Business Issues, HRM Strategies, and Performance at Marriott Hotel

This report provides a detailed analysis of business issues within the context of Human Resource Management (HRM) at Marriott International. It begins with an introduction to HRM and the company's focus on hospitality, followed by a description of Marriott's organizational structure, which primarily uses a functional structure. The report explores the roles of different management levels, including planning, organizing, staffing, employee development, and maintenance. It also examines the organization's culture, identifying it as a 'person' culture, and discusses both internal and external factors affecting the business, such as management changes, employee morale, political, economic, social, technological, environmental, and legal factors. The report further outlines the tools used to measure and control business performance, including profit benchmarks and key performance indicators. Finally, the report provides recommendations for Marriott and a communication plan to forward it.

BUSINESS ISSUE IN THE
CONTEXT OF HUMAN
RESOURCE

Table of Contents
Business issue in the context of human resource.............................................................................1
INTRODUCTION...........................................................................................................................3
1. Description of the organisation and the management functions within it...............................3
2. Business performance addresses key contemporary business issue.......................................4
3. Identification and evaluation of the major external contexts affecting the organisation,
including international factors.....................................................................................................5
4. Role of HR in business planning and the resources used by Marriot Hotel ..........................8
5. Recommendation for Marriott and communication plan to forward it.................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
Books and journals....................................................................................................................12
Alexander, K., 2013. Facilities management: theory and practice. Routledge.........................12

INTRODUCTION
Human resource management is the management of the organization design which
maximize the employee performance to achieve the strategic objectives and goals of the
organization. HRM is an essential part of an organization which helps in managing the human
resources in the organization. The main function of HRM is to make better utilization of human
resources to the organization. Marriott International company is that which deals in hotel and
lodging facilities. The main aim of the company is to provide best hospitality to their customers.
For achieving this aim or goal, company should have better human resource management.
1. Description of the organisation and the management functions within it
Marriott international is an American multinational company. It deals in hotels and
resorts services. It is mainly related to the hotels and lodging facilities (Boxall and Purcell 2011).
Its headquarter is in Bethesda Maryland in Washington. It is the industry of hospitality and
tourism. In every organization management plays an essential role. It is the work of the
management to control all over the work of the company. Each company has different levels of
management working under it. There are generally three types of management levels such as top
level, middle level and lower level management. How a company operates is lays down under
the organizational structure which is design by the management of the company. It is the
structure in which policies, rules and regulations, norms are set by the management. This
structure will determine that how an organization will work, what will be the different channels
of communication, to whom the work and responsibilities will be delegated, which techniques
will be used in decision-making process, etc. There are several organization structures which are
used by an organization on depending on the company's needs. Some of the organizational
structure are functional structure, divisional structure, matrix, etc.
As Marriott International is a hotel management company, generally, used the functional
organizational structure (Cook, Gildner and Gildner, 2006). This functional organizational
structure avails a hierarchy of one or more executives visualising the entire operations of the
company. In this structure the organization will be divided into the functional groups such as
housekeeping, food and beverage services, front desk service, administrative service, accounting
and human resources. The functional structure in this hotel is beneficial for it as it focus on the
specific tasks, which helps the employees in higher productivity.

Illustration 1: Functional Structure of Marriott Hotel
(Source:Alexander, 2013)
Marriott hotel follows functional organisational structure which defines roles and
responsibilities of each individual effectively. The above mentioned structure possess three
levels here at the top level all the strategic function is carried out by the Board of Director of
hotel. In addition to this, it is the board of director only which sets the direction of other
employees who are working within firm. However, under board of director number of managers
operates their functions who carries out varied type of operation. For example, marketing
manager handles all the marketing related work and make all the decision which are associated
with the given department. In the similar way, HR department meet the skill employee related
need and demand of buyers. In addition to this, there are number of employees works under each
department. For example, the staff who are working under marketing department will tend to
follow all the instructions which is formulated by marketing manager of firm.
The role of the management in an organization is very essential. It is the duty or
responsibility of the management to design the organizational structure. The basic functions of
the management are planning, organizing, staffing, directing and controlling. As per the
information given by the Ulrich Model HR managers tends to fit in four categories such as HR
specialist, corporate HR, embedded HR and service centres. Different levels of management will
practice different level of functions provided or delegated to them by the superiors or the higher
management. The managerial functions of HR managers are:

