International HRM Strategy Evaluation Report for Hilton in Morocco

This report provides an overview of the external business environment in Morocco, emphasizing the dynamic nature of the modern business environment and the importance of analyzing the external environment before planning and executing business strategies. It explores human resource management models, the hiring process at Hilton Hotels and Resorts, and performance management practices in terms of reward and development. Key aspects covered include hard and soft HRM metrics, PESTEL analysis of Morocco, reasons for investing in Morocco, and the application of HRM theories such as the Harvard Analytical Framework. The report also discusses training and development methods, employee reward management, performance management, and employee involvement, ultimately offering recommendations for effective international human resource management.

Running Head: HUMAN RESOURCE MANAGEMENT 1
EVALUATING AN INTERNATIONAL HUMAN RESOURCE STRATEGY
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Table of Contents
Executive Summary...................................................................................................................2
1.0. Introduction.....................................................................................................................3
1.1. Hard and Soft HRM.....................................................................................................3
1.2. Organization and Company Profile.............................................................................5
1.3. Host Country Profile....................................................................................................5
1.4. Industry Analysis.........................................................................................................6
1.5. PESTEL Analysis........................................................................................................6
1.5.1. Political................................................................................................................7
1.5.2. Economic factors..................................................................................................7
1.5.3. Social factors........................................................................................................7
1.5.4. Technological issues............................................................................................8
1.5.5. Legal factors.........................................................................................................8
1.5.6. Environmental factors..........................................................................................8
1.6. Why Morocco is Appealing for Investments...............................................................9
2.0. Hiring Process...................................................................................................................10
3.0. Training and Development................................................................................................12
4.0. Employee Reward Management.......................................................................................13
5.0. Performance Management................................................................................................14
6.0. Performance Reward.........................................................................................................14
7.0. Employee Involvement.....................................................................................................15
8.0. Recommendation...............................................................................................................15

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9.0. List of References.............................................................................................................17

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Executive Summary
This paper provides an overview on the external business environment in Morocco.
The paper acknowledges that modern business environment is quintessentially dynamic and
the organizational management must take deliberate measures to analyse the external
environment before planning and executing business strategy. The paper also explores human
resource management models and hiring process at the Hilton Hotels and Resort. The
subsequent section dissects performance management practices in terms of reward and
development. Management of business in a foreign country require certain management skills
like versatile, cultural competence, networking, and team player for the manager to succeed.

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1.0. Introduction
1.1. Hard and Soft HRM
In every organization, the role of the human resource management focuses on the ensuring
compliance with the employment laws while supporting the business strategies and
objectives. While ensuring effective performance of the workforce, the HRM uses both soft
and hard HR metrics (Noe 218). The two help in providing data used by the management and
the HR department in ensuring the organization meets its performance, staffing,
administrative core objectives, and change management. Hard HR metrics is part of the
traditional approach of measuring HR procedures and policies by the use of quantifiable data
in assessing the overall function of the HR. Hard HR thus uses cost assessment and
operational efficiency as prime objectives. On the other hand, soft metrics focuses on the
impact of human capital and value is has on the business results. Therefore, it views the
employees as the asset of the business in maintaining a competitive edge. It adopts the
qualitative methods in assessing the performance, adaptability, productivity, and commitment
levels of the employees.
In a systematic study, Beardwell and Thompson (2017) denote that hard and soft metrics both
aid in meeting the strategic and operational objectives of the business. As soft metrics looks
into how business strategies and desired outcomes are linked, hard HR focuses on the cost
control in getting the functions right for the operation. They both provide essential data that
can used by the organization in progressing the business by adopting business decisions
suitable for both the employees and the management. However, the matrixes also adopt
different HR models in their functionality.

