HRM for Service Industries: Analysis and Planning, BTEC Level 5

This report provides a comprehensive analysis of Human Resource Management (HRM) within the service industry, specifically focusing on the hospitality sector. It begins by examining the role and purpose of HRM, emphasizing its importance in employee satisfaction and service quality. The report...Read More

Human Resource
Management in Service
Industry

Table of Contents
INTRODUCTION ....................................................................................................................................3
TASK 1.......................................................................................................................................................3
1.1 Role and purpose of human resource management in hospitality industry.....................................3
1.2 Human resource planning based on supply and demand................................................................4
TASK 2.......................................................................................................................................................4
2.1 Assess the current state of employment relations............................................................................4
2.2 Effects of employment law in management of human resource.....................................................5
TASK 3.......................................................................................................................................................6
3.1 Job description and person specification in Lensbury Hotel...........................................................6
3.2 Comparison of selection process.....................................................................................................7
TASK 4.......................................................................................................................................................8
4.1 Contribution of training and development activities to the effective operations............................8
CONCLUSION..........................................................................................................................................8
REFERENCES...........................................................................................................................................9

INTRODUCTION
Human resource management (HRM) is a function which is used by the companies to increase
the efficiency and productivity of the employees. It has been useful in managing the people in the
workplace. It consists of three major areas: employee compensation, staffing and designing the work.
HRM has played a vital role in the growth and development of service sector around the globe. Service
sector accounts for more than 70% of employment in many economies (Zirar, Radnor and Charlwood,
2015). The present report is based on the analysis of HRM, employment, employee relations,
recruitment, training and development in hospitality industry. Apart from this, job description, person
specification and importance of diversity and equal opportunities in the workplace have also been
included in the report.
TASK 1
1.1 Role and purpose of human resource management in hospitality industry
Human resource management plays an important role in hospitality industry because it is
entirely dependent on customers. The main aim of the management of is to keep employees satisfied
and motivated so that they can provide excellent services to the consumers (Du, Straub and Knight,
2016). UK hospitality industry has been growing at a good pace due to the rise of disposable income of
the people. For example, Hilton Hotel has realized that employees are the most important part of an
organization. They have been providing good services to the customers because they have highly
skilled and motivated workforce. It is the responsibility of HRM department to recruit qualified people
in the organization. Hospitality industry needs employees who are proactive and who can take
decisions according to the needs of the customers. It is essential for the management to build a good
relationship the employees as it can help them in the future run. Hospitality industry has high employee
turnover ratio due to long working hours, inflexibility and inadequate compensation (Lee and Hyun,
2016).
HRM ensures that the wages and compensation of the workers are competitive as compare to
other hotels and restaurants. They recruit and train their employees so that they can expertly serve the
customers. It is for this reason only that Hilton Hotel review their compensation plan and monitors the
division of labor in the organization. It helps them to deal with the labor requirement in the hotel. HRM
has helped hospitality industry in creating plans and strategies for the future (Ferrary, 2015). They
create employee programs which helps in increasing the morale and satisfaction level of the workers.
HR manager provides them direction so that they can improve their performance and efficiency. It
helps the workers to adapt to the changing demands of the business. It is the responsibility of the HRM

