Introduction to Human Resource Management
Human resource is the primary resource of any industry without which other resources such as physical and financial resources cannot be put into use. Moreover, to manage human resources in the organization, a separate department of human resource management is established so that job description can be made, recruitment and selection of candidates can be done, training and development can be provided as well as succession and career planning can be done (Aladwan, 2014). The proper implementation of human resource management in an organization ensures the progress of employees and enables the control mechanism. In present business scenario, HRM is required in each and every type of industry irrespective of the fact that whether the industry is a manufacturing or service based.
This report has been focused on human resource management in a service industry and for that purpose, Hilton Hotel has been selected. Furthermore, the report describes the analysis of roles and purpose of human resource management and the justification of HR planning in the hotel. Moreover, the report covers the assessment on the current state of employment relations and effect of employment law on the management of human resources (Bramham, 2000).
Role and purpose of human resource management
In general terms, human resource management can be denoted as HRM. It is a function in an organization which is designed to maximize the performance of employees in service sector against the strategic objectives. HRM has to play several roles in a company in order to manage workforce (Budhwar, 2000). Further, HRM has not been evolved for a sole purpose of managing human resource but also there are many purposes to be fulfilled by the HR manager. Moreover, HRM is highly required in service sector in order to manage employees of a service unit. Roles and purposes of HRM in Hotel Hilton have been discussed as follows:
Planning, Resourcing and Retention: The foremost function or role of HRM is to make plan for the employment of workforce. For instance, the number of employees required in the hotel, , supply is more than demand or not (Charles and et. al., 2006). Planning of these aspects has to be done by the HR manager of Hilton Hotel. Further, after doing planning, recruitment and selection of employees are done and they are allotted job profile as per their qualification and experience. Housekeeping employees, chef, waiting staff, etc. are the various types of jobs that are available in this industry. Moreover, when resourcing has been done than employees are motivated and retained in the organization so as to reduce the rate of attrition and absenteeism.
Training and Development: HRM also aims to provide training and development to the workforce who are appointed. It is provided in order to acquaint people to the hotel and its rules, provide knowledge about the work profile and train them about how to carry out work (Christopher and et.al., 2003). Further, development activities are provided to the hotel staff in order to develop their career as well as also to develop their personality and professionalism.
Remuneration and Reward: HRM also performs the role to remunerate human resource of the hotel. HR manager provides the best remuneration to the hotel’s staff as per their qualification, experience and job profile. Further, manager also gives rewards to the people for their best performance in order to motivate them for getting more effective performance.
These are some of the roles which a Human Resource Manager plays in order to manage complete workforce of an organization. Similarly, the main purpose of the evolution of HRM in Hotel Hilton is to manage human resource so that physical and financial resources can be optimally utilized (Darrag and et.al., 2010). Further, human resource manager is aimed to retain skilled and talented staff in the organization. It also has an aim to create such environment in which teamwork and flexibility can flourish.
Justification of human resource plan based on an analysis of supply and demand
Planning for human resource is done in order to recognize the existing and future need of the human resources in Hilton Hotel. After analyzing the supply and demand of human resource, planning for them is done. This plan should determine the relationship between human resources of the hotel and the overall strategic plans of the enterprise (Felstead and et.al. 2007). HR manger do need analysis in the hotel and through which, demand of the hotel’s staff can be known. For instance, Hilton Hotel is building its new premises at Stratford and for that, it has planned to provide numerous service and for that purpose, many new staff members are required to fill those jobs. Thus, planning should be done accordingly. There are different types of services including baggage storage, barber shop, foreign currency exchange, gift shop, parking facility, room service, Spa, Fitness room, etc. For providing all these services,, manager has to appoint several employees. Through this, demand forecasting has been done and as per the demand, supply forecasting should be done. In supply forecasting, availability of HR is estimated in the market from where human resources can be availed. HRM do planning that from which sources, workforce can be supplied as they can either appoint people from the Institute of Hospitality or from other renowned institutes or form placement agencies or from web advertising (Hernandez, 2009). Prior to that, company should analyze that human resource is available in that sources. Along with that, cost estimation, time estimation and other related factors are also assessed so that in lesser time and cost, skilled and talented employees can be appointed. While doing HR planning, manager assesses the whole organization and finds out the requirement of number of employees for each department and service. For example: there is a demand of 50 employees for room service and 10 employees are required for salon services. Further, 8 employees are needed for spa services and so on. For that purpose, supply forecasting is done as per the skills and qualification requirements of employees. Internal and external supply forecasting are also done. Internally, employees can be shifted from other branch of hotel to this newly launched branch. For instance, executive housekeeper can be transferred from London branch to the Stratford branch. Externally, fresher candidates can be appointed form renowned institutes.
