Strategic HRM and Hospitality Performance

This assignment examines the relationship between strategic human resource management (HRM) and organizational performance within the hospitality industry. It requires students to analyze various HRM practices, such as talent acquisition, training and development, performance management, and employee engagement, and their influence on key performance indicators in hospitality organizations. Students will delve into relevant academic literature and potentially draw upon case studies or real-world examples to support their arguments.

MANAGING HUMAN RESOURCE

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
1.1 Explanation of Guest Model Of HRM...................................................................................3
1.2 Differences between Storey’s definitions of HRM, Personnel and IR practices...................4
1.3 Implications of developing strategic approach to HRM for line managers and employees in
organisations. ..............................................................................................................................5
TASK 2............................................................................................................................................5
2.1 Application of the Model of flexibility.................................................................................5
2.2 Types of flexibility................................................................................................................6
2.3 Use of flexible working practices from both the employee and the employer perspective...7
2.4 Impact that changes in labor market have had on flexible working practices.......................7
TASK 3............................................................................................................................................8
3.1 Forms of discrimination which can take place within the workplace....................................8
3.2 Practical implications of equal opportunities legislations.....................................................8
3.3 Compare approaches to managing equal opportunities and diversity...................................9
TASK 4..........................................................................................................................................10
4.1 Comparison of performance management methods............................................................10
4.2 Approaches used to managing employee welfare................................................................10
4.3 Implications of health and safety legislation on human resource practices.........................11
4.4 Impact of another topical issue on human resource practices..............................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Human Resource Management (HRM) is one of the most vital factor in the success of
any organization. It is an approach focusing on organization's staffing, training, improvement
and motivation (Hendry, 2012). The process is responsible for squandering a clear vision and
opportunity, to make optimum utilization of the resources and to tap the full potential of the
workforce. The major activities undertaken by them are procuring personnel, grooming them,
stimulating them and retaining them. The role played by HRM for an organization is
indispensable which, with the changing times has acquired a new level of sophistication.
The present report will be carried out to analyse the practices of Hilton Hotels and
Resorts (About us, 2016). The organization is a global brand providing full services across 84
countries and serves both business and leisure travellers. The report aims to describe various
perspectives of HRM, ways to develop a flexible environment, understand the performance
management techniques and lastly to understand the implications of providing equal
opportunities with the workplace.
TASK 1
1.1 Explanation of Guest Model Of HRM
The fundamental idea of the Hilton Hotel is that HRM practices shall be designed in such
a way that high-quality employees are produced. In pursuance of the same Hilton adopted the
Guest Model of HRM, propounded by Prof. David Guest (Armstrong and Taylor, 2014). He was
of the view that human resource is the one of the most valuable assets of any organization and
the process of managing them is beyond the process of hiring or rather it begins after the process
of recruitment, in the true sense.
There are two approaches to undertake HRM – The Soft approach and the hard approach.
The former is a participative approach designed by the top level of Hilton Hotel, considering
employees to be a valuable component of the organisation. As against the latter is a more strict
one having rigid rules and regulations imposed on the employees, with nil participation in the
decision making process (Boxall and Purcell, 2011).
The model establishes a relationship between HRM activities and organisational strategies by
analysing the following dimensions:
3

