Strategic Resource Management Report: Ritz Carlton HRM Evaluation

This report provides a comprehensive analysis of the strategic resource management practices at Ritz Carlton. It begins with an introduction to strategic resource management and its importance, followed by an overview of Ritz Carlton's objectives and the role of human resource management (HRM) in achieving them. The report then delves into a critical evaluation of Ritz Carlton's HRM, including recruitment and retention strategies, employee development techniques, and their impact on employee engagement. Furthermore, the report assesses the management of physical resources, marketing activities, and information system management within the organization. The report utilizes a case study approach to examine how Ritz Carlton aligns its strategic objectives with its HRM and other resource management functions. It also discusses how the organization plans and manages its human resources, physical resources, marketing activities, and information systems to achieve its goals. The conclusion summarizes the key findings and insights from the analysis.

Strategic Resource Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
ACTIVITY 1....................................................................................................................................3
1.1 Objectives of Ritz Carlton and contribution of HRM in achieving organizational objectives
......................................................................................................................................................3
1.2 Critically evaluating the role of HRM in Ritz Carlton..........................................................4
2.1 Evaluating recruitment and retention strategies of Ritz Carlton............................................5
2.2 Critically assessing the technique used for development of employees...............................6
2.3 Evaluating contribution of development techniques in employee engagement.....................7
2.4 Using systematic analysis of the effective strategies to support organizational objectives...8
1.3 Appraising the process of planning human resources requirement.......................................9
ACTIVITY 2..................................................................................................................................11
3.1 Identification of organization's objectives and requirement of physical resources for the
achievement of objectives..........................................................................................................11
3.2&3.3 Critical evaluation of the role of physical resource management and appraisal of the
process of planning physical requirement..................................................................................12
ACTIVITY 3..................................................................................................................................13
4.1 Investigation of the marketing activities contributing for the achievement of organizational
objectives...................................................................................................................................13
4.2 Critical evaluation of marketing operations of an organization...........................................14
4.3Appraising the process used by the organization to develop its market...............................15
ACTIVITY 4..................................................................................................................................16
5.1 Contribution of information system management for the achievement of the objective of
the Ritz Carlton..........................................................................................................................16
5.2 The role of information system management in the Ritz Carlton........................................17
5.3 Appraising the process for planning information system requirements..............................18
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20
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INTRODUCTION
Strategic resources management (SRM) is an imperative aspect under which corporation
aligns its strategic objectives with human resource department. The concept of strategic human
resource management consists of various components such as hiring, payroll, discipline and
working with employees in an organization. However, activities of SRM are performed to reduce
attrition rate, improvement in work quality and maximization of profitability. It enables
employees and employers to achieve collaborative success and create competitive edge in the
marketplace.
Present report is based on Ritz Carlton which has 87 luxury hotels and reports in 29
countries and territories. It has several resorts in major cities that cater the needs of large number
of users (Ritz Carlton, 2016). Further, study covers contribution of human resources
management in achieving organizational objectives. Moreover, study will focus on the
evaluation of recruitment and retention strategies of selected organization. Apart from this, study
sheds light on the management of physical resources. Along with this, there is also an aim of
study that is related to investigate the contribution of marketing activities in achieving
organizational goals as well as objectives. In addition to this, contribution of information system
management has also been explained.
ACTIVITY 1
1.1 Objectives of Ritz Carlton and contribution of HRM in achieving organizational objectives
Ritz-Carlton is one of the renowned hospitality organization within UK that generally
focuses on rendering quality customer services that is accommodation services, food and
beverage services etc. so that customers have leisure and pleasant stay within their hotel. The
main objective of cited hospitality organization is to provide finest and quality personal services
as well as facilities to their guests and clients who visits their hotel (Alidrisi and Mohamed,
2012). Another objective of Ritz-Carlton is to focus on treating their customer with respect and
dignity so that in future they can revisit their hotel that result in enhancing their overall
performance. In addition to this, it is the key objective of Ritz-Carlton is focus on providing
quality products and services to customers to meet the requirement of customers.
