Human Resource Management Report: Ritz-Carlton Hotel's Practices

This report provides a comprehensive analysis of Human Resource Management (HRM) practices within the Ritz-Carlton hotel chain. It begins with an introduction to the role and purpose of HRM in the service industry, highlighting its significance in attracting, developing, and retaining skilled employees. The report then delves into the specific HRM strategies employed by Ritz-Carlton, including HR planning, recruitment processes, and employee training and development programs. It also examines the current state of employment relations within the company, focusing on how Ritz-Carlton fosters positive relationships between employers and employees, and the impact of employment law on HRM. The report further explores job descriptions and person specifications for various roles within the hotel and compares selection processes in the hotel and airline industries. It concludes by emphasizing the crucial contribution of training and development to the success of the hotel. Overall, the report offers valuable insights into the effective application of HRM principles in a luxury hotel setting.

HUMAN RESOURCE
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
a. The role and purpose of human resource management in service industry........................3
b. Human Resource Plan in the service industry....................................................................5
c. Current state of employment relations in Ritz Carlton.......................................................6
d. Effect of employment law on the management of human resources in Ritz Carlton........8
TASK B...........................................................................................................................................9
a. Job description and person specification for selected service industry job........................9
b. Selection process of Hotel industry and Airline Industry................................................12
c. Contribution of Training and development in Hotel industries........................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Human resources are regarded as one of the foundation pillar for an organization. They
are fundamental resource to produce each product and service (Importance of HRM, 2016).
Every organization or business entity is managed, regulated and monitored by different
departments. Human resources are managed and governed by Human Resource Management.
The management process recruit and select the skilled workforce for an organization. It provides
proper training and development skills to the available human resources of organization. Further,
the assessment of employees, providing benefits and compensation, motivation them and
maintaining proper relations with employees and trade unions are its key features. The
management also takes care of maintain g employee safety and welfare by monitoring
employment laws.
This report focuses on impact of HRM on the functioning of hotel company Ritz-Carlton.
The current company operates in 29 major cities of different countries providing luxury hostels
and resorts. The report focuses on HRM issues and the effect of employee relations and
employment law on the hotel company.
TASK 1
a. The role and purpose of human resource management in service industry
In an economy there are three sectors- primary, secondary and service sector. The
industry covers various field of services such as hotels and resorts, theme parks, event planning
and transportation (Human resource management, 2016). Tourism is an additional field of
hospitality industry. Hotel and restaurant business of hospitality industry contributes wide range
of opportunities for an economy. In the present report, Ritz-Carlton is taken into consideration to
understand HRM role and purpose in the company.
Human resource management has a crucial role in the hospitality industry to sought out
problems related to act of employment. The managers play a significant role in engaging,
training, retaining and protecting the personnel. The domain of the management process has
improved a lot with time being. Nowadays, due to globalization and competitive market more
focus is led on the human resources (Avey, Luthans and Jensen, 2009). The HR mangers make
efforts to motivate and achieve the desired outcomes from the employees. It procures, develops
and maintains the human resources of the organization to increase its profitability. Apart from
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selection, training and development functions it is responsible to monitor employment relations
with the subordinates and staff. The management takes care of employment acts and laws and
their health and safety measures. Ritz Carlton is an eminent luxury hotels chain providing
globally accepted standards services to its elite class visitors. It is a subsidiary branch of Marriott
Hotel. In the organization, HRM creates opportunities for skilled manpower, trains and develop
them, retain them in the organization (Bondarouk and Ruël, 2009). Benefits them with
performance appraisal and protects their employment rights. The role and impact of HRM in the
company can be understood through following points: Attaining better manpower: The primary objective of HRM department is to provide
skilled and qualified employees to the hotel group. First of all the mangers attract the
candidates through communication and advertisement modes. Managers of Ritz-Carlton
make use of internal and external recruitment process. They perform the internal
recruitment process through transfer and promotion, while the external recruitment
provide opportunities to the new appointees. The candidates have to pass through various
stages of recruitment and selection procedure (Bratton and Gold, 2012). It includes
preliminary screening, aptitude tests, group discussions, interviews and medical tests.
After these procedures the selected candidates are appointed on the job. Development and growth of the employees: After the selection process, the employees
are provided proper training and guidance to achieve organizational goal of the hotel
group. As it is customer-oriented business so to gain better customer satisfaction the staff
is provided with on job and off job training sessions. Various training tools and
techniques are applied in the probation period of the trainees. Regular seminars and
development sessions are organized to make them aware and practice the requirement in
the current trends. Also, HRM monitors performance appraisals of employees
individually. Sought employment based issues: In the hotel group, HRM also deals with employees
problems and provide preventive measures in the critical situations. Employees
Grievances & Redressal procedures contribute in sough ting issues related to service
agreement, dismissal and discharge etc (Budhwar and Debrah, 2013). These provide
detail guidelines to be followed by the concerned department head for its subordinates.
