Importance of Human Resource Management in Service Industry

The provided document is a solved assignment on the importance of human resource management in the service industry. It emphasizes the crucial role HR plays in sustaining and surviving in organizations, leading to positive and favorable environments. The document recommends adopting structured plans and strategies to achieve organizational goals, citing relevant references from academic journals and books. The summary provides an overview of the assignment's content, highlighting key points about human resource management in service industries.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1 ...........................................................................................................................................3
1.1 Role and purpose of Human Resource Management in a service industry......................3
1.2 Human resource plan based on an analysis of supply and demand for service industry..4
Development of the HR plan..................................................................................................5
2.1 Assess the current state of employment relations in a selected service industry.............6
2.2) How employment law affects the management of human resources in a hospitality
industry...................................................................................................................................7
TASK 2 ...........................................................................................................................................8
3.1 Job description and person specifications through examples from a hospitality
organisation............................................................................................................................8
Job Specification....................................................................................................................9
3.2 Compare the selection process of different service industries businesses.....................10
TASK 3 .........................................................................................................................................11
4.1 The contribution of training and development activities to the effective operation.......11
CONCLUSION .............................................................................................................................12
RECOMMENDATION ................................................................................................................13
REFERENCES..............................................................................................................................14
.......................................................................................................................................................16

INTRODUCTION
Human resource management is considered as important part of an organisation. For
service industry, where complete work is done on efficient service to the customer. In that
situation, human resource comes in the main role to enables effectiveness and efficiency in an
organisation. This report will be carried on Hilton hotel which is the leading hotel organisation in
the United Kingdom with most loyal customer to their services. In this report, there will be a
discussion on role and purpose of human resource management in service industry. There will be
conversation regarding the job description for hiring most effective candidate. There would be a
scenario for comparison of selection process of two different industry and organisation. This
report will also put light on contribution of training and development to enhance the operational
efficiency(Noe,2016).
TASK 1
1.1 Role and purpose of Human Resource Management in a service industry
Human resource management is considered as an application and knowledge of selection,
recruitment and staffing and hiring of an employee(Premeaux, 2015). It is a plan of action which
is formed with the purpose to contribute and empower the administration of an organisation or an
individual. It was initiated in the past time to enhance and improve an individual employee as
well as team group performance. In context with Hilton hotel, it is required to understand
various roles and purpose of the human resource management are as follows:
Importance: Human resource management is important in the service organisation to
train and motivate employee for an effective achievement of goals as well as targets. Human
resource departments are useful for employee and workforce commonly to accomplish
affectivity and productivity in the Hilton hotel. In context with Hilton hotel, HR department
would be useful for engaging more and more customers in order to build trust and loyalty in
them.
Roles:
Conflict management: It is the major role and duty of human resource manager to solve
conflict within an organisation to make workforce effectively achieving their targets and goals.
For this, a proper values, ethics, vision and code of conduct is required to manage working

accountability in the Hilton Hotel. In this organisation, human resource management is suffering
with an issue of daily conflict and issues among employee regarding work, pay and other aspects
Recruitment and selection: It is an important and focal role of human resource manager
to recruit the right person at right time at the right place to fill the required space and vacancy in
an organisation. In context with Hilton hotel, HR manager should hire an appropriate candidate
with right skills, talent and knowledge for an effective results.
Training and development: This is the major role of human resource management in the
Hilton Hotel to train and development their employee with the eyed vision to achieve drastic
change and achievement of well-defined goals or targets in this hotel. This organisation needs to
implement and formulate a proper structure and training and development plan to make this role
clear with an appropriate vision and values.
Purpose:
Employee relation: The main purpose of the human resource system is to enhance an
effective and full of bonding employee and employer relation in an organisation. In context with
Hilton Hotel, proper and good relation needs to be continue and maintained in order to motivate
an employee and company's vision, values, objectives and importance to an organisation
environment(Gerhart, 2014).
Resource allocation: The clear and defined purpose of human resource management is to
allocate the resources such as time, workforce efforts, funds etc. in order to gain effectiveness
and desired work performance in an organisation. In context with Hilton Hotel, organisation can
invest such resources in training and development and motivation of an employee to attain well-
defined and structured goals of an organisation.
Lastly, it is advisable that roles and purpose of human resource management is required
to be defined and cleared in advance to gain power and results from the effective human resource
management.
1.2 Human resource plan based on an analysis of supply and demand for service industry.
In context with Hilton Hotel, there are various external environmental factors and aspects
in which organisation operates their business. This hotel is located in London city of United
Kingdom where environment is very cherish, pleasant and happy. In accordance with this,
United Kingdom is considered as most attractive and tourist spotting place in the world. Various
external environment such as:

