Analysis of Human Resource Management in the Service Industry: Hilton

This report provides a comprehensive analysis of Human Resource Management (HRM) within the service industry, using the Hilton Hotel as a case study. It begins with an introduction to HRM and its importance, particularly in the growing service sector. The report analyzes the roles and purposes of HRM, including recruitment, selection, training and development, and performance appraisal, within the context of Hilton's expansion plans. It then justifies an HRM plan based on the supply and demand dynamics of the hospitality industry, highlighting challenges like high employee turnover and the need for strategic HR planning. The report also examines the current state of employment relations at Hilton, including its organizational structure, company culture, and employee engagement strategies. It further discusses the impact of employment law on HR practices. Finally, the report explores job descriptions, person specifications, and compares the selection processes across different service industries, concluding with the contribution of training and development to Hilton's success. The report leverages the Hilton Hotel case study to illustrate practical applications of HRM principles and strategies.

Human Resource Management
In
Service Industry
1

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Analysing the roles and purpose of human resource management in Hilton........................1
1.2 Justification of HRM plan based on the analysis of supply and demand for Hospitality
industry........................................................................................................................................3
2.1 Present state of employment relations for Hilton .................................................................5
2.2 Impact of employment law on management of human resources within Hilton hotel.........6
TASK 3............................................................................................................................................8
3.1 Discussing the job description and person specification for Hilton .....................................8
3.2 Comparing the selection process of different service industries business ..........................10
TASK 4..........................................................................................................................................12
4.1 The contribution of training and development ..................................................................12
CONCLUSION .............................................................................................................................13
REFERENCES .............................................................................................................................14
2

INTRODUCTION
Human Resource Management (HRM) is important function that helps management of
entity in administrating the individuals in a company in a organised and thorough manner. The
main objective of human resource function is to maximise the efficiency of employees and
continuously improve their performance so-as-to facilitate the achievement of organisational
goals. It further involves functions like recruitment, selection, rendering induction and
orientation, providing training and development opportunities to employee etc. With all these
aspects, staff members are developed so that they become more valuable asset to the organisation
(Savage, Fottler and Khatri, 2010). The service industry is among highest growing sector at
present. It further contributes to the economic progress by providing share of 10% to global
Gross Domestic Product (GDP) and also rendering more than 277 million job opportunities. In
context of the UK, around 83% jobs are created by service industry. It is the major economic
booster at present. Further, service industry is broad segment that constitutes of hospitality,
entertainment, health, communication, tourism, media etc.
In this report, various aspects of HRM in service industry will be studied in context of
provided case study of Hilton hotel. As per give scenario, the hotel is planning to expand its
business by opening 50 rooms in Stratford City (About Hilton, 2016). The range of services will
be provided to customers at new location. In this report, role and purpose of HR management in
hospitality industry will be explained. Further, assessment will be provided regarding the present
state of employment relations for the hotel industry. Thereafter, impact of employment law on
the management of human resources for the Hilton Hotel will be discussed.
TASK 1
1.1 Analysing the roles and purpose of human resource management in Hilton
HRM is viable process that helps Hilton in managing its employees so that they become a
key asset to the corporation. It is formal process adopted by entity to enhance the performance of
individuals and thereby maintain required quantity and quality of human resources within the
firm. The HRM process of Hilton hotel encompasses various functions like conducting job
analysis, identifying the needs of employees, appointing suitable individuals for vacant job post,
providing them induction, orientation and training (Butt, 2012). It is further followed by
1

