HRM Strategy and Key Issues at Hotel Hilton UK

This report assesses the HR strategy and key issues at Hotel Hilton in the UK and identifies the factors that are impacting organizations business HR strategy. It analyzes the external factors impacting business and HR functions, Pestle analysis and Porters five models, and compares the weakness and strength of PESTLE and PRESTCOM analysis. It also discusses the key stages in the strategy formulation, implementation, and the role of HR in change management.

Hotel Hilton UK
Hotel Hilton Hotel Hilton
Human Resource Management
System

HRM- HILTON UK 1
Contents
Introduction.................................................................................................................................................1
Hotel Hilton and HRM................................................................................................................................2
1.1 External factors that are impacting organizations business and HR functions...................................2
2.1 Pestle analysis and Porters five models.............................................................................................4
2.2 Compare the weakness and strength of PESTLE and PRESTCOM analysis.....................................8
2.3 Key stages in the strategy formulation, implementation and Role of HR..........................................9
Role of HR in change management...................................................................................................11
2.4 HR contribution to business ethics and accountability in the organization......................................12
3.1 Evaluation of organization performance..........................................................................................13
3.2 Source of business data and the role of HR in supporting these activities.......................................15
Conclusion.................................................................................................................................................17
Bibliography..............................................................................................................................................18

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Introduction
Human resource management is the major part of any business whether it is a retail industry or
hospitality industry. In achieving the success for the organization HRM contributes and play an
essential role (Glaister, 2018). HRM strategies aligned to make changes in the organizational
overall HRM process. HRM strategy planning leads to implement new and different functions in
the HR process of the organizations. These strategies are guided by HRM specialist with the
purpose of contribution to the overall operation (Ellmer, 2018).
Hilton holding Plc is also known as Hilton Hotels Corporation across the world. The
organization is multinational hospitality organization and having its hotel and resorts in more
than 109 countries. In 2013 the company becomes 36th largest private held company. The
organization having one of its hotels in London names as Hilton hotel Stratford (Maxwell &
Lyle, 2018).
The purpose of the report is to assess the HR strategy and key issues at Hotel Hilton in the UK
and to identify the factors that are impacting organizations business HR strategy. The important
objective of this report is assessing how HR evaluates organization's implements HRM strategy
and the forces that help to shape the HR agenda. It will also assess how the HR specialist
evaluates organization performance.

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Hotel Hilton and HRM
1.1 External factors that are impacting organizations business and HR functions
HRM department of Hilton UK is very well drafted yet nothing left perfect, there are four factors
which impacts organizations business and HR functions as well. The organizations change their
HR strategy in every 5 years some time company makes these changes on a yearly basis
(Maxwell & Lyle, 2018). Here are four factors which impact business and HR functions:
Gender pay gap: Every organization must follow the compliances standards for its workforce
and stay within the law to make a safe and positive environment. Laws and regulations impact
every process and operations of Hilton including HRM. There are many employment laws and
business laws in the UK which changes in every five years. For instance, there are some law
changes in employment laws as according to Gender pay gap Act organizations who has more
than 250 employees have to report about staff gender pay gap every year (CIPD, 2018).. These
changes in law lead to changes in policy.
Artificial intelligence: Several technology factors influence the customer. AI becomes regular
these days. Hotel Hilton is one the hotel who invent their own Bot “Connie” With guests when
visit the check in desk. This robot also suggest guest for local attractions and sites. These AI
technologies impacts business performances on a large level (Event Studio Team, 2018).

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Flexible working hours: Flexible working hours can be use as strategic tool to increase
productivity and improve performance. Flexible working works involves part-time jobs, work
from home and several others. There are many benefits of providing flexible working hours
which impacts both way directly and indirectly (CIPD, 2018).
Lack of trusted employees: Lack of trust decrease transparency and communication. Hilton
needs to build trust amongst employees and empowering staff to own daily responsibility. Still
some of the employee do not have trust on their manager or the company such employee often
get influenced by outsider and other organizations. They also influence other employee. Lack of
trusted employees impacts organizational performance (Park, 2018).
2.1 Pestle analysis and Porters five models
The pestle analysis of Hilton hotel involves assessing the possible effects which impacted its
operations (CIPD, 2018). Pestle analyses of Hilton hotel as follows:

