Managing Human Capital at Hilton Hotel

This report provides a comprehensive analysis of human capital management at Hilton Hotel. It covers various aspects, including the history of the hotel, its milestones, and its position in the industry. The report delves into the role of the HR department, the challenges it faces, such as employee retention and motivation, and the consequences of not addressing these issues. It also explores the importance of staff engagement and the application of motivational models like Maslow's hierarchy of needs. The report further includes a literature review, discussing cross-cultural management and Hofstede's cultural dimensions. The conclusion emphasizes the crucial role of HR in delivering quality service and the need for continuous improvement in employee management and brand image.

Managing human
capital

EXECUTIVE SUMMARY
Purpose: The purpose of the report was to know HR plays an important role in business
they required to train the employee for provide the best service to their customer. HR faces many
challenges in the company. Issues are employee retention, motivation etc.
Approached: From this report it can be evaluate that employees are required to motivate,
improve the services for customer preferences. Internal and external consequences on business
are providing poor service to customer. Performance of their company will fall.
Key find: Internal and external problem are need to be solved for increasing the market
share of their hotel. By increasing production level of company. Their will be delay in
production it may decrease the demand of their sales.
Recommendation: Employees need to provide better service to their customer. It can be
recommended that they need to increase their market share for stay in market for longer time.

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 History of Hilton hotel: ........................................................................................................3
1.2Milestones achieved by Hilton hotel:.....................................................................................4
1.3Industry position and key competitors of Hilton hotel and resorts: .......................................4
TASK 2............................................................................................................................................5
2.1 What HR delivers and what business unit needs...................................................................5
2.2 List the challenges and give brief explanation of the issues..................................................5
TASK 3............................................................................................................................................7
3.1 Consequences that happen (internally or externally) if actions is not taken..........................7
TASK 4............................................................................................................................................9
Importance of staff engagement in order to sustain or for performance Management: .............9
Use motivational models and concentrate on change management or the team that will bring
about change..............................................................................................................................10
Benefits of Maslow hierarchy theory in change management:.................................................10
TASK 5..........................................................................................................................................11
Literature review :......................................................................................................................11
CONCLUSION .............................................................................................................................14
EXECUTIVE SUMMARY..........................................................................................................14
REFRENCES.................................................................................................................................16

INTRODUCTION
Managing human capital is about how employees are managed by an organization to
meet specific objectives of the business. It is a process of recruiting and selecting people and
developing them for improving their value in the workplace. The main functions of managing
human capital are planning, organizing, directing and controlling human resources. The report is
based on Hilton hotel of UK. It is the chain of hotels operating in more than 550 locations across
six continents (Hilton hotel & Resorts, 2016). This project covers important aspects such as
history of the company and achievements of Hilton hotel. Further, the report also identifies the
staff attrition rate in Hilton Hotel over the past three years. The current problems and challenges
faced by human resource department in Hilton and impact of these issues in the organization are
discussed. The solutions of various issues are justified with the suitable suggestions to Hilton.
In further section, suitable theories and models have been used for the organization. The report
also emphasizes on individual element of Managing Human capital in the organization.
TASK 1
1.1 History of Hilton hotel:
It is started when Conrad Hilton bought his first hotel in 1919. The Conrad Hilton opened
its first hotel with cold running water and air conditioner in the public room in 1927. After this,
he started many services for their guest in 1947 to 1987. He installed first televisions in guest
room in the Roosevelt hotel in New York City. Further, he also introduced modern day
reservation system which is known as multinational reservation system. Hilton created its first
special amenity for women i.e. a sewing kit and booklet with necessary telephone numbers.
Hilton hotel offers for their guest room first brand-wide direct-dial telephone service. Then he
opened its first airport i.e. San Francisco Airport Hilton and also introduced guest loyalty
program. In 2008-2011, Hilton Vancouver Washington created history as the first hotel to be
both Leadership in Energy and Environmental Design. Hilton hotel launched eforea spa in
China, Thailand and the United States. In 2014, First hotel i.e. Hilton Times Square brand live
stream a concert on YouTube. Recently, the hotel expanded its business in 100 countries and
now it is operating in more than 550 locations (about Hilton, 2016).