Climate and weather: Weather of United Kingdom is very pleasant and charismatic. It
attracts the tourism factors towards it. In context with the Hilton hotel, it is an advantage to this
organisation to attract more business from such fruitful environment(Wright, 2016).
Peace: According to various United Nation agencies, it has been noticed that United
Kingdom is full of peace, faith and brotherhood, where conflicts and fights are more less or even
not there. It is an grabbing advantage to the Hilton Hotel to achieve more and more customers.
Economic environment: Economic stability of United Kingdom is well managed and in a
proper condition that it will be beneficial for this organisation to continue and sustain their
business in the present sector as well as other sectors.
Analysis of demand and supply of labour: Demand and supply of labour in the hotel industry
is always determined on the basis of present and future availability of manpower in an
organisation. If demand will be higher than supply, it means that Hilton would need to recruit
more and more workforce in order to gain competitive advantage(Mondy, 2015).
For example: Hilton hotel needs to hire 10 employees for an event. In accordance with
this, there will be a discuss on how to hire them and what training and development will need to
give to them. Company has decided to hire them through internal sources of recruitment like
employee referral and present employees.
For demand and supply analysis, company can hire 5 employee from outside and 5 taken
from the present base of an employee. Out of total 200 employees, Hilton hotel will take 5
employees from the present number and to fulfil demand of 5, they will hire from the outside.
Development of the HR plan.
In context with Hilton Hotel, to be top in the business, it is required to develop and justify
the well-structured and developed HR plan in order to promote and achieve organisational goals
of an organisation. The whole process of the HR plan are as follows:
First priority to the business plan: Before the formulation of the HR plan, it is required
that business plan should be implemented to lead and know actual goals and targets of an
organisation. Actually, the HR plan is dependent on size and complexity of company.

Assess the company's skill set: For the development of human resource plan, Hilton hotel
needs to identify current and required skill sets. This will be identified on the basis of gap
between current and future required skills and also targets for the future efforts of an
organisation.
Reviewing an organisational plans: In context with Hilton hotel, there is a need of
organisational design to be covered in the HR plans. It includes job description, compensation
and remuneration and relationships etc. Training is also considered the important part of the HR
plan. HR plan will map out the right strategies for training. It is essential that HR plan should be
on right track to ascertain the return on investment.
Motivation and retaining employees: To enhance the productivity, Hilton hotel needs to
hire right people at right time at right place. Along with hiring, retention and motivation is also
required to sustain the large base of employee to avoid training and development cost on new
employee(Lake, 2015).
Establishing the succession plan: The sound HR plan is incomplete without succession
planning strategies. Succession planning is arrived from an effective performance of an
employee.
2.1 Assess the current state of employment relations in a selected service industry
Employment relation refers to the understanding and collaboration among the workforce
of an organisation which help them in their co-ordination to avoid conflicts and confusion. In
context with Hilton hotel, Employee and staff members of an organisation has recently setup
their own union to maintain their work, remuneration and employment relation in a right way.
Employment relation are good in the Hilton Hotel, every person are well-connected and co-
ordinated with each other. The trade union of the Hilton hotel works with the purpose to unite the
workforce of the hotel to protect their interests and employment in this organisation and help
them to solve conflicts and issues. They had implemented the workforce union with some
common purpose and requirements are as follows:
Culture: The culture and standards of the Hilton hotel is similar to the corporate
environment and regulations. During working time, they need to wear and well-dressed in the
formal attire and office prescribed uniform to maintain the work accountability and feasibility in
an organisation(Bohlander, 2016).

Bargaining and negotiation: Collective bargaining is the process in which various
member of a union and employer negotiate with each other on scope and status of an
employment relationship in the industry. In context with Hilton hotel, employees and worker are
much competent to bargain and negotiate on the matter of wages, remuneration, hours, benefits
and promotion and other employment aspects to handle and solve the disputes.
Reconciliation and consultation: In context with Hilton hotel, it is the process in which
employee conflicts and disputes are used to be solved by conciliation, arbitrary service and other
advisory bureau etc.(Yeung, 2016).
Employee participation and empowerment: In context with Hilton hotel, union needs to
make sure that employee should perform and give their best to increase productivity and
profitability in an organisation. Employee are required to take participation in various activities
of an organisation in order to enhance their productivity and efficiency. Empowerment to an
employee is given on the basis of responsibilities assigned for attracting and satisfying customers
to increase and enhance the profitability and productivity for an organisation.
Grievance and disciplinary: It is the major duty and role of a union is to address their
employee’s through formal and informal meetings to understand and know any problem and
issue happening with them. In context with Hilton hotel, union needs to take care of code of
conduct and discipline of an employee.
2.2) How employment law affects the management of human resources in a hospitality industry
In order to protect rights and power of an employee, there are various employment laws
which was initiated to protect employment relation in an organisation. In context with Hilton
hotel, laws such as employment rights and legislation are required to be discussed and analyse.
The following laws and rights are as follow:
Employee rights: Such rights are meant to keep contract of employment with an employer
to work safely and completely in an organisation. In context with Hilton hotel, these rights are
appropriate to get appropriate training and suitability for the own access of personal information.
Rights are the pre-owned property of an employee. Such rights includes right to act, speech and
expression(Brockbank, 2015).
Employee legislation: The legislation which is implemented for the purpose of protecting
rights of an employee such as the equal pay act, equal opportunity and priority act. These acts are
implemented with the purpose to give equal opportunity to men and women who are working as

