., Lattin, J.E. and Lattin, T.W. 2002. 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