Planning: in HR planning function the number and the type of employees are determined
to achieve the organizational goals (Kim and Sung-Choon, 2013). Here, the management make
plan that from where they get the human resources and what will be the process for their
recruitment. The plans are made by management to achieve the goals and objectives of the
company.
Organizing: under organizing the HR managers implement the plan made by them. It is
the process of the structuring, integrating, co-ordinating the goals and and the managerial
activities to accomplish the set objectives of the organization.
Staffing: staffing is the process of recruitment and selection. Staffing is an essential
element for Marriot Hotel. Through staffing the management recruit and select the human
resources which will help in achieving the organizational gaols. It helps the management in
finding the best and suitable employees for the organization ( Taticchi, Tonelli and Cagnazzo,
2010).
Employee development: it is the main function of the HR managers after selection
process to provide training to the newly appointed employees in the organization. Through
training the employees are guided and explained that what is the mission and vision of the
organization. This hotel's management will help the new comers in understanding their work.
Thus, it is an essential function of the management.
Employee maintenance: it is the responsibility of the HRM to look over the work of the
employees and provide a good maintenance facilities in the form of performance appraisal,
career planning, compensation and other benefits.
Handy's Model of Organization Culture
An organization is consist of set of individuals who work together to achieve common
goals and objectives. In Marriott hotel, the employees has to work with co-ordination and
perform their functions to achieve the targets for smooth functionaing of the organization. Every
organization has its own policies, values and culture which differentiate it from the others. The
interaction of the employees amongst themselves as-well-as outsiders shows or describe the
culture of the organization. Here, as per Handys the organisational culture is of four types such
as role, person, task and power culture. Among these culture, it is examined that manager of
Mariott hotel follows person type of culture. In this context, it gives importance to the needs and
demands of employees. Furthermore, in this culture manager of firm make sure that it will

enhance satisfaction level of its workers. Thus, with an aim to do the same manager of firm
involves its workers in the decision making process. However, the main limitation of given
culture is that it is proved as ineffective when manager of firm will have to make quick decision.
This is because, in case of emergency it becomes very difficult for enterprise with regard to
involve its employees in the decision making process.
2. Business performance addresses key contemporary business issue
Every organization has some internal key issues as-well-as external issues. The internal
factors which influence the organizational functioning are management changes, employees
morale, cultural and financial changes (Alexander, 2013). These factors generally, have both
negative and positive impact on the Marriott Hotel. These are discussed as below:
Management Changes: the flexibility in management of the organization impact directly
on the development of the organization. It affects the whole organization, which will have an
impact on the working environment. Through the changes in the management, the functions of it
will also changes and will effect the functioning of the other employees also.
Employee Morale: generally, increase in employee morale will help the organization in
better productivity and good functioning. As Marriott is an hotel management company, the high
morale should be available in the employees working there. Morale may be increase through the
motivation, performance appraisal and rewards (Paul, Yeates and Cadle, 2006.).
Cultural Changes: Marriott Hotel is an American multinational company which has a
different culture. A company generally, adopt such culture where it is situated and the
management and the other staff also belongs to that culture only. But sometimes the people from
other culture also work there. The cultural changes or flexibility among the people working over
there also affect the organizational working. Under PEST analysis of Marriott Hotel following
are the factors that impact the business are:
 Political factor shows environmental issue, current and future legislation, etc. In addition
to this, it also involves factors such as change in the rate of interest and government
policy regarding taxation. For example, manager of Marriott hotel have taken decision to
reduce prices of services which is being given by it. The given decision of firm is
affected when government of nation enhances the rate of taxation on hospitality services.
Hence, in the given circumstance it will become very difficult for enterprise with respect
to deliver its services at low prices.

