The Impact of Strategic Human Resource Management on Organizational Performance

The provided content is a collection of academic articles, books, and online sources that discuss various aspects of strategic human resource management (HRM). The topics covered include HR selection, performance management, employee retention, motivational variables, organizational identification, leader-member exchange, self-efficacy, intellectual capital, and measuring performance. The sources also explore the relationship between HRM and organizational performance, as well as the importance of values and competencies in HR. Some specific examples discussed include a case study on professional service firms, the role of HRM in knowledge workers, and Marriott's approach to HR and sustainability.

Managing Human Capital

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Importance of effective HR strategies for creating competitive advantage.................................3
TASK 2............................................................................................................................................6
Importance and relevance of HRM in changing environment.....................................................6
Task 3...............................................................................................................................................9
Contribution of recruitment and selection AND training and development ...............................9
CONCLUSION .............................................................................................................................12
References......................................................................................................................................14
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INTRODUCTION
Human resources management is an imperative aspect or function which helps to
improve the performance of workforce. It basically deals with management of employees in the
organization by focusing on different policies and systems. Present report is based on the
Marriott hotel which have more than 4087 properties over 80 countries. It provides a wide range
of luxurious services to the number of users. Further, the report covers the importance of HR
strategies adopted by Marriott hotel to create competitive edge in the marketplace. Similarly, HR
issues related to cite hotel are also identified so as to adopt effective strategies accordingly. In
addition to this, importance and relevance of HRM in changing environment has also been
critically examined. Also, the different training strategies are also explained by which Marriott
hotel enhances knowledge and expertise of its workforce.
TASK 1
Importance of effective HR strategies for creating competitive advantage
There are different human resource strategies adopted by the management of Marriott
hotel so that they can effectively create competitive edge in the marketplace. These strategies are
segregated into four different parts such as culture, people and organization as well as human
resources system. These four aspects facilitate to carry out business of Marriott hotel in an
effectual manner so as to achieve long as well as short term objectives (Sims, 2002). The first
one is culture which is managed by human resources department of corporation with assurance
of cultural diversity. Here, the workforce are provided training related to common cultural values
and belief of the Marriott hotel and diversity exist among them is also respected (Marriott Turns
up the Volume on Green Hotels, 2016). It enables corporation to retain employees for longer
time span by providing them comfort zone at workplace In this regard, hotel Marriott already
have strong culture as it operates business across 80 countries. The strong culture persist just
because management respect strengths and talents of everyone working in hotel. Further,
company is associated with different projects such as poverty alleviation, community workforce
development and the well-being of children as well as the environment (Sahoo, 2012). This is
what makes a hotel different from others and create competitive edge at the global level.
Accordingly, the corporation has strong culture where guest feel comfortable and satisfied. The
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most important thing is that employee also feel highly satisfied in the working environment of
hotel Marriott.
The second element is people for which different strategies are formulated by human
resources department. Here, Marriott hotel applies several strategies to enhance the level of
motivation among the employees (Stephen and et. al., 2008). In order to motivate employees,
different strategies like monetary reward, workplace recognition, non-monetary rewards etc. Are
provided by human resource management (Enduring Values, 2016). For example, The Marriott
Awards of Excellence are organized wherein the competent workforce were praised. It aids to
increase the level of satisfaction and putting employees into action. On the other hand, human
resource management of hotel also offers non-monetary rewards by promoting employees to
higher position. However, prior to offering rewards management assess the needs of employees
and accordingly meet their expectations by adopting the right kind of strategy for their
motivation. Further, succession planning and career management are imperative strategies used
by hotel to management workforce (Felstead and et. al., 2007).
The succession planning is the most important human resource strategy under which
human resource management gives training to future leaders of the company. This helps to
maintain the uncertainty by placing the right kind of person on the right job. For instance, an
experienced and talented employee is selected to fill the vacancy of CEO in future. It enables the
corporation to outperform in the marketplace without having any negative impact on overall
performance of the hotel Marriott. Similarly, career management is another practice, wherein
workforce are provided freedom to ensure their career growth by selecting work as per their
interest area (Pinnington, 2011). It helps to ensure their career growth and to generate positive
attitude among them. It shows that the succession planning and career management helps to
make human resource system strong. Under this, the hotel makes long term planning to
accomplish specified aims and objectives.