evaluating the performance of employees, resolving the issues, exercising leadership and
motivation etc. Since its inception from the provided case scenario, that cited hotel is planning
to open 50 accommodations at Stratford city. To execute various functions and render best
services to guest, hotel will need skilled human inventory. Therefore, human HRM will play
essential role in regulating the measures of appropriate personnel management in Hilton hotel.
However, it has been identified from various research that service sector at present is dealing
with serious issue of high employee turnover (Goss-Turner and Boella, 2013). The major reason
is prolonged working hours, improper performance valuation and lack of career development
opportunities. With the help of proper Human Resource (HR) strategies, the existing level of
human inventory can be maintained. To facilitate this, roles and purpose of HRM practices must
be discussed properly as follows:
Roles of HRM Recruitment: It is an important process that helps management of Hilton in attracting
suitable candidate for the vacant job post. For the new hotel, staff will be needed so that
proper services can be provided to guest (Budhwar, 2008). The recruitment process will
help Hilton in appointing best candidates for its various units like purchase, marketing,
front office, housekeeping, service department, waiters, chefs, bartenders etc. Selection: This process enables company to select skilled candidate for job post. The
company assures selection of candidate having skills, knowledge and capabilities
matching with the requirement of job (Cannon and et. al., 2013). Hilton selects
candidates after conducting proper reference check so-as-to avoid appointment of wrong
person in hotel. Training and development: It is important process that helps management in continuously
upgrading the skills of employees so they can match well with the industry standards.
Training process also help organisation in increasing the career growth opportunities for
its employees (Palukka, 2011.). Performance appraisal: It is important process which enables management of Hilton in
measuring the work of its employees by using various methods. On the basis of this, pay
structure, incentives etc. are decided and offered to employees . It further acts as
2

motivating factor. Hilton assures appropriate evaluation of performance of employees
and providing them salary as per the prevailing market rate (Lepak, Hu and Baer, 2012).
Purpose of HRM
 The main purpose of HR functions of Hilton is to continuously amend the skills of
employees in service to strategic goals of organisation.
 The purpose of HRM function of hotel is to maintain the human inventory by retaining
the efficient staff.
 To attract the skilled candidates for available job positions so that various functions can
be performed smoothly (Wright, 2013).
 To make optimum utilisation of human resources.
 To assure career growth of employees by providing them development and training
opportunities.
 To maintain the satisfaction level of employees by providing them motivation, involving
them in decision making etc (Lucio, 2013).
1.2 Justification of HRM plan based on the analysis of supply and demand for Hospitality
industry.
As per the research conducted by the international society of hospitality consultant, it has
been ascertained that hotel industry is facing lack of skilled human resources. In addition to this,
employee turnover in service industry is high as compared to other industries. There are more
people who are leaving this industry rather than those choosing it as career field. The major
number of employees are witnessed with leaving jobs from accommodation sector, restaurant etc
(Noe, 2010). The reason being, improper work condition extended working hours including work
on holidays, weekends etc. Employees are forced to work in night shift as well leading to high
inconvenience, imbalance in social and life etc. Also, poor training opportunities, improper
performance evaluation etc. are some reasons that are responsible for shortage of human
resources. On the other hand, demand for skilled workforce in hotel industry is continuously
increasing. With the help of HR planning, Hilton can make proper match between demand and
supply. On the basis of provided aspects, viable HR plan can be designed to meet the purpose of
Hilton hotel (Purce, 2014).
3

 Matching the business strategy with HR planning: Human resources are the lifeblood
for the organisation as they help in attaining the strategic goals of business by rendering
effective services (Snell and Bohlander, 2015). It is important for HR manager to
communicate, strategic goals, core values, vision and mission etc. to employees so they
know what is expected from them. Also, company can align the efficiency and learning
of individual with the needs of job.
 Internal and external environment scanning: HR planning enables company to analyse
and study the internal and external environment of company. The main objective of this
is ascertained the coming opportunities and threats. The internal analysis will help in
identifying work that must be executed within the company and skills of present
employees (Jackson, Sibson and Riebe, 2014). The external scanning identifies the
emerging demand and technology in market and quality of manpower that will be
required to meet such demands.
 Forecasting: It is important approach that helps in anticipating the future need of
resources and identifying the sources from where such need can be met. In order to meet
the demand of manpower, internal or external sources can be used such as new member
can be appointed or existing one can be given higher post (Renwick, Redman and
Maguire, 2013).
 Preparing the HR plan: HR plan is important approach for determining the abundance
or shortage of manpower in Hilton hotel. In case of shortage, company can plan for hiring
new candidates, or using promotion, job enrichment or enhancement etc (Otley and
Emmanuel, 2013). While, in case of abundance, present inventory can be cut by
removing non performing individuals etc.
 Follow up and Feedback: The identified HR plan must be employed within the hotel
keeping in mind the strategic goals of business. With the aid of this plan, the demand of
manpower in Stratford branch can be met by assuring appropriate supply for various job
post.
4

