Advantages of Human Capital Management: A Review and Analysis

The provided content consists of various articles and books related to human resource management. The main topics covered include social exchange and affect-based perspectives, human resource systems, organizational outcomes, high-performance HR practices, and resource-based perspectives on unit-level human capital. Additionally, the content includes meta-analytic investigations, reviews, and discussions on topics such as turnover rates, green HRM, and the too-much-of-a-good-thing effect in management. Furthermore, it also includes online resources and definitions of Human Resource Management.

Human Resource
Management

TABLE OF CONTENTS
INTRODUCTION................................................................................................................................1
TASK 1.................................................................................................................................................1
A Analysing the roles and purpose of HRM in Hotel Hilton......................................................1
B Human Resources Plan for Hotel Hilton.................................................................................2
TASK 2.................................................................................................................................................3
A Assessing the current state of employment relations in Hotel Hilton-....................................3
B Employment laws in UK and its effect on HRM of Hotel Hilton...........................................5
TASK 3.................................................................................................................................................5
A Recruitment and selection policies and procedures in Hotel Hilton.......................................5
B. Difference in selection process of Hotel Hilton and British airways.....................................6
TASK 4.................................................................................................................................................7
A Contribution of training and development..............................................................................7
B Current training and development policies and procedures of Hotel Hilton...........................7
CONCLUSION....................................................................................................................................8
REFERENCES.....................................................................................................................................9

INTRODUCTION
Human Resource management is a comparatively new approach to manage and support the
people of the organisation. It has been considered as a main business function which is effective in
maintaining organisation’s operation (Hendry, 2012). Significance of human resource has been
increased in present era due to high amount of competition. With this scenario, present report has
been developed with a motive to gain insight about HR practices in service sector. For this purpose,
Hotel Hilton has been taken into consideration (Grimsely, 2016). It is one of the prominent names
within the context of hospitality industry and is well known for its world class hospitality and
quality.
This report focuses on some major points on understanding HRM, the effective employer-
employee relationship and the right process of selection and recruitment. Further, it also emphasizes
on training and development of employees in service industries.
TASK 1
A Analysing the roles and purpose of HRM in Hotel Hilton
Hotel Hilton is one of the most leading organizations in the service industry. It is a well-
known name in the fine hotels across UK and worldwide. Being one of the biggest and successful
companies in this industry, Hotel Hilton knows the role of human resource department which it
plays to always keep growing.
Considering this, following are the roles and purpose of HRM in Hilton: Planning workforce and forecasting: Key role of HRM includes predicting the required
number of employees in future and plan accordingly. It refers to systematically identifying
and analysing the need of the organisation according to the size, type, knowledge &
experience, skills and quality of the personnel to achieve the respective goals and objectives. Recruitment Process: It refers to hiring the right choice of people by selecting and
appointing the suitable candidates for job within the organisation. In Hilton, HR manager
conducts timely recruitment to fill the vacant position (Armstrong and Taylor, 2014). Training and Development: T&D is a crucial section of Hotel Hilton's HRM which
constantly aims at improving the performance of individuals and groups in organizational
settings as per the client's requirement. It focuses on the latest demands and aspects of the
current scenario so that the ultimate needs of in-house guest can be addressed (Hayton,
2016). Contract of Employment: Contract of service is an agreement defining the terms and
conditions, according to which an employee is required to perform certain set of duties as
directed and controlled by the employer. It is the sole responsibility of the HR in Hilton to
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prepare the contract, including all key points in it, further mentioning the salary and wages
of the employee agreed upon (Bratton and Gold, 2012). Further, the agreement also includes
benefits and compensation to be provided by the company under different circumstances.
 Employee motivation and retention: It is one of the key roles of HR in Hotel Hilton as
employees need to be motivated to boost their productivity. HR department at mentioned
hotel continuously aims at building confidence among its workers by praising them and
providing timely performance appraisals and feedback. It is undoubtedly another major part
of human resource support systems that aids in enhancing overall efficiency of employees
(Storey, 2014). It takes place by evaluating each employee's performance and discussing or
feeding back the contents. It is very helpful in ranking the employees and making them grow
effectively.