an employee. These acts also includes working time and hours which allowed to work in the
office. The health and safety act is included with the purpose of taking care of health and safety
of an employee as main consideration. Equal discrimination act has been taken into consideration
for giving equal opportunity to every person rather than on basis of gender, race, age or disability
which is now considered as illegal in context of an employee. Certain other legislation such as
gratuity and provident funds act was made with the purpose to motivate employee by the paying
their future needs and make planning for their further job tenure. These acts are also aims at
protecting the jobs of an employee in order to build trust in them and enhance their work
accountability and behaviour in an organisation.
Effects: These acts would make human resource well versed and favourable in order to
achieve organisational goals and targets. The positive effects will be enhancing an awareness
about the human resource scenario in an organisation. If laws and regulation would be proper, it
will bring common right and regulation for an employee.
Amendments and new acts introduced: In context with Hilton hotel, there are several
amendments and new acts has been introduced such as employment acts, 2013, maternity act,
2005 and employment rights act, 2014(amended) with purpose of giving equal working pays and
leave to the pregnant women workers for their well-being(Ulrich, 2013).
TASK 2
3.1 Job description and person specifications through examples from a hospitality organisation
In context with Hilton hotel, it is necessary and mandatory to discuss education,
qualification and skills required of an eligible candidate. Eligible candidate means the person
with most adequate skills, talent and abilities to perform their best and for an attainment of an
organisational goals or targets(Legge, 2015). When an organisation generally hiring for filling
vacancy in their organisation, they use to put job description which specifies an employee roles
and responsibilities, summary about the job profile, job title and job title etc. Job roles and
responsibilities are used to show an actual reality of the job and its existence. A perfect job
description may provide benefits to organisation such as employee retention, profitability by the
right employee with skills and duties etc. In Hilton hotel, organisation is looking for person
which suits best on hotel manager position. There can be various issues in an organisation such
as lack of an effective HR system, improper employee and employee retention etc. It is necessary

that summary of the job profile, roles and responsibilities of an employee should be well defined
and stated in order to hire best suitable employee for the job. To find solution of these issues, a
proper structured job description is required to be made for the better understanding of the job
role(Sherman, 2017).
Job Description
Hilton Hotel
Job Code: J123
Job Title: Hotel Manager
FLSA status: Exempt
Report to: Region head
Released date: 25.11.2018
Summary: To cover most important aspects of the hotel such as guest attraction, involvement
and satisfaction. To generate business for the hotel and regulate manpower and their allocation.
To analyses the actual demand and supply of labor to maintain productivity and functioning of
n organisation.
Qualification: Should be completed with Diploma in the hotel management with formal
training and exposure in the prescribed industry.
Experience: Minimum experience of 1 year or more into the similar industry.
Roles and Responsibilities:
 To generate business and profitability for the hotel through advertising, promotion and
other activities.
 To engage more customers with management and excellence of an organisation.
 To make and implement various strategies in such a way that hotel would gain business
on regular basis and ensure the sustainability and growth.
 To look at the inflow and outflow of the funds, resources, material and manpower etc.
 To prepare annual budget for the purpose to raise funds and finance in different
department of an organisation.
 To make sure that resource are appropriately utilized in an organisation.

Job Specification
Job Code: J123
Job Title: Hotel Manager
FLSA status: Exempt
Report to: Region head
Released date: 25.11.2018
language: English, french, Italian etc.
Skills: interpersonal skills, communication skills and motivation abilities etc.
Knowledge: Well-versed with the knowledge of hospitality and related context
3.2 Compare the selection process of different service industries businesses
Selection process is considered as most pecuniary process which come after the
recruitment stage. In this stage, various tests such as aptitude test, analytical test and personality
comes under the consideration(Foster, 2014). Selection process of two organisation namely
Hilton hotel and Riverview bistro. needs to be discussed in order to make process and procedures
of the Hilton hotel effective and relative. Here, two different industry such as hotel and
restaurants has been taken. In context with Hilton hotel, this comparison would result in
beneficial of an organisation:
Comparison:
Hilton hotel: This organisation is very accurate toward their selection process. There
process starts with apply online through official websites or any employment agencies. After the
collection of an applicants, they classify and select an appropriate candidate on the basis of
desired knowledge, qualification and criteria. Just after selecting an appropriate candidate, they
call them for interview and various tests to know their ability and capability. Interview is taken
to know their potential and power. If the person selected in an interview and various selection

