Human Resource Practices and Impact

This assignment delves into the crucial role of human resource (HR) practices in shaping employee behavior and organizational performance. It examines the impact of high-performance HR practices, such as talent management, compensation and benefits, and employee development, on employee attitudes, job satisfaction, and overall productivity. The analysis draws upon academic research and real-world examples to illustrate the interconnectedness between effective HR practices and successful business outcomes.

HR Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Importance of effective HR strategies in terms of developing competitive advantages.......1
1.2 Strategic HR issues faced by The Milestone Hotel...............................................................3
TASK 2............................................................................................................................................4
2.1 HR model for analysing business performance of Milestone Hotel.....................................4
2.2 Importance and relevance of HRM in a changing environment...........................................6
2.3 Historic developments and current market contexts.............................................................7
TASK 3............................................................................................................................................8
3.1 Critical examine of recruitment and selection for the improvement of employees
performance.................................................................................................................................8
3.2 Critical examine of training and development for the improvement of employees
performance.................................................................................................................................9
3.3 Recommendation for training strategies for The Milestone Hotel......................................10
CONCLUSION..............................................................................................................................11

INTRODUCTION
Human resource management can be defined as a function of organization which is
helpful in improving the performance of employees. In other words, it is a process which focuses
on managing individuals in the organization. In this context, there are HR department in most of
the firms which is focused on understanding the areas in which employees lack and organization
needs to provide training so as to enhance their skills (José Martínez-Jurado and et.al., 2013).
Further, this department also understands the requirement of organization in terms of human
resources and accordingly, they recruit people who would help firm in achieving its goals and
objectives. The present report is about The Milestone Hotel which is one of the famous boutique
hotels located in UK. This report covers the importance of using effective HR strategies for
gaining competitive advantage. Further, it covers the importance and relevance of HRM in
changing environment. Lastly, it also includes the importance of recruitment, selection, training
and development in increasing the performance level of employees.
TASK 1
1.1 Importance of effective HR strategies in terms of developing competitive advantages
There are many functions which fall under HR department. These Functions include
recruitment, selection, training, development and retention in the context of employees. If, all the
functions of HR would be taken properly, then it would provide competitive advantage to the
Milestone Hotel (Cutcher‐Gershenfeld and Finkin, 2014). In addition to this, management should
also focus on motivating and increasing productivity as it would help in increasing competitive
advantage. Following are the importance of effective HR strategies in terms of developing
competitive advantage:
Recruiting candidates with experience and professionalism: It is one of the main functions of
human resource management. HR should be able to understand the skills and knowledge of
candidates and accordingly he or she would be able to select better candidates. In this context, it
is very important for HR to know his or her roles and key responsibilities which has to be taken
into consideration and accordingly, they should hire individuals (Kuo, and et.al., 2014). In
accordance with the case, HR department in Milestone should be able to understand the needs
and wants of firm in terms of human resources and accordingly they should be able to select
candidates who would be able to fulfil the goals and objectives of Milestone. Moreover, they can
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also understand the strategic roles of firm and could help the business in shaping up the path
through which they can achieve the desired goals and objectives.
Providing HR with leadership position: As it was stated above, that recruitment is one of the
main roles played by HR, so according to this point, HR should be conveyed by the roles and
responsibilities which has to be played by the candidate after being selected (Koplyay and et.al.,
2014). If the candidates get to know the roles and responsibilities which are required for the firm
then it would be helpcompany in identifying candidates accordingly. Milestone Hotel should
convey information to the HR department with the actual requirement so that they could select
candidates according to the requirement.
Determining training program for employees: Management should rely on the decisions made
by HR department. Moreover, they should conduct training and development programs so that
employees could improve their skills and knowledge (Meyer, 2013). In this context, HR should
monitor each employee and should understand the areas in which each lacks. Accordingly, they
should provide training so that they could overcome their weaknesses. With respect to The
Milestone Hotel, it is very essential for HR to monitor employees closely so that they could
identify the issues or problems which employees are facing. Accordingly, they would be able to
provide them training so that they could enhance or understand their roles and responsibilities
more clearly. This would enable them to work with full efficiency and getting competitive
advantage (Armstrong and Taylor, 2014). When employees are provided with proper training,
then it would surly improve their performance and monitoring would also help in knowing
employees who would be demotivated with the job they perform. Through this, they would be
able to take appropriate steps in order to motivate them.