TASK 2
2.1 Present state of employment relations for Hilton
Human resources are the central part of the hotel. Properly trained and qualified human
inventory is the key strength of brand. The employee act as representatives of Hilton and help in
maintaining the brand image. The employees play a significant role in attaining the strategic
objectives of hotel (Prince, 2011). Hence, management of hotel assure maximum satisfaction of
employees by meeting their needs and developing strong terms with them etc. At present, the
Hilton Worldwide maintains the human inventory of around 164000. It is also recognized as
best employer by Forbes and awarded among 500 best employers in 2016. It also recognized as
great place to work in many countries. The hotel maintains sound relationship with its employees
by emphasizing on various factors that are described as follows:
 Structure: It refers to type of hierarchy or mode of power distribution followed in
company. Hilton is adopted flat structure which removes the extra layers between
management and employees. It further enable direct interaction between executives and
staff level personnels. Therefore, information, problems etc are communicated at fast
pace (Ruël, 2011). With the help of flat structure, management ensure more involvement
of employees in business decision making process.
 Culture: Hilton has developed role culture within entity which enable management to
define roles and responsibilities of each employee. Therefore, authorities are clearly
delegated. This help in avoiding the issues of overlapping of work in entity. Overall,
positive culture is maintained in Hilton so as retain competent individuals within the firm
(Savage, Fottler and Khatri, 2010).
 Employee engagement: The management of hotel ensure maximum involvement of
employees within the organization. For this aspect, regular meetings, group discussions
are organized between management and employees so that opinion, feedback, issues on
business matter can be obtained (Schein, 2010). The employees are encouraged to take
part in business decision making process by giving their view points, unique ideas etc.
 Collective bargaining: It is way by which the trade associations discuss and negotiate on
the employment terms of workforce with management of company. Therefore,
negotiations are done regarding the pay structure, working hours, grievance procedure,
5

health and safety provisions in company etc. By adopting collective bargaining, Hilton
avoid the state of lockout, strike and discontentment among employee and interference by
government (Chua, Lowe and Puxty, 2015).
 Employee empowerment: With this aspect, proper authority is provided to employees so
they feel valued and integral part of organization. Therefore, employees of Hilton are
provided appropriate responsibility to take decision within the provided scope. Along
with this, employees are given recognition, rewards, motivation and advancement
opportunities.
 Grievance procedure: It is a important procedure that assist in reducing the chances of
employee turnover and minimizing dissatisfaction among employees. With this process,
the complaints of employees are resolved within appropriate time. In this respect, a
employee site has been designed where individuals can directly interact with their
executives discuss the issues faced by them (Mundy, 2013). Hence, management can take
appropriate actions against employee grievances, resolve the issues between various
teams to avoid destructive impact on work environment.
 Disciplinary actions: As per this process, company ensure proper follow up of rules and
regulations within entity. This further help in maintaining effective work environment.
Hilton takes corrective actions against employees found indulged in unethical activities
like, selling the confidential information to outsiders, sexual or moral abuse etc. The
employees can make direct complaint to higher authorities if they face such issues. The
management assure strict actions are taken promptly (Burke, 2013).
2.2 Impact of employment law on management of human resources within Hilton hotel.
There are various laws and regulations laid by government with regards to employment
practices in UK. The main objective of these laws is to protect the interest of individuals
employed in different organizations. The non compliance to this law can result into penalty, legal
proceedings etc leading to negative image of hotel in market. The employment law can be
refereed as legal document created by European Union to manage the terms between
management, employee and trade association (Moldogaziev, 2013). Therefore, it is important for
management of hotel to follow these regulatory frameworks and sustain the image of best
employer attained so far:
6