Therefore, the HRM of Hotel Hilton is solely responsible for making the organisation
successful. As it is one of the largest and fastest growing hospitality industries across the world,
focussing more in providing a magnificent experience of hospitality.
B Human Resources Plan for Hotel Hilton
Human resource planning of Hilton is a process by which selection of a right candidate as
per the right job is ensured. It is also defined as a process of matching the number of people
required by the organisation as per its quality and quantity.
Illustration 1: Process of Human Resource Planning
Basically, it consists of 6 major steps of Human Resource planning1. Analysing Organisational Objectives: It is first and foremost step in HR planning of the
stated organisation where the main purpose is to work upon the future objectives by
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considering different fields. For example, the company is planning to expand its operation in
UK market. For this, it needs sufficient amount of employees.2. Inventory of present human resources: It defines the updated data from the current human
resource information storage system which further analyses the existing number of
employees working in the company, comparing their capacity, performance and potential
(Budhwar and Debrah, 2013). In the present scenario, Hotel Hilton is lacking employees for
its expansion in the UK market.3. Forecasting demand and supply: It is essential to assess the demand and supply of human
resources by making estimations for fulfilling the different positions as per the nature of the
job profile in which the available internal and external sources are also measured. As per
the current statistics, Hilton is planning for an operational expansion where there is demand
of more front office staff. However, with an aim to meet the respective demand firm do not
possess sufficient supply of employees (Healthfield, 2015).4. Estimating man power gaps: It refers to comparing demand and supply forecasting,
providing surplus and deficit of human resource. Surplus represents termination which
defines the excess number of existing employees, carried out of those who are not producing
the required amount of output and needs to be terminated. On the contrary, deficit represents
the required number of people, lacking in the organisation and needs to be employed for
different roles and positions of the company. Recently, Hilton is lacking in fulfilling two
more front office executives into the organisation for its expansion program (Hoque, 2013).5. Action Plan: Formulating the action plan again depends upon the surplus or deficit in the
company and accordingly, the final plan is finalised, that whether to make new recruitments
or internally train the existing employees to deal with the requirement. Presently, Hilton
needs to externally recruit and fulfil the demand of two new employees.
6. Monitoring, Control or Feedback: This is the last phase of human resource planning which
determines whether the action plans have worked appropriately as per the requirement, or
not. Later it is followed by the feedbacks and necessary control measures to balance out the
need.
TASK 2
A Assessing the current state of employment relations in Hotel Hilton-
Employee relationship management is a crucial part which maintains and supports the
relationship between a company and its employees. It also helps in strengthening the bond among
the employees ensuring the participation of one and all and by considering that they are enjoying
the efforts of making a healthy relationship with each other.
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Hotel Hilton too believes in a fair, honest and respectful work environment among all workforces
by considering it to be a vital step towards success. They work every day to establish a good
working relationship among one and all into the organisation, be it an employee or an employer
(Nickson, 2013). It refers to total interaction occurring between an employer and the employee in
regard to attain a productive working environment which only depends upon a healthy open
communication. For this, they strongly encourage direct communication of employees and their
supervisors as it is the best way to enhance understanding, clarifying situations and quickly
resolving most of the issues. Employment Relation in Hotel Hilton focuses on various activities
undertaken by the superiors or management to develop a healthy work relationship among the
employees and extract the best out of each team member (Jiang and et.al., 2012).