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In order to accomplish all these objectives of Ritz-Carlton it is essential to focus on
function of Human resource management (HRM) that support the hospitality organization in
managing the human resource within the organization. HRM function within the hospitality
organization generally focuses on different function that is they must contribute their services in
recruiting and selecting the qualified personnel for the hospitality industry (How Does HR Fulfill
Organizational Goals and Objectives, 2016). As, selection of qualified or competent personnel
in the Ritz-Carlton results in contributing to the achievement of objectives and goals that is to
provide finest and quality personal services and facilities to the guests. Therefore, with the help
of recruiting and selecting competent employee for the Ritz-Carlton HRM contribute in
achieving their overall goals and objectives.
In addition to this, HRM of Ritz-Carlton also support in conducting training and
development of personnel that results in improving and amending the skills and abilities of staff.
However, the objective of Ritz-Carlton is that they must treat their guests and client with proper
respect and dignity so that they can have comfortable stay within the hotel (Mayhew, 2012).
Therefore, with the help of training and development they can develop their abilities and
capabilities that support them in respecting the customers those who visits their place.
1.2 Critically evaluating the role of HRM in Ritz Carlton
Human resource management (HRM) is the most significant aspect which facilitates
corporation to carry out all business activities effectively. Here, employees are the best sources
who contribute towards organizational success by rendering good quality of services to large
number of buyers. However, company or management needs to devote much of their time in
sharpening the skills and knowledge of workforce. Furthermore, it is the only HRM department
which performs several functions like recruitment, selection and development of workforce. At
this juncture, company needs to provide right kind of training so that employees can contribute
their best towards achieving long as well as short term objectives. Thus, it is very critical for
corporation to manage its resources because huge amount of finance is required to carry out all
the tasks effectively (Kash and et.al., 2014).
HR department performs several activities for removing the stress of workforce and
creating their interest towards work. Similarly, human resource department of Ritz Carlton
ensures different learning programs at workplace through which employees can work with
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integrity. The most common examples of learning methods are on-the-job and off-the-job
training that lead to resolve issues which are being faced by individual at workplace. Apart from
this, HR department aids to ensure effective working condition. This aspect facilitates to deliver
good quality of services among end users (Gannon, Doherty and Roper, 2012).
Apart from this, employee relation is also ensured as it is a main part of HRM. Under
this, management takes into account the needs as well as expectations of employees and
accordingly, provides them benefits. Not only this, but management of Ritz Carlton also
integrates employee recognition programs into promotion policies. This way, it motivates the
employees with higher level of satisfaction and caters the need of users in an effectual manner.
Moreover, compensation and benefits are two imperative aspects which are directly associated
with HRM (Warnier, Weppe and Lecocq, 2013). Thus, department of HR prepares pay structure
of employees in accordance with their skills, experience and job profile. Likewise, list of extra
benefits is prepared by HR department in order to motivate workforce and create goodwill of
firm in the marketplace.
2.1 Evaluating recruitment and retention strategies of Ritz Carlton
Recruitment and retention are two major practices associated with the HRM of every
organization. Especially, these are used in hotel industry which is people oriented where
workforce matters a lot in comparison to services or products. This is because personnel play an
active role in improving the quality of services and retaining consumers for longer time span.
Owing to this, Human resources department of Ritz Carlton adopts effective procedure for the
requirement of employees (Perrault, Aversa and Wohlmuth, 2013). At this juncture, hotel uses
effective strategies for the recruitment of personnel. Sources like internal and external are used in
order to select the most suitable candidates. Similarly, job transfer and employee references are
internal sources which generally take less time to recruit new employees. Apart from this, digital
job search and social media are used to post information related to vacancies in the hotel. In the
same way, employment agency is also used for targeting potential employees for the hotel. For
example, referral programs are used with effective strategies to provide incentive if employees
refer suitable candidates. This serves as a motivation for existing workforce.
Following retention strategies are used by hotel to motivate employees-
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 Monetary reward- Management of Ritz Carlton offers monetary reward to the workforce
in case they achieve their targets on right time. However, criteria are pre-decided and
same are communicated to employees. It proves to be effective in motivating workforce
and meeting their expectations (Potter, 2015). Similarly, need assessment is done by HR
department and accordingly, monetary rewards are set for those who perform well in
accordance with set criteria. The common form of rewards are incentive, cash coupon etc.
 Non-monetary reward- It is also an important method to retain employees in the
corporation wherein methods like promotion, job transfer, enrichment are implemented.