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Harvard HR model was postulated in 1984 by Beer et al. at Harvard University, also coined
the HRM territory map. The model is essential as it acknowledges the existence of different
stakeholders within an organization whose recognition in their legitimacy renders the model a
neo-pluralist. The model hence focuses on the soft metrics of the HR. Its emphasis is on the
fact that most employees are equally essential in influencing the outcomes of the
organizational operations. It thus focuses and factors in the interest of other groups in
creating HRM strategies.
Figure 1: Harvard Business Model
A different view of the hard HR associates the Michigan model with it as pointed out by
Newell and Roberts (2017). The model has a less humanistic edge as it holds that employees
are resources just like any other business resource. On other words, they have to be managed
in a similar way to raw materials and equipment hence must be obtained a cheaply as
possible, developed, exploited, and used sparingly as possible. It is also known as the best-fit
model that requires human resource strategies to adopt a tight fit of the overall strategies of
the organization. Therefore, it limits the role of HR to a reactive organizational function
while focusing on the importance of the external factors that influences the performance of
the organization.

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Figure 2: Michigan Model
1.2. Organization and Company Profile
Hilton Hotels and Resorts is a hospitality multinational company with over 575 hotels in six
continents. Due to its quality services and security standards, the company has been attractive
to prominent businesspersons and political leaders across the globe. On 1st June 2017, Hilton
Hotels and Resort made its first debut in Morocco by launching Hilton Tangier City Centre
and Residences (Hilton Hotels & Resorts Global Media Centre 2017). Hilton Tangier City
Centre and Residences has “180 guest rooms and suites.” The hotel is designated at the
middle of the Tangier close to restaurants and corporate offices. The vision of the hotel is “to
fill the earth with the light and warmth of hospitality –by delivering exceptional experiences
– every hotel, every guest, every time” (Hilton Hotel and Resorts 2017). Hilton Hotels and
Resorts values include hospitality, integrity, leadership, teamwork, ownership, and now.

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1.3. Host Country Profile
As a developing country, Morocco has many openings for different business opportunities
across different industries including tourism. On 1st June 2017, Hilton Hotels and Resort
made its first debut in Morocco by launching Hilton Tangier City Centre and Residences. The
business environment has Morocco has been quite unpredictable. Moroccan policies support
foreign direct investment and transfer of profits in foreign currency. The Moroccan
government has been encouraging structural reforms and trade liberalization to foster foreign
investment activities. Unemployment rate in Morocco stands at 10.2, which constitutes 26.5
percent of young, 17.9 percent of the university graduates, and 14.7 percent of women.
Ideally, this means that the capacity of the economy to stimulate inclusive growth is weak.
The country’s GDP is USD 110.2 billion and GDP per capita is USD 3083 billion with a low
inflation rate of 0.7 percent (World Bank 2018). This paper provides analysis on the external
business environment in Morocco by employing PESTEL analysis. The second part of the
paper focuses on HRM models and theories. The subsequent section explores performance
management practices and management skills in international business.
1.4. Industry Analysis
The modern business environment is quintessentially dynamic and the organizational
management must take deliberate measures to analyse the external environment before
planning and executing business strategy. For human resource management to apply business
analysis effectively, brainstorming on the nature of the industry as well as the internal and
external factors affecting its performance is paramount (FME, 2013, p.10). The hospitality
industry is dynamic and is on constant changes owing to the stiff competition as a result of
technological advancement and market complexities.

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1.5. PESTEL Analysis
The modern business environment is quintessentially dynamic and the organizational
management must take deliberate measures to analyse the external environment before
planning and executing business strategy. For human resource management to apply PESTEL
analysis effectively, brainstorming on the external environment issues is paramount (FME,
2013, p.10).
1.5.1. Political
Pursuant to the 1995 Morocco Investment Charter, the Moroccan policies supports foreign
direct investment projects and transfer of profits in foreign currency. The Moroccan
government has been encouraging structural reforms and trade liberalization to foster foreign
investment activities (Export.gov, 2017). However, the country’s foreign investment policies
demands that the foreign shall include domestic content in their products or technology
1.5.2. Economic factors
Economic factors include issues like tax rates, inflation rates, excise duties, trading
regulations, and interest rates. Corporate tax rate in Morocco is 35 percent, which more
compared to EU and USA markets. Unemployment rate in Morocco stands at 10.2 (World
Bank, 2018). Agricultural sector is the major economic driver in Morocco, with a 15.1
percent growth rate. The non-agricultural GDP has stalled at 2.8 percent. Due to geopolitical
stability, foreign direct investment in Morocco has been moving on upward trajectory.
1.5.3. Social factors
Social aspects and cross-cultural communication in particular, play a vital role in global and
international markets and therefore the human resource management should intensify
research in this area enhances the success of the company. Official language in Morocco is

