HRM Strategies for Hotel Improvement: A Comprehensive Report

This report provides an in-depth analysis of Human Resource Management (HRM) within the context of a hotel experiencing declining profits due to increased market competition. It begins with an introduction to HRM, emphasizing its role in efficiently utilizing workforce skills and knowledge to achieve organizational goals, including recruitment, selection, and development. The report then delves into the importance of HRM functions, specifically focusing on recruitment and selection strategies, employee motivation techniques through compensation and performance-based incentives, and the implementation of performance management systems to evaluate and improve employee effectiveness. Furthermore, the report explores workforce planning methods such as labor supply and demand analysis, and skills audit gap analysis to ensure the hotel has the right number of employees with the necessary skills. Finally, it presents ways to improve overall performance, including training and development programs, participative management styles to engage employees in decision-making, and motivational strategies to enhance employee morale and productivity. The report highlights the critical role of HRM in helping the hotel regain its competitive position and increase profitability.

Introduction to Human Resources
Management

TABLE OF CONTENTS
TASK 1: INTRODUCTION............................................................................................................3
TASK 2: IMPORTANCE OF HRM FUNCTIONS........................................................................3
TASK 3: WORKFORCE PLANNING METHODS.......................................................................5
TASK 4: Ways to improve overall performance.............................................................................6
TASK 5: Employment legislation considered by HR department...................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

TASK 1: INTRODUCTION
Human Resource Management is the process of efficient utilization of skills, knowledge
and abilities of workforce to attain specified goals and objectives of an organisation by satisfying
needs of employees in the most effectual manner. It is the process of recruiting, selecting and
developing workforce in such a way that they become productive to the organisation (Morgeson
and et. al., 2013). Role of HRM includes analysis of job, planning needs of personnel,
recruitment and selection as well as training them and resolving grievances of the most valuable
resources in the organisation. This report is based on the case scenario of middle sized hotel. In
this scenario, hotel's profit is moving towards declining stage due to increasing competition in
the market and needs to work on its workforce to establish its position in the market (Human
Resource Management, 2016). This case highlights the importance of human resources in
attaining goals and objectives of the hotel. In addition to this, it discusses about the need of
human resources in organisation and the ways that can improve the overall performance of an
employee. Apart from that, report depicts the planning method for workforce that is undertaken
by human resource department.
TASK 2: IMPORTANCE OF HRM FUNCTIONS
In order to improve the overall performance and profits of organisation, HRM needs to
perform certain functions. They have to reduce the prices of food and require to work on its
quality of food served. For this purpose, they have to recruit and maintain proper staff in the
hotel. They must focus on certain areas through which it can establish competitive position in the
market. So, major functions of HRM in the hotel are: Recruitment and selection: In the current situation, where there is a downfall in the
profits of organization, HRM needs to come up with strategies and plans to employ right
kind of people in the hotel. This function will help the firm to improve its existing
business (Jackson, Schuler and Jiang, 2014). Prime role of HR department is job
description that generally means to analyse the nature of a job and number of employees
required. HRM of hotel will identify the way to recruit people and attract qualified and
suitable candidates to fill respective vacancies. After that, next step is selecting the right
candidate for the right job. The applicant is selected after proper screening of their skills
and abilities (Human Resource Management (HRM) - Definition and Concept, 2016).

