Hotel XYZ Report: PESTEL Analysis, Recruitment, and Performance

This report provides a comprehensive analysis of the Hotel XYZ, a multinational hotel chain, examining various aspects of its operations within the competitive hospitality sector. The report begins with a PESTEL analysis, evaluating the political, economic, social, technological, environmental, and legal factors influencing the hotel's business environment. It then delves into the importance of effective recruitment and selection processes, emphasizing their impact on organizational culture, equality, and diversity. Furthermore, the report explores different methods of performance management, including management by objectives, 360-degree feedback, and the assessment center method. Finally, the report offers recommendations for improving the hotel's operations, particularly in areas such as market research, recruitment, management updates, and performance management strategies, aiming to enhance its competitive advantage in the industry. The report concludes by highlighting the significance of analyzing external factors and implementing efficient management practices for success in the hospitality industry.

THE HOTEL XYZ
REPORT

INTRODUCTION
Hospitality sector is changing at rapid scale which shows
that it is becoming difficult for other hospitality industry
to survive in this competitive era. Fairmont hotel and
resorts, which is the multinational hotel headquartered in
Canada. The hotel deals in variety of services and
provides different degrees as well as goods to the
consumer’s interest it have many competitors like Hyatt
hotel, the Ritz Carlton, and many more.

TASK 1 – PESTEL ANALYSIS
PESTEL Analysis- It is tool which is used by marketers as well
as enterprise so that factors affects the business externally
are examined effectively. It is time consuming process and
required management skills & knowledge for positive
results (Martínez-Martínez, 2019).
Political factors- These are those factors which includes labour
law, governmental law etc. In relation with Fairmont hotel
and resorts, they are also affected be these element as they
labour law is strict in the country.
Economic factors- In this, it involves inflation and deflation
rate, tariff and non-tariff rates etc. In relation with selected
hotel, they involvement of government is high and which
have deep impact on business (Nicula, 2019).

Social- This includes religion, culture, etc. which affects the hotel industry. As,
the chosen hotel focus on such factors it becomes easy for them to target the
audience for their services. These are important as they examine help firm to
understand the customers and market in most effective manner.
Technological- This involves advance of use technology, software, hardware etc.
It is also seen that Fairmont hotel & resort use updated technology for their
online management system. This assist them in maintain a relationship with
customers properly.
Environmental- In this, it includes pollution, weather, waste management etc.
They also affect the business and in relevance with selected hotel manager of
firm make ensures that all they run their function and operation’s without
harming the environment.
Legal- Contracts, agreements, etc. which are enacted by government are
included in this factor. It is crucial to have proper knowledge of legislation and
rules of government so that problems do not occur in near future. So,
Fairmont hotel & resorts assures that legal team make decision in most
efficient manner.

TASK 2 -IMPORTANCE OF EFFECTIVE
RECRUITMENT AND SELECTION PROCESS
Recruitment- In this, it is process through which hiring and
searching of candidate for a specified job is being done. It is
time consuming process but is used at wider scale so that
jobs are being filled with correct candidate. In relation with
chosen hotel, HR manager of firm make ensure process is
being carried out properly (Abraham, 2020).
Selection- This is a process in which all screening and
elimination is done of candidates from the recruited
process. It is also negative approach as in this candidates
are being chosen and rest are eliminated. In context to
Fairmont hotel & resorts they select the candidates on the
basis of their skills and knowledge as well as qualification.
Both the recruitment and selection are crucial as they help
in attracting of workforce who will help in increasing the
productivity of firm and other functions.

Both approaches provide consistent results and also this will
leads to adopting the most appropriate candidate for
operations.
They also help in creating and managing the appropriate policy
for the job and other requirements.
Further reason for having recruiting and selecting process to
depict that enterprise is capable enough to apply and
acquire effective workforce.

AFFECT THE CULTURE, EQUALITY &
DIVERSITY OF ORGANISATION
Cost argument- In business sector, there are many firms in
which rate of poor job in integrated worker is increasing at
larger scale and which shows that Fairmont hotel and
resorts need to be manage diversity in effective manner.
Promotion and appraisals- In many organisations, they equality
is not given to everyone and due to which business
operations are affected at deeper level. As because in this
Fairmont hotel and resorts gives more authority and power
to those who have higher position or is skilled in special
field.
Problem solving argument- Thus, depicts that workforce is
diverse and culture as well as equality in an organisation
solve problem in an effective way which also results in
positive decision making and new ideas (Franco, 2019).

TASK 4 - METHOD OF PERFORMANCE
MANAGEMENT
-Management by objectives: Management by objective is considered as the
method in which manager as well as subordinate focuses on planning,
organising and communicate goals for achieving them in stipulated
period of time. It is necessary for organisation to set objective which is
achievable in timely manner.
360 Degree feedback: In this method, the performance of employees is
assessing from taking feedback from manager, customer as well as
peers. It helps Marriott in understanding the competence of individual
person in an effective manner. It increases productivity as well as
performance level in future period of time (He, 2019).
Assessment centre method: This method is used for understanding how
other individual person observe them which imposes direct influence on
performance level of employees at workplace. The main benefit is using
this method is it helps in identifying present level of performance in
order to anticipate performance level in future period of time.

TASK 5 - RECOMMENDATIONS
From the specified matter, it is recommended that it is crucial
to examine the factors which affect the business operations.
To solve the external environment factors issue it is also
necessary that they are able to determine the market
conditions so that decision making is done properly.
Furthermore, it is also seen that to achieve the goals and
objectives it is crucial to conduct a proper market research
so that reliable information is acquired regarding the issues
or situations.
It is also recommended that to the chosen hotel have to be
more active towards their recruitment and selection
process.

Then, it is also recommended that they need to update their
management so that it become easy for management to
take necessary decision for regarding the issues.
Moreover, it is also recommended that Fairmont hotel and
resorts need to be more focused towards their performance
management so that they use their manpower accordingly.
Then, to deal with their competitors they have to implement
effective strategies and tactics so that competitive
advantage is taken properly and at wider level (Tajeddini,
2020)

CONCLUSION
It has been concluded that hospitality industry contributes major profit
ratio to economy. Also, it is seen that they have to follow and have
proper market information so that it is easier for firm to make
decision related to management and employees. External factors are
to be analysed so that issues related with them are specified
appropriately. It is also examined that recruitment and selection
process are carried out properly so that effective workforce is able
to adopt by organisation. Issue need to solved properly so that
resources as well as capital is used by management in efficient way.

REFERENCES
Books & Journal:
Martínez-Martínez, 2019. Knowledge agents as drivers of environmental sustainability and
business performance in the hospitality sector.Tourism Management,70, pp.381-389.
Nicula, 2019. Pestel Analysis Applied In Tourism Evaluation In Braila County.Revista
Economică,71(3).
Paramadita, 2019. Using PESTEL Framework to Analyze User-Generated Content Usage on
Social Media: The Case of Indonesian Tourism and Travelling Business on Instagram.
InThe 1st Workshop on Multimedia Education, Learning, Assessment and its
Implementation in Game and Gamification in conjunction with COMDEV 2018. European
Alliance for Innovation (EAI).
Abraham, 2020.Strategic recruitment and selection in Malaysian small and medium
enterprises: unravelling the evidence of fit(Doctoral dissertation, University of
Nottingham).
Holm, 2019. e-Recruitment and selection. InE-hrm. Routledge.
Franco, 2019. Are you good enough? CSR, quality management and corporate financial
performance in the hospitality industry.International Journal of Hospitality Management,
p.102395.