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the “Modern Standard Arabic” while the local vernacular is Darija— a Western Arabic
language. Most elites and older generations also speak French (Export.gov, 2017). In most
business meetings, the language used is French. In northern part of Morocco, the common
language used is Spanish.
1.5.4. Technological issues
Advancements in technology have the efficacy to cause a paradigm shift in the market trends
(Daniels et al, 2018, p.72). Some of the common technological trends in Morocco include
automation, cost saving innovations, and outsourcing. According to Abdelhak (2014),
technology improves networking capabilities by enjoying extensive coverage globally as well
allowing firms to contour their workflow and discard operational impediments. A
telecommunication system in Morocco has improved significantly over the recent past.
1.5.5. Legal factors
According to Danniels et al (2018), organizations should observe legal factors in order to
prevent any occurrence of risk and protect its reputation. Morocco does not have transparent
and efficient systems for obtaining land approvals, government permits, and payments from
government contracts (Export.gov 2017). Moreover, Morocco allows both foreign and
domestic arbitration awards. Commercial courts in Morocco preside over disputes and
bankruptcy issues.
1.5.6. Environmental factors
Newell and Robert (2017) observe that environmental factors have evolved and become more
pertinent to the extent that they affect social patterns and business operations.
Geographically, Hilton Tangier City Centre and Residences is locate in a serene and
attractive environment. Tangier is a renowned tourism destination because of its propinquity

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to Europe. The city has exquisite historical sights and delicious cuisine. Due to construction
of electric train in Tangier and expansion of Med Port, the prospects of growth in hospitality
industry is very promising. The present environmental policies in Morocco do not have the
capacity to reinforce solid waste management, energy efficiency, and greenhouse emissions.
1.6. Why Morocco is Appealing for Investments
There are different HRM theories that we have implanted. One of the model is Harvard
Analytical Framework. This theory recognizes various elements within the periphery of
HRM, which include policy choices, stakeholders’ interests, vision and strategy, internal and
external environment, and specific soft views (Beardwell and Thompson 2017, p.23). The
Harvard Analytical model emphasizes two critical points that managers should take into
consideration. The first point is that managers have the obligation to ensure that competitive
strategy aligns with the HRM policies (Beardwell & Thompson 2017, p. 24). Secondly, HRM
have the responsibility of fulfilling the organizational objectives in a coherent fashion. The
model vests on mutual respect, mutual responsibility, teamwork, and mutual commitment.
These principles of Harvard Analytical reinforce cohesion in the organization.
Another HRM framework is the matching model (Beardwell & Thompson 2017, p.27). The
model focuses on achievement of the organizational objectives based on the appropriate
application of the HRM functions, which include selection, performance, assessment, training
and development, as well as benefits and compensations (Beardwell & Thompson 2017,
p.38). The model insists that the organization should use sound techniques in evaluating the
performance of the human capital. Upon identifying the performing employees, the HRM
should reward them adequately. The model assumes that each functional unit of HRM is
interdependent.

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Universalistic theory is underpinned on “high performance and best practices” (Beardwell
and Thompson, 2017, p.67). The theory identifies the existence of linear relationship between
organizational performance and the HR practices. In addition, the theory postulates, “best
practices are universally applicable and successful” (Beardwell and Thompson 2017, p.67).
The organizational success, according to the theory, is best determined by using sales, profits,
and market share metrics. In this context, the organization should apply the best practices in
training and development, information sharing, incentive pay, employee ownership,
promotions, participation and endowment, assessment of practices, hiring process, high
wages, and employment security. Rather than using the external environmental factors, the
theory suggest application of the aforementioned concepts to facilitate the achievement of
organizational strategy.
2.0. Hiring Process
At Hilton Tangier City Centre, we are driven by the passion to deliver “exceptional guest
experiences” (Hilton Tangier City Centre and Residences 2018). Our philosophy is
entrenched on the fact that hospitality is more than just a job. We believe that hospitality is a
journey of growth, self-discovery, cultures, and communities. Our team consist of
extraordinary professionals that work collaboratively to enhance delivery of exceptional
experience to all our clients. Throughout the globe, our vision remains “to fill the earth with
the light and warmth of hospitality” (Hilton Tangier City Centre and Residences 2018). We
believe it is our duty to engender profound experiences for the clients, reasonable
opportunities for our team members, and encourage positive impact to the society. We take
pride in achievement of the title “Great Place to Work” We are among the 25 best
Multinational employers in 2017, and our aim is maintain our excellence (Hilton Tangier City