Main goal of HR department is to obtain and maintain an efficient and effective
workforce to increase the profit and hold competitive position in the market. By
appointing right people, hotel can establish its competitive position by valuable
suggestions and working of employees. Employee motivation: To retain workforce in the hotel for longer duration, they need to
be motivated by offering them attractive compensation and many other benefits. Hotel
can increase its profit by enhancing the level of sales which depend on its employees. To
improve the performance of workers, they need to be made highly motivated. As the
profits are declining so human resource department designs motivational strategies by
considering its costs and benefits (Mello, 2014). Employees can be encouraged by giving
incentives based on their work performance and people who are motivated by non-
monetary rewards can be promoted to higher position which will boost up their
confidence. So, it is clear from the above statement that workforce is motivated by
analysing their needs and expectations and making efforts to satisfy them. Human
resource department of hotel needs to review the motivational strategies and its result on
weekly basis. Employees are motivated so that they can give their whole and soul to the
hotel and make them satisfied with their jobs. So, in the current scenario, human resource
department has to design its compensation and appraisal system in such a way that
motivates its employees and chef by giving them incentives and promotion for their
outstanding contribution.
 Performance Management: Management of hotel can timely evaluate the performance of
each employee. This will help the HR department to determine effectiveness of its hiring
and selecting process as well as through motivation strategy (Jiang and et.al., 2012).
Management of Hotel can timely evaluate the performance of each employee by
performance management system (Jiang, and et.al., 2012). This will help the HR
department to determine the effectiveness of its hiring and selecting process and
motivating strategy. Hotel can set out the standards and parameter of performance and
can compare the actual performance results with the set performancecriteria. But the
management should keep in mind that the parameter of performance should be specific,
realistic and time bound. This will help the employees to assess those knowledge and
skills to perform their task efficiently. The growthGrowth and development of business

depends on the performance of workforce which its employees and the performance of an
employee can improve be improved by performance management system as through this,
they would come to know about their strengths and weaknesses. Hotel should develop a
system that could providein which feedback to employees will be provided with respect
to their work so that they can improve their working accordingly. To maintain and
improve the performance of staff, management should monitor and control the
performance of each employee.To maintain the performance of staff, they should monitor
and control the workings of each employee. Performance management system should be
implemented by the hotel to review the working of employees and take corrective actions
timely.
So, it is necessary that HR department of hotel should perform their functions in an
efficient manner to attain the competitive position and increase its profit.
TASK 3: WORKFORCE PLANNING METHODS
Workforce planning is an important function of Human Resource Management. It deals
with the systematic analysis of people in relation with the size, knowledge, skills, experience and
quality of workforce to attain its objective. So, it is v important for hotel to plan out the
workforce that can contribute in achieving its goal. There are different workforce planning
methods that need to be looked upon by the hotel. Some of them are: Labour supply and demand analysis: For the hotel, to analyse and identify the number of
employees required plays a significant role as it justifies the surplus or deficit amount of
employees (Hendry, 2012). To assess the demand of employees, firm needs to follow two
approaches, that is, qualitative and quantitative. Qualitative approach means to identify
and assess the skills, abilities and qualification required by the hotel from a respective
employee and quantitative approach deals with the right number of people that are
required to fill specific positions. Labour demand can be analysed by assessing the level
of customer demand in the future (Renwick, Redman, and Maguire, 2013). Hotel needs to
forecast number and types of required employees to increase profit and establish
competitive position in the market. Management of hotel should forecast the need of
employees and the ways to meet out that needthe same. For example, considering the
customer tastes and preferences, hotel manager can forecast the number of chefs required

