HND Hospitality: Analyzing HRM Practices at Travelodge Hotels, UK

This report provides an analysis of Human Resource Management (HRM) within service industries, using Travelodge Hotels as a case study. It explores the role and purpose of HRM, its importance in the hotel industry, and strategies for HRM activities including recruitment, selection, and training. The report covers HRM planning, external environmental factors affecting the industry such as BREXIT and government regulations, and supply and demand forecasting. It further details the HR plan for Travelodge, including determining staffing requirements, skill needs, compensation rates, and the current state of employment relations. Finally, the report examines the effect of employment law on HRM practices, including minimum wage and holiday laws, referencing relevant sources and legislation.

HUMAN
RESOURCE
MANAGEMENT
FOR SERVICE
INDUSTRIES

Table Of Contents
• Introduction
• Role and Purpose of Human resources Management
• Importance of HRM
• Strategies for HRM activities
• HRM Planning
• External environment and statistics
• Supply and demand forecasting
• HR plan
• Effects of Legislation
27/11/18

Introduction
• Human resource management has become a dominant paradigm in every kind
of industry over the past few decades.
• The process of Human resource management (HRM) includes recruitment and
selection, orientation, training and development, maintaining good work
environment and solving problems.
• Of the 75% of people employed in the services industry, only 18.4% works in
the production services which imply the growth of employment rates in the
tourism and hospitality industry.

Role and purpose of Human
Resource Management (HRM)
•The sole purpose of Human Resource
management is to hire staff for the organization
and train them according to the needs of the
company
•The HRM not only manages the new hires for
the company but also deals with termination
and exit regulations of the employees

Importance of HRM
 The hotel industry have been posing as a growing sector
and the power now wielded by this type of services
organizations is quite great.
 The main theory of HRM is to encourage mutuality among
the workers in the company (Markova et al. 2016).
 The key HR management areas that are related to the hotel
industry in this context are the human resources flow
including recruitment, dismissal, promotion and rewarding
system within the organization.
 In order to integrate the work flow of every department, it
is important to apply specific and formulated HRM
policies in the services framework of Travelodge

Activities
• Once the organization is successful in creating a
balance between product market, business strategy
and HRM policies, it has to be easier to achieve
goals in time.
• The general activities in HRM of Travelodge
include selection, recruitment, dismissal,
performance management and training (Pasupathi
et al. 2017)

Strategies for HRM Activities
• The strategies that can be helpful in the context of
employment and recruitment in Travelodge Hotels
may be listed as follows:
• Creating employee empowerment which enables the
employees to function effectively in leadership
roles whenever needed
– Cultivating awareness about the importance of
quality customer services is another way to
increase the performances of the employees.

Strategies
– The organization is mainly looking for a
reduction in costs dedicated to the employees.
– Therefore the company mainly seeks to
reduce labour costs, providing lower
emphasis on job security and promotion.
• A flexible HRM system is also required which
means enhancing the adaptability of the practices
and policies in the organisation with change
(Nasurdin et al. 2015)

HRM planning
• The Human resource management plan for
recruitment in Travelodge hotels, UK include
six steps namely-
– Identifying the human resource
requirements
– Settling with a recruitment strategy
– Selection and induction of the employees

External environment and statistics
• The hotel industry in Europe as well as all around
the world is a labor intensive sector and is fast
growing.
• The company of Travelodge hotels alone holds
almost 3% of the total employees in the services
industry in the UK (Travelodge, 2018).
• Changing government regimes and worldwide
terrorism is some of the political factors that
affect the hotels and hospitality industry in the
UK negatively.
Figure 1: Employment rates
in Hotel industry until 2015
(Source: International Labour
Org., 2018)

External Environment
• Variable BREXIT also affects the hotel
business at Travelodge as well as the
whole hospitality sector negatively with
the decrease in the value of the pound.
• Europe has a high rate of paid
employment in the hotel's sector and the
jobs proved in the UK are stable and
with formal arrangements.

External Environment
• Travelodge hotels HRM has to consider the
competition in the hotel and hospitality industry
and keep updated with the employment offers in
the other companies as well.
• The increase in VAT also puts a limit on the
performance of the organisation since it reduces
the disposable income of all.
• Other external factors affecting the employment
rates in Travelodge include transport facilities
which are not provided to the employees at
lower levels.