Human Resource Management for Service Industries: Shangri-La Analysis

This assignment provides an analysis of the role and purpose of Human Resource Management (HRM) within the hospitality industry, using the Shangri-La Hotel in London as a case study. It explores HRM functions such as job analysis, recruitment, selection, training, and performance review. The report also justifies a human resources plan based on an analysis of supply and demand within the UK hospitality sector, highlighting the importance of aligning HR strategies with organizational goals. Key areas covered include human resource planning, recruitment and selection processes, training and development programs, employee compensation and benefits, and maintaining employee relations. The assignment concludes by emphasizing the significance of effective HR practices in the hospitality industry for maintaining a competitive edge and ensuring optimal service delivery.

HUMAN RESOURCE MANAGEMENT FOR SERVICE INDUSTRIES
(UNIT 9)

Table of Contents
Introduction.....................................................................................................................................2
1.1 Analyzing the role and purpose of human resource management in hospitality industry. 3
1.2 Justifying a human resources plan based on an analysis of supply and demand for
hospitality industry business...........................................................................................................5
Conclusion........................................................................................................................................7
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Introduction
With the help of this assignment, an understanding is developed in order to analyze the role
and purpose of HRM in a selected service industry. This is done by taking the example of
Shangri-la hotel which is located in London. In the second half of the assignment, a justification
is provided with the help of a human resources plan. This plan is based on the analysis of supply
and demand for the services industry in the UK.
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1.1 Analyzing the role and purpose of human resource management in
the hospitality industry
Human resource management is all about planning, selecting, hiring, training and managing the
human resources in an organization. The members of the HRM group of the Shangri-la hotel are
dedicated to selecting the best employees for the hotel who will add more values to the
services and products of the hotel. Hence the role of HRM department in the hotel industry is
playing a very important role in the organizational success and also contributing in providing
better services to the customers (Bratton and Gold, 2017). Following are the main functions of
HRM in the hotel:
 Analyzing the job requirements in the hotel
 Planning for recruitment
 Selection of appropriate candidates for suitable positions
 Reviewing the performance of the employees and then providing
 Training the existing employees of the hotel for better services providing
There are various personal, organizational and societal objectives of the HRM department in
the hospitality industry. But, following are the main roles and purposes of the HRM department
in the Shangri-la hotel under the hospitality industry of UK:
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Figure 1: Scope of HRM in hospitality industry
[Source: The Management Blog, 2009]
Human resource planning: the HRM department of the Shangri-la hotel is responsible for
planning the human resources at the workplace. These contain the selection of various
employees like the hotel managers, front-end employees, chiefs, service providers, customer
relationship manager, waiters etc. this is done by the managers of the HRM department who
forecast the number of people that are required by each department at the hotel (Boella,
2017). This can be evaluated by measuring the current working employees and future need of
the hotel. According to which the employees for the hotel can be selected accordingly. The
optimal use of human resources at the workplace comes under the personal objectives of the
hotel.
Recruitment and selection: the people of an organization are helpful in increasing the values
and hence a group of people are engaged in recruiting the best people for the hotel. This is
because they are going to represent the standard of hotel and also make a benchmark for the
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hotel in the UK’s hospitality industry. The HRM department of the hotel is designing various job
opportunities which can attract a large number of people to apply for the job vacancy (Al-
Refaie, 2015). The hotel is using various advertising tools for the listing the job vacancy like
newspapers, radio, local channels, walk-in interviews etc. which is helpful in providing full
information about the job vacancies.
Figure 2: roles and objectives of HRM
[Source: Research Gate, 2018]
Training and development: after recruiting, the hotel is providing training to the new
employees so that they can understand the working procedures of the hotel in a more
appropriate way. Department training along with both on the job and off the job training is
provided to the employees (Dhar, 2015). The managers of the HRM department are organizing
various training and development programs in the hotel’s premises.
Employee compensation and perks: after providing training, the employees are then placed in
their respective position at the workplace. The HRM managers evaluate their performance on