Using tools to monitor performance of employees: When HR department provides review
regarding employees, then they can also help employees in spotting out talent which employees
possess and they can also suggest ways through which employees would be able to use it for the
betterment of organization (Neave, 2013). Further, HR department can also use different types of
tools with the help of which they can monitor the performance of employees. In this context,
they can also help employees in developing growth opportunities. These type of tools would be
helpful for the organization in getting competitive advantage.
Retention of employees: Retention of employees is always better than to hire a new one as
existing employees already know their roles and responsibilities or how job has to be performed.
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In this context, they would be able to perform more effectively than new hired candidates
(Ollier-Malaterre and et.al., 2014). HR department of Milestone should be able to understand the
issue of employees and then they should take appropriate steps with the help of which they
would be able to retain employees. Through this, they would also be able to get competitive
advantage.
1.2 Strategic HR issues faced by The Milestone Hotel
There are many strategic HR issues faced in Milestone. In all the organizations of the
world, HR department faces many issues. Following are the issues that are also faced by
Milestone in the context of HR department:
Recruitment: It is one of the major roles played by HR, but it also becomes issue when selection
is not done properly (Stepanova and Demidova, 2013). HR department should be very careful in
selecting candidates who should be appropriate for the vacant post. In accordance with the case,
it is very important for Milestone to select candidates who would fit in the vacant post. There are
many cases in which HR failed in selecting the right candidate and as a result the firm has to
redo the selection process. This increases the expenses of organization as in recruitment, lot of
cost is required. In this context, HR department of Milestone should be very careful in selecting
candidates. It is very difficult to know what the candidate would be capable of and will he/she be
able to perform their role and responsibilities provided to them effectively. HR managers of
Milestone should follow appropriate steps with the help of which they would be able to select
skilled and knowledgeable candidates (Cascio and Boudreau, 2016).
Providing training and development: Training and development programs play important role in
enhancing the skills and performance level of employees. There are various cases in which
management finds no difference in employee performance even after providing training. This
happens when HR department does not understand the actual requirements of their employees
(Stahl and et.al., 2012). In this context, HR should understand the needs, requirements of
employees along with the areas in which they lack and accordingly HR should provide training.
When, areas in which improvement is required are identified then they could be trained
effectively. This would be helpful in enhancing employee’s skills and knowledge.
Productivity: In the context of Milestone Hotel, it is very important for the HR department to
look after their customers and monitor their employees so that they are able to satisfy their
customers effectively (Qi, 2013). In this sector, it is very important to satisfy customers as it is
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the way through which firm could earn profit. It is very essential to understand the needs and
requirements of customers and accordingly firm should provide services which would satisfy
them.
Health and safety: It is very important to provide healthy environment to the employees so that
they feel safe and could work freely. It becomes an issue when management fails to provide safe
environment. If, employees are not provided with safe and healthy environment, then it affects
performance (Weber, Rachman-Moore and Tarba, 2012). In this context, Milestone should
provide healthy and safe environment so that employees could contribute effectively towards the
growth of organization.
TASK 2
2.1 HR model for analysing business performance of Milestone Hotel
According to Buller and McEvoy, 2012, HR model is very helpful in connecting the
goals, objectives, operations and processes (Buller and McEvoy, 2012). On the other hand,
Kehoe and Wright, 2013, states that HR model determines the key roles and responsibilities
which has to be played by human resources (Kehoe and Wright, 2013). This model has many
benefits as it helps to focus on different initiatives which could be taken by managers and
employees within the firm.
In this context, Guest Model of HRM would be used so as to know the performance level of
Milestone. Guest Model of HRM was given by Devid Guest in1987. According to Guest, this
model analyses six dimensions which are as follows:
 Strategies for HRM
 Practices for HRM
 Outcomes for HRM
 Behavioural outcomes
 Outcomes through performance Financial outcomes
Strategies for HRM: There are many things which have to be kept in mind so as to provide
better services to customers. In HRM strategies, management focuses on developing innovation
which would help customers in satisfying their needs. According to Parola, Ellis, and Golden,
2015, it is very important for the employees working in hospitality industry to provide quality
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service to their customers (Parola, Ellis and Golden, 2015). In addition to this, it also includes
cost reduction. According to this model, Milestone Hotel focuses on developing innovation and
takes suggestions from employees so that they could develop something new. Further, they also
focus on providing their customers with quality services and in affordable price. According to
Bratton and Gold, 2012, if firm would not focus on providing their customers with quality
product, then it would affect the growth of firm (Bratton and Gold, 2012). Practices for HRM: In this, it includes five aspects which have to be taken with the
proper care. These include practices like recruitment, providing training, appraisal,
rewards and job design. It is very important for management to take care of these areas.