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Political factors: It can identify that the political condition of the UK can impact the business
operations which can lead to negative loses sometimes as well. The hazards and threats of
terrorism activities impacts and lead to a reduction in the number of traveler and visitors and it
impact the organization’s business performance as well (Ramos, 2018). For instance in 2005
there UK faced lots of terrorist activities and UK labeled as a place with extremist religious
organizations. And it impacted Hilton’s business performance in the market (Dudovskiy, 2016).
Economic factors: The monetary factors predominantly incorporates the financial development,
charge rates, swelling, loan fees, wage rates, change in return rates, and so forth which impacts
the functionalities of the Hotel Hilton to the extraordinary degree. For example world’s recession
and financial crisis in between 2007-2009 lead Hilton’s sales got down by 20%. However Hilton
gets recovered and earned profit again in 2008 (Ryan, 2019).
Social factors: Social factors include all the cultural factors, health, and safety concern, growth
of populations and several others. That can influence Hilton’s operation hugely. It has been
distinguished that London is been known for its social broadening and consequently bolsters the
association in managing the equivalent. The exhibitions of Hotel Hilton could be impacts
through various inclinations of the client from the assorted foundation and would consequently
require making the procedures appropriately. The company ISO certified this means the
company is fulfilling the following the social responsibility. It also influences the customer and
increase business performance.
Technological factors: Technological factors are the major factors which improve performance
efficiency and decrease the HR inventory. There are many services such as mobile apps and
other services the company utilizing the services one of the technology hotels utilizes that which

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provides room’s control to guests and this automation reduce workforce turnover (Hilton-
Newsroom, 2018).
Legal Factors: There are many legislations for the hospitality industry to carry out while
operating business. It is essential for the hotel that the HR department and management
department must stand by the laws and legislation such as customer rights protection, health &
safety. Breaches of these laws cause the penalty and the due to recent law changes, penalty rise
from 20000 to 5000 (CIPD, 2018).
Environment: The ecological variables incorporate the climatic conditions, expanded expense
of assets, and so forth which would affect the Hilton from multiple points of view. The
adjustments in the climatic condition would exceedingly affect the profitability of the Hotel as it
would prompt a decrease in the number of clients and travelers from different countries.
Porter’s five models used as a tool to analyze those factors which can impact business
performance (CIPD, 2012). Here are factors that can affect the business:

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(B2U, 2016)
Competitive rivalry: With this HR analyses how many rivals’ organizations have and how their
services and its quality compare does with the Hilton. With these analyses, Hilton can attract
client and visitors by cutting the price and provide less priced services. There are lots of
competitors of Hilton in UK such as Radisson Blu is also providing AI technology giving equal
services batterly which influences its customer. There are many competitors of Hilton hotel.
(Event Studio Team, 2018). Net Income in the first 6 months quarter 2016 grew year on year by
106.67 %, faster than average growth of its competitors.

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(Dudovskiy, 2016)
Supplier power: Hilton UK purchases services from more around 5000 suppliers. However
most suppliers bargaining power is low as they have less unique products and service. The
company runs diversity program for supplier which ensure purchasing from, and the growth of,
socially diverse suppliers.
Buyer power: UK’s buyers have high bargaining power as there is large number of hotel in the
UK and they have lot of option of choice.
The threat of substitution: This is to analyses what technology would attract the customer. A
substitution that is simple and shoddy to make can debilitate your position and undermine your
productivity. Hilton also facing some issues when technology is increasing and decreasing the
need of travel for instance video conferencing decreases the need of travel to other place and stay
in the hotel.
The risk of new entry: HR or other market analyst specialist analyses that all are going to enter
the market where a hotel in operated how much would it cost. However, Hilton has strong and
strong barriers to entry. They can reserve a position and taking advantage of it.

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2.2 Compare the weakness and strength of PESTLE and PRESTCOM analysis
While Pestle analysis is use to identify the external factors which can affect the business and HR
functions (CIPD, 2018). PRESTCOM is used to internal and external both factors which can
impact the business (Tariah, 2014). There is some strength which is both similarly have such as
both can analyze the Political factors such as government changes and several others that can
impact the Hilton’s business and HR functions. Both can analyze the regulatory framework in
the UK and those laws which are changed in recent time and should be implemented in the
organization. PESTLE and PRESTCOM both tool analyze all the economic factors that impacted
on the business such as how population growth will impact and fluctuating exchange rates and
several others which can affect.
However, PESTLE does not analyze the internal and organizational factor such as employees’
performance any internal disputes or internal stakeholders and their expectations which can