to create and maintain the organizational structure of the hotel. It helps in the smooth running of the
business and reduces the employee turnover.
1.2 Human resource planning based on supply and demand
Human resource planning allows the management to have an equilibrium between the supply
and demand of the manpower in the organization. In involves analysis of existing manpower inventory
and forecasting the demand of employees for the future. It can provide long term benefits to the
organization because it helps them to satisfy the needs of the consumers. It would be difficult for any
hotel to recruit right kind of people at the right time without human resource planning (Visser, 2015).
Furthermore, it has allowed Hilton Hotel to realize their organizational goals and to cope up with the
changes in the business. Demand analysis of the manpower is done every year by the management. It is
done at all the levels of the organization. Apart from this, planning has to be done for the supply of the
human resource. HRM plays an important role in the estimation and forecasting of the supply of
manpower. It includes internal as well as external sources. Internal consists of transfers, promotion, job
rotation etc while external sources includes recruitment of new candidates in the organization.
Factors affecting HRM planning
HRM planning is affected by many factors such as economic trends, change in technology,
skills shortage, demographic change, impact of pressure groups and legislation of the government
(Andreeva and Андреева, 2015). Technological and management changes has huge impact on the job
contents and context. For example, Hilton Hotel has started online bookings which requires IT
professionals. Management has to change their plans as it can cause redundancies and redeployment.
Furthermore, changes in economy and cyclical fluctuations also affect the HRM planning.
Demographic changes such as gender, age, literacy and social background has to be taken into
consideration while planning for the demand and supply of the manpower. All the companies in
hospitality industry has to comply with the rules and regulations of the government. HR planning has to
be altered according to the legislation of employment and labor laws (Santhanam, Kamalanabhan and
Ziegler, 2015). Apart from this, organizations face pressure from trade unions, politicians and internal
management which forces them to change their planning.
TASK 2
2.1 Assess the current state of employment relations
Employment relations is a relationship between the employer and the workers. It is the
responsibility of the HRM to maintain and develop employee relations in the organization. It helps in
increasing the motivation and satisfaction level of the employees (Lee and Hyun, 2016). It makes them

more committed and dedicates towards their work. Hilton Hotel has been benefited because of their
positive employment relations. They have made strategies and policies so as to resolve the issue of the
staff members. It has allowed them to reduce their employee turnover ratio and absenteeism. The
management has established effective communication in the workplace which reduce many barriers
and builds an environment of trust. Hilton Hotel has taken into consideration many elements such as
statutory employment rights, contracts, working schedule, discrimination avoidance policy etc. It has
given them competitive advantage in the industry. They have taken many steps to enhance the relation
with the workers. Current state of employment relations in Hilton Hotel has been good (Hilton Hotel,
2016). They have allowed their employees to take part in the decision making of the hotel.
Furthermore, all the policies in the organization are communicated to them. It includes working time,
discipline, conflict management procedures, overtime regulations and cessation of employment.
Management of the hotel has provided flexibility to their employees. Their compensation policies are
also reviewed every year and it has improved the morale of the workers. HRM department of Hilton
Hotel has helped in maintaining healthy relationship between the employer and employees (Nieves and
Quintana, 2016). They have also allowed them to form unions and negotiate terms. It has helped the
hotel in understanding the needs and expectations of the workers. Apart from this, the management
provides growth opportunities to the employees who have been performing well in their work. They are
given training and guidance by the supervisor so that they can improve their work. Hilton Hotel has a
grievance redressal committee.
2.2 Effects of employment law in management of human resource
Employment law affects the management of human resource in Hilton Hotel. It covers roles,
responsibility of employer and employees, dismissals, grievances, bargaining powers, compensation
and condition of strikes by the unions. Hilton Hotel has to change their strategies and plans according
to the change of employment laws in UK (Mathur, 2015). The government has ensured that all the
employees gets equal opportunities in the organization. They should not be discriminated at work.
Furthermore, employees should be given wages, flexible working rights, maternity and paternity
leaves. For example, HR department of Hilton Hotel are provided specialized knowledge and skills in
employee relations, compensation, benefits, training, collective bargaining agreements, recruitment and
employment laws. They have complied with Employment Rights Act and Employment Relations Act.
The main aim of the management is to keep the cost of human resource to minimum (Dhiman and
Kumar, 2016). Therefore, it has been a major challenge for the HRM to monitor legal and ethical issues
in the workplace. Hilton Hotel has also altered their HRM policies to comply with Workplace health
and Safety Regulations (1992). It includes not only permanent employees but also temporary work