Milestone Hotel provides rewards and appraisals. But, it does not have a proper selection
process and does not provide proper training to its employees. According to Currie,
Burgess and Hayton, 2015, it is very important to have an effective selection process as
skilful and knowledgeable candidates would always support firm to grow (Currie,
Burgess and Hayton, 2015). On the other hand, Boselie, 2014, states that ineffective
recruitment increases the expense of organization (Boselie, 2014). Milestone Hotel needs
to make changes in its selection process and should understand the areas in which their
employees lack and accordingly they should provide them training.
Outcomes for HRM: According to this point, it is essential for the firm to be flexible and
committed towards the work they do. Employees of Milestone Hotel are flexible and they adopt
easily to change. According to Stirpe Bonache and Trullen, 2015, it is very important that
organization should adopt to change easily as by doing this, they can better contribute towards
the growth of organization (Stirpe, Bonache and Trullen, 2015).
Behavioural outcome: It is very important for the management to monitor their employees and
get to know whether their employees are motivated, corporative and contribute effectively for the
growth of organization (Way, Wright and Tracey, 2013). In this context, Milestone Hotel should
make sure that their employees are motivated or not. If their employees are not motivated, then
firm should understand their issues. Milestone Hotel provides them rewards according to their
performance but management should also use motivational models which would satisfy or
motivate them.
Performance outcomes: In this, management should look after the productivity, innovation and
quality. On the other hand, it should focus on reducing conflicts, absence, labour turnover, etc.
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(Iglesias and Saleem, 2015). In accordance with Milestone Hotel, productivity is very low as
employees are not able to provide proper services to their customers. According to the
performance outcomes, firm has to work hard.
Financial outcome: It is very important for the organization to look after the profit level. The
profit earned by Milestone Hotel is growing but the growth rate is very slow (Careers, 2016).
2.2 Importance and relevance of HRM in a changing environment
There are mainly five factors which involve the environmental change of HRM.
Following are the five factors:
Diversity of work force: People from different culture, race, religion, age, values, etc. work
together. In this context, HRM plays a vital role in managing employees effectively and in
making them work towards achieving common goals and objectives. According to Mockaitis,
Zander and De Cieri, 2015, it is very important for the management to manage diversity and
providing proper guidance and training to the employees so that they could help the firm to grow
(Mockaitis, Zander and De Cieri, 2015). On the other hand, José Martínez-Jurado and et.al.,
2013, states that due to diversity, conflicts increase. It is the responsibility of HR department to
look after the conflicts which arise due to diversity (José Martínez-Jurado and et.al., 2013).
Diversity inversely affects the growth of organization. In accordance with Milestone, HR should
be able to handle their employees effectively and should be capable enough to solve the conflicts
easily. Diversity affects the growth and performance of organization.
Technological change: Technology helps firm to grow and it is the responsibility of
organization to update or adapt new technology so that they could provide better services to their
customers. There are many changes which took place with the improvement made in technology.
According to Cutcher‐Gershenfeld and Finkin, 2014, it is very important to make changes with
the change in technology so as to provide better services to the customers (Cutcher‐Gershenfeld
and Finkin, 2014). On the other hand, Kuo and et.al., 2014, states that technology would help
employees to provide better services to customers and understanding their need and wants
effectively (Kuo and et.al., 2014).
2.3 Historic developments and current market contexts
Milestone Hotel was founded in the year 1689 by Foot Onslow. It was started with a
small room in which they provided lunch and dinner. They used to provide ten different dishes
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for both lunch and dinner (The Milestone Hotel – London, 2016). At those times, they were not
able to provide and satisfy their customers according to their needs and preferences but slowly
when they started improving, they made changes in their list and increased the number of dishes
according to the requirement of customers (Koplyay and et.al., 2014). As the years passed on, the
ownership was changed. With the change in ownership, it focused on developing and used their
creativity so to attract more and more customers. It was in 19th century when they started
providing customers with one employee who would be with them and provide all the required
things demanded by them. In addition to this, it was in 1922 when Milestone home was changed
into a hotel.
