Competitive Advantage Through HR: Marriott International Analysis

This report provides a comprehensive analysis of Marriott International's human resource management (HRM) strategies and their impact on the company's competitive advantage. The report begins with an introduction to HRM and its importance, followed by an examination of how Marriott utilizes effective HR strategies to gain a competitive edge in the hospitality industry. Task 1 delves into the significance of these strategies, including recruitment, selection, training, work-life balance, compensation, promotion, and performance measurement. Task 2 then explores various HR models, such as the Harvard framework, best practice model, and contingency model, and critically examines the importance of HRM in a changing business environment, analyzing Marriott's performance. The report highlights the role of HRM in attracting and retaining employees, ensuring workforce diversity, and providing smooth services to a diversified customer base. Finally, Task 3 discusses the implications of the recruitment and selection process in increasing the performance of Marriott. The report concludes by summarizing the key findings and emphasizing the crucial role of effective HR practices in Marriott's overall success.

MANAGING
HUMAN CAPITAL
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TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
TASK 1 ...........................................................................................................................................3
1 The significance of effective HR strategies in terms of creating competitive advantage for
Marriott International...................................................................................................................3
TASK 2............................................................................................................................................6
2. Drawing on HR models and critically examining the importance of HRM in changing
business environment by analyzing the performance of firm .....................................................6
TASK 3..........................................................................................................................................10
3 The implication of recruitment and selection process in increasing performance of Marriott
...................................................................................................................................................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Managing human resource is a formal process adopted by manager to enhance the
productivity and profitability of its employee. The main aim of human resource management is
to attain organizations strategic objective with an proper involvement of employees. It further
involve various functions like, recruitment, selection, providing induction and orientation to new
employee (Hayton, 2005). In addition to this it involve training and development program,
performance appraisal, compensation and workforce planning. In order to maintain high quality
of human inventory within the organization it is important for business enterprise to retain its
competent and talented workforce. For this aspect, management ensures healthy work culture is
maintained within the enterprise to assure maximum satisfaction of employees within the
company (Huselid, Becker and Beatty, 2005). The main consideration of human resource
management is to have extremely skilled and performance oriented workforce who ensure proper
involvement in different supportive system, procedures, policies and functions. In this report
various aspect of managing human resource will be studied.
To enhance the study, a luxury chain of hotel Marriott International has been selected. It
is public ltd company operating effectively within tourism and hospitality industry since 1993. It
provide its services to more than 80 countries and territories in almost every corner of the globe.
In this report, the importance of HR strategies in terms of creating competitive advantage for
Marriott will be explained. Further, critical evaluation of recruitment, selection, training and
development program in enhancing the performance of employees will be provided in this report.
TASK 1
1 The significance of effective HR strategies in terms of creating competitive advantage for
Marriott International
With the increase in competition at national and international level, Marriott is polishing
its competitive advantages. For this aspect, company is focusing in its core competence in terms
of human resources. The entrepreneurs of organization believes on a principle that, effective care
of employees will assist in effective care of guest. The employees render services to target
customers therefore if they are happy they will keep customers happy too (Kurtzberg, Naquin
and Belkin, 2005). Marriott ensure its commitment to grow its business in global market,
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maximize economic development while assuring proper focus on improving the lifestyle of its
employees and their family. The major concern of company is to assure commitment from
employees working within Marriott. Further, in present scenario, the organizational capabilities
depends to huge extent upon the capability of company to manage its human capital to attain
competitive benefits (Sarkis, Gonzalez-Torre and Adenso-Diaz, 2010).