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Centre and Residences, 2018). Our employment models are standardized and are designed to
select competent, versatile, and analytical candidates during hiring and selection.
Before we commence on hiring process, we undertake HR planning. According to Anthony et
al (2016), HR planning leverages the organization to gain competitive edge over its rivals and
accomplish its business objectives. To conduct a successful HR planning, we have
established strengths and weaknesses of the current employees and therefore we have
adequate information of what the type of employees we should consider during hiring
process. During planning phase, we conduct forecasting to predict the labour demand and
supply in the economy. Our concern is whether people with hospitality related skills are
increasing or reducing. We use statistical models like trend analysis and leading indicators to
predict the labour demand. On the other hand, we use transitional matrices to determine
labour supply Noe (2018) observe that statistical models are suitable when there is consistent
history of economic trends. Forecasting also enables us to determine labour shortage and
surplus.
The main purpose of recruiting is to identify and attract potential employees. During
recruitment process, we make decisions based on recruitment policies, personnel policies, and
behaviour of the HR manager. Our personnel policies provide for both internal and external
recruiting. In most cases, we fill upper-level positions through internal recruitment.
Additionally, the personnel policies encourage employment-at-will, which enables either
party to terminate employment pursuant to due-process policies. Image advertising is also
part of our personnel policies. Our main internal sources of internal selection is job posting.
This involves posting the vacancy positions on bulletin boards and corporate intranet. Noe
(2018) attests that internal selection is cheaper and saves time. On external sources, majorly,
we rely on direct applications and referrals. Other external sources that we use include career

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fairs, job aggregator websites, print ads, and online database. In most instances, we encourage
applicants to apply for the vacancies online.
Our selection process starts by reviewing applications received to identify candidates who
meet the irreducible minimums. After identifying candidates that meet the irreducible
minimums, we administer reviews and tests to determine the candidates’ ability. The next
step is inviting candidates with required skills for interviews. Our interviews involve stage of
processes by our team members. At this point, we begin to making informed decisions about
the candidates. We then conduct references and background check for purposes of
verification if the information provided is authentic. The decision makers, teams, and
supervisors then select the best candidate(s) to take the job. In our situation, we do not
negotiate salary with candidates since our payment system is uniform depending on the
nature of task. We have applicant-tracking system that helps us to review resumes submitted
on electronic format. Our hiring process is consistent with labour laws and we do not
discriminate on basis of gender.
3.0. Training and Development
One of the strategies that we have adopted to improve employees’ commitment, quality, and
flexibility is diversity training— a form of training aimed at changing employee’s attitudes
concerning diversity (Noe, 2018, p. 428). The training program has the efficacy to increase
employee’s cognisance about importance of ethnic and cultural differences in the hospitality
industry. In addition, we encourage development of employees through formal education, job
experiences, and interpersonal relations to improve their commitment and flexibility.
Some of our programs that support development of employees include simulations,
mentoring programs, coaching, experimental programs, lectures by hospitality experts, and
meetings (Noe 2018, p.254). Before employee development, we conduct assessment to

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identify areas that need development to improve the productivity of the employee. In
addition, we also encourage job enlargement and job rotation to increase employees’
understanding of the organizational functions and strategy. We also have externship and
promotion programs that aim at increasing employees’ commitment and quality output. Most
importantly, we have compensation and benefit programs that motivate employees to
accomplish their tasks. Beside promotion, we have payment bonuses, retirement benefit
programs, holiday allowances, and salary increment programs.
There is a wide difference between employee competencies and productivity between
Moroccan employees and the US or EU employees. This means that employees in Morocco
need adequate training to be efficient in discharging their mandate. Generally, we conduct
both in-house and off job training to improve the employees’ skills and make them more
productive. One of our training methods is computer-based training that allows employees to
participate in the learning process and send feedback via email. The common computer-based
systems that we use in training are e-learning and electronic performance and support system
(EPSS) (Noe 2018, p.341). E-learning enables employees to receive training through the
internet or intranet while the latter provides access to expert advice, information, and skills
required. We also encourage on-the-job training methods like internships and apprenticeship.
These programs enable students to combine classroom knowledge with practical skills.
Another training method that we encourage is job simulation. Simulation method is a real-life
situation approach where employees make decisions by envisaging what is likely to happen at
work scenario. To improve our employees’ interpersonal skills, we conduct behaviour
modelling through role-playing. Moreover, we have adopted coordination training to
encourage sharing of information among employees, cross training to be aware of each
other’s skills, team-leader training to encourage leadership in the organization.