 HRM Strategy: It is considered important by Hilton to maintain a consistency between
the HRM strategy and business strategy to achieve the desired goals (Guest, 2011). HRM Practices: The model highlights the significance of HRM practices of recruiting,
training, appraisals, rewards and so on (Bratton and Gold, 2012). HR Outcomes: Adoption of the aforesaid dimensions has resulted in increased
commitment of employees, refined work and flexibility. Behavioural Outcomes: A feeling of 'organisational citizenship' can be seen within the
staff members, in addition to motivated and cooperative environment.
 Performance Outcomes: The performance has improved with a reduced level of
absenteeism and conflicts (Boselie, 2010).
 Financial Outcomes: Resultantly, higher profits and return on investment have been
realised.
1.2 Differences between Storey’s definitions of HRM, Personnel and IR practices
HRM is the improved and modern form of Personnel management and Industrial
Relations (IR) (Martin and Whiting, 2013). Storey in the year 1992 presented a theory which
highlights the changes introduced into HRM as against the traditional personnel and IR practices.
 One of the prime differences highlighted by Storey is that HRM regards employee as a
Human Resource and work day and night to enhance this resource, while on the other
hand personnel and IR practices regards employee as their cost and tries to reduce it at
all levels.
 The management actions are guided by business needs in the case of HRM whereas set
procedures are required to be followed in the case of personnel and IR practices (Hoque,
2013).
 Due to the existence of strict rules and procedures and complexity of working, the
decision making process is very slow in personnel and IR practices as against the HRM
decision making process which is fast.
 Rigid boundaries are set with written contracts in personnel and IR practices and on the
other hand HRM goes beyond the contracts, eliminating all the rigidity.
 In the case of personnel and IR practices certain norms and practices guide the behaviour
within the organisation, however, in the case of HRM the only guiding principle of the
behavior is the vision and mission of the organisation (Boella and Goss-Turner, 2013).
4

On reviewing the practices followed by Hilton Hotel and Qbic Hotel, another hotel which
is functioning on a small level within United Kingdom, on the basis of the above mentioned
differences the following can be concluded: Hilton Hotel has adopted HRM as it considers all its
employees as a resource and value them to the fullest. Further, the practices followed by Hilton
are not restricted within boundaries and rigidity and have been witnessed to be under the broader
umbrella of the organisation's vision and mission (Mok, Sparks and Kadampully, 2013). On the
contrary Qbic Hotel has adopted the personnel and IR practices, in accordance with the size of its
function. However, in the event Qbic Hotel plans for an expansion it is recommendatory for
them to adopt HRM practices.
1.3 Implications of developing strategic approach to HRM for line managers and employees in
organisations.
The process of aligning human resource policies along with the strategic objectives of the
organisation is termed as strategic HRM. The essential aim is to ensure the organisation has an
ideal force of employees for accomplishing continual competitive benefits (Impact of Strategic
Human Resource Management on Organizational Performance, 2014). In accordance with the
same Hilton has assured that its line managers and employees run parallel to the changing needs
of the organisation resulting due to frequently changing market conditions (Wright and
McMahan, 2011). In pursuance to the same the line managers of Hilton ensures that the HR
functions are integrated with the structure and policies of the organisation as a whole. The line
managers of Hilton have been given the responsibility to formulate such policies focusing on
developing skills to compete effectively in the continuous changing market as well as in the
future. The employees of Hilton are also given regular training to cope up with the changing
market in addition to developing skills for effectively competing with the competitors.
TASK 2
2.1 Application of the Model of flexibility
With the changing trend of the market and the relationship shared between the employer
and employee the concept of flexibility has emerged to be a major requirement. There can be
flexibility in the form of relaxed working hours, work from home, part time jobs, changes in
working patterns, etc. to dilute the complex and pressurized working cultures (Chuang and Liao,
5