 Equality act 2010: It is important act laid down by Parliament of the UK. The main aim
of this act is abolish discrimination on the basis of age, religion, gender, sexual
orientation, disability, gender reassignment etc (Equality Act, 2010). The objective
behind this act is to assure fair and equal treatment of all the individuals working in
different organization. Therefore, HR manager of Hilton is required to give equal job
chances to candidates having skills matching with job needs irrespective of factors stated
above. Also, equal payment must be given to individuals doing same quantity and quality
of work.
 National minimum wage act 1998: With the help of this law as wage limit has been set
by the government so as to prevent exploitation of employees. Therefore, minimum
wages across the UK are determined with this act. In adherence with this law, Hilton is
required to pay its employees of age 25 and above at least £7.20 per hour. The workers
between age 21-24 wages must be paid with rate £6.70 per hour. While, for individuals
between age 18-20 wages £5.30 per hour must be given (UK employment laws, 2016).
The purpose of this regulation is to enhance the negotiation power of employees and
assure they are not compelled to work lower than minimum wage rate determined by
government.
 Working Time act 1997: It is important law that determines the time duration for which
individuals in UK can work. This act determines the minimum rest break that must be
provided to employees. According to this act, the workers should not be forces to work
more than 48 hours per weak. Along with this, they must be provided at least 28 days
annual leave. Thereafter, this act provide right to employees to take rest of at least 20
minutes in any shift longing for more than 6 hours (UK employment laws, 2016).
The aforementioned act and other regulations related to employment are followed duly by
Hilton. By adhering the employment law, company is able to build positive image of corporation
in market. Also, it is able to attract skilled and educated candidates for vacant job post.
Therefore, employee turnover is reduced to great extent by assuring proper follows up of these
laws. Therefore, it can be stated that there is direct impact of employment law on the operations
of company (Snell and Bohlander, 2015).
7

TASK 3
3.1 Discussing the job description and person specification for Hilton
 Job description: It refers to wide statement that details out the needs of job and roles and
responsibilities related to it. It further enable individual in understanding the nature of
job, responsibility of position he/she is appointed on. It further encompasses the factors
that determine to whom individual is required to report, abilities, educational skills that
are required by the individual in the job, pay range etc (Job description for Banquet
Manager, 2016). The job description also state the goals that individual is required to
attain in the coming time. Since, it has been identified that Hilton is expanding its
business in Stratford and for this it is required to appoint individuals for the job of
receptionist, banquette manager, waiter etc. Considering, these factors a job description is
prepared for banquette manager.
Organization: Hilton hotels and resorts
Address: Stafford City, Warwick CV34 6RE, UK.
Phone Number: [phone]
Website: www.hotelhilton.co.in
Job Title: Banquet Executive
Reporting authority to: Food and beverage director
Summary of Job position
To supervise all the stages of banquet operations.
To coordinate the conveyance of food and drinks for functions held in Hilton and all
8

specifications related to functions being organized in all banquet halls of Hilton.
Duties and Responsibilities:
 To attain budgeted food and drink sales and labor cost.
 To help in preparing menu and determining the pricing of various dishes.
 To assure high profits by controlling the cost and quality of services.
 To manage the assets present in banquet hall; cutlery, glassware etc.
 To assure prompt services are provided to guest and their need are taken care off in best
manner.
 To resolve the complaints of guest.
 To provide proper training and development to staff and maintain discipline among
them.
 To check the quality of food and beverage served to guest.
Job Specification: It is written statement that describes the important constituents of a
job class involving a description of work to be performed, basic duties and obligations and the
least qualification needed to do the important functions of the job. For, banquet manager
following job specification can be considered:
Basic Duties and responsibilities:
To coordinate and plan the functions organized in banquet organized in Hilton.
Skills and efficiency
 Effective communication skills.
 Decision making skills
 Problem solving skills
 Interpersonal skills
 Positive attitude
 Ability to perform task related to finance, like maintaining records of inventory etc.
Qualification
Event management degree from Oxford school of hospitality Management
Experience
9

 Past experience in hotel industry up to 3 years.
 1 year practical course of hospitality management
Extra skills
 Have good knowledge of new techniques in hotel sector.
 IT skills
 Flexible in working in shifts.
 Team work
3.2 Comparing the selection process of different service industries business
The selection procedure will help Hilton hotel in appointing right candidate at right job
on right time. It will also help company in hiring candidates having calibre to attain the overall
goals of business (Lucio, 2013). The employees perform important role in Hilton assist in
keeping the reputation of hotel high. A step by step procedure is adopted by hotel for hiring and
choosing the best quality of manpower.
In order to determine the effectiveness of selection process, Hilton has conducted
comparison with its major rival Starwood hotels and resort. The description of which is as
follows:
Selection process Hilton hotel Star wood
10