Human resource strategies are related to the organization which are effective in context
of hotel Marriott because it follows “go green concept”. It promotes employment in several
countries which leads to create a brand image of the hotel at international level. Under this,
company provide time to time training for its employees in order to enhance their knowledge and
skills. This aid to increase the flow of production and profitability (Bhattacharyya, 2009). This in
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turn helps hotel Marriott to meet the expectations of number of visitors in an effectual manner. It
facilitates to deliver good quality of services to the users and increase their level of satisfaction to
a great extent. Furthermore, for reducing the cost of production effective HRM strategies are
applied so that the attrition rate do not increase. Likewise, performance appraisal techniques are
used to assess the effectiveness of provided training. It proves to be effective to bring
improvement in training program and accordingly improve overall performance of hotel (Dhar,
2008). It depicts that HRM strategies play active role in assessing issues and accordingly take
action to overcome the same. Without implement on right strategies, an organization cannot
retain its workforce for long term. In fact, it increases the cost of production and reduces overall
rate of return. Owing to this, it is very important for Marriott hotel to take strategic decision for
creating competitive edge in the marketplace (Sims, 2002). The selected organization operate in
approximate 80 countries where it becomes necessary to manage employees through
implementation of right strategies. On the contrary, in the absence of motivation factors at
workplace, workforce cannot feel comfortable and they may easily switch from one to another
brand. Therefore, effective human resource strategies has direct relevance performance of hotel.
Strategic HR issues
Generally issues are faced by management in managing strategies because of resistance
from the side of workforce. It has direct impact on the performance of hotel as productivity and
profitability both get hampered at the same time of resistance. However, department of human
resource need to devote more time to implement change when employees are not ready to accept
it. This aspect creates cost in both financial and non-financial term. Further, basically company
faces strategic issues at the time of managing corporate culture while expanding in different
countries (Sahoo, 2012). It enables corporation to meet expectations of all the stakeholders and
increase market share of the firm.
Strategic issues are faced by hotel Marriott due to the cultural issues. These are faced by
the corporation because employees possess different values, language and beliefs. At this
juncture, common values are set for all employees and they all are treated with respect and
dignity. Furthermore, initial training is done for newly hired workforce in order to make them
aware of their job. Cultural issues initially makes it impossible for hotel to increase the sales
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turnover. However, with the passage of time they learn new values, beliefs and assumptions of
the hotel and work accordingly to achieve set objectives (Stephen and et. al., 2008).
Leadership development is also a challenge for human resource department of the hotel.
It is because, employees tend to get motivated from their leader. But in case, the leader is not
perfect then attrition rate of corporation go high because of dissatisfaction among workforce.
Furthermore, human resource department ensures that the hotel should have appropriate leaders
and workforce also get proper guidance from their respective supervisor or leader. Similarly,
practices are implemented to engage employees in the managerial decision making. Strategic
workforce planning is also important for the company otherwise organizational performance get
hampered to a great extent. Not only this, but the talent management is also a crucial issue in the
strategic human resource management (Felstead and et. al., 2007). It affects the performance of
the company by affecting service quality. Likewise, career management programs are also
developed in the organization through which management can overcome the issues related to
management of the talent at workplace. Furthermore, issues are faced in term of dissatisfaction
related to work and long working hours in the hotel sector. Owing to this, workforce get
dissatisfaction and generates need to bring modification in internal work scenario. These kind of
issues take place due to inappropriate policies and procedure of human resource department of
the hotel. Therefore, all these issues need to be considered as to maintain the competitive
position of hotel Marriott in the marketplace.
TASK 2
Importance and relevance of HRM in changing environment
The HR competency model outlines leadership styles of corporation under which
management can adopt appropriate strategy to improve organizational performance. This model
is initially proposed by McClelland and his portages. The main aim of this model is to cope up
with the changes in work as well as in technology. The competencies of stated model are;
collaboration, customer focus and innovation. The model for HR competency has been explained
as follows-
 Staffing/selection-Under this employees are hired by Marriott hotel in accordance
with the changing scenario. It facilitates corporation to meet the expectations of
customers in an effectual manner and accordingly create competitive edges in the
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marketplace (Pinnington, 2011). However, HRM of hotel ensure that the current
employee are satisfied and motivated so that referral policy also aid to save additional
cost. It leads to the increase in flow of production and ensure inclusion of competent
workforce in company. It proves to be effective in carrying out business activities in
right manner.
 Succession planning-The next step of competency model is the succession planning
wherein the management of corporation prepare their future leader on higher position.
This strategy makes it possible for hotel Marriott reduce uncertainty (Chen and
Huang, 2009.). With this company can effectively cope up with changing scenario
and meet organization objectives in right manner. Furthermore, succession planning
is the process used by hotel to bring a competent and skilled personnel on higher
position when current CEO or CFO get retired. Thus, succession planning helps to
give non-monetary motivation among employees and develop attitude of sense of
achievement among them.
 Compensation-This is one of the most effective factors which need to be taken into
mind by management of hotel Marriott. In this, the company ensures that all the
employees are paid according to their performance and also they get incentive for
their extra efforts. However, the employment law imposed by UK government is
followed in order to ensure that ethical aspect is maintained (Bhattacharyya, 2009). It
enables workforce to work with integrity and higher level of motivation. This has
direct impact on performance of hotel Marriott because motivated and satisfied
workforce tend to perform good and put efforts in the direction of growth and
success.