These create motivation and security in the mind of the manpower.
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 Monitoring employment laws: The managers of the mentioned hotel group are always
made to build strong employee-employer relations. The Employment Rights Act,
National Minimum Wage Act, Employment Relation Act and many more are legislative
tools used by the hotel group in favor of employees (Guest, 2011).
b. Human Resource Plan in the service industry
Human resource plan is the analysis of supply and demand of human resources in an
organization. It explains and evaluates accurate number of employees required for attainment of
the organization. To forecast the future needs and requirements of human resources at different
level. It also focuses on the existing human resources of the organization. Its objective is to
foresee the impact of technology on jobs and requirement for human resources (Jiang and et.al.,
2012).
The hotel group Ritz-Carlton considers great need of human resource plan to meet its
organizational goals. The primary reason is it brings right type of people in right amount and
within the precise time. It helps to make optimum use of resources and reduces labor cost
substantially. Secondly, the managers of the hotel group enhance the existing employees by way
of promotions, rise in emoluments of existing workers and provide other fringe benefits. It
compels management to critically analyses the strength and weakness of its employees and take
corrective measures to improve the conditions (Pichler, Simpson and Stroh, 2008). Through
these plans and procedures the company is able to increase its skill, knowledge productivity and
job satisfaction among the employees.
This process builds a supportive and work environment and enhances capacity of of
individuals for the success of organizations. There are various steps followed in human resource
plan which are delivered below: Review of business goals: The managers of Ritz-Carlton first understand and review the
business goals. It asses organizations business priorities, performance indicators and
budget allocations. Also, government key priorities or emerging directions are taken into
consideration in evaluation process. Analyses of environment: In this step the external and internal factors are considered to
meet the objectives. The external factors include technological advancement, labor
market trends, changes in legislation and cultural and social values. The internal factors
include changes in policy platform, guidelines, program delivery and organizational
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structure (Vallaster, 2005). Through the evaluation of internal and external factors the
business environment is studied of the hotel company. Identifying Gaps: Here, the current and future human resources needs are determined. It
identifies possible skill shortage in the specific departments of the company. The possible
needs for succession planning and management are determined and denoted. Also, the
HR managers of the group ensures that they meet obligations related to diversity and
employment equality and learning and development (Schuler and Jackson, 2005). Development of plan: Now, based upon the collected information from the above steps
development of the plan is laid. This regards tom include human resources priorities and
key issues in the organization report on Plans and Priorities. Then the budgetary
considerations are are made and communicated to all its stakeholders.
 Measurement of progress made: The final step is performed where focus is led on the
monitoring of the plan (Appelbaum and Gandell, 2003). It measured through various set
standards that the human resources are performing in the direction of organizational
goals. The establishment of a process that make regular review, adjustments and
communication of changes.
The above mentioned steps will provide human resource plan to Ritz-Carlton which will
enforce better and optimum use of resources of the organization. It will generate more
employment opportunities in the hotel group to fulfill its organizational goals. The concept leads
better ways to focus on the new entries in the organizations and promoting the existing
workforce (Bell, 2007).
c. Current state of employment relations in Ritz Carlton
Employment relationship can be stated as the legal connection between employers and
employees. However, it exists when a individual performs or carry out the task under certain
conditions in regard of consideration. Also, it is very essential part of business that helps firm to
support high interest among workers (Avey, Luthans and Jensen, 2009). Thus, it helps
organization to achieve desired objectives and offer them effective products and services to
consumers. Developing employment relationship also helps firm to encourage workers and
support them in order to boost their morale and work effectively to achieve organizational goals.
In support to this, employee relation is a legal aspect within employee and employer and thus
aids them to offer right to workers so that they can carry out best operations within the
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workplace. Also, it is essential for firm to reduce the differences and unethical practices as it
affects the commitment and motivational level of employees.
With the assistance of this, Ritz Carlton focuses on maintaining proper employment
relations for the aim of deriving high value for both country as well as employees. Also, it is
essential for management of firm to develop the policies and practices in favor of its workers so
that they get satisfied. Management of hotel is required to undertake various human rights such
as equality to employees, adequate working hours etc, that helps in developing morale of human
resources. It also helps them to carry out their work effectively and efficiently. With the help of
this, development of employees is attained and thus business is able to function within hotel as
per the desired standards (Bondarouk and Ruël, 2009). However, it is essential for business to
maintain current state of employment relations as it helps in attaining appropriate competitive
position in the market.
Furthermore, Ritz Carlton has also developed its organizational structure in such form
which is highly focused upon the national policies of the workplace (Paillé and et.al., 2014).