After making human resource plan, justification of this plan has been done Suggested plan is quite effective because the source which have been identified are cost effective. Placement from institutes involves lengthy time but it will provide efficient employees to the Hotel (Innocenti, Profili and Sammarra, 2013). Further, web advertising source involves least cost and time. Further, internal supply involves some difficulties as changes have to be implemented and a well established employee have to be moved to new place. But, this is the best source through which vacancy can be filled. Thus, it can be said that plan which has been stated is highly effective and HRM can meet its requirement in an easier manner.
Assessment of current state of employment relations
Employment relation basically refers to as the industrial relations and it is concerned with the contractual, emotional, practical and physical relationship among employee and employer. The employment relation is formed when employee sign the contract with the employer at the time of joining a job. That contract consist each and every aspect of the organizational activity. On this aspect, job of HR manager is to coordinate all these activities and make the employee efficient enough to perform all these activities (Jackson, 2008). Further, the employment relation can be formed when the employee sign the contract with the employer and they both agree upon the fact that employee will perform activity as per the organization' requirement and in return for that employer will pay him the remuneration. The employment relations in the hotel industry is different that from other industries. It is because the working culture, nature of job, pay scale is entirely different. Due to which the employment relation in this industry always remain good. In order to make the good relation with the employees, HR manager make regular contact with the hotel staff so that attrition rate and absenteeism can be removed.
For establishing new premises of Hilton Hotel at Stratford, HR manager has carried out a detail analysis in order to assess the emerging trends in the employment relations in the hotel industry (Lepak and et.al., 2006). In existing situation employment relations have been highly modified. Mainly, in hotel industry the firm has to maintain good relations with the employees. Moreover, they have to timely motivate their employees by providing monetary as well as non-monetary incentives so as to enhance the performance.
Employees empowerment and participation : Participation is somewhat when employees are involved in decision making processes. This is a part of employee empowerment in the workplace. Employee empowerment is related to empowering employees in a way by providing them chance to make their own decisions without consulting superiors. The higher level of management of Hilton Hotel allows managers to take their own decisions which are tactical in natures. In addition, the employees are given training to handle their affairs without consulting superiors which boost the morale.
Employee engagement: Employee engagement refers to the choices of employees to act in a way that benefits their company’s interests. An engaged employee is one who is fully involved and enthusiastic about work. To engage people, Hilton uses one-to-one interaction with all their employees every month in order to assess their issues and also to resolve them on the spot.
In a similar aspect, a HR manager has to establish a separate department of training and development in the Hotel so that proper and timely training about the job and grooming can be provided. Further, the HRM has to provide excellent working condition and other recreational activities in order to make them feel relax. In addition to this, work time limit should be established so that none of the employee feel pressurized (Lewis, 2003). These are some of the current policies through that effective employment relation can be maintained in Hotel Hilton. There are three major things that are to be focused on while focusing on employee relations:
Affect of employment law on the management of human resource
Employment law is that law which encompasses all the areas of the employee and employer relationship. The employment relation can be defined through the employment law. While signing the employment contract, the employment law only defines all the policies which has been included in that contract. That employment contract make the employment relationship between employer and employee (McGunnigle and Jameson, 2000). Further, the employment law is consist of the rights and duties of employer and employee such as the wage rate, working hours, overtime payment, non-discriminatory behaviour at the organization based on caste, race, age, gender, color, religion, etc. Moreover, safety should be provided at the working place that is mental and physical harassment should not be practiced. Hygienic working condition should be there so that employee's health could not get deteriorated.
The equity at 2010 is designed to reduce socioeconomic inequalities; as well as to harmonies equality law while eliminating discrimination and other prohibited conduct related to certain personal characteristics. From an effect of such law, Hilton hotels provide equal chance to eligible candidates to be selected at the vacant post (Equality Act 2010. 2016). Manager has to ensure that mental or physical harassment is not conducting for carrying out the work in each department. This will impact positively upon the minds of employees and also on the organization. As this will make a positive image for the prospective employees and pool of talented employees will get attracted towards this organization. Further, the management of human resource will become easy because this will reduce the number of conflicts as employees are already satisfied with the pay scale and working environment (Savage, Fottler and Khatri, 2010).
The Equal Pay Act (EPA) of 1963 prohibits the discrimination in the payment system on gender basis. The pay scale offered to the employee should be equal for all the employees as per the employment law irrespective of their caste, religion and nationality. The selected candidate should be informed about all the policies, procedures, term and conditions in order to avoid ambiguity in future course of time.
Recent amendment has been made in The Employment Act 2008(c 24) which includes different provisions of UK labour law. From a major act , If employers not follow the procedure before dismissing their employees it would be deemed unfair.