 Employee development & training- This factor is one of the effective methods under
which hotel Marriott provide training to employees to enhance their knowledge and
skills. For example, if there is change in technology then company will provide on the
job training to the workforce so they easily operate new tools and technology at
workplace. This aspect facilitates to increase sales turnover and make stakeholders
satisfied (Yang and Lin, 2009). Here, development program generally take place for
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the management so as to take right strategic decision for development of the
company.
 Performance management-Performance management is most important function
performed by human resources management of an organization. Under this,
performance or work done by employees is rerecorded in a proper manner and the
same is assessed against set standards. Furthermore, criteria set for the performance is
already communicated among the employees so that they put their efforts to have
good performance. In addition to this, management motivates employees by giving
them rewards at the time of completion of all set criteria (Dhar, 2008). It depicts that,
performance management criteria need to be set in right manner thereby management
can be able to motivate workforce. It facilitates to put workforce into action and make
them able to achieve the specified objectives on right time.
David Ulrich's HR model
This model is proposed by David Ulrich with a main aim to manage employees and
accordingly cope up with the change. It is stated that HR model is an anchor which provides
immense support to the corporation for better management of business activities. This model is
based on 4 key roles which aid to feel employees more comfortable at workplace. It introduced
changes in the structure of human resource functions and make HR roles around the same so that
organization can effectively operate its business at international level. It has been explained as
follows- HR business partner-The main role of HR business partners is to perform key strategic
role in relation to human resources. It helps to run functional projects with the main
motive to enhance productivity and innovation and also develop talents in order to
provide full support the corporation (What’s next for HR? The six competencies HR needs
for today’s challenges, 2015). Also, internal clients get good feedback from HR business
partners in order to modify the HR strategies accordingly. It assists hotel Marriott to
survive at international level with increased rate of return and high customer base. Change agent- Human resource department of hotel Marriott particular with team in
order to manage the change in right manner. Here, department of human resources plan
for training for employees so that they can easily accept change at workplace. It leads to
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ensure continuous development (Collings and Mellahi, 2009). Also, clear communication
is ensure with team members so as to make them understand related to importance of
change at workplace. It shows that HR department makes it possible for personnel to
implement change in right manner and enhance profitability as well as productivity in the
same direction. Administrative expert-Human resources of hotel Marriott also play role as administrative
expert wherein they have detail information related to labor law, collective bargaining.
Also, they know that how to keep personal data of employees with confidentiality in
order to determine long run growth of corporation in the marketplace. Furthermore, it is
the major obligation of human resources management implement any modification with
regards to legislation, regulation as well as safety rules. It support corporation to retain
workforce and make them satisfied with working conditions.
 Employee advocate-Employee advocate is the main role performed by HR department of
hotel Marriott. Here, management represent employees by protecting their interest in
term of pay scale, equal opportunity and other related (Samuel and Chipunza, 2009).
Furthermore, employee satisfaction survey is also conducted by HRM so that any gap
between corporate culture and managerial as well as HR practices can be removed in
right manner (Moore, 2016). Owing to this, initiatives are taken by management so that
employees can have good experience by working in hotel Marriott. Apart from this,
training and development session takes place very frequently through which workforce
seek their career growth at workplace (Aguinis and Kraiger, 2009).
Therefore, HR models facilitates to depict that human resources of an organization are
well organized and all strategies performed by corporation ensure their well-being in right
manner. It facilitates management to cope up with change in right manner and bring modification
in current environment in an appropriate manner. Accordingly attrition rate can be reduced to a
great extent and employees of hotel Marriott work with higher level of satisfaction as well as
motivation.
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TASK 3
Contribution of recruitment and selection AND training and development
Recruitment, selection, training and development can help the company to increase
employees’ performance. Recruitment is a process of hiring people for current as well as future
vacant position in organization. This is done to distinguish and motivate people to apply for job.
The organisation do this process to attract number of people so that knowledgeable person can be
appointed for the vacancy. Mostly organisation do recruitment on time basis as per the
requirement of employees and the person with the good knowledgeable skills, and qualified
person is hired (Chen and Huang, 2009). Selection is further done after recruitment in this
employees are selected for an appropriate job. This is done to select a particular person for
particular job either from outside the organisation or from within the enterprises. The internal
and external selection of process of company helps in motivating the employee within the
organisation. Selecting right person for right will help in retaining the employee as well as helps
in meeting the goals and objective of the business.
In Marriott hotel has adopted the innovative technique to recruit people by developing social
recruitment strategy that is employees are intimated regarding job through Facebook, LinkedIn
and other networking sites which are the best source to attract people to apply for job as these are
the powerful weapons to inform people at large (Yang and Lin, 2009). The recruitment helps
Marriott hotel in increasing the employee performance and meeting the objective of the
organisation by maintaining the goodwill in the market. This has been done as follows:
 Recruitment helps in increasing the strength of workforce which brings new ideas,
skilled and knowledgeable people into the organisation (Collings and Mellahi, 2009).
