Strategic HRM Practices and Low Occupational Status Older Workers

The provided content relates to employee relations, disaster management, strategic facilities planning, risk management, environmental mission statements, global brand marketing, strategic management, and sustainability programs. The content includes articles, case studies, and pdf files from various sources such as P. Stenchion, W.R. Steiss, Berg, Environmental Mission Statements: Starwood Shows Commitment, Global Brand Marketing, Hunger and Wheelen, Nickols, Ochi, Security Compliance Corporation, Starwood Hotels & Resorts Worldwide, INC., Sustainability Programs & Initiatives, and Team. The content aims to provide insights into these topics and their relevance to the hospitality industry, with a focus on Starwood Hotels & Resorts.

Strategic management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
BACKGROUND OF THE ORGANISATION...............................................................................1
STRATEGIC DECISIONS.............................................................................................................2
NON- STRATEGIC DECISIONS..................................................................................................6
RISK................................................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Today’s, cut throat competition in hospitality industry is present and leading
organizations including Starwood Hotels and Resorts worldwide Inc. are emphasizing on
developing and executing appropriate strategies to attain their aim and objectives in an
appropriate manner. Selected company is international firm because it engages in activities
outside the borders of its home country. The cited firm presence at global level and it operates its
hotel business in terms of franchises and manages hotels, resorts, spas and residences under own
brand. Business strategy of enterprise is concentrating on the management and franchise business
for the purpose of maximizing earnings and cash flow. Strengthening brand identity,expand the
presence of brand at global level and gain additional cash flow are the major characteristics of
business strategy of Starwood brand(Environmental Mission Statements: Starwood Shows
Commitment, 2010).The main corporate strategies of enterprise are implementation and
expansion strategy for hotel chains and minimize the risk inherent in an investment decision.
Corporate governance: In order to assure that Starwood is governed in a consistent manner,
Corporate Governance and Nominating Committee within enterprise is developed. Considering
and reporting periodically report, identifying, screening and recommending to board and assists
the Board in fulfilling its oversight responsibilities are the major corporate governance standards
follow in Starwood. Besides that, code of business conduct and ethics and meet the independence
requirements of the New York Stock Exchange and other exchanges are the major
characteristicsof international hotel giant (Ochi, 2012). In order to better understand the concept
of strategic management, case study of Starwoods has been taken. In addition, strategic and non-
strategic decisions taken by management in different situations have been explored for the
purpose of grasping business and market opportunities in a significant manner
BACKGROUND OF THE ORGANIZATION
Overview of case study: As per the given case concerned, Starwood enterprise has been taken
which offers quality of services to their customers within stipulated time. In addition, hospitality
firm is active across numerous social networks to magnetize new customers and retain existing
one. The main aim of the company is to minimize the risk inherent in an investment decision and
strengthening brand identity. Talented and skillful staffs were created issues in successful
deployment of IDM system within enterprise. Changes come in demographic population and
cultural and professional differences are creating problem for company.
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Enterprise was executed merger operation with Hyatt Hotels, it can be considered as
strategic decision. However, maintaining reliability, employee conflict, lack of integration
between departments and availability of ongoing operations were created hurdle in successful
implementation of new HRM system within Hospitality Company. By taking strategic decision,
management was able to improve cost transparency and improved HR processes effectively.
Furthermore, by increasing transparency in HR policies, management of hotel can be able to
solve security and HRM management related issues in a stipulated manner. By considering
merger and acquisition techniques, firm was able to carry out different business activities such as
training to its employees, overcome security problem and expanding its business in cross nation
effectively. Strategic decision taken by Starwood firm regarding to replace existing system with
new emerging technologies like Cloud-Computing, Starwoods would be able to reduce IT
infrastructure related cost and quick delivery of service in a proficient manner.
The UK based enterprise has global portfolio of luxury hotels and resorts in 80 countries. It
shows that it has worldwide presence. The objective of this resort is to create awareness of
etiquette in travelers (Sustainability Programs & Initiatives, 2015). The company under the
powerful leadership of Starwood is embarking continuous growth phase (Starwood Hotels and
Resorts, 2015). These are their long term goals which are set in commencing their life long
journey. The major challenges for them were to grasp advantage from merger and acquisition
activity with Hyatt and human resource management related challenge. All these efforts are
infused by them in order to improve their indoor environmental quality (Debrah, 2013). With this
strategic objective, this organization has been successful in taking an initiative of partnership.
They took partnership with Conservation International (CI) in 2009. They worked together to
create a platform that enable them to achieve their performance targets.