Therefore, employees are the most vital resources for company to sustain competitive
advantage in long run. However, to guarantee capability of company in hospitality industry it is
crucial for firm to hire best and capable employees and develop their competencies using
effective HR practices, policies and programs. With the proper consideration on HR practices,
Marriott is able to manage an inventory of up to 200,000 employees (Unger, Rauch and
Rosenbusch, 2011). They further help company in providing impressive services to guest as per
the set benchmarks and assure retention of loyal customers. Further, range of benefits are
provided to employee and therefore company is ranked among the best employer of UK. The
advantages provided to employees are like, good salary as per industry rates, discount of eatables
and beverages, work-life balance, free travel deals, retirement and insurance benefits etc
(Williams, Verhulst and Dunnington, 200). With this aspect, organization is able to reduce
employee turnover ratio. Therefore, HR strategies are directed towards getting most out of its
human resources and boost commitment among members within Marriott and sustain
competitive benefit of company. The various advantages of HR strategies in this respect are
explained as follows:
 Recruitment: It is a procedure of finding a suitable and competent candidates and
stimulate them to employ for the the vacant job position in organization. As per the view
of (April Chang and Chun Huang, 2005) Marriott uses various internal and external
sources for recruitment process. The organization works in collaboration with top high
schools and colleges to provide internship program to students. Therefore, company
easily recruit part time and full time workers through campus interviews.
 Selection: With this aspect, human resource manager of company selects best candidate
having proper qualification and skills for the vacant job post. Therefore, HR executive
matches the job requirement with the qualification and skills of applicant (Crook, and
et.al., 2011).
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 Training and development: According to the (Elbashir, Collier and Davern, 2008) the
training and development is a crucial process that help manager of organization in
enhancing the skills and abilities of it workforce during the course of job. The main
purpose of training program is to fill the gap of job need and the existing skills of
employees. Therefore various methods are used like, on and off the job training,
apprenticeship, culinary programs, job rotation etc. They further help employee in its
career growth and development.
 Work-Life balance: According to (Macky and Boxall, 2007) Marriott aims at becoming
a employer of the choice. For this aspect, it ensure that it provide a proper a work and
social life balance to employees. It guarantee that organization is best place to work for
female candidates. In this respect, maternity leaves, compressed work week, easy shifts,
weekend off etc are provided to employees (Lawler and Boudreau, 2009). Further,
changes are made in shifts so that employee is not forced to work more on holidays or
peak business hours.
 Compensation: They are the extra benefits that are provided to employee during its
departure from company. This makes employee review on the decision of leaving the
entity. Marriott provides two types of compensation like, basic and supplementary
compensation.
 Promotion and transfer: The promotion refers to the process of movement of employee
to a superior post with increased job responsibility and pay. It help employee in building
higher recognition and morale. Further as pert the view of (Rothwell, 2010), transfer
refers to crosswise shift within enterprise. However, in this aspect, there is no change in
the responsibility and salary of employee. Performance measurement: The HR strategies also emphasize on evaluating the
performance of employee at periodic intervals. With this aspect, Marriott encourages
high performing employee with giving more recognition, promotion or salary while poor
performing employees are given disciplinary warnings (Nishii, Lepak and Schneider,
2008).
Various strategic HR issues in overall performance of organization
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There are various HR issues that have direct impact on the performance of organization.
They are as follows:
 Increase employee turnover: The turnover in hospitality industry is more due to more
working hours, late night shifts etc. The HR department of company is facing issue of
employee turnover which have direct impact on the productivity of company.
 Compliance with various laws: The HR department of organization is strained to follow
various rules and regulation like, employment, anti discrimination, health and safety act,
equality, minimum wage act etc (Ravichandran, Lertwongsatien and
LERTWONGSATIEN, 2005). This increases the burden on HR department and non
compliance of these regulation can lead to litigation and legal consequence resulting
negative impact on the overall functions of company.
 Higher cost involved in training programs: There is significant cost involved in
training and development program which further increases the overall cost of operations.
The lack of funds, increase training cost are some Hr related issues.
 Improper selection of candidate: The inappropriate selection of candidate during
recruitment and selection process can have negative impact on the overall performance of
company and also other employee working in entity (Coyle-Shapiro, Hoque and Kessler,
2013).
 Under performing employee: The employees performing below their capacity also have
a direct impact on the performance of company.