and the skills requirement requirementand their specialisation, management staff. This
process will fall intois termed as labour demand analysis. To meet out thissatisfy the
demand of workforce in organization, demand, they have to check out the sources of
supply of workforcemanpower. If the supply of workforce is limited in that their
particular area then they can find means to recruit people from some other area or
through some other sourcesources.
 Skills audit gap analysis: This forms the part of the planning process where the
management analyse analyses the gap between the required skill and actual skills of the
workforce in the hotel. To conduct the skill audit gap analysis, HR department should
identify the skills needed to perform the desired roles in the hotel (Purce., 2014). They
can survey the employees and assess the data, now compare the gap between them. It is
very necessary for the hotel to apply this tool in workforce planning as they can conduct
the recruitment and selection process accordingly and appoint the personspeople with that
are having the desired skills. Employees who do havehaving the required skills
proficiencies and capabilities can be given with training for minimising the gap in
between actual and the desired skills. For example, hotel require chefs who are proficient
in preparing Chinese food. For that purpose, ,hotel need to so they can checkoutcheck
the skills of the existing chefs and take measures to improve those skills by giving them
suitable training or through recruiting people with the desired skills (Need., 2006). If the
hotel does not conduct this analysis, they will not come to know the area of improvement.
It is better for Hhuman Rresource department of hotel to conduct skills audit as it will
assist to define the recruiting needs in a better way and will result in selecting the best
suitable the apt candidate for hotel.
TASK 4: WAYS TO IMPROVE OVERALL PERFORMANCE
In the current case, if the hotel wants to improve its overall performance, it have has to
focus on the improvement of overall performance of theamending the existing skills of
employees. This can be attained by the following ways: Training and Development: Through training and development, employees of the hotel
can improve their performance and can contribute in a better way. New employees should
be trained to make them understand their work and can perform it in aan efficient

manner. Existing employees should be provided with training so that they can sharpen
their skills and abilities and occupy higher positions. The departmentDepartment should
design the training programme in such a way that it can meet out the actual requirement
of the work of job profile andthat will ultimately increase their output productivity (Noe
and et.al, 2007). Hotel can only attain its objective by having skilled and
knowledgableknowledgeable staff. and the staff becomesEmployees would become
capable by proving providing them proper training sessions depending on their needs. So,
it is necessary for the hotel to organize training session to improve their skills and
abilities and so that they can perform their tasks in an effective mannereffectually. Participative management: Hotel can adopt this approach to promote participation of
employee employees on allin decision making process. In this stage of business where
customer satisfaction is very important, it is very essential for the management to apply
this managerial style. It is because; as chefs and manager are the one who mostly deals
with the customers, so they know the actual needs and demand of the customers (Need.,
2006). This is the reason; their involving them in the decision making process is
important so that they can give their views, opinions and thoughts which management
can use. So, through this approach, they can give their innovative ideas and views that
can satisfy the customers and management will get a variety of solutions to choose
fromresolve its issues. It will motivate the staff of the hotel and make them feel
important, recognized and valued as well. If the workforce of the hotel participates in the
decisions, it will motivate them and would improves improve their morale as well. It will
enhance the communication among all levels of management which proves to be helpful
for , will helps in fasterfaster and effective resolution of grievances (Jiang, and et. al.,
2012). This will train the employees to work in a team work, and will help them towith
allign making alignment in between their personal goal withand hotel's goals and
objectives.
 Motivation: Workforce of the hotel can be motivated by several ways and will contribute
to improve the overall performance of the employees. Human resource is the most
important resource infor survival of an organisation., ifIf the employees are motivated,
they will give their level best to satisfy the customers. Employees Workforce should be
rewarded in ways like; with giving them promotions and or hike in their remuneration as

it plays a significant role in motivating them to perform with higher efficiency (Renwick,
Redman, and Maguire, 2013).
All the factors stated above will contribute in the improvement of overall performance of
the employees that will ultimately result in better hotel performance of hotel through by
increasingincreased sale and profits.
TASK 5: EMPLOYMENT LEGISLATION CONSIDERED BY HR
DEPARTMENT
Government has framed laws to regulate the relation between employer and employee.
So, certain areas of employment legislation that needs to be considered by HR department are: Equality Act, 2010: this This act came into existence in the year 2010 to prohibit the
unfair treatment of employees in an organisation. Employees should be given with equal
opportunity to prove themselves and should not be discriminated on the grounds of age,
sex, disability, race, caste, etc. employee Main objective of this act is to make employees
should be treated equally in at the workplace (Bennett and Ho, D.S., 2014). Manager of
hotel should be aware of all the legislation governing employer and employee
relationship to protect people from punishment, fines and penalties. It will be
unlawfullunlawful if the employer is discriminating his employees on the basis of their
disability. Equality Pay Act 1970: this This act prohibits the employer to discrimate discriminate
men and women in relation to pay and conditions of working (Armstrong and
Taylor.,Taylor, 2014). Manager of hotel would attract legal actions if the pay and salary
of men and women are different for the same job. It will include all forms of
compensation such as bonuses, incentives, salary, etc. This act gives right to employee
employees to file their claim against discrimination under Title VII of the Civil Rights.
Act. The Data Protection Act 1998: This act comes came into force on in the year 2000, states
that the that deals with processing of data on living person identifiable. Employers are
prohibited to share confidential information of an employee (Storey, 2007). They are not
allowed to access the personal data of employee for official work.

