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