There was also a damage which took place in 1986. Fire took place in hotel because of
which it badly damaged (Meyer, 2013). As a result, it was sold to another hotel group which was
Red Carnation Hotel. It was in the year 1999 when Milestone Hotel was restored. Moreover, it
has ranked to be the world’s best hotel.
Currently, Milestone Hotel provides two employees for each of the customers who visit
the hotel. It has been using various strategies so as to understand their customers more closely.
They have also worked on understanding their employees and providing rewards according to
their performance (The Milestone Hotel, 2016). This strategy has proved to be helpful in
motivating employees and it also helps in enhancing their work. There are almost 80 employees
working in The Milestone Hotel and according to the performance of employees, it was found
that they are not able to provide quality services. In other words, they are not able to understand
the needs and requirements of customers and accordingly they are not able to provide better
services (Neave, 2013). This is because lack in training and employees selected in recruitment
are not effective enough to satisfy customers. In addition to this, dishes do not taste same. Chiefs
who prepare food are not able to make attractive and delicious food and it has affected the
growth of Milestone hotel.
TASK 3
3.1 Critical examine of recruitment and selection for the improvement of employees performance
According to Ollier-Malaterre and et.al., 2014, recruitment is a process with the help of
which organization finds out different candidates who would be best for the vacant position. In
this context, it is very important for the organization to identify the skills and ability of
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candidates and selecting the best one who would help the firm in achieving the goals and
objectives (Ollier-Malaterre and et.al., 2014). This is one of the main roles which has to be
performed by HR department. However, Stepanova and Demidova, 2013, stated that recruitment
process increases the cost or expenses of firm. Thus, it should be very careful in selecting the
candidates (Stepanova and Demidova, 2013). There are many benefits of recruitment which are
as follows:
Wide choice: Whenever firm makes recruitment process, many individuals apply for it.
According to Cascio and Boudreau, 2016, organizations get a wider choice of selecting
candidates. In this process, recruiter would be able to interact with the candidates directly and
they could get all the required information for them (Cascio and Boudreau, 2016). According to
the interview, they would be able to identify candidate who would be best for the vacant post. On
the other hand, Stahl and et.al., 2012, stated that recruitment provides wider choices but it is on
the recruiter to select candidate wisely (Stahl and et.al., 2012). In this context, they should be
able to identify all the skills and capabilities with the help of which they would be able to help
firm to achieve their goals and objectives.
Candidates who are talent: According to Stirpe, Bonache and Trullen, 2015, recruitment is
helpful in selecting candidates who would be highly skilled and qualifies. When firm selects
employees with high qualification, it should assure that candidates do work hard and perform
effectively (Stirpe, Bonache and Trullen, 2015). On the other hand, Mockaitis, Zander and De
Cieri, 2015, stated that candidates with high skills and understanding require less training. Skill
full employees have proper understanding of their roles and responsibilities so that firm needs
less requirement of providing training (Mockaitis, Zander and De Cieri, 2015). Training is
required for those employees who do not understand their roles and responsibilities.
Fresh Talent: Qi, 2013, stated that, when new candidates are selected, then thinking would be
different and they would be able to provide firm with new ideas, skills and knowledge with the
help of which organization could make changes and increase the growth (Qi, 2013). According
to Weber, Rachman-Moore and Tarba, 2012, main disadvantage of recruitment is that expense of
the firm increases when recruitment is conducted (Weber, Rachman-Moore and Tarba, 2012). It
is very important for that organization should focus on selecting the best candidate so that
recruitment does not become loss for the organization. When fresh employees are selected, then
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it becomes encouragement and also boost up the existing employees with the energy of new
candidates.
In accordance with the Milestone hotel, employees are not able to provide quality services and
preparing proper food for their customers (Buller and McEvoy, 2012). It is because that
employees selected by the HR are not capable. HR should be able to understand the requirements
and accordingly they should understand the skills and knowledge which candidates possess and
then they should select the best one.