The effect of employment law is positive as well as negative while managing the human resource at Hotel Hilton. While managing the human resource, manager has to keep in mind all the points and policies listed in this law (Salaman and et.al., 2005). During the recruitment and selection process, employer has to see that discrimination is not one with any candidate, unbiased selection of employee is done that is based on their qualification and skills possessed. This law sometimes affect the management of human resource in a negative manner. It is not easy for the employer to follow each and every point in every situation. Sometimes, they have to miss any point in order to carry out the operational activity in a smooth manner. But this practice may dissatisfy the employees and due to which the brand image of Hilton Hotel may get deteriorated and customer may avoid to visit this Hotel which will directly impact its profitability. If the employment law is not is not followed properly than the legal action might be taken against this hotel which will reduce the corporate image of this hotel in the whole world. Thus, it is advised that Hotel Hilton should follow the employment law in a proper manner in order to avoid unfortunate circumstances (Sims, 2007).
Contribution of training and development activities for the effective operation
The word training in a general manner can be described as an action of teaching an employee a particular kind of skill or behaviour. In an organizational context, training means instructing a newly appointed candidate a particular type of skill which is required to carry out a particular job (Hernandez, 2009). Training is not a one time process, in fact it is a continuous process and carried out in an organization for a life long. Further, this activity is carried out for the purpose of inheriting the particular kind of skill which is required for carrying out the specific kind of job. Whenever, any innovative work has to be carried out than for that course of time, training is provided to the people of an organization so that activity can be performed in an effective manner. It can be said that training is conducted for teaching particular kind of skills for specific period of time.
On the other hand, development of an employee is done for the life long enhancement of personality and professionalism. Development can be done by providing communication skills, interpersonal skills, time-management skills, etc. Training is a narrower concept whereas, development is a much broader concept (Lepak and et. al., 2006). Training and development generally go hand-in hand. While providing training to the employees, development of people is also done so that employee can become highly efficient and organization can get an opportunity to create competitive advantage. Every employee in the organization is given training and development session to improve their current job or to develop their career. If the candidate is newly appointed than, that person is given training about the organization and its policies and about the technical expertise of their current job (Salaman and et. al., 2005). If any new technology is introduced in the organization or changes have occurred then the existing employees are given the training about the new technology or to accept the changes. This reduces the chances of accident and wastage of resources. Development of employees is done by giving them various opportunities to tackle situation by giving them different responsibilities. They are also given various sessions for personality development and career development which helps them in the future for developing their career. Training and development have a major contribution for effective performance in the organization.
Further, in the Hilton Hotel, training and development plays a significant role for bringing effectiveness in the organization. The HR manager provides effective training and development session to the hotel staff so that best skills and quality can be developed among them which in turn would satisfy the customer with their performance and behaviour (Stephen, and et. al., 2008). There is a major contribution of training and development provided to the hotel staff which brings effectiveness in the performance of hotel staff. Some of the advantages of training and development is regarded as follows:
1. Motivates Employees: If the effective training is provided to the hotel staff than this will prove to be as a motivator factor for the employees. It is because employees will get a clear direction about the working of a job and this will motivate them to perform the activities in a most efficient manner (Vencato, 2014).
2. Improve Performance: If the proper training about the particular task is provided to the staff than this will bring efficacy in their performance. It is because the staff member would have clear information about the particular task and thus, the employee will carry out the work activity in an effective manner.
3. Customer Satisfaction: If each and every hotel staff is provided with effective training than hotel staff will adopt a certain type of behaviour and similarly the skills of carrying out services will also get develop. Due to which the staff member will provide services to the customer in a most effective manner (Varbonava, 2013). Thus, this will satisfy the customer at highest and the chances of repeat business will get increase eventually.
4. Competitive Advantage: If the firm provides effective training and development session to the hotel staff than company will get highly competent staff in the hotel which may satisfy the customers at highest. Due to this the customer would like to visit the Hilton Hotel again and again. This will create a positive corporate image in the industry and thus, it will lead to the creation of competitive advantage.
The aforementioned report concludes that human resource management is equally important for the service industry as compared to the manufacturing sector. Further, it can be explained that Hilton Hotel can recruit the human resource from renowned institute to fill their numerous job vacancies. As this is the most effective source and they can place the employees in the jobs in a lesser period of time. The recruitment can be done externally and internally so that it proves to be cost effective. Moreover, the proper training and development should be provided to the newly appointed candidates as this part proves to be a most effective activity in a hotel industry. It has already been established in the employment relation contract that training and development department should be separately established by the HR of the hotel so that timely and effective training can be provided to the employees.
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