TASK 2
2. Drawing on HR models and critically examining the importance of HRM in changing business
environment by analyzing the performance of firm
The HR models help in connecting the strategy and essential regions of human resource
management like, procedure and business structure. The models help in detailing the significance
of human resources in attaining the strategic objectives of Marriott. There are range of HR
models developed by experts to reflect the significance of human resource management in
dynamic business environment. They are as follows:
The Harvard Framework: As per the views of reputed Harvard business school the
human resource management is based on two key attributes. It states line mangers tends to take
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more responsibility in order to match the personal needs with business strategy. Further, the
Harvard framework help in resolving the issues involved in employee management. It is further
focused on sustaining the interest of stakeholders for ensuring effective performance. The
Harvard framework highlights the key HR areas like, human resource flow, reward system,
employee impact and work system (Strandberg, 2001). The Hr flow involves key HR process
like, recruitment, selection, training, appraisals etc. The reward system involve pay structure,
bonus, motivation etc. further, employee influence refers to causing employee to work hard by
giving more responsibility, authority. Thereafter, the work system relates to organization
structure, alignment of people and resources (Wright, Gardner and Moynihan, 2003).
Best practice model: It refers to the universal methods of HRM that ensures the
performance of employees beyond their potential resulting into overall positive impact on the
performance of company. It involves employing best human resources practices to maximize
organizational capabilities. Therefore, as per the view of (Frost, 2016) best practice relates to use
of job security, selective recruitment, team working, division of work, employee engagement,
need based training and high appraisals linked with performance of company.
Contingency model: According to (Wright, Gardner and Moynihan (2003)the
contingency model states that organization should chose the Hr strategy or practice as per the
needs and requirement of business. Therefore, significant changes can be made in Hr strategy so
that it is best fitted in the organization. It is based of two key elements external and internal fit.
The external fit is associated with the competitive business strategy of company. Thereafter, it
states that Hr practices are directly related with competitive benefit (Strandberg, 2001).
Thereafter, the internal fit refers to hr polices, procedure, work culture and structure that must be
logical. This model further help in facilitating change within the organization in order to meet the
requirement of overall strategy.
The aforementioned models play a strong role in matching the HR strategy with corporate
strategy of Marriott. It further help in matching the personal interest of employees with that of
organization. The models help manager in developing better understanding about HR practices
and their worth within the organization. Further the significance of HRM in present dynamic
environment is explained as follows:
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Marriott International is global service provider having its presence in more than 80
countries. It have strong human inventory consisting of up-to 200,000 employee. The HRM
practices help company in attracting local as well as international candidates to apply for the job
in organization. Due to favorable HR policy and company aim to become employer of choice,
the individuals prefer to work for Marriott (Coyle-Shapiro, Hoque and Kessler, 2013). The major
consideration is given of HR policies because management believes customer retention depends
upon the quality of service and impression developed by employees. Since, it is global company
organization ensures workforce diversity. The workforce diversity help organization in
employing individuals of varied, background, ethnicity etc (Ravichandran, Lertwongsatien and
LERTWONGSATIEN, 2005). In addition to this it ensures cultural diversity by employing
individuals of assorted cultural background. It further help organization in providing smooth
service to diversified range of customers. The diversity help in bridging the cultural gap within
UK and foreign country.
According to Hayton (2005) it has been stated that major significance of HRM functions
is that it help in building the skills and capability of existing and new employee that further leads
to increase in employee performance. Further, with the aid of Hr function related to training and
development also help in polishing the capabilities of employee. The Hayton (2005) also stated
that the major significance of Hr function is it facilitate the measure of employee performance in
order to assure its continuous development and growth. Due to performance appraisal program,
employees tend to give maximum output and best performance. This further enhances the overall
productivity of Marriott. Thereafter, Hr functions like employee engagement, work life balance
aims at retaining the competent personnel within the organization (Huselid, Becker and Beatty,
2005). Further, many HR functions assure employee engagement like, motivation, that builds
employee confidence to take daily work challenge and enhance the performance of company in
national and international market. As per the view of, author motivational elements also assist in
sharping the personal and professional developing skills that are crucial for improve
organizational performance. However, Kurtzberg, Naquin and Belkin (2005) states that
motivational factors have more significant role in retaining the employee and accepting changes.