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4.0. Employee Reward Management
There is a school of thought that postulates that organizations will leverage chances of
implanting its strategy and effectively if managers collaborate with employees. Alsughayir
(2016) argues that individual effectiveness and organizational effectiveness are implicitly
interwoven. This means that for organization to accomplish its goals, treating employees
fairly is paramount. Ideally, organization must involve employees in decision-making process
in order to motivate them and make them feel they are part of the process. Scholars consider
employee participation as a fundamental element for effective execution of new HRM
strategies. Employee involvement also influences the degree of commitment and job
satisfaction.
At Hilton Tangier City Centre, we believe that employee participation in management issues
enhances implementation of organizational strategies. We are committed to increasing
employees’ participation in management activities by involving them in problem-solving and
decision-making process. We seek employee’s opinion to predict market and social trends.
We also buy their thoughts on how to improve the organizational performance. Most
importantly, engage them in reward schemes to promote transparency.
5.0. Performance Management
Noe (2018) defines performance management as “the process through which managers
ensure that employees’ activities and outputs contribute to organization’s goals.” A sound
performance management appreciates top performers, facilitate communication between
employees and managers, has standard employee assessment procedure, enables organization
to identify strong and weak employees, and mitigate performance management errors. One of
the effective strategies to improve performance management is by using reward schemes
(Beardwell & Thompson 2017). For instance, in Hilton Tangier City Centre and Resorts we

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use incentive pay to reward contribution. Incentive pay is reward on an individual or group
performance. Incentive pay system stimulates employees to work harder since they are
cognizant that they can earn more income if they meet individual or departmental targets. The
best way to make the programme effective is by integrating performance standards with
organizational goals. However, incentive system may shift employees’ attention to programs
attract rewards and ignore those that do not have reward attached to them.
6.0. Performance Reward
Another reward system is merit pay, which involves “linking pay increase to ratings on
performance appraisal.” This approach influences employee’s job behaviour and increases
their commitment to achieve organizational goals (Gratton 2013, p.1345). Similarly, merit
pay cultivates a culture of presuming that good performance must be attached to
compensation. Hilton Tangier City Centre and Resorts also promotes reward of group
performances by gainsharing. Gainsharing enables employees to brainstorm on how to
improve team performance rather than individual interest. The approach can succeed when
there is management commitment, employment security, high levels of interaction, and
cooperation. To make incentives work, there should be communication and engagement to
avoid assumptions that there is discrimination.
7.0. Employee Involvement
A global manager requires a skill sets that enhance effective and efficient operation in
dynamic and elaborate international business ambience. Besides being proficient in human
resource management, the manager must be flexible and possess multicultural competence in
order to acclimatize to foreign cultures (Anthony et al. 2016, p.182). Communication in a
foreign language requires determination to learn a new dialect. In addition, the manager must
have networking skills and social intelligence to build relationships with investors and other

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stakeholders in the foreign land (Bernstein 2017, p.298). Manager should be versatile and
open-minded to succeed in international markets. Most importantly, the employer must be
cognizant of the external changes in the business environment in terms of politics, economy,
social issues, and technology (Buczkowski 2016, p.980).
8.0. Recommendation
The Hilton Tangier City Centre and Residences management should be able to apply business
models that transform economic inefficiencies into business opportunities. Essentially, the
management should adhere to organizational structures rather than processes. At minimum,
the manager must have teamwork spirit to foster inclusivity. The management must also
critically accentuate the implications of every factor and rate them according to relative
importance. At minimum, rating should also include the probability of risk occurrence and
other uncertainties. With regard to operational efficiency, it is paramount that Hilton Tangier
City Centre and Residences Human Resource Management consider working practices, skill
levels, wage trends, labour cost, and unemployment patterns to make sound hiring decisions.
Additionally, Hilton Tangier City Centre and Residences HRM, in collaboration with the
Information Technology team should brainstorm on how to exploit innovation opportunities
and gain competitive advantage over the competitors. The management should also ensure
that it is updated with the expected changes in trade restrictions to protect its reputation.

