Human Resource Management Issues at Hilton Hotel: A Critical Analysis

This report provides a comprehensive analysis of the human resource management (HRM) practices at Hilton Hotel, focusing on the British workforce. It begins with an executive summary that outlines the key issues, including ethical concerns, increased employee turnover, inappropriate performance management, and talent retention problems. The report offers a detailed overview of Hilton Hotel's operations and identifies several key findings, such as ineffective wage structures and poor leadership. The report also provides a critical review of these issues, offering a significant explanation of the research conducted on the business operations of the company. Finally, it offers a set of recommendations for improving the HRM to ensure the company can address and avoid similar problems in the future. The report highlights the importance of ethical practices, effective performance management, and strategies for retaining talent in the competitive hospitality industry.

Running head: HUMAN RESOURCE MANAGEMENT
Human Resource Management
Name of the Student
Name of the University
Author Note

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Executive Summary:
The paper is concentrated in the explanation of the condition of Hilton Hotel. The
organization functions in the hospitality industry and the British workforce of the company is
observed to be face considerable number of human resource problems and that is visible with
the failure in the performances of the company in the mentioned region. The paper examines
the human resource activities of the mentioned company and along with that, it recognises
three major problems in the human resource activities of the company. The paper assesses the
human resource management concerns such as the increased employee turnover along with
talent retention, inappropriate performance management from the part of the human resource
management department of the company in addition to the impact of the ethical issues in the
human resource activities of the mentioned company. Along with this, the paper yields a brief
overview of the mentioned organization. The paper provides a critical review of the stated
issues and along with that, provides a significant explanation of the key findings of the
research conducted on the business operations of the mentioned workforce of the company
which includes the inappropriate leadership and ineffective wage structure of the company. In
addition to this, the paper delivers an essential set of recommendations for the much required
improvement in the human resource management of the company which will be able to
ensure that the company does not face these sorts of issues in future.

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Table of Contents
Introduction:...............................................................................................................................3
Overview of the company:.........................................................................................................4
Analysis of the literature:...........................................................................................................5
Ethical Issues:.........................................................................................................................5
Increased Employee turnover and inappropriate talent retention:.........................................8
Inappropriate performance management:..............................................................................9
Summary of the issues:............................................................................................................10
Recommendations:...................................................................................................................11
Conclusion:..............................................................................................................................12
References:...............................................................................................................................13

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Introduction:
The intensity of the competition in the modern business world is increasing in a rapid
manner. With a precise focus on the impact of the globalization, it is visible that a series of
esteemed business organizations are searching for their opportunity across the globe for
opening their business and under such situation, the global and more specifically the national
business markets are getting populated. This is turning out to be an important factor that is
increasing the level of competition inside the business industries. One such business industry
that is seen to have a considerable amount of competition in it, is the hospitality industry
(Becerra, Santaló & Silva, 2013). However, the mentioned industry is observed to be
subjected to a massive growth which in other is the main factor that is increasing the level of
competition. With a precise focus on the rapid growth of the mentioned business industry, it
is pretty evident that a large number of organizations are getting influenced in opening their
business and that is increasing the number of the new entries in the industries. With a precise
focus on the increasing number of new entries in the hospitality industry, the pressure on the
existing organizations are pretty noticeable (Neirotti, Raguseo & Paolucci, 2016). The
increasing level of competition generated due to the entry of the considerable number of new
organizations is seen to be a major threat for the survival and growth of the established
business organizations.
Under such situation, the higher authorities of majority of the modern organizations
are seen to be focused in the establishment of the effective management inside their
organizations. The urgency from the part of the management of the organizations in
establishing the scientific management inside the organizations is seen to have the basis on
the urge of them in minimizing the detrimental impact of the competition. This creates the
necessity for the organizations in incorporating human resource management in the