These activities include- Transparency in communication is of utmost importance. It includes some crucial points of
collective bargaining, consulting and negotiating etc. Where collective bargaining refers to a
group process where mainly two set of groups, one representing the employees and the other
representing the employers participate together to negotiate the terms of employment, which
also protects the interest of both the employee and the employer. Further, it helps in
promoting an organisational democracy. It also promotes an open and honest
communication, where employees are given a chance to freely discuss their concerns and
issues. Encouraging group activities in the workplace includes motivating the individuals to work
together in a group, which automatically increases the comfort level among them, as the
more they talk, the more they get to know & trust each other. Sometimes, giving them a
target along with a deadline and asking them to take each other's help also comes to a
conclusion. Hotel Hilton also celebrates festivals together like the same way one does at
home, celebrating each other's birthday, etc. Such informal get together goes a long way in
improving the relation among the employees. It emphasizes on employee participation
(Renwick, Redman and Maguire, 2013). Conflict management is essential for improving relationships among the workers which
largely demands collaborating with the work of employees. Collaboration takes place by
collecting ideas from multiple mind sets and forming a new and creative process which also
catches the interest of all the employees to work upon. It includes policy formation, which
further leads in solving the actual problem and gives a wining outcome.
 Building Disciplinary Strategies- In Hotel Hilton, another important point of making a
successful employment relation is disciplinary strategies where the employee has been
introduced with certain set of policies, rules and regulations of the company and the
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employee is expected to maintain a standard set of performance as conducted with the
applicable procedures and law, as guided by the superior or management. It mainly includes
counselling and disciplinary actions (Alfes, K. and et.al., 2013).
Counselling is where the employee gets aware of the concerns and information related to the
expectations, basics and measures. Disciplinary action mainly comes when the other methods of
counselling and performance appraisals tends to get fail or unsuccessful. It is a corrective action to
improve the unacceptable behaviour or performance which is usually in the form of written
warning, suspension, and demotion as well as reduction in pay or even termination.
B Employment laws in UK and its effect on HRM of Hotel Hilton
Employment laws are certain laws laid by the government to regulate the relationships
between the workers, employers and trade unions. Some of them are-
1. Equal Pay Act- It states that both men and women should get an equal amount of pay for
doing the same type of work. Hence, the HRM of the stated company equally ranks and
value the employees, unbiased of the gender (Buller and McEvoy, 2012).
2. National minimum wage act- It creates a minimum amount of wage payment as per the age
and working hours of the employees, where the HRM of Hilton strictly needs to verify both
the terms.
3. Maternity leave- This act helps to regulate the women employee's, where the HRM is
responsible to provide 16 weeks of fully paid leaves to the women working into the
organisation. At the same time, the HRM is required to the bear the replacement of that
particular employee by arranging new recruitment and training programs.
TASK 3
A Recruitment and selection policies and procedures in Hotel Hilton
These policies and procedures of Hotel Hilton are carried out by preparing a job description
and specification of a particular position. In regard to mention the same, position of front office
executive is taken into consideration.
Job description of front office manager includes:- Reporting directly to the general manager or front office manager. Position summarizes maintaining a high quality guest relation by greeting and
accommodating them, performing the required transactions, and timely answering the calls.
 Roles and responsibility defines-
1. Welcoming and assigning rooms to the guests by issuing the keys to them (Jiang and et.al.,
2012).
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2. Making necessary transactions and managing proper records.
3. Ensuring customer satisfaction by showing initiative and solving problems.
Job specification involves the skills required to justify the above description of work:- Education- Degree or diploma in hospitality management or other related field. Experience- Minimum 2-3 years of work experience in the relevant field of guest relation,
etc.
 Other Skills and Abilities- Good communication power and customer relationship skills
carrying a pleasing personality. Knowledge of computers is an added advantage.
B. Difference in selection process of Hotel Hilton and British airways
Selection is the process of hiring a right candidate for the right profile. The hiring manager
takes this decision on basis of the given feedbacks from HR and some other employees, who has
interviewed the respective candidate after following some common steps of selection procedure.
However, there is a slight difference in the way of conducting those steps, as per the nature of the
company. In context to that, following two hospitality firms i.e. Hilton and British Airways (BA)
are taken into account for considering their difference in the selection process.
The following processes are been followed by both the companies for selection:-
1. Inviting applications- Hilton relies on some verified job sites to notify their job vacancy.
It is also registered with reliable placement agencies, specifying their needs and demand.
However, for the vacant positions in British Airways, one needs to regularly visit their
official website (Kehoe and Wright, 2013). On need is to submit a resume and answer
few application questions which directly relate to that particular job profile, the
candidate is applying for.