However, such kind of rewards are offered employees working at higher level or devoted
expected time in hotel. For example, an employees working from 4 years is likely to
expect promotion as well as monetary reward. Otherwise, he cannot be retain in Ritz
Carlton (Enders, 2012).
2.2 Critically assessing the technique used for development of employees
Development of employees is the most common aspect in hotels like Ritz Carlton. It is
because it is the only workforce who direct contact to end users and meet their expectations by
offering them good quality of services. Ritz Carlton uses number of techniques for development
and learning of employees. These are explained as follows- Performance appraisal-It has dual aspects; evaluation and development. It is because at
first management assess performance of workforce for particular time spend and identify
positive and negative points in the same (Mello, 2014). Accordingly areas of
development are identified through which learning can be provided to respective
workforce. However, 360 degree appraisal is the effective method wherein management
get feedback for employees from different parties like staff, peers and colleagues which
leads to ensure overall development and growth of individual at workplace (Learning,
Training & Development, 2016). Seminars and workshops-These kind of development program initiated by Ritz Carlton
during work time where employees are sent to attend training program of expert
personnel. It provides information related different field of their job so they can
effectively contribute towards achieving long as well as short term objectives.
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Furthermore, employees get perfection their work and they tend to achieve their
objectives on right time (Fottler and Khatri and Savage, 2010). Professional association-Under this workforce are provided right kind of environment
where they come to know about current affairs. For example, networking can be
expanded so as to information sharing through which personnel can perform good for
Ritz Carlton for better performance of company.
 Self managed learning-Self managed learning is another imperative aspect for
development of personnel. Under this hotel provide facilities of internet, group discussion
and formal training so that employees can enhance their learning with daily work (Truss,
Mankin and Kelliher, 2012). In addition to this, independent reading and e-learning
courses as well as volunteer work is also promoted along with routine work that aid to
improve time management skills. This way hotel can ensure proper development of its
workforce and retain them.
2.3 Evaluating contribution of development techniques in employee engagement
The above mentioned development techniques ensure employee engagement in an
effective manner. For example, workforce provided on-the-job training tend to manage their time
effectively as the focus on leaning and work together. It develops their skills at rapid speed
which leads to make them perfect in order to achieve their specified targets on right time.
Furthermore, seminars and workshop explores different other skills of employees through which
they can participate in decision making process of management (Pour, 2010). Similarly, above
technique; self-managed learning enables workforce to ensure continuous learning. Under this,
employees become capable of sharing important information to their immediate supervisors.
Also, they can provide their views while taking decision related to training program. For
example, experienced workforce can uncover different field and can ask management to provide
training on the same. However, they must communicate that how their suggested method would
be beneficial for hotel (Stone, 2011).
Performance appraisal method is also quoted under development techniques. It reflects
that performance appraisal method enables workforce to take part in decision making process
when they are asked to provide justification for their poor performance. At this juncture,
management provides incorporate views of workforce in decision making process and
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accordingly training or learning program are implemented at workplace. It shows that different
development techniques tend to enhance skills and knowledge of employees that in turn
determine long run success of hotel n the marketplace (Onyemah and Akpa, 2016). However,
seminars are not the right manner to engage employees with upper level. It is because employees
are just provided opportunity for learning but right to involve in decision making process. In
addition to this, it would be better to line professional association with employee engagement
because their networking is expanded to professionals. This workforce also get chance to present
their views in front of management in particular situation. Therefore, many of the above
mentioned techniques are helpful for employee engagement but some of these are not at all
important for the same.
2.4 Using systematic analysis of the effective strategies to support organizational objectives
Human resources management strategies play active role in supporting organization
objectives. For this purpose, it is very important for management to systematically analyze the
strategies in order to align corporate objectives at departmental level. For example, HR
department need to ensure that their recruitment and selection strategies are helpful in meeting
objectives like high sales turnover and increased profitability (Cochoy, 2014). With the analysis
they can come to know about potential issues exist in recruitment strategies. For instance, there
may be issues in selecting employees in accordance with referral program. This way Ritz Carlton
can bring improvement in its current strategies so that organizational objectives can achieved in
stipulated time.