Thus, it assists firm to create brand image in market and thus enhance the sales and profitability
of firm. Considering this, there are large number of individuals who wants to work with the firm
and build their career. Apart from this, trade union also plays a crucial role that helps in
optimizing the working conditions through which ethical and legal practices have been followed
within workplace. Such policy also provides benefit to the employees as they are able to raise
their voice against any unethical practices such as discrimination at the workplace and thus
overcome them so that rights of individual does not get obstructed (Bratton and Gold, 2012).
Additionally, with the help of this chances of discrimination within the hotel decreases and thus
equality has been achieved. Also, Ritz Carlton management helps in maintaining healthy
relationship with their workforce so that it minimizes the work related issues and conflicts and
attain best results.
Furthermore, the concept of collective bargaining also helps in building a base where
demand and requirements of employees can be showcased in front of the employer. Thus, it
provides a platform for the Ritz Carlton workers where negotiation and bargaining from both the
side i.e. employer and employee happens in order to solve the conflict. With the help of mutual
understanding, management concludes to a better decision which is in favor of employees so that
healthy relations can be maintained with employees and satisfaction can be attained. With the
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help of this best working conditions can be developed and thus employees are able to provide
best services to guests in order to attain satisfaction (Budhwar and Debrah, 2013).
d. Effect of employment law on the management of human resources in Ritz Carlton
It can be assessed that it is essential for each and every business enterprises regardless of
their industry to comply with all the employment laws so that best legal rights and duties can be
offered to employees (Employment Law in the United Kingdom, 2016). Thus, it helps in defining
the legal capacity and expectation of both the parties and thus provide them best employment
contract to achieve desired results. However, implementing such laws and regulations helps in
developing sound relationship within employees and carry out the operations effectively within
Ritz Carlton (Guest, 2011). In regard to this, there are certain legal obligations that need to be
focused by the firm so that rights and duties of workers are not overlooked in any manner.
Following are the effects of different employment law on the functioning of Ritz Carlton-
 Equality Act 2010- It states that each and every employee is given equal opportunities
within the business. Thus, it reduces the chances of discrimination among employees
from which their morale could be obstructed. Furthermore, it states that business is
required to not practice discrimination on any respect i.e. age, sex, nationality, culture,
beliefs etc. Such law helps at the time of recruitment and selection of candidates and thus
recruit individual on the basis of their skills and capabilities (Jiang and et.al., 2012).
Thus, it helps firm to develop a better workplace which is culturally diverse and maintain
cross cultural relationship among their workers to attain desired outcomes. For instance,
Ritz Carlton operations might get affected due to such employment law as diverse
cultural individuals work together in a team to achieve results.
 Health and Safety Act 1974- It is another crucial employment law that focuses on
providing best health and safety environment to workforce so that their welfare can be
maintained. However, it is the duty of the management of Ritz Carlton to provide best
working conditions and safe environment to workers so that they can raise the
productivity and achieve organizational goals effectively. In regard to this, it is essential
for the management of firm to comply with the essential adjustment and thus fulfill the
needs of employees. Also, hotel management provides effective training and
development to its employees so that they can ascertain necessary information and take
appropriate action at the time of emergency situation. Thus, it helps in overcoming the
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situation and employees also feel safe while working in the hotel (Pichler, Simpson and
Stroh, 2008).
 Working time 1998- Furthermore, in such type of employment law it is related to the
working time for employees. As per this law, regulatory bodies set the specific working
hours per week and thus it is essential for business to follow such law regardless of peak
workload. Thus, because of such law management of firm faces challenges in managing
the work and hence they are required to hire more number of workers for the particular
job role so that activities can be carried out effectively. Hence, firm is able to manage the
work and maintains their brand image in market by allowing workers to work for the
specific working hours. Such law also focuses on giving break in between the work so
that employees could not under pressure or stressed (Training and Development -
Meaning, its Need and Importance. 2015). However, it is complied by the Ritz Carlton
management so that productivity and profitability of firm does not get hampered.
TASK B
a. Job description and person specification for selected service industry job
This report states the job description and person specification criteria for Ritz Carlton Hotel:
 Job description - It shows the roles and responsibilities of person who is employed in the
company in order to complete its proposed tasks and achieve the specified goals. It,
generally, involves duties and responsibilities of the candidate (Jain, 2005). It could be
like whom to be reported, its roles, duration of work, skills required and description of
the salary, etc. For hotel industries, there are mainly three departments for services which
are front office, housekeeping and food & beverages services. For further studies, job
description of Front office manager has been taken in this report. Hotels manager run
day–to-day functions of a hotel, including overseeing personnel, ensuring that the
facilities are properly maintained, taking actions to ensure customer satisfaction and
maintaining the administrative and financial records (Dhar, 2008). Moreover, to expand
the perspective of the report, Front office manager's job description has been stated:
Position Title Administrative Service manager or Front Office Manager at Ritz Carlton
Hotel
Reports to Assistant General Manager or General Manager or the prior position holder
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Job purpose Direct and supervise rest of the front office personnel in the hotel, to ensure
the proper completion of all the responsibilities and job duties of front
office that involves maintaining activities of reception, reservations, guest
services, telephonic services, planning monthly budgets for front office
departments etc.