1.2Milestones achieved by Hilton hotel:
The milestones achieved by Hilton hotel is given below:
 The Hilton hotel generated revenue in 2014 more than 10.5 billion U.S. Dollars which is
highest revenue in UK hotel industry.
 Light stay announces result in 2010 that the hotel has saved more than 74$ million in
utility cost and it has decreased its energy use by 6.6%.
 Hilton hotel has become one of the multi-national organization to be certified, ISO 9001
certification for quality management and ISO 14001 certification for environmental
management system.
 Hilton hotel has received award for best use of social media for Europe in the year 2015.
1.3Industry position and key competitors of Hilton hotel and resorts:
In 2016 ranking the position according global Forbes list Hilton hotel rank on 476 in
worldwide(Forbes, 2016). The key competitors of mentioned hotel is Marriott International,
Inc.,Starwood hotel and resorts and Intercontinental Hotels Group PLC(Morningstar, 2016).
1.5No. of employee in above hotel:
In the all Hilton hotels the Total number of employees is 164000(Forbes, 2016). and the
attrition rate in hotel is high in over the past three years

TASK 2
2.1 What HR delivers and what business unit needs
At Hilton hotel, HR department’s role is to support the organization so that management
would concentrate on the growth of business and instruct the employees accordingly to attain the
set goals. There are many roles which HR department at Hilton Hotel has to play. Some of them
are as follows:
Employee’s concern: Role of HR department is to recruit skilled employees, review the
job description and assign the job according to their skill. At Hilton hotel, HR department also
include compensation and benefits that are to be given to employees based on their performance
(Glendon, Clarke, and McKenna, 2016). Along with that, it also includes keeping a close eye on
wages as well as observing and controlling the division of labor among departments.
Morale and mentoring: HR department creates employee development program, for
continued the growth of their employees (Glendon, Clarke, and McKenna, 2016). They also
focus on employee’s development through mentoring and guiding them on different stages for
accomplishing their goals. They also make a specific plan for staff members for providing
directions in the areas where attention is needed.
Training: At Hilton hotel, HR department is responsible to give training to employees so
that they would provide better services to the ultimate customers. Through cross training,
employees get opportunities to work on multi task (Boxall, and Purcell, 2011). Along with that,
training helps employees in improving their skills by which they can work more efficiently and
effectively for hotel.
Staffing: HR department delegates the workload among experienced and skilled staff.
Different culture customer come in organization. Staff are required to make their customer
comfort by giving them room service or any other facility they want in their hotel.
2.2 List the challenges and give brief explanation of the issues
Retention: HR department not only hires new talent for Hilton Hotel but also make
initiatives to retain the existing talent in organization. In the present scenario, it is one of the
major challenges to make employees stay in the firm in the long run (Unger, Rauch, and
Rosenbusch, 2011). HR manager’s responsibility is to protect the valuable assets of firm, that is,

human resources. Hiring and retaining the best employees is the biggest challenge for HR
department.
Motivation: At Hilton hotel, employees sometimes get demotivated due to heavy
workload. To keep the workforce motivated to perform their jobs effectually is another challenge
for the hotel. In this case, HR manager required to motivate their employees so that they can
perform their best for the hotel (Unger, Rauch and Rosenbusch, 2011). Employee motivation is
also a challenge for business because their performance affects the overall development of
organization.
Leadership development: This is another issue faced by HR department at Hilton hotel.
Leadership is also associated with employee retention; hence there should be proper emphasis on
strategic leadership. Employees at Hilton hotel generally leave their job because of poor
leadership. They require an active and supportive leader who can guide them at the time when
they face any problem and also motivate them toward their work (Harzing, and Pinnington, eds.,
2010). Effective leaders set targets and motivate employees for achieving them in the specified
manner.
Culture: People from different backgrounds come in organization and thus, they all
possess distinct personalities. When employees from different culture work together, chances of
conflicts may arise because they all would have different opinions regarding a specific issue
(Snell, and Bohlander,2010). In this situation, it is important for HR manager to have effective
communication with employees so that they can share their problems with him easily and issue
can be resolved.
Technical Talent: In Hilton Hotel, lack of technical talent is one of the challenges for
development and growth of business. Advanced technology is being used by the hotel in order to
sustain in today’s competitive environment (Mendenhall, and Osland,2012). If employees are not
skilled or if they would not adequate knowledge of new technology, then productivity of firm
will get affected as well as cost would also get increased.
Discrimination and diversity: When discrimination is made in between employees, it
affects the workflow of firm as it increases the chances of conflicts among workforce if one
would feel that partiality has been done with him. By this, employee would get demotivated and
not work hard for their business or there may be chances that they would leave the firm