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impact the business and internal environment. PESTLE also does not analyzes how competitor
doing the business, how their services and products doing well as compare the Hilton hotel. It
also HR can overgeneralize the information that is used for decisions making (Management E-
books, 2018). On the other side PRESTCOM can analyze the competitor situation and position
as well and how can Hilton provide better service than their competitor. However, there is not
any weakness of PRESTCOM as it analyzes the internal and external factors as well. There is
one weakness of PRESTCOM tool that it cannot analyze the environmental factors such as how
weather or seasonal changes can influence the Hilton’s business and HR functions (Tariah,
2014).
2.3 Key stages in the strategy formulation, implementation and Role of HR
Every organization believes that its employees are the major factor of the organization’s success.
It is important to frame and implement HR strategy. By framing and implementing HR strategy
Hilton determines how to meet business requirement and customer demand.
HR strategy begins with assessing the current existing staff in the company and recognizes the
future needs of the staff based on business objectives. From there HR aligns the organization's
strategy with employment planning and implementing the plan to organizational success. Here
are some stages in strategy:
1. Assessing current HR capacity: The first stage is to assess the current staff. Before hiring
employees HR of Hilton identify the talent organization already has and develops the skills of
each of the employee of the organization (L'Écuyer, 2019).
2. Forecast HR requirement: After assessing the current HR capacity and having the full
inventory of the resources HR forecast the future needs. They recognize that the current capacity

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of the staff is sufficient or hotel must stick current staff and improve their productivity
(L'Écuyer, 2019).
Matching supply and demand: The HR of the hotel assesses both demands of the organization
and supply of employee. HR needs to carefully manage supply and demand. This is the tricky
process where rest resource management process comes in place. The HR develops the strategy
to link the hotel’s demand for a quality workforce with the supply available in the market. HR
can accomplish this by trained current employees, hire employees or merging both approaches
(L'Écuyer, 2019).
3. Develop talent strategies: After determining the HR capacity, later HR begins the process of
Develop the skills and talent of the employees by providing them training sessions. Talent
development is a crucial part of the HRM process (L'Écuyer, 2019).
Recruitment: With this process, HR specialists search for candidates that match the kills which
the company requires. For this process HR use company’s websites, social websites to share the
job post and hire employees (L'Écuyer, 2019).
Selection: Once completing the recruitment process HR conducts interviews to identify the best
employee for the organization. IF HR has properly forecast the supply and demand they would
not have trouble finding the perfect candidate (L'Écuyer, 2019).
Hiring: At the end of the recruitment and selection process HR hire the final candidates
(L'Écuyer, 2019).

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Training and development: After hiring the employee HR to provide them training sessions
related to the company’s introduction later organize other training sessions to get up to speed on
organization procedures. HR also encourages them to develop their skills (L'Écuyer, 2019).
Remuneration: This process is for employee’s motivation. The company provides good benefits
and salary packages and properly rewards those employees who give a good performance
(L'Écuyer, 2019).
Performance management: recognize the good performer, identify the areas of improvement
and motivate the employee to perform well.
Employee relation: With this activity HR of the Hilton hotel decides how to make employee
and employer relationship better and how communication should be done amongst the
workforce. HR is only responsible to make a safe and healthy environment into the
organizations.
4. Review and evaluation: After implementing HR strategy and completing the process, HR
evaluate the overall process, whether plan helped the organization or appropriate for achieving
the goal in aspects like production, employee retention, satisfaction, and profit. If the whole thing
is fine and going well HR continues with the strategy, but if there are any consequences along
the way HR make changes with the plan (L'Écuyer, 2019).
Role of HR in change management
An HR of any organization plays a major role in change management. HR has a multitasking
role. HR identifies all the outside factors and internal requirements that forces to make the
changes in the management. And sometimes HR enables change according to market and
organizational requirement.

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After recruiting and hiring candidates HR has to ensure that staff is motivated to process. Once
implementing the strategy, workforce need to be encouraged to perform well. HR has to conduct
training sessions so that they can effectively contribute to the organization's success. HR also
solves the query of the employees of the organization.
2.4 HR contribution to business ethics and accountability in the organization
Economic activities in the UK lead to an increase in internal and external competition. Due to
this competitive environment, many organizations are trying to receive more profit with less
effort and funding.
Political upheaval and uncertainty are growing worries for job security and staffing. The
increment of automation and technology are changing the skills requirements interaction patterns
and power dynamics. Many social factors influence the mean that employee struggles to manage
a healthy style and balance the work life. This competitive environment causes litigation
amongst employee. HR is the only person to ensure that how to manage illegal behavior into the
organization. HR plans some policies to manage conflicts into the organizations, such as conflict
of interest, discrimination or with any illegal or appropriate behavior. HR makes the decision for
conflict in the environment. HR specialist of the Hilton motivates employees to share any
feedback or concern for any issue they face during to work hours (Garcia, 2019).
Accountability is keeping the commitment to customer or employees. Apart from this increasing
globalization needs greater cultural sensitivity in the business operations. There are many
legislations and laws for all the organization that forces them to secure all kind of data, such as
GDPR act 2018 (CIPD, 2018). According to this Act, the hotel makes the commitment to its
client and guests that the hotel will keep safe their sensible data. HR of the department ensures