By analyzing the business performance of Marriott, it has been stated by Kurtzberg,
Naquin and Belkin (2005) that Human resource management of company aims at ensuring that
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employees feel valued and honored within company. Further, organization assure employee
engagement in CSR activities and gain recognition at global level. Further employees are
awarded for participating in community service projects. The organization also provide pre shift
recreational sessions for housekeepers, workers. In addition to this, awards are organized in
Oscar style for appraising voluntary work, best performance (Kurtzberg, Naquin and Belkin,
2005). Further various activities are organized like, acknowledging the best employee of the
month etc. Also various benefits are provided to employee like, discounts on food and beverages,
free life time travel deals etc. This is a reason that further stimulate individuals to stay within the
organization. The management also connects socially with its employees by using mobile
applications, social networking sites etc. This help in building strong inter personal
communication between employees and management and reducing status barrier (Sarkis,
Gonzalez-Torre and Adenso-Diaz, 2010).
At present Marriott have lowest employee turnover rates in hospitality and tourism
industry due to its strong focus on HR functions and practices. As per the view of Unger, Rauch
and Rosenbusch (2011) company expend more than US$100 million every year on providing
training and development program to its workforce. Thereafter, with the help of Hr functions
company aims at building employment branding. It further help in stimulating the high potential
candidates to apply for the vacant job positions. Thereafter, Marriott ensures it provides healthy
and caring work environment for its employees. The brand sustains the leading market position
in hospitality industry as compared to its major rival, Hilton by making best use of its human
resources (Unger, Rauch and Rosenbusch, 2011). The employees helped organization in
designing attractive marketing strategy like, virtual, social media. M marketing etc. Therefore,
there is direct and close relation between hr practices and performance of organization. It not
only improves the performance but also provide competitive benefit to Marriott.
Marriott is also ranked at 7th number in the list of best employer company to work with.
In addition to this, it is ranked at 4th number in the list of top 50 companies having diversity.
With this aspect, employees are attracted to apply for the vacant job positions in company.
Further, with the employee competencies organization is able to increase it profitability as
compared to last year.
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TASK 3
3 The implication of recruitment and selection process in increasing performance of Marriott
The HR practices like, recruitment and selection exhibits an enabling role in the context
of enhancing the performance of organization in varied market. As per the present scenario, it is
crucial of business entity to employ new work processes. They further help in bringing
innovation and minimize change resistance. Since, there is direct link between employee
performance and organizational productivity, it is stated by Williams, Verhulst and Dunnington,
(2008) that improvement in one leads to enhancement of other. Therefore, it is significant for
organization to ensure selection of right person for right job. Further, it is important for Marriott
to adopt effective recruitment and selection process that will help company in increasing its
performance.
According to Williams, Verhulst and Dunnington (2008) the overall quality of the
manpower within the organization is primarily depend on the recruitment and selection function
of the HR practices. However, the main aim of both the processes and function is to select the
quality and competent personnel in the Marriott International so that they can render services to
their guests and customers. For instance; with selecting the competent and qualified personnel
within the Marriott International it may directly result in increasing the performance of the
hospitality organization as the selected employee is qualified and satisfied with their position in
the hotel organization (Williams, Verhulst and Dunnington, 2008). Thus, the individual will
render quality services to the guests and customers who are visiting their place. Williams,
Verhulst and Dunnington (2008) has also asserted that with the improper or unethical activities
within the recruitment process of Marriott International it may result in selecting the
inappropriate or wrong selection of the employees for the vacant post that may act as the
financial loss for the companies as the individual with incompetent skills and knowledge will not
able to perform in the effective manner that directly affect the performance of overall
organization (April Chang and Chun Huang, 2005).