STRATEGIC DECISIONS
Strategic management
Wells (2000) explored the concept of strategic management in his paper which was described by
(Haines, 1995). As per the view of investigator, this term builds on the definition of strategic
planning and it is a systematic approach used to identify and measure change and its impact on
enterprise performance (Wells, 2000).
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According to Nickols (2011), the determination of the basic long-term goals and objectives of an
enterprise and taking strategic decision to carry out these objectives can be defined as strategic
management (Nickols, 2011).
Hunger and Wheelen (2011) explored strategic management as a set of managerial decision and
action that is required to enhance long-run performance of a firm.
Strategic decision:
According to Hunger and Wheelen (2011) strategic decision deals with the long-run
future of the entire firm and rare, directive and consequential are the three major characteristics
of decision making (Hunger and Wheelen, 2011).
Michael, Duane and Robert (2004) described strategic term definition in term of decisions which
are concerned with the whole environment in which firm operates can be defined as strategic
decision (Michael, Duane and Robert, 2004).
Jones (2009) defined that strategic decision in the context of providing opportunity to company
to build mission and objectives and deciding upon the courses of action to attain them within
stipulated time (Jones, 2009).
As per the present case of hospitality firm, strategic decision defined by Michael, Duane
and Robert (2004) was taken to deal with different factors that can influence performance of
enterprise. On the other side, strategic management definition given by Haines (1995) is
considered in present case to explore measure change and its impact on enterprise performance
(Michael, Duane and Robert, 2004).
Strategic planning or decision making is ongoing process that involves creating strategies to
achieve goals by effective utilization of organization resources at right time (Carlos and et.al.
2014). Management of Starwood’s follows a particular process within enterprise that can be
enlisted as follow.
Strategy formulation:In this stage, external and internal environment which affects performance
of an individual is considered. In this decision, current challenges and future opportunities were
included. External environmental factors which include rivals, power of buyers and suppliers,
substitute and new entrants are considered to identify issues and solve them in an appropriate
manner. The main motto behind taking this decision was to improve HCM (Human Capital
Management) system to execute human resource related activities in an appropriate manner.
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Strategy implementation:In the context of implementing strategy, enterprise has talented and
skillful workforce. However, they are facing issues related to solve employee conflict and handle
dynamic change of demand in their day to day activities. Top management of Starwood’s Hotels
was taken strategic decision regarding taking various initiatives for meeting environmental needs
fulfillment.
Figure 1: Strategic planning process
Strategy evaluation: From strategic perspective, decision taken by top level and senior
employees can be understood with help of strategic analysis tool that can be SWOT and PESTL
analysis (Global Brand Marketing. 2015).
Strategy monitoring and control: The hotel giant has committee to meet the independence
requirements of individuals who are associated with the firm. By developing monitoring plan,
management of enterprise can be able to identify weakness and overcome them by taking
corrective action within stipulated time. For example, enterprise is facing myriad of security and
compliance requirements related issue at workplace(Richard and Brian, 2001).
SWOT analysis: It is an adequate tool in the context of measuring strategic decision taken by
management of UK base leading hospitality firm to overcome challenges that can be enlisted as
follow.
The major strengths of enterprise are its brand name and scalability to meet business
requirements in modern era. In this regard, Identity Management (IDM) tool was used to
establish interface between current system and new system. Major weaknesses of company are
HR and IT related issues faced by hospitality firm at workplace (Cole, 2003). In addition,
employee’s resistance and lack of integration between different departments at different
locations were also created hurdle in successful deployment of this new system (Renner, 2010).
However, company can grasp business opportunity through exploiting strengths and minimizing
weaknesses effectively. By rebuilding the IT infrastructure and launching a new HR and payroll
application to save cost and reduce complexity (Kambil, 2008). Nonetheless, selection of IT
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vendor for implementing new system and failure to maintain the integrity and data can create
challenge for company to run its business in a successful manner (Steiss, 2005).
Figure 2: SWOT analysis
PESTL Analysis
Political environment and legislative related issues can create problem for firm in term of
executing its policies and grab business opportunities. Changes come in economy such as cost;
profits and currency fluctuation are the main elements influence the way of working enterprise in
digital era. For example, if inflation will occur then customers will not spend money on luxury
items and vacations and holiday packages (Global Brand Marketing. 2015). Different countries
social and cultural factors aver vary and they play an important role in terms of attracting
customers. IT department of enterprise is facing myriad of security and compliance requirements
related technology issues (Team, 2015). These types of technical problems influence services of
firm such as websites and hotel booking and managing information systems in a proper manner.