force. It is essential for all the companies to follow the rules and legislation of the government. Non
compliance of the law can increase the liability and obligations of the company. They may have to face
huge penalties and legal suits in the future (Chen and Lin, 2015). Apart from this, Hilton Hotel has to
make sure that their pay structures are adequate, fair and transparent. They have adopted equal pay and
minimum wages in the organization. They have to allow diversity in the workplace and ensure that
there is no religious or age discrimination, harassment and racism. It is important for the management
to formulate policies keeping in mind all theses aspects of law and regulations. It will protect the rights
and interest of the employees. Law of employment has huge impact of the HRM as it has to be changed
according to it.
TASK 3
3.1 Job description and person specification in Lensbury Hotel
Job description includes tasks, functions, responsibility and skills for a particular position in a
company. On the other hand, person specifications consists of skills, personality and experience
required for the job (HRM in Hotel Industry, 2007). It is formed by human resource department and the
skills required differs for each job. It is essential for the management to do analysis which can be useful
for the candidate as well as for the company. Lensbury Hotel needs an experienced receptionist who
can provide excellent customer service to the guests. The job description and person specifications for
Lensbury Hotel is as follows:
Name of the Company: Lensbury Hotel
Department: Customer Service Front Office
Job Title: Receptionist
Summary of the job: A receptionist handles the customers and solve their queries. He/She has
to assist them according to their requirements and needs.
Key responsibility: The main responsibility of the receptionist in Lensbury Hotel are as
follows:
 Handle the call of customer related to the bookings, confirmation and reservations.
 Handling the grievance of the guests.
 Providing information to the customers relating to various services of the hotel.
 Providing assistance to other matters in the hotel.
Job Duties: Welcoming the guest by greeting them either in person or on telephone. Directing
the visitors and giving them instructions (Liu, Robinson and Lee, 2015). Ensuring security by
maintaining the procedures and policies. Monitoring of logbooks and issuance of visitor badges in the

organization.
Job Specifications:
 A candidate has to fulfill the below mentioned criteria for the job of receptionist in Lensbury
Hotel:
 Minimum age should be 18 years and should not be above 30 years of age.
 Should have graduation or relevant course in hotel or hospitality industry.
 Minimum experience: 2 years in hotel industry
 The candidate should have good communication skills.
 He/She should clear background check, medical tests ad reference for the post of receptionist.
3.2 Comparison of selection process
Selection process is a method which is used by the company to select the best candidate for the
post. The management has to consider the job specifications and skills that the candidate possess before
recruiting him (Dhiman and Kumar, 2016). Each organization has its own techniques of recruitment
and selection. Some of the most common methods used for selection are as follows:
Psychometric tests: It is used to study the personality of a person. It can give insights to the
interviewer that whether a particular person is fit for the organization or not.
Written tests: Written tests are generally used to analyze the technical skills of the candidates.
It can also be used to find out the reaction and problem solving skills of a person (Andreeva and
Андреева, 2015).
Interviews: Interviews can be used to test both soft and hard skills of a person. It is one of the
most common and most preferred selection method. Interviews can be of many types such as job
related interview, stress interview, technical interview etc.
Presentations: Many companies use presentations to analyze the communication and
persuasion skills of the candidates (Zirar, Radnor and Charlwood, 2015). It can be a useful method to
see whether a person is fit for the job or not. It is also used to study the confidence and customer
handling skills of the candidate.
Selection process depends on the requirement of skills and knowledge for a job. A receptionist
should have good communication skills and ability to handle the customers. On the other hand, a
facility manager should have high competency as he has to handle large number of employees in the
organization. He should show high level of professionalism (Santhanam, Kamalanabhan and Ziegler,
2015). The best selection method for the receptionist is interview. It can be used to check the
communication skills of the candidate. On the other hand, a facility manager should firstly appear for a
written test followed by psychometric test and interview. Hotel industry requires less technical skills as

compared to sports or airline industry (Dhiman and Kumar, 2016).
TASK 4
4.1 Contribution of training and development activities to the effective operations
Attached in ppt
CONCLUSION
It can be concluded from the above that human response management plays an important role in
the service industry. Hospitality industry is entirely dependent on customers as such they need highly
motivated and committed staff members. HR planning can be useful for reducing the employee
turnover and absenteeism in the workplace. Management has to take into consideration various factors
that affect the HRM. It includes pressure groups, unionism, government influences, legislation and
change in technology.