Job description Front office manager has higher post in a hotel's office that is responsible
for maintaining a professional environment, supervising staff and
supporting administrative work. It also includes the duties like;
 selecting, training and retraining the office personnel,
 Scheduling and supervising the staffResolving guest problem
quickly, efficiently and courteously, overcoming the complaints and
reviews by the guests (Kotey and Sheridan, 2004).
 Proper communication while attaining the room status
 Conducts regular meetings in the office to maintain discipline in the
staff
 Maximize room revenue, daily deposits with the bank
 Crisis handling, troubleshooting the problems, maintain customer
service and increase office morale
Requirements As per the requirement of Ritz Carlton hotel, the person should have an
associate degree of minimum two years in hotel management from
recognized colleges. It should cover areas like accounting, recording
management, document processing, desktop publishing and human
resource management.
 Ability to read, write, and understand the communicated language
i.e. English in the Hotel, person with knowledge of Spanish,
Russian and French would be given priorities (Mello, 2014).
 The candidate must have a minimum experience of two year of
hotel's front desk supervisory, handling cash, accounting procedures
and general administrative duties.
Salary offered Ritz Carlton Hotel offer salary to Administrative service manager, also said
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to be the front office managers, an average salary of $92,550 in June, 2014
and job opportunities in the field are expected to increase by 15% between
2005 and 2025, as reported by the Bureau of Labor Statistics (BLS).
 Person specification – As the front office manager represents the hotel to the guest
throughout all the stages of the guest's stay. Its duties starts from the very beginning of a
guest's reservation, assigning rooms, accommodating special requests by guest and
verifying guest payment in the end. However, to perform the job of front office manager
in Ritz Carlton Hotel, the person must be able to perform each essential responsibility to
satisfactory standards (Salaman, Storey and Billsberry, 2005). The candidate must know
his skills and knowledge to successfully complete its task as per their duties and
responsibilities.
Education Candidate must have High School Qualification, a college degree of two
years in Hospitality management or Hotel Management. The degree should
also cover the classes of:
 Document processing
 Accounting
 Human resource management
 Communication
Skills Candidate must have the ability to communicate clearly, possess leadership
skills, perform well under pressure, highly motivated, multitasking and able
to manage time. Excellent knowledge of the primary language, i.e.
English, is mandatory as well as the ability to write, speak and read clearly
(Panayotopoulou, Vakola and Galanaki, 2007). Candidate should have the
ability to write, read and listen to the instructions, memos, short
correspondences and messages. Computer data handling and software
knowledge required.
Experience Person should have at least 2 years of professional experience in previous
Front offices at a luxurious property is required. Person worked at five stars
would be preferred.
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b. Selection process of Hotel industry and Airline Industry
Recruitment process of Ritz Carlton Hotel :
 Staff requisition/ demand – From the starting step of recruitment process, the Human
Resource Department of the hotel generally conduct a process of identifying the demand
for employees in the hotel. Further, Human Resource team checks the existing staff
which can be promoted in manner to overcome the demand. However, the need for the
new hiring remain the same, for which the hotel advertise for vacancy in newspaper, TV,
internet etc. (this step takes up to 20 days). Advertisement – It attracts the candidates searching for jobs which is appropriate as per
their requirement and qualification. They contact the hotel for interview and selection
procedure. Collecting & Selecting CV: The recruiting staff collect CV from the applicant applied for
the advertised job. It can be via mails, to the hotel's desk, personal meetings, references,
etc (Hartmann, 2006). Further, the Human resource team starts checking the applicants
which overcome the requirements needed for the job. The checked applicant’s CV is
selected for the next step of tests.
 Personality test : It involves the test regarding Psychological ability, candidate's
Aptitude, English Efficiency , etc. which creates a imaginary status as per the value and
effectiveness (Amar, 2004). These test are generally on the basis of intelligence/mental
ability of the candidate to know its alertness and response over the situation. Also the
Tests specifies the training required to be provided to the candidate to improve its skills.
They are further classified as:
◦ Simulation Test : It is a test which duplicates many of the activities and problems an
employee faces while at work.
◦ Graphology Test : It involves using a trained evaluator examine the hooks, loops,
stokes, curves and flourishes in a person's handwriting to assess the person's
personality and emotional make-up (Gloet, 2006).
 Interview : Clearing the tests invites the candidate for interview which is used to find
whether the candidate is best suited for the required job or not. The competence of the
candidate is judged on this stage. Generally have three to four rounds which are:
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