3.2 Critical examine of training and development for the improvement of employees
performance
According to Kehoe and Wright, 2013, Training and development plays an important role in
making employees to understand their roles and responsibilities more clearly (Kehoe and Wright,
2013). Parola, Ellis and Golden, 2015, stated that in providing training, it is very important for
the HR to understand areas of issues in which each employee lacks (Parola, Ellis and Golden,
2015). Following are the benefits which Milestone Hotel would get through providing proper
training and development to their employees:
Flexibility: It is very important for the firm to understand the requirement of training and
accordingly they should provide training to the employees. According to Bratton and Gold, 2012
changes in the organization are very frequent and it becomes very difficult for employees to
adopt changes accordingly (Bratton and Gold, 2012). Training and development would be
helpful in making employees flexible and they would be able to adapt to change easily.
Efficiency: Currie, Burgess and Hayton, 2015, stated that when employees are provided with
training, then they get improvement in the efficiency level. Their performance level would be
improved when they are given training (Currie, Burgess and Hayton, 2015). If, training is
conducted as per the lack of employee’s skills then, they could improve their performance level.
On the other hand, Boselie, 2014, states that employees only understand their weaknesses when
they let to know their performance level (Boselie, 2014). Training would be helpful for
Milestone as there are employees who are not able to provide proper services to their customers.
In addition to this, they should also provide training to their chiefs so that they get to learn new
dishes which would help in attracting new customers.
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Stability: According to Stirpe, Bonache and Trullen, 2015, when employees are provided proper
training, then they would be able to understand their roles more clearly and they would be able to
perform more effectively (Stirpe, Bonache and Trullen, 2015). When, roles and responsibilities
are defined clearly, then they would be able to perform more effectively and efficiently.
3.3 Recommendation for training strategies for The Milestone Hotel
These below mentioned five techniques can be adopted by Milestone hotels to enhance their
training procedures.
 Assess: Assessment is more effective during training as it helps an individual to analyse
and rectify mistakes which is necessary to enhance their thinking capabilities (Way,
Wright and Tracey, 2013). Organization can undertake assessment criteria for elevating
the level of training.
 Motivate: By maintaining infrastructure and structure of work, Milestone can induce the
sense of motivation among the members of organization which is essential for producing
quality work and the development of company.
 Design: Training techniques and procedures should be designed in such a way that is
easily understood by the individuals who are undertaking the training process. Designing
ways of implementing training techniques will help in flexible comprehensibility and
self-evaluation.
 Deliver: An effective and delivery of speech and statements during training will enhance
the quality and comprehensive power which is significant in efficacious training
mechanism (Iglesias and Saleem, 2015).
 Self-evaluation: Organising different level of self-evaluation test by Milestone will help
in deciding the merits and demerits of an individual. It will also help in covering weak
topics where a broader focus is required.
 Inculcating leadership qualities: Providing awareness about the leadership qualities will
enhance the motivation level of employees which in turn brings positivity in the working
environment (Mockaitis, Zander and De Cieri, 2015). By infusing this parameter in
training techniques, organization can reach great levels of growth and development.
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 Plotting of targets: Developing plan and setting out clear goals help in completing work
effectively. This strategy can be adopted by Milestone to encourage quality training
among individuals
 Sense of relevance: Effective training strategies also involve inducing relevancies in
different task (Currie, Burgess and Hayton, 2015). This measure can aid in deciding
priorities and urgencies between different tasks
 Organising training programs: Coordinating training programs at different level will help
organization to maintain employee retention for a longer period of time which will result
in effective team building.
CONCLUSION
Form this report, it can be articulated that HR has to play many roles with the help of which
management develops path through which they could achieve the goals and objectives of
organization. In recruitment process, it is very essential for the HR to analyse candidate so that
they would be able to select the best candidate who would perform the roles and responsibilities
provided for the vacant position effectively. In addition to this, training and development
program should be conducted according to the areas in which employee lacks. When areas in
which employees lack are identified then management should provide training and development
program.
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The Milestone Hotel. 2016. [Online]. Available through: <http://www.milestonehotel.com/?
gclid=CNqC2PGAtsoCFdMTaAodpj0BcQ> [Accessed on 19th January 2016]
The Milestone Hotel – London. 2016. [Online]. Available through:
http://in.hotels.com/ho129112/the-milestone-hotel-london-united-kingdom/> [Accessed
on 19th January 2016]
Careers. 2016. [Online]. Available through: http://www.milestonehotel.com/careers> [Accessed
on 19th January 2016]
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