(Kusluvan,, Kusluvan, and Buyruk, 2010). Thus, discrimination should not be there in the hotel
on any of the basis.
Flexible work arrangements: At Hilton hotel, it is necessary to have flexible work
arrangements for employees. It will allow employees to work with higher efficiency as in a
healthy and positive working environment, they can perform in a better way that will increase the
productivity of business. For this purpose, working hour for employees should be flexible so that
they can manage their work within specified duration effectually.
TASK 3
3.1 Consequences that happen (internally or externally) if actions is not taken
At Hilton Hotel if actions are not taken, internal consequences can be as follows:
Delays in production: At Hilton hotel employees are not skilled so they cannot
complete their work on time. This creates delay in production activities. This delay also lead to
decrease the demand of customer. If customer demand not met on time, it will also effect the
sales of the company. Labor are important for manufacturing process may be the causes of delay
in production for example vacation taken by employee affects the production (Wright, and
McMahan, 2011). It also depends upon the supplies of raw material from outside sources. Some
problems are of transportation or inclement weather. Time is taken to adopt new technology for
business purpose. Then also required to hired skilled worker or either give training to their
employees. These all are the reason for delay in production of business. Organization required to
hire more employees for production so if in absence of any employee they can manage their
work and there will be no delay in their work.
Business performance drops: Performance of business will drop because of many
reason. When employees will not perform according to the demand of customer. If employees
not used technology in proper way. If they delay in providing their services to customers then
customer will get dissatisfy it effects the overall performance of organization (Javalgi, and
Todd, 2011). At Hilton hotel if the room service is poor business performance effects. Different
culture of people come in hotel, if service are not provide to them according to their culture they
feel uncomfortable. They will feel that employees of hotel have no respect for any culture.
Unskilled employees will also be a reason of unsuccessful business because if employees
don't provide better service to customer they get hurt and not like to come in their organization.

For example if customer in hotel treated not well by staff members or employee misbehave
with customer they will not like to come their again.
Lose market share: Market share can be loss if business face any losses because of
many reason like if customer will not want to stay in their hotel. Customer will not like to visit
their if they not get good service from their employees. When hotel condition is not well or they
cannot invest in their business (Alpkan, Bulut, and Kilic, 2010). There are many competitor in
the market, so they will lose their shares if they cannot compete with them. For increasing
market share business need to increase the productivity. Invest on improving the hotels room and
services and make their hotel luxurious. So that customer wan to visit their again and again. It is
necessary to differentiate their hotel form other competitor it can be done by offering free HBO
3.00pm checkout are just a few possibilities. Hotel should have a policy where they are near to
the lowest rate in city.
At Hilton Hotel if actions are not taken, external consequences can be as follows:
Poor service: At Hilton hotel if employees will not well trained they will give poor
service to their customer. Angry or frustrated employee can destruct the business. When
employees personal life is in crisis or out of control, then their negativism and aggression will
attempt toward the customer. If employee of company not provide correct solution to customer
problem they will get dissatisfy. It is necessary to provide constant feedback on what customer
feel in their hotel, customers view regarding their services (Ulrich, 2013). This all the reason of
poor services. Action are required to be taken for improving the poor services are proper
training facility to customer so that they win the trust of the customer. Tourist come from across
the country should provide facility according to their culture and should show respect to their
country. So that they feel happy and feel like a home. Make your employee happy by paying
them according to their work and incentive on their extra work, they will get motivate and work
with more effort for their company.
Reduce Customer loyalty: When hotel no longer able to retain their status in market
then for longer periods. Then loyal customer base will easily disappear with the time. At Hilton
hotel if employees no give service according to customers needs, then they will move toward the
other organization. When business will fail to keep up with customer exception it decline the
customer loyalty (Zarutskie, 2010). Customers don't care that service provided to them are better