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organizations (Noe et al., 2017). The main objective of the shareholders in managing human
resources is seen to be the limited usage of their resources for the achievement of the
maximum benefits (Noe et al., 2017). However, there are many organizations in the modern
business world, that are facing the hit of the inappropriate human resource planning and that
is petty evident with existence of various sorts of people management issues inside the
organizations.
The paper is focused in the elaboration of the condition of one such business
organization in the form of Hilton Hotel. The organization operates in the hospitality industry
and the British workforce of the company is seen to be affected with considerable number of
human resource issues and that is pretty evident with the decline in the performances of the
company in the mentioned region. The paper analyses the human resource activities of the
mentioned company and along with that, it identifies three major issues in the human
resource activities of the mentioned company. The paper evaluates the human resource
management issues such as the increased employee turnover along with talent retention,
inappropriate performance management from the part of the human resource management
department of the company in addition to the impact of the ethical issues in the human
resource activities of the mentioned company. Along with this, the paper produces a brief
overview of the mentioned organization. The paper analyses a critical review of the
mentioned issues and along with that, provides a significant description of the key findings of
the research conducted on the business operations of the mentioned workforce of the
company. In addition to this, the paper provides an essential set of recommendations for the
much required improvement in the human resource management of the company which will
be able to ensure that the company does not face these sorts of issues in future.

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Overview of the company:
Hilton is one of the reputed hotel chain operating in the global hospitality industry.
The company was established by a well -known American businessman named as Conrad
Hilton in the year 1919 (Hilton.com, 2019). The company is currently headquartered in
Tysons Corner of United States and is seen to operate in more than 5284 number of locations
across the world (Hilton.com, 2019). The company is able to serve the customers across the
world owing to the strong presence of the hotel chain in the various regions of the world. The
excellence of the management team of the company which includes the chairman of the
company, Jonathan D. Gray along with the president and the chief executive officer of the
company, Christopher J. Nassetta is seen to be crucial for the mentioned company in the
increment of their revenue to 8.90 billion US dollars in the year 2018 (Hilton.com, 2019). In
the same year, the company was also able to increase their operating income to 1.43 billion
US dollars owing to the visionary leadership of the managerial team of the company
(Hilton.com, 2019). The number of employees operating in the company is observed to be
more than 169000 (Hilton.com, 2019).
Analysis of the literature:
One of the major factors that reduced the effectiveness of the human resource
programs and the activities of the human resource department of the mentioned company was
the impact of the unethical business operations in the human resource management of the
company.
Ethical Issues:
With a precise focus on the concept, it is petty evident that the ethical practices inside
the organizations have major impact in the sustainable business operations of the
organizations operating in the modern business world. The higher authorities of majority of

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the organizations are considering the practice of the ethics to be one of the top most priority
for their organizations. Weiss (2014) commented that the conceptual definition of the
business ethics relates the study of the appropriate business practices and policies of the
organizations that effectively contributes to the establishment of the good corporate
governance, decisive policies for the protection of the company’s image from the cases of the
insider trading, discrimination and bribery. Along with that, the importance of the ethics in
the business activities of the organizations is petty significant in the improvement of the
corporate social responsibility of the companies along with the fiduciary responsibilities.
Hence the reason behind the increasing interest of the higher authorities of the companies in
ensuring the incorporation of the ethics in their business activities is pretty prominent. Shaw
and Barry (2015) highlighted an important factor that triggers the organizations in ensuring
the ethical practices inside the organization with the claim that the unethical practices of the
organization has the potential to provide considerable amount of reputational damage to the
companies in case the unethical practices gets highlighted. On the other hand, Weiss (2014)
commented that there are considerable number of evidences present in the modern business
world where the companies intentionally followed unethical approach which eventually
affected their business reputation.
Carroll and Buchholtz (2014) also highlighted the a worst case scenario for the
organizations following unethical business practices with the claim that the many of the
organizations are even penalized for the unethical practices inside the organizations and hat
becomes a major concern for the shareholders of the organization. On the other hand, Ferrell
and Fraedrich (2015) highlighted a different perspective of the unethical practices inside the
organizations through claiming that a major share of the managers of modern organizations
are seen to be involved in the unethical business practices inside the organizations. Ferrell
and Fraedrich (2015) further added that the unethical business practices from the part of the