In addition, Equality act, Health and safety act and Discrimination act developed by UK
government also influences way of doing business of hotel. Furthermore by increasing
transparency in HR policies, management of hotel can be able to solve security and HRM
management related issues in a stipulated manner (Sims, 2007).
Strategic decisions related to mergers:
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At financial perspective with help of taking merger example between Hyatt Hotels and
Starwood, implementation of strategic decision taken by top management of Starwood can be
understood in a significant manner. Hyatt Hotels acquiring Starwood in cash and stock deal and
in this regard, management of firm has taken initiative to sell its assets. With help of this merger
activity, management of Hyatt group was able to enhance its offering in both managed hotels and
owned hotels(Debrah, 2013).
Besides that, massive footprint across the globe is the main advantage of this deal for
Hyatt Hotels. As per Security Compliance Corporation (2005) Hyatt portfolio consists of 587
properties worldwide and Starwood has 1,222 properties. But after acquisition of Starwood, the
combine property was closed to 500,000 rooms. This non-strategic business decisions increased
both hotels products portfolio and their revenue with EBITDA margins as high as 90% as
compared to other competitors present in the market (Security Compliance Corporation, 2005).
When this decision analysis on financial aspects then it is found that cash balance of Starwood
by end of Q2 was less than $1 billion and debt around $2 billion. On the other side, overall
market capitalization of Starwood is $13 billion and Hyatt’s is around $7 billion. Hence, it can be
said that Starwood is falling in financial aspect and failed to take more advantages as compare to
Hyatt in form of a cash and stock deal.
Analysis: Strategic decisions were taken by the management of the company. By considering
merger and acquisition techniques, firm was able to carry out different business activities such as
training to its employees, overcome security problem and expanding its business in cross nation
effectively (Renner, 2010).
Success of organization in term of taking non-strategic decisions can be measured in
forms of assessment of merger and acquisition decision taken by management of Starwood to
expand its business at global level. Merger and acquisition of Hyatt and Starwood can be
measured in form of business expansion at international level and local market. From current
business perspective, strategic decision taken by management of firm was appropriate because it
provides opportunity to firm to open its hotels in US and other countries. In addition, from local
market context, this deal will be beneficial for customers in terms of getting better quality of
services at affordable price (Joanicjusz, 2010). For example, management of enterprises can
emphasize on maintaining better relationship with all strategic global partners and branding to
promote its products (Global Brand Marketing. 2015).
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NON- STRATEGIC DECISIONS
Non-strategic management
According to Joanicjusz (2010) in non-strategic management, management of
organization takes set of managerial decision and action that determines short term performance
of company (Joanicjusz, 2010).
Cole (2003) examined that non-strategic management consider as the key tool available for
managers to execute short term plan. Management is responsible for taking operational decisions
are not employed on frequent basis (Cole, 2003).
Non-strategic decisions
Blumentritt (2006) defined that administrative and operational decisions which are taken
by management to facilitate strategic decision can be referred as non-strategic decisions.
Richard and Brian (2001) explored that non-strategic decisions are normally short term decisions
related to working of employees in an organization.
As per the present case scenario, management of firm was taken marketing as non-
strategic decisions to overcome current issues faced by enterprise at the workplace. These types
of decisions are non-strategic nature because these are taken by managers of organizations for
short time purpose for attaining operation and day to day to business activities of company.
Financial and marketing related decisions come under the category of non-strategic decisions.
HR related non-strategic decisions
In addition from HR perspective, non strategic decision taken by firm regarding to
conduct performance reviews and configurable user assistance integrated with the user interface
after executing merger activity, success of these kinds of decisions helpful for organization
(Commonwealth Secretariat, 2003).
Analysis: Establishing adequate IT infrastructure for increasing security was the major
challenge for vendor organization and HRM solution implementing firm (Carlos and et.al.,
2014). In addition, launching a new HR and payroll application was challenging task before
employees support, conflict between them and lack of integration between different departments
regarding challenges were associated with implementation of Identity management system
implementation at workplace (Jones, 2009). Besides that, enterprise was also taken
administrative decisions related to carry out day to day business operations of company (Ochi,
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2012). Maintaining reliability and availability of ongoing operations were created hurdle in
successful implementation of new HRM system within Hospitality Company (Steiss, 2005).
RISK
Risk: Stenchion (1997) defined that risk term can be explored in term of the probability of the
occurrence of an undesired event.
Sayers and their colleagues (2002) defined risk as a combination of the chance of a particular
event.
Risk management
Clusif (2008) defined risk management as a direct and individual management of each risk.
Berg (2010) explored risk management as an activity which integrates recognition of risk and
takes appropriate actions to manage it in a proper manner.