then a year ago. At Hilton hotel fail to focus on the customer experience then it effects company,
because they have no idea that customer are satisfied or not. If the image of marketing and
promotion of the company is quite different from reality,for example like if they advertise of any
special; service for customers or they will give discount but in reality they don't provide such
services. Then customer will not believe on them any more.
Poor brand perception: when customer get negative information of their hotel, because
of many reason like continuously falling in market shares effects the brand of their hotel. People
will think negative about their business. Customers will not like to book their room in that hotel.
Hotel not provide luxury service to their customers then no tourist like to stay in their hotel.
Action are required to be taken of for improving the poor brand by selling hotel branded products
(Haynes, and Hillman, 2010). For example, by accidentally pack a couple of towels in their bag
before they check out. It may make customer happy and they like to visit again in their hotel.
Poor brand perception are required to improve for increasing market shares of business.
Employees are required to give some free room services and discount in hotel for increasing the
sales. If company sales increase then overall profit of company will also increase. Then they can
improve their brand image and can be stable in market for longer period.
TASK 4
Importance of staff engagement in order to sustain or for performance Management:
Staff engagement: The importance of staff engagement is that because it is based on trust
or integrity and communication between organization and its human resource. It is an approach
to increase their organizational growth, contributing to individuals, increase productivity and
well-being(Stone, 2013). It is important because its about understanding individuals role in
organization and energised in where the individuals fits in the business purpose and goals to
achieve objectives.
Employee engagement is about being involve as a member of team, focused and clear
goals, empowered and trusted, receiving regular feedback, supporting in develop new skills,
recognised for their achievement. This helps to organization is that they feel comfortable at
workplace and give full effort to achieve goal.
It is about positive attitudes and behaviours which leading to improved and increased
organization outcomes, in a way that they trigger and learn one another. It is important because

the organization employees feeling pride and give loyalty in working for its organization. It is
important to reduce conflict and grievance between employees and employers and increase
productivity(Nyberg and et. al., 2014.). The employee engagement helps to individual that is
they motivated and feeling worth of own in its organization.
Use motivational models and concentrate on change management or the team that will bring
about change
Benefits of Maslow hierarchy theory in change management:
According Maslow model every employee wants fulfil their five needs i.e physiological
needs, safety, self esteem, self actualization and belongingness. According to them the
organizations motivated through fulfilled these needs of employee(Ployhart and et. al., 2014.).
According Maslow , if organization fulfilled their basic needs i.e food, job, sleep or feel secure.
This basic needs beginning of motivation of employee after fulfilled they feel give more efforts
in organization.
After this the second need of employee is belonging needs i.e the need of feel part of
organization or need of acceptance if organization motivated though fulfil these needs then the
employee feel comfortable at work place and feel part of group, so they give more efforts to
achieve objective and goals. Furthermore,the needs of self acclimatization and self esteem i.e
feel good about themselves, recognized for their achievement, need for personal fulfilment and
the need of grow and development. If organization motivated through fulfil these needs that
they recognized for their achievements and gives opportunity to development the the employee
then they feel proud for the part of organization and doing work more efficiently. The last needs
is safety, if organization motivated through fulfil their safety need like pension, job secure etc.
these needs helps to retain employee in long term. The motivation models help to change
organization management culture and structure.
The barriers in change and funding of resources:
The barriers in change is that sometimes employee not adopt new technologies because
of untrained employee. To remove this barrier the organization gives training to employee to
understand technology. The barriers in change is that proper number of resources are not
available in organization. The number of resources are available through more funding in

organization for resources and minimum utilisation of resources The barrier of untrained and
unskilled people. This barrier remove to gives proper training to employee and recruit suitable
employees for organization. The funding of resources and sponsor responsibility is manager
duty.
The resource implications about resource adequacy:
In Hilton hotel they provide training through expertise people for adopt technology and
understand workforce. They provide proper resource to workforce to doing effectively and
efficiently working at work place. They retain highly capable employee in long term time And
recruit new employee to reduce turnover and attract suitable employee for organization. To retain
and attract best employee in organization they motivated through fulfilled their needs. They
retain employee though gives rewards. The organization gives development opportunity to best
candidate to retain long term. The organization gives appreciation for achievement of employee
through these employee retain in long term.
TASK 5
Literature review :
According to Michael Armstrong(2008), human resource management is a strategic and
rational approach to manage organization most valuable assets i.e human resource. The people
who are working in organization, individually and collectively contribute their efforts in
achieving business objectives.
Cross culture management: In International business, managers are understand that that the
success factor for improve employee performance in economic system is organization culture.
When planning for new foreign enterprises, employers select the best employees who are best
suitable for new business. It is a crucial factor for business that when new enterprises started to
interact with different nationalities, values and belief of employee is create issue to understand
organization culture. It is not acceptable in foreign enterprises to expect that members of
different culture and values will understand the main objective of the message.
Greet Hofstede culture dimensions: The professor of Maastricht university, Greet
Hofstede conducted study that how value differences in the workplace influence the
organizational culture. Hofstede creates a model that identifies five dimensions to understand