 Economic factor is related oversea issues, inflation and deflation etc. The condition such
as regression also have effect on the operation of hotel. Marriott is the luxurious hotel
which can only be afford by those individual who resides in high income category.
However, the situation such as recession will tend to direct effect on the purchasing
power of customers. In this condition, it become very difficult for hotel with respect to
make improvement in its sales and profits. Thus, the given thing will also hamper the
performance of enterprise.
 Social factor includes lifestyle trends, customers attitudes and opinions, etc. Herein, it is
being required by the hotel manager that it should give consideration to the need and
demand of workers. This is because, it is by complying with given type of activity only
firm can maintain satisfaction level of its buyers and hence perform significant
improvement in the sales and profits. But, if firm will not make changes in its operation
as per the demand of buyers then it will have to incur impact of that in the form of
decline in the sales and profit of enterprise.
 Technological factors of this analysis shows competing technology development,
information and communication, etc. The development in information and
communication technology has opened the new source of giving services to buyers which
is of e-commerce. Here, with an aim to maintain competitive position in market it is
being required by manager that it should upgrade itself with the development which are
incurring in ICT. This will lead to have positive effect on overall performance of
enterprise.
 Environmental: The manager of Marriott hotel also comply with environmental rules and
regulations. In this regard, it makes effort in terms of minimizing impact of its operation
on the operation of company. But, in case of firm will not give importance to the natural
environment of company then in this circumstance brand image of enterprise will be
affected in a negative way.
 Legal: It is also required by manager that it should abode with all the rules and
regulations which are incurring in the hospitality field. This is because, given rules will
help in streamlining the operation of firm.

This hotel company uses the two tools to measure and control the performance of the
business are benchmarks of profit and key performance indicators. Under the benchmark or
profits the company compare last two years of profit of the company to attain the current year's
set targets and profits. Through the key performance indicator the management analysis the
performance of the each employee of the company and set the different targets for the different
employees according to their performance (Raskin, 2005.).
3. Identification and evaluation of the major external contexts affecting the organisation,
including international factors
Marriott international is the leading and global brand in hotel industry of nation. There
are many competitors of Marriott International i.e. Hilton hotel and resorts, Starwood hotel and
resorts, etc.
Illustration 2 PEST Analysis of Marriott
(Source: Raskin, 2005)

Porter's five force model:
In order to know the competitive position of Marriott, a Porter’s Five Forces model shall
be analysed. It comprises of buyer’s power, supplier’s power, threat of new entrant, threat of
substitutes and degree of rivalry.
1. Bargaining power of buyers: With reference to Marriott hotel, bargaining power is
moderately high (Kusluvan and et.al., 2010). It is because; customers are brand loyal
towards Marriott with the help of which, it is is a strong brand in the market. Marriott
International provides high quality services to their customers so that they would be
attracted to this hotel. Also, hotel made them well aware with the facilities which it is
offering.
2. Bargaining power of supplier: The supplier’s bargaining power is very low because
there is high competition among them which are providing raw material to the hotel. As
Marriott is doing partnership with airlines as well, they are making food supply in airlines
also. It increases the number of suppliers in the market (Chand and Katou, 2007).
3. Threat of new entrants: As threat of new entrant is high. There is large number of hotels
that enter in this industry. Initial cost to get established is also high in this sector.
4. Threat of substitute: There are large number of substitutes available for customers as
Marriott is having lots of competitors that are serving the society with almost similar
services. However, as Marriott is a luxury hotel, so there is no direct substitute which
provides the same services.
5. Internal rivalry: There is always a moderate competition in this hotel due to presence of
number of local hotels. There were various oligopoly luxury hotels in the market. The
local hotels provide competitive prices which increases the internal rivalry among firms
in hotel industry (Farley, 2005).
PESTLE analysis:
The analysis of external factors which are affecting the working of Marriott International
is done by using the tool, PESTLE which includes political, social, technological, economical,
legal and environmental factors.
1. Political factors: These factors may be defined as the changes in political parties,
reducing prices due to change in policies, etc. Political factors affecting marriot Is

happening of the terrorist attack on various tourist sides. This terrorist attack will reduce
the travellers that visit Marriott (Farndale, Scullion and Sparrow, 2010).
2. Economic factors: Economic factors are like recession, boom, inflation, interest rate
changes, etc. which may affect Marriott International. as economy rate of china is low so
their purchasing power is not good. This purchasing power of china will reduce the
Chinese travellers to visit Marriott
3. Social factors: Social factors are related to various things such as lifestyle, culture,
family, education and location which affect the behaviour of individuals. There are
various social factors affecting business of Marriott like increase in number of travellers
as well as due to changes in income, spending power of people on travelling has also
become high (Caldwell, 2008).
4. Technological factors: latest technology also affects Marriott. Like Tas Airbnb is
another hotel who is providing online services to their customers. They provide service
rent the room to customers online. Due to this services provided by airbnb affect the
Marriott.
5. Legal factors: legal factors are consider as changing in the law, various banns in the
country etc. Various legal factors affecting organisation are: status of the services which
is giving by Airbnb.
6. Environmental factors: various environmental factors affecting Marriott is are changes
in the price of fuel, in order to launch greenhouse in the hotel the company faces many
problem related to greenhouse. change in the climate like rise in ocean level, floods, etc.
(Baron, 2008)
Impacts of government policy and EU regulation on Marriott:
Change in the government policies put a lot of impact on the working of Marriott as there
are the laws which are made by government like: Creation of policy related to minimum wage
which has extended to 18 years. Requirements of business to cater disabled people that they
build ramps into the hotels, business. That they launch various facility in the hotel for disabled
people like building of ramps etc.
This all the legal changes put there impact on the Marriott hotel as hotel has also to
manage wage rate etc. changes in the tax rate by the government also put lot of impact on the
business (Narayanan and Fahey, 2005)