different scales and provide various compensations and perks to them, but it is based on the
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performance of the employees (Magnan and Martin, 2018). Like salary increment, promotions,
additional facilities etc. this is helpful in motivating the employees.
Maintaining employee’s relationship: the HRM department of the hotel is taking extra care of
maintaining the employment relationship at the workplace. Clear communication with
transparency at every level is helpful in doing this. The relationship managers are maintaining
the relationship of employees by solving various organizational conflicts between them (Chou,
2014).
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1.2 Justifying a human resources plan based on an analysis of supply and
demand for hospitality industry business
Human resource planning is a process by which the Shangri-la hotel ensures that the employees
that are currently working in the hotel are right in number, are placed by appropriate positions
and are having skills that are required at that place. The HR planning in every organization must
be linked with the overall strategies of the organization here the Shangri-la hotel which will
help them to give tough competition to this competitor in the business market (Chaneta, 2014).
Figure 3: Linking Organizational Strategy to HR Planning
[Source: http://present5.com/human-resource-management-fundamentals-of-human-
resource-2/]
During the process of corporate assessment, a SWOT analysis of the hotel will help in the
determination of the needs that are required to meet the opportunities and also to minimize
the threats.
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Following are the various purposes which will become the advantages of HR planning in the
Shangri-la hotel:
 To make a proper balance of cost factor between the utilization of plant and workplace
 To determine the recruitment needs and demands at every level of hotel
 To determine the training needs of working employees
 To manage various development process at the hotel
 To maintain a proper industrial and employee relations at the hotel
(Belcourt and McBey, 2016)
There are major steps in the HR planning. The first step is to forecast according to the supply
and demand of the workforce that is working in the hotel. For example, the HR manager of the
hotel will analyze the need for employees and their number after analyzing the number of
people who are retiring in future. According to this, he will make plans for future recruitment of
the workplace. This can be termed as a perfect balance between the demand and supply at the
hospitality industry. The number of people that are retiring from the hotel will be replaced by
the newly recruited employees (Bryson, 2018). Therefore, there will be no blockage of services
at the workplace. Both internal and external sources are analyzed for forecasting the human
resources needs at the workplace and various methods are used by the Shangri-la hotel which
are:
 Trend analysis
 Competency models
 Skills inventions
 Replacement charts
 Labour market
 Successive planning
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The HR managers are also using some approximation techniques for forecasting the demand
and services at the Shangri-la hotel, like the Delphi techniques, vacancy, scenario and
regression analysis etc.
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Conclusion
The hospitality industry is considered to be as one of the most potential segments of
employment providers in the service industry of the UK. This is because all the functions of this
sector need to be carried out in an effective manner so that a proper management can be
maintained in working. It can be concluded that the HR department is one of the major
functions and thus the processes under it like the HR planning need to be focused more at the
time of implementation in the hotels like the Shangri-la hotel as explained above.
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References
 Al-Refaie, A., 2015. Effects of human resource management on hotel performance using
structural equation modelling. Computers in Human Behavior, 43, pp.293-303.
 Belcourt, M. and McBey, K.J., 2016. Strategic human resources planning. Nelson
Education.
 Boella, M., 2017. Human resource management in the hotel and catering industry.
Routledge.
 Bratton, J. and Gold, J., 2017. Human resource management: theory and practice.
Palgrave.
 Bryson, J.M., 2018. Strategic planning for public and nonprofit organizations: A guide to
strengthening and sustaining organizational achievement. John Wiley & Sons.
 Chaneta, I., 2014. Human resource planning. International Journal of Management, IT
and Engineering, 4(2), p.333.
 Chou, C.J., 2014. Hotels' environmental policies and employee personal environmental
beliefs: Interactions and outcomes. Tourism Management, 40, pp.436-446.
 Dhar, R.L., 2015. Service quality and the training of employees: The mediating role of
organizational commitment. Tourism Management, 46, pp.419-430.
 Magnan, M. and Martin, D., 2018. Executive Compensation and Employee
Remuneration: The Flexible Principles of Justice in Pay. Journal of Business Ethics, pp.1-
17.
 The Management Blog, 2009. Scope of HRM. [Online Available at:
http://mgmtys.blogspot.com/2010/10/scope-of-hrm.html Last Accesses on: 5 June
2018].
 Research Gate, 2018. HRM roles and methods (Harrison, 1993, p. 259). [Online Available
at: https://www.researchgate.net/figure/HRM-roles-and-methods-Harrison-1993-p-
259_fig1_254364437 Last Accesses on: 5 June 2018].
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