2010). This helps a organisation to develop a favorable working culture for the employees
thereby increasing the effectiveness and quality of the work of the employees. Achieving work
and life balance is seen to be one of the most haunting concerns for the employees of many
organisation and is seen to be one of the most lucrative offer provided by any organisation. The
rationale behind offering flexibility is that the employees can work in accordance to their
comfort level thereby increasing the productivity and efficiency of the work. This shall further
reduce the work load of the employees which in turn may also prove to be a good stress
management technique.
The Hilton Hotel has adopted the model of Functional Flexibility. This model has refined
the working environment of the organization by allowing part time working culture which has
attracted a set of skilled work force enabling the organization to receive a diversified workforce.
In addition, the organisation has also allowed a particular force of employees to work from home
thereby not hampering the work in their absence and providing them a favourable work
environment (Gruman and Saks, 2011). The adoption of the model has assisted the organization
in receiving a high quality of work, less absenteeism, diversified skills and ideas to improve and
serve to the customers in a more efficient manner and lastly has also reduced the cost of
operation.
2.2 Types of flexibility
Hilton Hotel is a global organisation working with a large force of employees. The working
hours of the organisation are throughout the day and night and hence the organisation has
adopted the following flexibilities in accordance with their nature of work. Job rotation method: Owing its application to the nature of service, Job rotation is seen to
be one of the most important and required flexibility offered by Hilton. Regular job
rotation helps the organisation to serve the customers throughout the day and night,
thereby not hampering the quality of service (Mone and et. al. 2011). Part-time Working: This is another flexibility provided by Hilton to attract and more and
more skilled talent and maintaining a diversified workforce, making the most out of
them. Flexible working hours: Hilton provides its employees with the flexibility to work as per
their convenience, however this is subject to the aggregate target hours an employee has
6

to serve. One of the most requested and affordable type of arrangement wherein the
employee can choose when to commence and end the days work (Hill and et. al., 2010).
 Numerical Flexibility: This measure focuses on the appraisals and compensation
received by the employees of the organisation. Hilton has a policy to offer appraisals and
compensation on the basis of employees performance and feedback.
2.3 Use of flexible working practices from both the employee and the employer perspective
Flexibility is a crucial practice for the growth of an organisation and has two fold
benefits. Both the employer as well as the employees benefit from a flexible working
environment and policies. Flexibility offers the employee with a favourable and positive
environment of working, in addition to balancing the work and personal life. The employees of
Hilton have witnessed an increased productivity and quality of work, thereby also benefiting the
employer. It has promoted the feeling of Organisational belongingness among the employees
thereby increasing the rate of retention of the organisation (Schneider, 2011). The employer has
also benefited as absenteeism is reduced over the years after adoption of various flexible
practices.
2.4 Impact that changes in labor market have had on flexible working practices
Changes being taking place in the labor market have impact on flexible working
practices. Further, the overall alteration taking place in the level of technology, rise in the level
of education along with the other form of activities affects business functioning. Moreover,
Hilton hotel has employed advanced tools due to which staff members present within the
workplace have to apply lesser efforts in carrying out overall operations. It has enhanced
capability of the employees to work for the betterment of organization and has acted as
development tool for enterprise (Putnam, Myers and Gailliard, 2014). Apart from this, frequent
changes are taking place in the labor market regarding payment of wages where fair wages have
to be provided to the staff members on the basis of work done by them and time allocated in
business activities. Due to presence of this condition business is required to modify its internal
operations so as to work for the betterment of workforce. Apart from this, concept of flexible
working practices is getting popular at faster pace where employees are allowed to work on their
own as per their requirement and there is no such regulation present. Labor market has strong
power to influence overall activities of business and Hilton hotel is required to comply with the
changes taking place in the market for its betterment. This can surely support company to satisfy
7