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that Hilton’s guest data should not be disclosed to anyone also HR responsible to train the staff
of the Hotel that how to secure their guest’s data also maintain safe work environment. HR of the
Hilton is lead person to manage conflicts in the environment provide policies to maintain a safe
environment also motivate leaders and employee to create positivity and motivate them to be
whistleblower against any illegal behavior. This is how HR contributes to the ethical
environment in the company.
3.1 Evaluation of organization performance
There are many methods for evaluation of the organization performance but the most common
and effective way to evaluate performance is the Balance scorecard. Professor Robert Kaplan
from Harvard University developed this tool. Using this tool Hilton an evaluate business
performance (Angraini, 2019).
To be sure, the thought behind the structure is to give a "balance" between money related
measures and different estimates that are significant for understanding authoritative exercises
that lead to supported, long haul execution. The fair scorecard prescribes that supervisors gain an
outline of the association's presentation by following few key estimates that all things considered
reflect four measurements:
 Financial measures
 Internal business measures
 Customer measures
 Learning and growth focus

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Financial measures: To evaluate performance HR compare the last year’s ROE and ROI with
the current year. Likewise incorporates estimation of offer income estimation is the expansion of
all pay picked up from the food and drink sale, booking and tour management.
Customer measures: Customer measures link to clients and guest’s satisfaction, retention, and
attraction. By evaluating this HR get the answer to how clients and visitors see the hotel what
they would like to visit what kind of service they want and how the company can give
satisfaction so that they can retain clients. Customer measurement is very important part of
industry this can be understand by a case study United Express Flight 3411 incident where staff
forcibly removed some passengers. Flight was overbooked; the staff would have evaluated the
situation later they should have taken the appropriate action (Ethics Unwrapped, 2018).

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Hilton also realizes the importance of repeat customers and has taken the steps to satisfy and
attract consistent customer. It is important to measure customer and client satisfaction. IF it has
not been measured this can cause many issues as in the one case
Internal business process measure:. HR of the hotel ensures that are their employees able to
work quickly and provide service quickly to customers or not. Overall HR evaluates all the
internal works done with the efficiency or not. This is how HR supports in evaluating
performance by using a tool. IF they found some points which are lacking down they change the
strategy and plan something that could improve the efficiency (Angraini, 2019).
Learning growth measure: This measurement focus on innovation required in the organization
and forces to make changes over time. The objective of learning growth measures is to increase
customer employee ratio and also employee retirement benefits.
3.2 Source of business data and the role of HR in supporting these activities
There are many internal and external sources to contain the business data, but the three major
sources are:
 Internal: through the internal records of the workforce HR collects the data of the
employees. He collects employees data such as absence and number of working days in
the organizations and measures the performance of the employee later they develop their
strategy.
 External (other organizations and consultancy firm): Some time HR collect data from
outside this source mostly used to hire employees. HR specialist hires third-party sources
such as consultancy firm who hire candidates as per the organization’s requirement on
the behalf of the company.

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 Media (online websites such as nokari.com and websites of the company): HR of the
department sees the candidate data and identifies the best skills for the company. HR also
uses company websites to share the recruitment information for candidates who are
looking for the job.
While assessing the HR capacity and productivity capacity HR use many sources for people
analytics. People analytics also is known as HR analytics and staff analytics. It is used to get
employee performance to meet the requirement of the organization. These data involves all kind
of data such as employee personal data collected by HR system which includes their payroll and
absence and performance records. This data also includes measurement and evaluations of the
skill and knowledge of the workforce. After people analytics HR meet the organization's
requirement. HR also drives and maintains an ethical environment into the office culture. People
analytics utilized to understand business challenges and people risk which organization is facing
(Houghton, 2019). There are three types of analytics:
 Descriptive: Descriptive analysis analyzes what has happened in the past which
impacted negatively and positively and what is happening currently.
 Predictive: This analyzes how previous trends and policies could impact in the future.
 Prescriptive: HR, based as per people analytics, suggests the leaders that what the
organization should do (Dizyre, 2019).

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Conclusion
Hilton Hotel is the largest hotel in the UK. The organization is having many hotels across the
world and has well-drafted HR department and strategies. Hilton is one of the hotels which
introduced AI technology in 2018. They introduced the Robot in 2018 “Connie”, which is
attracting customer and guest and increasing its business performance in return. It is important to
make HR strategy to achieve the organization's goals but it is more important to analyze those
factors which can impact the business performance. There are many tools to analyses internal
and external factors such as PESTLE Porters’ five stages model, PRESTCOM and several other.
An HR plays a significant role to analyze these factors and make a strategy for the Company.
They are also responsible for creating an ethical work environment among the organization. It is
important to evaluate business performance and for performance measurement HR can use many
techniques such as Balance scorecard and many others. An HR should be aware of all the
techniques and source, by utilizing appropriate business sources and techniques HR can
contribute to success of the business.

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