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managers of the companies in completing their operational activities has the potential to
affect the business activities of the employees of the organizations. Shaw and Barry (2015)
provided a clearer link of the unethical business practices and the increasing level of
dissatisfaction of the employees with the claim that the unethical appraisal of the
performances of a section of employees from the part of the managerial position holders
becomes significant in increasing the dissatisfaction of the other set of employees.
Carroll and Buchholtz (2014) commented that the impact of this formed frustration
amongst the employees owing to the inappropriate business activities of the managers
becomes a crucial factor that demotivates the employees. Carroll and Buchholtz (2014)
further added that the importance of a motivated workforce is notably high for the
organizations owing to the contribution of it in the improvement of the quality of the
performances of the company along with the increment of the production and under such
situation, a set of demotivated employees can provide notable amount of detrimental impact
on the overall performances of the company. Shaw and Barry (2015) stated that, it becomes a
major barrier for the employees itself to motivate themselves with the idea of the fact that
some other employees who might be providing less efforts, less quality and quantity in
comparison to them, will be subjected to a better appraisal compared to them. Hence it is
pretty evident that, it becomes tough for the employees to motivate themselves under such
situation.
Lawrence and Weber (2014) commented that the unethical practices from the part of
the managers is not limited to the performance measurement rather it has significant impact
on the initiatives of the managers in meeting the training and the developmental needs of the
employees. Lawrence and Weber (2014) further added that the managers that prefer a
particular set of employees will eventually have focus in meeting the developmental needs of
those employees which leaves the other set of employees getting a partial solution of their

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developmental needs. Ferrell and Fraedrich (2015) highlighted that the ineffective
management of the developmental needs of the employees contributes to the increased
number of faulty operations from their part and invites a reputational damage. Lawrence and
Weber (2014) commented that the faulty operations of the employees might also threaten
their lives and under such situation, the formation of the job stress and job dissatisfaction
becomes pretty evident.
Increased Employee turnover and inappropriate talent retention:
One of the major threat for the sustainable workforce is seen to be the increment in
the employee turnover rates. According to the study of Guilding, Lamminmaki and
McManus (2014) the increment in the employee turnover rates affect the smooth business
operations of the organizations and is considered to be a major concern for the higher
authorities of the organizations. Das and Baruah (2013) commented that the main basis of
the increasing level of dissatisfaction of the employees is seen to be the formation of the job
stress and job dissatisfaction. Musah and Nkuah (2013) highlighted the inappropriate pay
structure to be one of the significant factor that contributes to the formation of the
dissatisfaction of the employees with the claim that, majority of the employees having the
intention of leaving a particular company to join another, are seen to be influenced by the
increased pay structure of the new company. Zhang et al., (2015) commented that the
improved wage structure of the companies has the potential of attracting all the employees of
all age group.
Zhang et al., (2015) further added that the capability of the companies in providing
the appropriate wage to the employees plays a crucial factor in favour of the organization in
retaining the quality providing employees. Hence the formation of the appropriate wage
structure becomes crucial for the organization in talent management. On the other hand, the
comments of Guilding, Lamminmaki and McManus (2014) is crucial in providing an