REFERENCES
Books and journal
Andreeva, A.V. and Андреева, А.В., 2015. HRM during organizational change in a multinational
company of hotel industry and its impact on operational performance (Doctoral dissertation, Saint
Petersburg University, Graduate School of Management, Master in International Business
Program).
Andreeva, A.V. and Андреева, А.В., 2015.HRM during organizational change in a multinational
company of hotel industry and its impact on operational performance (Doctoral dissertation, Saint
Petersburg University, Graduate School of Management, Master in International Business
Program).
Chen, L.C. and Lin, S.P., 2015. Job Standardization and Organization-Based Self-Esteem in the
Hospitality Industry: A Perspective of Socialization.International Journal of Business and
Information.10(4). p.469.
Dhiman, M.C. and Kumar, A., 2016. Human Resource Management in Indian Hospitality Industry:
Emerging Theoretical and Practical Aspects. In Project Management: Concepts, Methodologies,
Tools, and Applications (pp. 2323-2340). IGI Global.
Du, R., Straub, D.W. and Knight, M.B., 2016. The impact of espoused national cultural values on
innovative behaviour: an empirical study in the Chinese IT-enabled global service industry. Asia
Pacific Business Review. pp.1-19.
Ferrary, M., 2015. Investing in transferable strategic human capital through alliances in the luxury hotel
industry. Journal of Knowledge Management.19(5). pp.1007-1028.
Jung, H.S. and Yoon, H.H., 2016. Why is employees’ emotional intelligence important? The effects of
EI on stress-coping styles and job satisfaction in the hospitality industry. International Journal of
Contemporary Hospitality Management.28(8).
Lee, K.H. and Hyun, S.S., 2016. An extended model of employees' service innovation behavior in the
airline industry. International Journal of Contemporary Hospitality Management. 28(8).
Liu, S., Robinson, R. and Lee, H., 2015. The relationship between e-HRM and employees' behaviour.
CAUTHE 2015: Rising Tides and Sea Changes: Adaptation and Innovation in Tourism and
Hospitality. p.606.
Mathur, A.K., 2015. Relationship between Organisational Culture and Hrm Practices: An Empirical
Evidence from Indian Tourism Industry. International Journal of Research in Organizational
Behavior and Human Resource Management.3(4). pp.64-79.

Nieves, J. and Quintana, A., 2016. Human resource practices and innovation in the hotel industry: The
mediating role of human capital. Tourism and Hospitality Research. p.1467358415624137.
Santhanam, N., Kamalanabhan, T.J. and Ziegler, H., 2015. Examining the Moderating Effects of
Organizational Identification between Human Resource Practices and Employee Turnover
Intentions in Indian Hospitality Industry. GSTF Business Review (GBR).4(1). p.11.
Visser, M.M., 2015. Unlocking the “black box” between employee perceptions of HRM and service
quality for customers: Comparing engagement theory, social exchange theory, and climate theory
to predict service quality for front-line employees at an HR SSC.
Wang, C.J., 2016. Does leader-member exchange enhance performance in the hospitality industry? The
mediating roles of task motivation and creativity. International Journal of Contemporary
Hospitality Management.28(5).
Zirar, A.A., Radnor, Z.J. and Charlwood, A., 2015. The relevance of the human resource management
(HRM) to lean in the service sector: evidence from three exploratory case studies.
Online
Hilton Hotel. 2016. [Online]. Available through: <http://www3.hilton.com/en/index.html> [Accessed
on 9th July 2016]
HRM in Hotel Industry. 2007. Available through: <http://kjm.sljol.info/article/download/6552/5136/>
[Accessed on 9th July 2016]