HRM Strategy, Factors, and Evaluation: Hilton UK Hotel Report

This report provides a comprehensive analysis of Human Resource Management (HRM) at Hilton UK. It begins with an introduction to HRM's role in organizational success, specifically within the hospitality industry. The report identifies external factors impacting Hilton's business and HR functions, including the gender pay gap, artificial intelligence, flexible working hours, and employee trust. It then delves into a PESTLE analysis and Porter's Five Forces model to assess the political, economic, social, technological, legal, and environmental factors influencing Hilton's operations, along with competitive dynamics. The report compares the strengths and weaknesses of PESTLE and PRESTCOM analyses and outlines the key stages in strategy formulation, implementation, and the role of HR in change management, business ethics, and accountability. Finally, it evaluates organizational performance and discusses the sources of business data and the role of HR in supporting these activities, concluding with a summary of the findings.

Hotel Hilton UK
Hotel Hilton Hotel Hilton
Human Resource Management
System

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Contents
Introduction.................................................................................................................................................1
Hotel Hilton and HRM................................................................................................................................2
1.1 External factors that are impacting organizations business and HR functions...................................2
2.1 Pestle analysis and Porters five models.............................................................................................4
2.2 Compare the weakness and strength of PESTLE and PRESTCOM analysis.....................................8
2.3 Key stages in the strategy formulation, implementation and Role of HR..........................................9
Role of HR in change management...................................................................................................11
2.4 HR contribution to business ethics and accountability in the organization......................................12
3.1 Evaluation of organization performance..........................................................................................13
3.2 Source of business data and the role of HR in supporting these activities.......................................15
Conclusion.................................................................................................................................................17
Bibliography..............................................................................................................................................18

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Introduction
Human resource management is the major part of any business whether it is a retail industry or
hospitality industry. In achieving the success for the organization HRM contributes and play an
essential role (Glaister, 2018). HRM strategies aligned to make changes in the organizational
overall HRM process. HRM strategy planning leads to implement new and different functions in
the HR process of the organizations. These strategies are guided by HRM specialist with the
purpose of contribution to the overall operation (Ellmer, 2018).
Hilton holding Plc is also known as Hilton Hotels Corporation across the world. The
organization is multinational hospitality organization and having its hotel and resorts in more
than 109 countries. In 2013 the company becomes 36th largest private held company. The
organization having one of its hotels in London names as Hilton hotel Stratford (Maxwell &
Lyle, 2018).
The purpose of the report is to assess the HR strategy and key issues at Hotel Hilton in the UK
and to identify the factors that are impacting organizations business HR strategy. The important
objective of this report is assessing how HR evaluates organization's implements HRM strategy
and the forces that help to shape the HR agenda. It will also assess how the HR specialist
evaluates organization performance.

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Hotel Hilton and HRM
1.1 External factors that are impacting organizations business and HR functions
HRM department of Hilton UK is very well drafted yet nothing left perfect, there are four factors
which impacts organizations business and HR functions as well. The organizations change their
HR strategy in every 5 years some time company makes these changes on a yearly basis
(Maxwell & Lyle, 2018). Here are four factors which impact business and HR functions:
Gender pay gap: Every organization must follow the compliances standards for its workforce
and stay within the law to make a safe and positive environment. Laws and regulations impact
every process and operations of Hilton including HRM. There are many employment laws and
business laws in the UK which changes in every five years. For instance, there are some law
changes in employment laws as according to Gender pay gap Act organizations who has more
than 250 employees have to report about staff gender pay gap every year (CIPD, 2018).. These
changes in law lead to changes in policy.
Artificial intelligence: Several technology factors influence the customer. AI becomes regular
these days. Hotel Hilton is one the hotel who invent their own Bot “Connie” With guests when
visit the check in desk. This robot also suggest guest for local attractions and sites. These AI
technologies impacts business performances on a large level (Event Studio Team, 2018).