Marriott hotel is a well-known brand in market for its services and ambience provided by
them to maintain and increase the performance they need to employee people having
good experience to enhance the performance and motive of the organisation.
 The young and qualified employees will work enthusiastically in the organisation with
efficiency and motivating people within the organisation helps in enhancing their
performance to do better and at good pace like delivering fast service of food with good
quality and taste (Samuel and Chipunza, 2009).
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 The recruitment reduces the fear of employee leaving the institute as the new employees
are the backup for the same and also trained for the same so that at the time of need of
more workforce for certain emergency can meet without the loss in the work
compromise.
 Selecting employees from within the organisation for higher post enhance the
productivity as well as boost the morale to work hard and give more output for the
organisation.. (Robbins and et.al, 2013). This in turn, maintains the quality of work in
their services in every department.
 The internal selection of employees in Marriott hotel will reduces the cost of training and
retain old experienced people (Arthur, 2012). That save a lot of time, energy and money
of the firm. The recruitment and selection supports organization at the time of expansion with new
managerial skills. It gives new direction to the firm with inclusion of competent
workforce with corporation so as to achieve organizational growth. Selection from
within the organisation maintain relationship of employee, improves in better
understanding, create better working environment sustain legal obligation by working
in the frame to meet out the employment law such providing good hygiene condition,
compensation to employee, etc. Social obligations help in maintaining the brand image
by the giving good services and ambience to the people who enters their property
(Boxall and Macky, 2009).
Training and development
Training and Development of the employee helps in improving their skills and activities
for the work assign to them. Effective training for any institute helps in performing better and
putting more efforts so that they can perform the work carefully and correctly. This helps in
contribution to the success of the organization (Aguinis and Kraiger, 2009). The right attitude of
the people leads in the right direction. On the other hand, development means training executed
to learn new technical skills to grow and maintain the level of work performed by the firm.
Training is given for all the departments such as food and beverages, customer services,
maintaining hygienic conditions, etc. Tutoring helps the organisation to increase employee
performance in the following ways:
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 Training and development help in many ways it assist in knowing the individual strength
and weaknesses which will bring the best out of the person (Saks, Haccoun and Belcourt,
2010). Improving upon the weakness can reduces the delusion of work.
 A well design training helps in doing the task in accurate way. It boost the performance
level of an individual as they are aware of the work to what to do, what not do. The
relevant work can be done on time and helps in performing the duties by incorporating
there ideas (Walumbwa and et.al., 2011). The feel connected to the organisation and their
best output in given to meet the aim of the organisation.
 The quality of work will be ameliorate by doing the work with stability. Regular doing of
same work helps in creating new ways of doing task and can execute their work fast.
(Wheelen and Hunger, 2011). Time management is the core ingredient in the hotel
industry.
The training strategy adopted by the hotel Marriott is to improve the performance of the
employees. The strategy in the right direction gives the right attitude to do the work (Bratton and
Gold, 2012). The following are the strategies that are given to the employees for better work in
the organisation:
 Certificate Training can be given to the employees, this improves the activeness, skills,
performance and motivate them to work hard to get the certificate. For adapting new
technical skills, training must be given so that they can adapt new ideas, this supports the
business to grow easily (Gatewood, Feild and Barrick, 2010). Newly hired staff
suggestion can be taken so that it motivate to give their best efforts as there
recommendation can boost and give new hope to work.
 The quality of work can be done only by checking the performance of the worker time to
time so that the employee performing wrong can be corrected. And the better way can be
find so that they can understand it easily. (Zairi, 2012). . Staff field of interest should be
kept in mind before assigning the work as employee having less interest will give less
productivity. So training for all department of hotel should be given so that they can
select their field of engrossment. This also helps in getting adjusted to all the departments
work if there is an emergency and further they can adopt the environment when in need.
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CONCLUSION
The aforementioned report concludes that the management of human resources is
imperative aspect through which corporation build its competitive edge in market and also
integrate all workforce in the same direction. The competency model and Ulrich models
demonstrate that corporation can be effectively managed with changes in scenario by focusing
on stated key areas. It can also be said that, training and development contribute towards
increasing potential of workforce and put them into action so as to achieve long as well as short
term objectives of firm. In addition to this, implementation of right HR strategies help to sustain
competitive edge of the hotel in the marketplace with increased rate of return.
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REFERENCES
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Arthur, D., 2012. Recruiting, interviewing, selecting & orienting new employees. AMACOM
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Boxall, P. and Macky, K., 2009. Research and theory on high‐performance work systems:
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