There are various regulation made by the EU which would put impact on the business of
Marriott. For example: EU has made the regulation related to food and feed which has put a lot
of impact on the working of Marriott. There are various regulations which are related with food
and safety standards which has put a impact on the Marriott as it a hotel industry.
EU has also made a regulation which is related with the export. In this export regulation
they include food health requirements, anti dumping, technical requirements etc. this all the
requirements that are made by the EU has made their impact on Marriott. In order to follow EU
regulation the business of hotel is very well affected (Navarro, 2008).
Impact of globalization and international factors on Marriott:
Globalization may be defined as the integration of one country to another country. By
globalization the company can exchange their goods and services internationally. It helps in
increasing the growth of the economy and wider range of the products are generated. As if
Marriott adopted the globalisation process due to which services of company are improved.
Large number of international customers are connected with each other.
There are various international factors which affect the business and services of Marriott.
i.e. availability of raw materials (Gerhart, 2005). For example if Marriott wants any raw material
for their country which is available in another country affects the working. Another international
factor affecting Marriott business is advancement in technology. If the latest technology are
invented in another country and they provide better services then it affect business. Labour
workforce is also an international factors which has put their impact. Like if in the international
country the workforce is very good then they provide better quality service to their customers.
Workforce is very important for any organisation to work. Various supply chain in the
international country has a giving a lot of impact. If supply chain is good then working of
business is going well all supply are easily made in foreign country. All the supply of Marriott is
affected by the supply chain present in international country.
4. Role of HR in business planning and the resources used by Marriot Hotel
Role of HR in a business planning plays very important role. The human resource
professional are responsible for formulation of the strategies and planning that focus on the
recruitment and selection of the employees in the company. There are the following roles of HR
in business planning:

Selection and Staffing: the goals of the company are set by the management and for
fulfilment of such goals human resources are required (Michie and Sheehan, 2005). To choose
the right people for the right place is very difficult for the management. So the selection process
for hiring the new one is made very difficult by which only the effective persons may selected.
And after selection staffing is done in which the the selected people are distributed on different
jobs. Here, the management will decide that which person will be more suitable for which job.
Organizational development: the strategic planning always include the changes in the
workplace. All the departments are aware of the functions which they have to perform within
their department. The HRM helps in development of the organization (Taticchi, Tonelli and
Cagnazzo, 2010). HRM always aware of the functions of the employees and groups of the
company. Any changes in the functions of the HR effects the organization in both negative and
positive way.
Training and Development: here, the management of the company Marriot, will focus on
the training and development of the employees working over there. First of all managers will see
the current status of the company and then analyse the future requirements of the company. For
this management will research time to time that how many people required training to increase
their efficiency level for better productivity. Then held the training sessions to improve their
knowledge and skills. After this process they analyse through their working efficiency that the
effectiveness of the training programme ( Cook, Gildner and Gildner, 2006).
There are so many resources available for Marriot Hotel some of they are as follows:
Employees: employees are such resources which are very essential for an business
organization to run it in a smooth way. Every organization requires human resources for its
development process. Employees are such factors of the company which influences the functions
and activities of the company directly.
Technology: technology is also a good factor which affects the company in both positive
and negative way. It is such resource which is used by the hotel company to manage their
functions and activities of the employees and other things. For this the latest technology should
be used by the company so that the customers may attract towards the company. Today, every
person want a better hospitality and latest technology to use when they walk in a hotel.
Therefore, the latest software must be used by the company to attract the customers (Kim and