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Flexible working hours: Flexible working hours can be use as strategic tool to increase
productivity and improve performance. Flexible working works involves part-time jobs, work
from home and several others. There are many benefits of providing flexible working hours
which impacts both way directly and indirectly (CIPD, 2018).
Lack of trusted employees: Lack of trust decrease transparency and communication. Hilton
needs to build trust amongst employees and empowering staff to own daily responsibility. Still
some of the employee do not have trust on their manager or the company such employee often
get influenced by outsider and other organizations. They also influence other employee. Lack of
trusted employees impacts organizational performance (Park, 2018).
2.1 Pestle analysis and Porters five models
The pestle analysis of Hilton hotel involves assessing the possible effects which impacted its
operations (CIPD, 2018). Pestle analyses of Hilton hotel as follows:

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Political factors: It can identify that the political condition of the UK can impact the business
operations which can lead to negative loses sometimes as well. The hazards and threats of
terrorism activities impacts and lead to a reduction in the number of traveler and visitors and it
impact the organization’s business performance as well (Ramos, 2018). For instance in 2005
there UK faced lots of terrorist activities and UK labeled as a place with extremist religious
organizations. And it impacted Hilton’s business performance in the market (Dudovskiy, 2016).
Economic factors: The monetary factors predominantly incorporates the financial development,
charge rates, swelling, loan fees, wage rates, change in return rates, and so forth which impacts
the functionalities of the Hotel Hilton to the extraordinary degree. For example world’s recession
and financial crisis in between 2007-2009 lead Hilton’s sales got down by 20%. However Hilton
gets recovered and earned profit again in 2008 (Ryan, 2019).
Social factors: Social factors include all the cultural factors, health, and safety concern, growth
of populations and several others. That can influence Hilton’s operation hugely. It has been
distinguished that London is been known for its social broadening and consequently bolsters the
association in managing the equivalent. The exhibitions of Hotel Hilton could be impacts
through various inclinations of the client from the assorted foundation and would consequently
require making the procedures appropriately. The company ISO certified this means the
company is fulfilling the following the social responsibility. It also influences the customer and
increase business performance.
Technological factors: Technological factors are the major factors which improve performance
efficiency and decrease the HR inventory. There are many services such as mobile apps and
other services the company utilizing the services one of the technology hotels utilizes that which

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provides room’s control to guests and this automation reduce workforce turnover (Hilton-
Newsroom, 2018).
Legal Factors: There are many legislations for the hospitality industry to carry out while
operating business. It is essential for the hotel that the HR department and management
department must stand by the laws and legislation such as customer rights protection, health &
safety. Breaches of these laws cause the penalty and the due to recent law changes, penalty rise
from 20000 to 5000 (CIPD, 2018).
Environment: The ecological variables incorporate the climatic conditions, expanded expense
of assets, and so forth which would affect the Hilton from multiple points of view. The
adjustments in the climatic condition would exceedingly affect the profitability of the Hotel as it
would prompt a decrease in the number of clients and travelers from different countries.
Porter’s five models used as a tool to analyze those factors which can impact business
performance (CIPD, 2012). Here are factors that can affect the business:

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(B2U, 2016)
Competitive rivalry: With this HR analyses how many rivals’ organizations have and how their
services and its quality compare does with the Hilton. With these analyses, Hilton can attract
client and visitors by cutting the price and provide less priced services. There are lots of
competitors of Hilton in UK such as Radisson Blu is also providing AI technology giving equal
services batterly which influences its customer. There are many competitors of Hilton hotel.
(Event Studio Team, 2018). Net Income in the first 6 months quarter 2016 grew year on year by
106.67 %, faster than average growth of its competitors.