 Health and safety Act: this This act sets out responsibilities for employer and employee to
maintain healthy and safe environment in at the workplace. Employees need to perform
their work safely also considering the safety of others Employees need to proceed with
their work with regard to safety of others. Employer is required to comply with the range
of requirement set imposed out by the laws such as providing safe equipmentsequipment
and carrying out health and safety check measures for employees (Wright and
McMahan.,McMahan, 2011). Employees are required to train be trained to carry out
some dangerous workthe activities which may need physical work that may prove to be
hazardous if it will not be carried out properly.
 Minimum Wages Act: HR manager needs to comply with the minimum wages act and
should provide minimum at least a particular amount in the form of wages to their staff as
per stated by the regulatory authorities. Minimum wages are fixed by the government of
UK on the basis of work done and number of hours a worker has worked.
It is necessary for the employer and employee of the hotel to follow all legal
requirements for certain areas like maintaining health and safety at workplace and, meet out the
standards fixed bt by the government in terms of wages and working hours (Budhwar and
Debrah, 2013.). Applicants should be given with equal rights and opportunity opportunities in
recruitment and selection process to get selected. These legislations are amended with time to
time and employer should be updated with all the amendments.
CONCLUSION
It can be concluded that it is very important for the hotel to manage its human
resourceresources effectually. Hotel cannot achieve its sales target and would not be attain to
competitive position without itsif adequate workforce would not be there (Purce., 2014). So, the
role of HRM needs to be focussed where right quantityadequate number of people with the right
abilities are hired in at the rightcorrect place at the right time to deliver an organisation’s short-
and long-term objectives. Profits of the hotel are falling downwards so, it hotel needs to work on
the following areas: Recruitment and selection: it It can be recommended that skills of the applicants should
be analysed by various tests and examination so . So that the right candidate is will be
selected for the job profile. HR department should prepare the job description after

reviewing the plans and strategies for the hotel (Boxall and Purcell., 2011). If the right
candidates are appointed in the hotel, they will guide and direct the manager to resolve
the problems faced by the workforce. Training and development: they They should provide proper training and development to
their workforce that will assist the employees to provide better services to their
customercustomers. Training sessions should be organized to improve their skills and
efficiency and timely feedback should be taken to take corrective actions.
 Performance management: it It is recommended that different performance standard
standards should be set for different employeedistinct employees on the basis of their
abilities and callibrecalibre. Their performance needs to be measured in relation to the set
standards (Hendry, 2012.). Proper Apart from that, proper feedback should be given so
that they can improve their performance and should be appreciated for the good job.
 Motivation: manager should analyse the needs of employer in detail and should be given
rewards accordingly. These rewards will motivate the employee and will result in higher
productivity ((Storey, 2007)). Hotel should go through various motivational theories to
improve the performance of their employees.

REFERENCES
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Online
Human Resource Management. 2016. [Online]. Available through:
<http://www.whatishumanresource.com/human-resource-management>. [Accessed on
25th July 2016].
Human Resource Management (HRM) - Definition and Concept. 2016. [Online]. Available
through: <http://www.managementstudyguide.com/human-resource-management.htm>.
[Accessed on 25th July 2016].