need of its employees present within the workplace and can enhance internal strength of the
organization.
TASK 3
3.1 Forms of discrimination which can take place within the workplace
Discrimination within the workplace is regarded as the condition where staff member is
being harassed or treated in unfair manner due to presence of different factors such as caste,
religion, gender etc. Further, presence of discrimination activities affects organizational
productivity where it becomes difficult for business to accomplish its desired objectives. Further,
it can directly lead to discharging of talented staff members from the company on the basis of
their own protected attributes (Chang, Gong and Shum, 2011). Sometime, the form of
discrimination being present is considered to be worst where businesses are not able to retain its
loyal employees and this in turn has adverse impact on company. Some form of discrimination
activities are as follows:
Gender and age: This type of discrimination takes place on the basis of gender along with age of
staff members. Further, in many companies women employees are given less wages as compared
with male one. Therefore, Hilton hotel ensures that equal opportunities are being provided to the
staff members as per their expectations. Apart from this, on the basis of age also staff members
are entertained such as in case of old aged employees they are given less opportunities which is
also kind of discrimination (Hendry, 2012).
Racial: It is also one of the major forms of discrimination which relies on religion along with
caste of staff members (Boxall and Purcell, 2011). Timely it is ensured by management of Hilton
hotel that racial discrimination is not present which may influence employee productivity.
So these are some of the forms of discrimination which can take place within Hilton
hotel.
3.2 Practical implications of equal opportunities legislations
Equal opportunity legislations are being developed with the motive to provide fair
opportunities to the staff members working in the organization. Further, Hilton hotel carries out
all the operations on wider basis due to which manpower requirement of company is quite high.
Business strictly complies with the equal opportunity legislations so that staff members can be
protected in every possible manner and this supports in retaining them for longer period of time
(Martin and Whiting, 2013). Implication of equal opportunity act on Hilton hotel is positive
8

where business has developed separate team whose main motive is to ensure that equal
opportunities are being delivered to the employees as per their capabilities and knowledge. Apart
from this, it is identified whether any kind of discrimination activity is not present which can
lead to decline in business efficiency. Further, business keep on changing its HR policies where
system linked with equal pay and opportunities to the staff members are present easily.
Remuneration is provided to employees on the basis of their capabilities and this leads to
favorable results for business (Boella and Goss-Turner, 2013). Therefore, this has directly lead to
development of favorable environment within workplace where all the employees prefer to take
equal participation in the business affairs and they carry out operations with full motivation
level. Moreover, no discrimination activities are present which may prevent from participating in
business affairs. Providing equal opportunities to all the employees has produced favorable
results for company in terms of higher level of employee satisfaction etc.
3.3 Compare approaches to managing equal opportunities and diversity
Different effective ways are present with the help of which equal opportunities can be
delivered within Hilton hotel to its staff members and form of unethical practices such as
discrimination can be eliminated up to extent. Firstly it is necessary for enterprise to determine
what the real expectations of its staff members are and on the basis of same it is possible to
deliver equal opportunity to the employees. Proper policies must be framed within the workplace
so that equal opportunity in the form of salary and other form of additional benefit can be
provided to the workforce (Mok, Sparks and Kadampully, 2013). Further, staff members
working in the organization must be encouraged to take part in various affairs so that diversity
can be managed easily. Through this their satisfaction level within the workplace can be
enhanced easily and this can lead to favorable results for the enterprise in the market. It is
possible for Hilton hotel to hire some women staff members at top level who can strictly work of
the welfare of all employees. Apart from this, it is necessary to develop positive work culture as
providing equal opportunity to employees can assist them in taking part in major activities of the
organization. So, this can definitely bring favorable results for Hilton hotel where business can
focus on accomplishment of desired aims and objectives. Apart from this, company will not deal
with challenge linked with decline in level of employee motivation etc which is unfavorable for
enterprise operating in the market. Therefore, these are some of the most effective approaches of
9