On the other hand Sarkis, Gonzalez-Torre and Adenso-Diaz, 2010 has also asserted that
with the effective recruitment and selection process in the Marriott International the manager
will tend to select the right and qualified employees for performing the activities and rendering
services to the guest and customers (Sarkis, Gonzalez-Torre and Adenso-Diaz, 2010). Thus, if
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the employee is satisfied with their job position it may result in enabling the longer stay within
the organization that often reduces or lower the employee turnover ration in the Marriott
International. However, Elbashir, Collier and Davern, 2008 has also asserted that in the modern
context the organization are mainly looking for the new methods for recruiting and selecting the
candidate so that it may result in gaining competitive advantage for the Marriott International. It
has been emphasized that with the recruitment function manager of Marriott International can
easily attract the large pool of candidate and then they may select the competent and qualified
candidate from the pool of applicant so that they may render ethical and fair services in the
organization that enhances overall organizational performance.
Despite of this, (Macky and Boxall, 2007 has asserted that if the manager focuses on the
wrong practices in the recruitment and selection then it may act the loss for the organization as
for conducting the recruitment and selection process they have incurred huge amount and costs
for selecting the competent personnel but selecting the inappropriate candidate may lead to affect
and impact the organizational performance. However, it has been recommended that to ensure
the recruitment and selection of the competent personnel HR manager of Marriott International
must focuses on the proper structure for recruiting and selecting the caliber and qualified
personnel. However, the effective HR practices within the Marriott International will boost or
encourage the morale of the employees and individual that perceive them to enable quality
services to their guests (Macky and Boxall, 2007). However, it will also ensure that employee
may render proper services that encourages their own performance.
The ways in which training and development help the company increase employee performance
can be critically evaluated. Training provided at Marriot allows the employees to gain new skills
thereby sharpening the existing ones. In this way, the employees at Marriott are able to prepare
themselves for the existing and future job roles. Moreover, skills learned by the employees
enable them to manage their work properly thus leading to efficient time management. This leads
to improvement in their performance (Lawler and Boudreau, 2009). However, it can be critically
evaluated that training and development would help in increasing employee performance only
when the employees have the knowledge of using the skills in the appropriate manner and
situations.
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Training and development is extremely important for the newly hired employees. It
presents a good platform for the new employees and allows them to speed up with the processes
of Marriot. It also helps in addressing skill gaps in the new employees. However, it can be
critically evaluated that the employees need to have a learning attitude so as to benefit from
training and development activities of organization (Rothwell, 2010). It is only then that these
will contribute to the increase in employee performance at Marriott.
Training helps in addressing the shortcomings and weaknesses of the employees. These
are the factors that hinder the speed and quality of work of the employees. As training eliminates
these factors, it eventually helps in improving the performance of employees. However, it can be
critically evaluated that training and development activities should be broken down to the
individual needs of the employees after assessing their skill gaps. In this regard, it is essential
that Marriott organizes training and development activities as per the training needs of the
employees.
An organization that makes investments towards and training and development of
employees leads to the satisfaction of the workforce. This satisfaction acts as an important
element in increasing the employee performance (Ravichandran, Lertwongsatien and
LERTWONGSATIEN, 2005). However, it can be critically evaluated that training should be
conducted in a manner so that the employees are able to take back something. This indicates that
if the training organized by Marriott is dull and tedious, it would decrease employee performance
instead of increasing it. In order to increase employee productivity it is essential to provide them
training for using new technology. Marriott incorporates various processes which are carried out
with the help of equipment that are based on new technology. Training and development helps in
making the employees up to date with the latest technology./ through this, the hotel is able to
discard the outdated technology thus making the work faster. This in turn leads to increase in
employee performance. Training also makes the employees at Marriott more aware about the
safety practices and other aspects that need to be considered while working. It builds employee
confidence as he or she has a better understanding of the industry as well as roles and
responsibilities (Frost, 2016). Inn this way, training and development helps in increasing
employee performance at Marriott.
Justified training strategies for the firm
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