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(Dudovskiy, 2016)
Supplier power: Hilton UK purchases services from more around 5000 suppliers. However
most suppliers bargaining power is low as they have less unique products and service. The
company runs diversity program for supplier which ensure purchasing from, and the growth of,
socially diverse suppliers.
Buyer power: UK’s buyers have high bargaining power as there is large number of hotel in the
UK and they have lot of option of choice.
The threat of substitution: This is to analyses what technology would attract the customer. A
substitution that is simple and shoddy to make can debilitate your position and undermine your
productivity. Hilton also facing some issues when technology is increasing and decreasing the
need of travel for instance video conferencing decreases the need of travel to other place and stay
in the hotel.
The risk of new entry: HR or other market analyst specialist analyses that all are going to enter
the market where a hotel in operated how much would it cost. However, Hilton has strong and
strong barriers to entry. They can reserve a position and taking advantage of it.

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2.2 Compare the weakness and strength of PESTLE and PRESTCOM analysis
While Pestle analysis is use to identify the external factors which can affect the business and HR
functions (CIPD, 2018). PRESTCOM is used to internal and external both factors which can
impact the business (Tariah, 2014). There is some strength which is both similarly have such as
both can analyze the Political factors such as government changes and several others that can
impact the Hilton’s business and HR functions. Both can analyze the regulatory framework in
the UK and those laws which are changed in recent time and should be implemented in the
organization. PESTLE and PRESTCOM both tool analyze all the economic factors that impacted
on the business such as how population growth will impact and fluctuating exchange rates and
several others which can affect.
However, PESTLE does not analyze the internal and organizational factor such as employees’
performance any internal disputes or internal stakeholders and their expectations which can

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impact the business and internal environment. PESTLE also does not analyzes how competitor
doing the business, how their services and products doing well as compare the Hilton hotel. It
also HR can overgeneralize the information that is used for decisions making (Management E-
books, 2018). On the other side PRESTCOM can analyze the competitor situation and position
as well and how can Hilton provide better service than their competitor. However, there is not
any weakness of PRESTCOM as it analyzes the internal and external factors as well. There is
one weakness of PRESTCOM tool that it cannot analyze the environmental factors such as how
weather or seasonal changes can influence the Hilton’s business and HR functions (Tariah,
2014).
2.3 Key stages in the strategy formulation, implementation and Role of HR
Every organization believes that its employees are the major factor of the organization’s success.
It is important to frame and implement HR strategy. By framing and implementing HR strategy
Hilton determines how to meet business requirement and customer demand.
HR strategy begins with assessing the current existing staff in the company and recognizes the
future needs of the staff based on business objectives. From there HR aligns the organization's
strategy with employment planning and implementing the plan to organizational success. Here
are some stages in strategy:
1. Assessing current HR capacity: The first stage is to assess the current staff. Before hiring
employees HR of Hilton identify the talent organization already has and develops the skills of
each of the employee of the organization (L'Écuyer, 2019).
2. Forecast HR requirement: After assessing the current HR capacity and having the full
inventory of the resources HR forecast the future needs. They recognize that the current capacity

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of the staff is sufficient or hotel must stick current staff and improve their productivity
(L'Écuyer, 2019).
Matching supply and demand: The HR of the hotel assesses both demands of the organization
and supply of employee. HR needs to carefully manage supply and demand. This is the tricky
process where rest resource management process comes in place. The HR develops the strategy
to link the hotel’s demand for a quality workforce with the supply available in the market. HR
can accomplish this by trained current employees, hire employees or merging both approaches
(L'Écuyer, 2019).
3. Develop talent strategies: After determining the HR capacity, later HR begins the process of
Develop the skills and talent of the employees by providing them training sessions. Talent
development is a crucial part of the HRM process (L'Écuyer, 2019).
Recruitment: With this process, HR specialists search for candidates that match the kills which
the company requires. For this process HR use company’s websites, social websites to share the
job post and hire employees (L'Écuyer, 2019).
Selection: Once completing the recruitment process HR conducts interviews to identify the best
employee for the organization. IF HR has properly forecast the supply and demand they would
not have trouble finding the perfect candidate (L'Écuyer, 2019).
Hiring: At the end of the recruitment and selection process HR hire the final candidates
(L'Écuyer, 2019).