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alarming statement for the managers as it shows that the formation of the dissatisfaction
amongst the employees due to the inappropriate wage structure plays a crucial role in the
decline of the performances of the employees in terms of the quality and quantity. Apart from
this, Das and Baruah (2013) highlighted a different perspective for the formation of the
dissatisfaction of the employees with the comments that the many of the employees of the
modern business world are seen to be affected by the inappropriate leadership. Das and
Baruah (2013) further added that the importance of an efficient leader in the leading the
employees becomes crucial for the employees and that is pretty evident with the example of
the management of the training and the developmental needs of the employees.
Guilding, Lamminmaki and McManus (2014) commented that the inappropriate
leadership from the part of the leaders affects the appropriate management of the
developmental needs of the employees which forces them to conduct repetitive number of
faults in their operations. As a result, the company faces the loss and the employees becomes
dissatisfied. Kumar and Gopinath (2016) commented that the inappropriate style of leading in
many cases restricts the employees from experiencing or practicing their basic rights. Under
such situation, it is evident that the employees will be dissatisfied which will not only affect
their performances but also will trigger the intention of leaving the organization and that will
certainly contribute to the increment in the turnover rates of the employees. Hence, the
appropriate functionality of the human resource management department of the organizations
in the mentioned aspects becomes much needed for providing a better place to the employees
to work and plays a major role in motivating the employees for the achievement of the
desired improvement in the performances both in terms of the quality and quantity.
Inappropriate performance management:
Apart from the mentioned issues, the employees of the modern generation are seen to
be affected by another important factor which is the inappropriate performance management

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from the part of the organizations. Weber et al. (2014) commented that the importance of the
establishment of the appropriate performance management system becomes crucial for the
organizations and that is pretty evident with the increasing urgency amongst the management
of the modern organizations in the formation of an attractive and efficient rewarding plan.
Gerrish (2016) commented that the performances of the employees improves if they are
sufficiently motivated. However, many of the organizations are seen to fail in the formation
of a plan that will be able to motivate their employees. An in depth analysis of the topic from
the part of Abidi, de Leeuw and Klumpp (2014) portrayed that incapability of the managerial
position holders of the organizations in measuring the performances of the employees plays
an important role in the creation of the job dissatisfaction amongst the employees. De Waal
(2013) showed that the impact of rater bias in the performance measurement of the
employees has the potential of leading the organizations towards a faulty evaluation of the
performances of the employees. De Waal (2013) further added that the recognition of the
good work of the employees is significantly important for the managers of the organizations
in making sure that the employees are motivated and they receive the required fame for the
completion of the good work. However the incapability of raters in evaluating the
performances of the employees through avoiding the impact of the leniency bias, central
tendency bias or the strictness bias, becomes a major barrier or the organizations in
appropriately recognizing the performances of the employees. Hence, it is visible that the
establishment of an appropriate performance measurement system becomes important for the
companies in making sure that the performances of the employees are assessed in an
appropriate manner. Weber et al. (2014) highlighted a different perspective for the topic with
the claim that the performances of the employees of various companies are seen to be
affected with the inappropriate allocation of the tasks. Gerrish (2016) highlighted that the
incapability of the managers of the organizations in allocating the tasks for the employees in

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accordance to the level of the expertise of the employees is one of the main reason of the
increasing faults in the operation of the employees. Hence, the inappropriate allocation of the
tasks of the employee becomes one of the prime factor responsible for the declining quality
of ten performances of the employees.
Summary of the issues:
With a precise focus on the business activities of the selected company in England, it
is pretty evident that the employees are dissatisfied with the existing style of leading of their
managers. The manner in which the leaders of the workforce in England treats their
employees or the approach that they follow in meeting the developmental needs of the
employees is considered to be inappropriate by majorly of the employees. The mentioned
factor plays a significant role in increasing the level of dissatisfaction of the employees in the
workforce. Apart from this, a large number of employees of the mentioned workforce were
observed to be dissatisfied with the existing compensation and benefit system of the
company. The employees believe that they are paid less in comparison to the employees of
the other organizations. Hence the increasing level of dissatisfaction of the employees of the
organization regarding the wage characteristics or the style of leading of the leaders of the
British workforce are seen to be the main point of concern for the employees. All these
mentioned people management issues are seen to play a major role in the increment of the
employee turnover rates of the company and is seen to be notably influenced by the unethical
practices inside the organization.
Recommendations:
From the above discussion, it is visible that the success of the human resource
department of the mentioned company in improving the effectiveness of their activities in
reducing the employee turnover rate of the workforce, managing and retaining the talented