Hilton Hotels: Presentation on Management Problem and Recommendations

This presentation analyzes Hilton Hotels' employee turnover problem. It begins with an introduction to the company, highlighting its global presence and key management figures. The presentation identifies the high rate of employee turnover as a significant management problem, supported by data on workforce size and turnover rates. Research questions are posed to investigate the costs, influencing factors, and shortcomings of HR policies. The research program includes a literature review and analysis of business reports. Findings reveal factors like inadequate training, poor leadership, and unfavorable working conditions as contributors to turnover. Specific issues at Hilton, such as inappropriate leadership and rewards policies, are also discussed. The presentation concludes with recommendations, including task allocation based on expertise, improved rewards, participative management, and enhanced wage and work conditions. References to relevant academic articles and company data are included.

Hilton Hotels
An In Depth Analysis
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Introduction
The presentation includes:
• Selection of the company.
• Selection of the management problem.
• Research questions.
• Design of the research program.
• Research and findings.
• Recommendations.

Selection of the company
o The chosen company for the task is Hilton worldwide
holdings Inc.
o The organization is one of the largest companies operating
in the global hospitality industry and was established in the
year 1919 (Hilton.com, 2019).
o The company was established by an American hotelier
named as Conrad Hilton and is currently headquartered in
Tysons Corner (Hilton.com, 2019).
o The company is able to spread their business across the
globe and that is evident with the business of the company
in 5757 different locations (Hilton.com, 2019).
o The chairman of the company, Jonathan D. Gray and the
president and chief executive officer, Christopher J.
Nassetta are the central figures of the managerial team of
the company (Hilton.com, 2019).

Selection of the company
 The company is able to generate 8.90 billion US
dollars as revenue in the year 2018 along with 1.43
billion US dollars as operating income in the same
year (Hilton.com, 2019).
 However, the net income of the company went
down to 764 million us dollars (Hilton.com, 2019).
 The company faced the impact of the significantly
high employee turnover in the year 2017 and
several business researcher are observed to identify
it as the reason behind the inefficient performances
of the company in increasing their net income.

Selection of the management problem
 That the company faced the impact of the
inappropriate management of the human
resources.
 The company is associated to a significant
growth in the mentioned industry and that is
prominent with the requirement of large number
of personnel in each years.
 As the company had the objective of managing
the demands, it continuously tried to expand
their workforce which is evident with the
increase in the number of employees in the
company from 152 thousands of 2013 to 169
thousands of 2016 (Statista.com, 2019).

Selection of the management problem
 It is visible that the workforce got reduced in a notable manner and the high rate of
employee turnover appeared as a major concern for the company which affected the
financial stability of the company and the service reputation of the company as well.
 Hence the selected problem with the company is the high rate of employee turnover.
(Information: Number of Hilton Worldwide employees from 2013 to
2017 (in thousands))
(Information Courtesy: Statista.com, 2019)

Research Questions
 What is the cost associated with the
high rate of employee turnover?
 What are the factors that have the
potential to affect the employee
turnover in organizational context?
 What are the drawbacks of the
selected company’s human resource
policies in managing the employment
relations and in reducing the
employee turnover rate in the
company?

Design of the research program
The research program will be based on the
information of sources such as:
Literature review from the scholarly articles
on the employee turnover.
Business reports.
Business magazines and newspapers.

Research and findings
The increment in the rate of employee
turnover in the companies is dependent on
the factors such as:
o Inaccurate management of the training
and development (AlBattat & Som,
2013).
o Inappropriate leadership.
o Inappropriate working environment
(Khan, 2014).
o Declining corporate culture.

Research and findings (for the company)
The increment in the rate of employee turnover in the selected
company is dependent on the factors such as:
Inappropriate leadership from the part of the senior managers of
the company in meeting the developmental needs of the
employees.
The inappropriate rewards policy of the company.
The substandard wage and work time characteristics of the
company (Statista.com, 2019).
The excessive work pressure imposed on the employees of the
company.

Recommendations
Allocation of the task on the basis of the expertise and
capacity of the employees.
Improved rewarding policy.
Implementation of the participative management style in
the organization.
Improvement in the wage and work time characteristics in
accordance to the industry standards.

References
Albattat, A. R. S., & Som, A. P. M. (2013). Employee dissatisfaction and turnover
crises in the Malaysian hospitality industry. International journal of business and
management, 8(5), 62.
Hilton.Com (2019). Hotels by Hilton - book the best rates across all brands.
Retrieved 16 September 2019, from https://www.Hilton.Com/en/
Khan, M. A. (2014). Organizational cynicism and employee turnover intention:
evidence from banking sector in Pakistan. Pakistan journal of commerce and social
sciences (PJCSS), 8(1), 30-41.
Statista.Com (2019). Hilton: employee numbers 2013-2018 | Statista. Retrieved 16
September 2019, from https://www.Statista.Com/statistics/297758/number-of-
hilton-worldwide-employees/