managing equal opportunity where most appropriate one is to comply with the guidelines being
introduced by government.
TASK 4
4.1 Comparison of performance management methods
Different forms of performance management methods are being present through which it
is possible for Hilton hotel to manage performance of its staff members within the workplace.
This directly provides base in accomplishment of goals of company and leads to favorable
results. 360 degree is regarded as one of the most effective method in which feedback is taken
from the colleague and superior of staff member working in organization. Through this, it is
possible to know whether employee is performing satisfactory or not. Apart from this, 360
degree system helps in identifying the real areas where staff member is not performing
efficiently and improvement is needed for overall betterment (Wright and McMahan, 2011).
Obtaining feedback from colleagues of employee is most suitable as through this performance
can be easily managed and in turn it can easily bring favorable results for Hilton hotel in the
market. On the other hand other effective method of performance management is critical incident
method wherein this type of technique company prepares a list of statement which highlights
behavior of staff member under critical situation.
Further, it is well known fact that large numbers of conditions are present which may lead
to work pressure and this result in decline in business efficiency. Due to this basic reason it is
necessary to identify the actual behavior of staff members within the workplace along with the
conditions which makes them demotivated within the organization. Out of the two methods
being identified 360 degree method of performance management is most effective as compared
with critical incident method (Hill and et. al., 2010). This can surely support business in knowing
the real areas where staff members are not performing efficiently and improvement is needed.
Apart from this, it can assist in retaining employees for longer period of time which is also
beneficial for Hilton hotel.
4.2 Approaches used to managing employee welfare
Different approaches are being present with the help of which employee welfare can be
easily managed within Hilton hotel and this can support in enhancing organizational efficiency.
Business can work in welfare of its staff members by providing them monetary benefits and this
in turn can enhance their motivation level along with job satisfaction (Schneider, 2011). Business
10

can easily work for the welfare of its staff members by providing them different benefits such as
health insurance along with other form of facilities which can encourage them to participate in
the affairs of organization. Moreover, providing them share in the decision making process is
also effective through which employees of Hilton hotel can know that company is working in
favor of them and this can support in showing their real importance within the workplace. Apart
from this providing them equal opportunity is also one of the most effective ways to perform
activities in relation with employee welfare. Further, it is well known fact that staff members
present within the workplace are considered to be most valuable asset and working for their
welfare assist in accomplishment of objectives of business in every possible manner. On the
other hand, it is possible for Hilton to provide different type of allowances to its staff members
which involve travel, education to their children, pension scheme, lunch facility etc. Through
this, it can be easily ensured that company is working in favor of its staff member and this can
assist Hilton in gaining competitive advantage (Putnam, Myers and Gailliard, 2014). So, with
the help of this it can be stated that approaches being employed by Hilton hotel for managing
employee welfare are quite effective and it can allow business in retaining its employees.
4.3 Implications of health and safety legislation on human resource practices
Health and safety legislations being developed by the government has direct impact on
human resource practices of Hilton hotel. Further, business has implemented health and safety
act 1974 within the workplace with the main motive to protect workers from different type of
hazards (Schneider, 2011). This act was mainly developed with the motive to provide safe
working environment to employees and their interest can be safeguarded in every possible
manner. This act consists of following elements which are as follows:
 It is the main responsibility of management to ensure that all the corrective measures are
being taken in relation with safety and security of workers working in Hilton hotel.
 Business enterprise must have written health and safety policy which covers all the major
aspects linked with protection of staff members within the workplace.
 Business must have complete right to competent health and safety advice so that it can
bring favorable results for the Hilton hotel in the market.
 Organization is required to implement large number of activities through proper planning
along with controlling so that proper healthy environment can be delivered to the
employees (Armstrong and Taylor, 2014).
11