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9.0. List of References
Abdelhak, A., Mohammed, T., & Abderrahim, T. 2014. Environment analysis of the Training
in Employment Courses (TEC) in ICT sector in Morocco. IOSR Journal of Business and
Management, 16(8), 73-82. doi:10.9790/487x-16827382
Alsughayir, A. 2016. Employee Participation in Decision-making (PDM) and Firm
Performance. International Business Research, 9(7), 64. doi:10.5539/ibr.v9n7p64
Ananthram, S., & Nankervis, A. 2013. Global Managerial Skill Sets, Management
Development, and The Role of HR: An Exploratory Qualitative Study of North American and
Indian Managers. Contemporary Management Research, 9(3), 299-322.
doi:10.7903/cmr.9731
Anthony, W. P., Perrewe, P. L., & Kacmar, K. M. 2016. Strategic human resource
management. Fort Worth: Dryden Press.
Bernstein, M. Y. 2017. Globalization, Translation and Transmission. Bern: Peter Lang AG,
Internationaler Verlag der Wissenschaften.
Buczkowski, B. 2016. Customs procedures in foreign trade. Practical Aspects in Doing
International Business. doi:10.18778/7969-987-2.07
Daniels, J. D., Radebaugh, L. H., & Sullivan, D. P. 2018. International business:
Environments & operations (15th ed.). Pearson.
Export.gov. 2017. Market Research, Find Market Intelligence | Export.gov | export.gov.
Retrieved from https://www.export.gov/Market-Intelligence
FME. 2013. PESTLE Analysis. Retrieved from
http://www.free-management-ebooks.com/dldebk-pdf/fme-pestle-analysis.pdf

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Gratton, L. 2013. “Hard” and “Soft” Human Resource Management. Corporate Social
Responsibility, 1345-1345. doi:10.1007/978-3-642-28036-8_100835
Haddad, C. 2017. Foreign Direct Investment Regulation, Business Taxes, and Corruption:
Cross-Country Study of Foreign Bank Presence. SSRN Electronic Journal.
doi:10.2139/ssrn.2970443
Hilton Hotels & Resorts Global Media Centre. 2017, June 1. Hilton Hotels & Resorts Unveils
First Hotel In Morocco Replete With Stunning Cityscape Views | Hilton Hotels & Resorts
Global Media Center. Retrieved from http://news.hilton.com/index.cfm/news/hilton-hotels-
resorts-unveils-first-hotel-in-morocco-replete-with-stunning-cityscape-views
Hilton Tangier City Center and Residences. 2018. Hilton Tanger City Center Hotel and
Residences – Morocco. Retrieved from http://www3.hilton.com/en/hotels/morocco/hilton-
tanger-city-center-hotel-and-residences-TNGCCHI/index.html
Beardwell, J., & In Thompson, A. 2017. Human resource management: A contemporary
approach (7th ed.). Ft Pr.
In Nwankwo, S., & In Ibeh, K. 2015. The Routledge companion to business in Africa (1st
ed.). Routledge.
In Wilkinson, A.2013. The SAGE handbook of human resource management (1st ed.). SAGE
Publications Ltd.
Newell, P., & Roberts, J. T. 2017. The globalization and environment reader (1st ed.). Wiley-
Blackwell.
Noe, R. A. 2018. Fundamentals of human resource management. McGrawHill
US Department of State. (n.d.). 2015 Investment Climate Statement - Morocco Share.
Retrieved from https://www.state.gov/e/eb/rls/othr/ics/2015/241672.htm

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World Bank. 2018, April. Morocco's Economic Outlook - April 2018. Retrieved from
http://documents.worldbank.org/curated/en/495881523634126193/pdf/125258-MEM-
April2018-Morocco-EN.pdf