test, they used to call the candidate or send an offer letter either by mail or postal services etc.
(Snell, 2013).
Riverview Bistro: As this organisation is engaged in the restaurant business, so they
needs to deal in the customer service on an daily basis. Hence, the selection process will also be
critical. There process starts with apply through online portals or websites, in which they needs
to clear brief test same on a websites. If person pass the test, they will be call for an interview
only. If candidate clears an interview, organisation is used to send offer letter by mail or postal.
From this comparison, it is noticeable that it will be beneficial for Hilton hotel to take
online test when a candidate apply straight away on the websites. It will help Hilton hotel to
minimise time and cost of the hiring(Laurent, 2016).
TASK 3
4.1 The contribution of training and development activities to the effective operation
Training and development is the process and stage base learning where an appropriate
candidate required to learn several things such as knowledge and information regarding the
organisation. T&D is important for every candidate to pursue as it will result in an effective
growth of an individual. In context with Hilton hotel, it is necessary to understand and know the
contribution of a training & development to the development of an employee as well as
organisation. For hotel's operation, T&D will be helpful to achieve effectiveness and results from
an organisation are as follow:
Optimum utilization of resources: In context with Hilton hotel, it is required that
organisation should enable various strategies for an achievement of well-defined goals and
targets. An effective training and development on an usage of resources would be beneficial to
gaining and achieving well-defined goals and targets(Huselid, 2015).
Operational efficiency: Efficiency always comes with better knowledge and well-trained
manpower. If training will be provided fully, operational aspects such as production,
management and revenue would be accomplished as early as possible for the Hilton hotel.
Higher revenue: Revenue is used to be achieved from operation and production
activities. Training and development can enable revenue to continue for the longer period of
time. If an employee is well motivated and enhanced, it would be ease and effective to give

training to achieve well-defined organisational goals along with the revenue and
profitability(Bowen, 2016).

CONCLUSION
Form the above report, it is concluded that human resource management is required to be
maintained and carry forward with the effective and proper strategies to accomplish well drafted
and structured organisational goals and targets. It has been observed that, it is very effective and
relevant to compare selection process of two different organisation. Training and development ha
s contributed a lot in an operational efficiency and profitability of an organisation. Various
employment laws has played an important role in retaining and motivating to survive in an
organisation. Lastly. It is also concluded that employment relations are important to be sustain
and survive in order to have positive and favourable environment in an organisation.

RECOMMENDATION
In service industry, organisation should start taking human resource in an serious manner
to accomplish organisational goals. It is recommendable that strategies and plans should be
adopted and structured in order to achieve organisational goals and objectives.

REFERENCES
Books & Journals
Noe, R., Gerhart, B. and Wright, P., 2016. Human Resources Management: Gaining a
Competitive Advantage, Tenth Global Edition. McGraw-Hill Education.
Mondy, R. W., and Premeaux, S. R., 2015. Human resource management. International Edition,
9th Edition, Prentice Hall.
Bohlander, G., Snell, S. and Sherman, A. W., 2017. Human resource management. USA: South–
Esetern College Publishing Thompson Learning, pp.27-54.
Ulrich, D., Brockbank, W., Yeung, A. K. and Lake, D. G., 2015. Human resource competencies:
An empirical assessment. Human resource management. 34(4). Pp.473-495.
Legge, K., 2015. What is human resource management? In Human resource management (pp.
62-95). Palgrave, London.
Foster, E. C., 2014. Human resource management. In Software Engineering. (pp. 253-269).
Apress, Berkeley, CA.
Schuler, R. S. and MacMillan, I. C., 2014. Gaining competitive advantage through human
resource management practices. Human Resource Management. 23(3). Pp.241-255.
Schneider, S. C., 2018. National vs. corporate culture: Implications for human resource
management. Human resource management. 27(2). Pp.231-246.
Laurent, A., 2016. The cross‐cultural puzzle of international human resource management.
Human resource management. 25(1). Pp.91-102.
Huselid, M. A., 2015. The impact of human resource management practices on turnover,
productivity, and corporate financial performance. Academy of management journal.
38(3), pp.635-672.
Bowen, D.E., 2016. Managing customers as human resources in service organizations. Human
resource management. 25(3), pp.371-383.
Yammarino, F. J. and Atwater, L. E., 2013. Understanding self‐perception accuracy:
Implications for human resource management. Human Resource Management, 32(2‐3).
Pp.231-247.
Becker, B. and Gerhart, B., 2016. The impact of human resource management on organizational
performance: Progress and prospects. Academy of management journal, 39(4). Pp.779-
801.

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