2. Reviewing the received applications- After advertising their vacancy and receiving job
requests, Hilton mainly focuses on selecting experienced candidates in the area of
customer service. Also, candidates having an educational background of hospitality are
being preferred. In BA, candidates having more of technical skills with some prior
experiences are majorly focused.
3. Screening of the candidate- After preparing a final list of selected candidates, Hilton
conducts a written test to determine the knowledge, attitude, and interest of the
candidates. Whereas, BA focuses more on conducting a psychological and numerical test
to check the intelligence and personality of the candidate by assigning a real life data to
detect and analyse.
4. Conducting Interviews- As per the test results, the refined candidates are required to
appear for a face to face interview in Hilton. Contrary to that, BA conducts telephonic
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and online interviews.
5. Final selection- It is the last step of selection process, the suitable candidate is given an
appointment letter to join them at a particular date, further specifying all the terms and
conditions of employment. In BA, a candidate is first appointed to serve probation of
certain period in which enough training is provided as per the requirement of the job
profile and later the positioning takes place (Nyberg and et.al., 2014).
TASK 4
A Contribution of training and development
Training and development is one of the key functions of HR. There is a continuous
increasing focus towards it and has been treated as an integral part of the organisation these days.
The training function of Hotel Hilton has a crucial role from rising of the employment relationship,
whereas the development function works for the fortune of the relationship. Training and
development programs hold numerous significant points, which are stated as under:- Overcoming the weakness- Some employees faces deficit amount of skills while performing
certain tasks at their workplace and to overcome those flaws, a training program play a very
effective role (Al Ariss, Cascio and Paauwe, 2014). It helps in strengthening those skills by
making the required improvements in them. Enhancing the skills of the employees- Training and development helps in gaining
employees skills as per the nature of the job. It also helps in polishing at every level, further
it helps in expanding the worker's intellectual power, interpersonal skills and an overall
personality (Budhwar, 2012). Increasing productivity of the workers- Training provides the employees a clear description
of their task, thus making it easy for them to perform. Also, the more training they will get,
the chances of increasing the productivity will arise, further helping the organisation to grow
by achieving its long term goals (Colquitt, J. A. and et.al., 2013).
 Team Bonding- Training helps in collaborating with the team by increasing their team spirit
and team work. It infuses zeal among the employees to learn more which in turn allow the
employees to deliver their best out of them in terms of quality, boosting up the success of the
organisation (Park and Shaw, 2013).
B Current training and development policies and procedures of Hotel Hilton
Hilton management service is committed to create excellence in worker's performance in
order to maintain and enhance its position as the largest global class management company. It
believes in recruiting and retaining the industries finest and talented team members. Presently, it is
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dealing with 100,000 team members. For ensuring all kind of training activities, required at every
level, regional training managers are being appointed, who works directly with the managed
properties (Pierce and Aguinis, 2013).
Training and Development policy and procedures are based on certain criteria. In this, the
policies are subjected to create the basic objectives of the organisation, after aiming at certain
points. It focuses on providing people the required technical skills and to identify the development
needs of both the organisation and individual's in order to make a balance between them. In order to
follow and maintain the above policies, Hotel Hilton needs to comply with certain procedures of
identifying the needs, fulfilling those requirements and lastly by making necessary evaluations.
1. Choosing the training format- It is in regard to the selected company, where after defining
the stated objectives, management decides the most suitable way of providing training to its
employees. It includes the most blended way, by combining the advantages of both online
and instructor- led training (Campbell, Coff and Kryscynski, 2012). For instance, there
could be different requirement for different employees in which, some may prefer visual
trainings such as presentations for polishing their skills, while others found audio training as
an effective tool for them. Therefore, as per such requirements, the management is
responsible for conducting the training sessions.
2. Gamification- Technological advancement is continuously increasing day by day, thus
helping the organisations in saving their time and cost of production, which is undoubtedly
an advantage to one and all, whether it's an individual or a whole business entity. Hotel
Hilton also aims at utilising the technology in order to give an immense learning experience
(Langley and et.al., 2013).