Difference between risk averse and risk aware
Risk averse situation shows the tendency of investors to avoid unnecessary risks with the lowest
variability in returns. On the other side, risk aware indicates the awareness or attitudes of
enterprise of individual towards risks. As per the present case study, it is clear that attitude of
managers in hospitality firm are risk aware because they were about risks and environmental
factors that can influence working of enterprise (Renner, 2010).
The nature of risk aware in term of present case can be explored with help of taking example.
Apart from this, organization was taken financial related non-strategic decisions to overcome
present issues faced by company at workplace.
For example, enterprise has working in many nations that are spread over all continents.
Employees and managers know that security and privacy can create problem for organization
(Cole, 2003). They agree with the fact that, in the absence of security and privacy, people will
not use the online reservation booking system of organization and it will create negative image in
the canvas of the minds of customers. Mangers of firm were aware about their roles and
responsibilities and in this regard, they were considered different risks such as culture,
technology and experience and product line that were created issue for organization (Starwood
Hotels & Resorts World Wide, INC. 2015).. By taking different decisions on the basis of risk
awareness, managers and employees of company was able to implement different strategies such
as establishing integration between different departments, providing training to staff and aware
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them about technology change so that their conflict was reduced. The major implication of
present case can been seen in form of introducing new policies continuously to attract new
customers and retain existing one for long time period and execute merger and acquisition
strategies in a successive manner.
RECOMMENDATIONS FOR FUTURE STRATEGIES
Three recommendations for perspectives
Enterprise has built quite a reputation around their brand in the mind of customers and their
strategic decisions helped firm to recover from the financial instability of recent times(Kambil,
2008).
Financial management: Management of enterprise should concentrate on managing finance
activity and successful execution of merger & acquisition and strategic alliance activities.
Organization should focus to gain long term profitability advantages and getting business
opportunities through considering the fact of innovation and concentrating on Research and
Development activity of company (Ochi, 2012)..
HRM strategy: Firm should direct interact with their staff-members to overcome their resistance
towards technology advancement and reduce conflict arises between them properly. By running
short-term promotion strategies and monitoring over market conditions, management of firm
would be able to increase the overall function of the company. Balance score card, strategic map
and action plan (follow up) should be used for measuring success of plan and merger event
success in terms of financial, human resource, innovation and learning and growth terms in a
significant manner (Debrah, 2013).
Technology solutions: Through taking advice of experts and appointing talented staff,
organization would be able to grasp business opportunity effectively (Blumentritt, 2006). It can
be possible through merger activity. For future perspective, enterprise should concentrate on
moving to Cloud and Web 2.0 tool in the context of reducing IT infrastructure set-up cost and
overcome financial and technical failure risks in an appropriate manner (Team, 2015). Starwood
has also implemented various sets ups for exercising methods for conserving energy. In order to
maintain Starwood, award winning relations with the employees worldwide, it is essential for
management to emphasize on crucial elements.
Impact of strategic and non-strategic decisions
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With help of taking SWOT analysis (situational analysis model), success of strategic decisions
related to merger is taken by firm can be measured. After executing merger activity, firm was
able to enhance its strengths in term of improving payroll and reservation system at workplace.
It was able to maintain better relationship with vendor, suppliers and distributors (Kambil, 2008).
However, still lack of awareness among employees and conflict between them are major
weaknesses that can affect performance of firm in future. Through introducing new policies
continuously to attract new customers and monitoring of financial activities, firm would be able
to grasp opportunities and overcome threats which are created by its core competitors. On the
other side, firm is taken HR related non strategic decision to overcome present issues faced by
company (Cortez and et,al., 2013). From the present case, it is clear that launching a new HR
and payroll application was challenging task before lack of employees support, conflict between
them and lack of integration between different departments regarding challenges were associated
with implementation of Identity management system. However, by emphasizing on IT
infrastructure set-up cost and overcome financial and technical failure, firm can be able to take
advantage from non-strategic decisions.
CONCLUSION
Strategic and non-strategic decisions taken by management of Starwood can play an
important role in terms of increasing customer base and grasping business opportunities in an
appropriate manner. Through identifying risks and taking appropriate strategies risks to
overcome those challenges, management of firm can be able to solve environmental issues,
human resource management and financial challenges faced by organization at workplace.
Besides that, through using advance technologies, firm would be able to reduce infrastructure
cost and enhance profit margin effectively. Hence, as per the present case concerned, it can be
said that by taking strategic and non-strategic decisions in an appropriate manner, different types
of risks that are associated with environmental, financial, technical and human resource
management can be reduced effectively to make its brand effective in terms of sustainability.
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