Health and safety legislations have direct impact on human resource practices of Hilton hotel
as business has to modify its operations keeping in view these policies. Further, system of proper
protection has to be undertaken so that staff members working in Hilton hotel may feel safe at
the time of carrying out overall operations within the workplace. This can surely bring favorable
results for the enterprise in terms of rise in satisfaction level among employees and issues linked
with health and safety can be tackled easily.
4.4 Impact of another topical issue on human resource practices
Topical issue being present within the workplace has direct impact on human resource
practices. One of the main issues being faced by Hilton hotel within the workplace is
demotivation among staff member within the workplace which has lead to decline in level of
business efficiency. Employees are not provided favorable environment to work and due to this
reason productivity of the company is adversely affected due to this. Further, due to presence of
this topical issue company has to bring change in its overall practices of human resource
management. Business has to take corrective actions for enhancing motivation level of its staff
members so that they can work for company easily and this can enhance organizational
productivity (Guest, 2011). Apart from this, feeling of demotivation is totally unfavorable due to
which employees may not prefer to take part in business affairs. In order to deal with this major
issue it is necessary for organization to take corrective actions so that staff members can be
motivated easily. Further, human resource practices have to be developed in such way where
monetary along with non monetary benefits are delivered to the staff members so that issue
linked with motivation may not take place within the workplace (Chuang and liao, 2010). Apart
from this, company has to take feedback from its staff members on continuous basis so that they
can actively participate in the affairs of the organization. Following such practices can be
favorable for organization in terms of higher job satisfaction among staff members etc. In short,
it can allow company in gaining competitive advantage and in turn can act as development tool
for the business.
CONCLUSION
The entire study being carried out has supported in knowing about the importance of
human resource management within the workplace. Hilton hotel carries out all the operations on
wider basis due to which company has to manage its human resource in proper manner. Further,
different effective ways are present with the help of which Hilton hotel can work for welfare of
12

its staff members. Moreover, by complying with the health and safety legislations business can
easily protect its workforce against harm. Different forms of discrimination are present which are
practiced within the workplace and through applicability of different laws it is possible for
company to protect staff members from unethical practices within the company.
13

REFERENCES
Journals and books
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Boella, M. and Goss-Turner, S., 2013. Human resource management in the hospitality industry:
A guide to best practice. Routledge.
Boselie, P., 2010. Strategic human resource management: A balanced approach. Tata McGraw-
Hill Education.
Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
Bratton, J. and Gold, J., 2012. Human resource management: theory and practice. Palgrave
Macmillan.
Chang, S., Gong, Y. and Shum, C., 2011. Promoting innovation in hospitality companies through
human resource management practices. International Journal of Hospitality
Management. 30(4). pp.812-818.
Chuang, c. H. and Liao, H. U. I., 2010. Strategic human resource management in service context:
Taking care of business by taking care of employees and customers. Personnel
Psychology. 63(1). pp.153-196.
Gruman, J. A. and Saks, A. M., 2011. Performance management and employee engagement.
Human Resource Management Review. 21(2). pp.123-136.
Guest, D. E., 2011. Human resource management and performance: still searching for some
answers. Human Resource Management Journal. 21(1). pp.3-13.
Hendry, C., 2012. Human resource management. Routledge.
Hill, E. J., and et. al., 2010. Workplace flexibility, work hours, and work-life conflict: finding an
extra day or two. Journal of Family Psychology. 24(3). p.349.
Hoque, K., 2013. Human resource management in the hotel industry: Strategy, innovation and
performance. Routledge.
Martin., M., and Whiting., F., 2013. Human Resource Practice. 6th ed.
Mok, C., Sparks, B. and Kadampully, J., 2013. Service quality management in hospitality,
tourism, and leisure. Routledge.
Mone, E., and et. al. 2011. Performance management at the wheel: Driving employee
engagement in organizations. Journal of Business and Psychology. 26(2). pp.205-212.
Putnam, L. L., Myers, K. K. and Gailliard, B. M., 2014. Examining the tensions in workplace
flexibility and exploring options for new directions. Human Relations. 67(4). pp.413-
440.
Schneider, B., 2011. The human face of workplace flexibility. The Annals of the American
Academy of Political and Social Science. 638(1). pp.103-122.
14

Wright, P. M. and McMahan, G. C., 2011. Exploring human capital: putting ‘human’back into
strategic human resource management. Human Resource Management Journal. 21(2).
pp.93-104.
Online
About us. 2016. [Online]. Available through: <http://www3.hilton.com/en/index.html>.
[Accessed on 14th July 2016].
Impact of Strategic Human Resource Management on Organizational Performance. 2014.
[PDF]. Available through <http://www.management.ase.ro/reveconomia/2014-
2/14.pdf>. [Accessed on 14th July, 2016].
15