CONCLUSION
The above report depicts the importance of human resource management into an
organisation. It aims at providing the organisation a continuous success by performing strategically.
It gives a wider outlook to the employees that help in better understanding their job and performing
well. In addition to this, it can also be said that the HR has very important role within firm. This is
because with the help of given function only, firm can maintain the satisfaction level of its workers.
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REFERENCES
Books and Journals
Al Ariss, A., Cascio, W. F. and Paauwe, J., 2014. Talent management: Current theories and future
research directions. Journal of World Business. 49(2). pp.173-179.
Alfes, K. and et.al., 2013. The link between perceived human resource management practices,
engagement and employee behaviour: a moderated mediation model. The international
journal of human resource management. 24(2). pp.330-351.
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Bratton, J. and Gold, J., 2012. Human resource management: theory and practice. Palgrave
Macmillan.
Budhwar, P. S. and Debrah, Y. A., 2013. Human resource management in developing countries.
Routledge.
Budhwar, P., 2012. Management of human resources in foreign firms operating in India: the role of
HR in country-specific headquarters. The International Journal of Human Resource
Management. 23(12). pp.2514-2531.
Buller, P. F. and McEvoy, G. M., 2012. Strategy, human resource management and performance:
Sharpening line of sight. Human resource management review. 22(1). pp.43-56.
Campbell, B.A., Coff, R. and Kryscynski, D., 2012. Rethinking sustained competitive advantage
from human capital. Academy of Management Review. 37(3). pp.376-395.
Colquitt, J. A. and et.al., 2013. Justice at the millennium, a decade later: A meta-analytic test of
social exchange and affect-based perspectives. Journal of Applied Psychology. 98(2).
pp.199.
Hendry, C., 2012. Human resource management. Routledge.
Hoque, K., 2013. Human resource management in the hotel industry: Strategy, innovation and
performance. Routledge.
Jiang, K. and et.al., 2012. Clarifying the construct of human resource systems: Relating human
resource management to employee performance. Human Resource Management
Review. 22(2). pp.73-85.
Jiang, K. and et.al., 2012. How does human resource management influence organizational
outcomes? A meta-analytic investigation of mediating mechanisms. Academy of
management Journal. 55(6). pp.1264-1294.
Kehoe, R. R. and Wright, P. M., 2013. The impact of high-performance human resource practices
on employees’ attitudes and behaviors. Journal of Management. 39(2). pp.366-391.
Langley and et.al., 2013. Process studies of change in organization and management: unveiling
temporality, activity, and flow. Academy of Management Journal. 56(1). pp.1-13.
Nickson, D., 2013. Human resource management for hospitality, tourism and events. Routledge.
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Nyberg, A. J., Moliterno, T. P., Hale, D. and Lepak, D. P., 2014. Resource-based perspectives on
unit-level human capital a review and integration. Journal of Management. 40(1). pp.316-
346.
Park, T. Y. and Shaw, J. D., 2013. Turnover rates and organizational performance: A meta-
analysis. Journal of Applied Psychology. 98(2). pp.268.
Pierce, J. R. and Aguinis, H., 2013. The too-much-of-a-good-thing effect in management. Journal of
Management. 39(2). pp.313-338.
Renwick, D. W., Redman, T. and Maguire, S., 2013. Green human resource management: a review
and research agenda*. International Journal of Management Reviews. 15(1). pp.1-14.
Storey, J., 2014. New Perspectives on Human Resource Management (Routledge Revivals).
Routledge.
Online
Grimsely, S., 2016. Human Resource Management: Definition, Objectives & Responsibilities.
[Online]. Available through: <http://study.com/academy/lesson/human-resource-
management-definition-objectives-responsibilities.html>. (Accessed on 16 February 2016)
Hayton, J. C., 2016. Human Resource Management. [Online]. Available through:
<http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-050X>. (Accessed on 16
February 2016)
Healthfield, S. M., 2015. What is Human Resource Management? [Online]. Available through:
<http://humanresources.about.com/od/glossaryh/f/hr_management.htm>. [Accessed on 16
February 2016].
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