Motivational strategies adopted by Ritz Carlton can also be reviewed by taking into
account specific parameters like attrition rate, customer satisfaction and high market share of
hotel. These factors serve as performance indicators through which management collect
information related to growth and success. If organization is having issue related to high
employees turnover then it can be considered that workforce are not motivated in right manner
(Goswami, Engel and Krcmar, 2013). At this juncture, it becomes necessary to change the
current strategies to influence behavior of employees in positive manner. Instead, other practice
can be implemented which tend to affect attitude and behavior of personnel in positive aspect.
Furthermore, Ritz Carlton uses monetary reward policy for those who are working at lower
level. However, survey can conducted with employees to assess the current satisfaction level.
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Another HRM strategy as cultural diversity under which hotel analyze that it has proper
organizational culture where each and every workforce are valued. They are also provided
chance to engage in the decision making process (McKenzie, 2015). It leads to assess the
effectiveness of current strategies and practices which in turn Ritz Carlton can create unique
identity in the marketplace with increased rate of return. Therefore, systematic analysis of HRM
strategies is important to accomplish goal of hotel and satisfy its customers in an effectual
manner.
1.3 Appraising the process of planning human resources requirement
The human resource planning process consists of following process by which Ritz
Carlton can ensure inclusion of competent workforce- Objectives of organization- The first step of human resources planning deals in setting
organizational objectives. However, management also note down the goals of company.
The primary objectives of Ritz Carlton are; to employees, enhance profitability and create
competitive edge of hotel at international level (Gupta and Bhaskar, 2016). Scanning internal and external environment-Under this, management of Ritz Carlton
assess the internal and external environment so that accordingly strategies can be adopted
to create certainty for future business activities. Furthermore, companies need to assess
that whether current workforce have potential to meet organizational objectives or not. Forecasting-Under this, assessment is done in accordance with future requirement of
business where organization can easily make use of different sources of recruitment.
Furthermore, at this step company assess that what are development plan of hotel and
how it will fulfill the same. Moreover, forecasting can be done by focusing on resources
gap. This gap is assessed after assessing need of human resources at workplace (Hashim,
2010). Assessing need of human resources-this process is also covered along with above one
wherein HR department of company assess actual need of personnel. Here, hotel forecast
in accordance with future plan and existing employees (Montoro‐Sánchez and Soriano,
2011). This aspects tends to employ workforce according to the requirement. In addition
to this, assessment is also done that what internal sources can be effective in meeting
requirement of human resources.
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 Human resources plans and strategies- As per the above findings organization
implement human resources plans and strategies to fulfill objectives of corporation
(Mellahi and Budhwar, 2010). For this purpose, management use strategies like job
enrichment and increase responsibilities of most of employees. In case of expansion can
make use of employment agencies so that competent and skills employees can be
requirement to meet purpose of Ritz Carlton. Apart from this, human resources plan are
implemented for motivating existing personnel to handle allocated task.
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ACTIVITY 2
3.1 Identification of organization's objectives and requirement of physical resources for the
achievement of objectives
Objectives Physical Resource
 To increase the profits by 25% till
December 2016.
For this aspects, new product development can
be done in which rooms will have totally
automated facility (Stone, 2011). In order to do
so, Ritz-Carlton will require automated
machines as a physical resources.
 To increase the footfalls of the visitors
in UK hotels by 15% till August 2016.
To achieve this objective, company requires to
carry out the promotional activities. This can
be done through by using advertisement on
internet and on social media. For this reason,
company requires a big system from where
firm can operate its websites and also social
media pages.
 To reduce the employee turnover by
30%.
To achieve this objective company requires the
resources like motivational tools, more number
of training tools that is projectors, computers,
smart boards, etc. so that employee could be
provided effective training (Pour, 2010).
It can be concluded that, resource management has been done in an effective manner in
the above table. Further, it describes that to achieve the objectives of increasing profitability,
company requires high-end automated equipments so that they can develop new kind of room.
This requires high cost to be invested than only company can build new product in a most
effective manner (Truss, Mankin and Kelliher, 2012). Further, company requires big system so
that they can upload the information on the social media and also on the official websites.
Moreover, the employee turnover can be reduced by providing effective training and for this
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aspect, company requires the resources like projector, handouts, computers, etc. which will aid in
providing training to the employees. However, the acquisition of these resources will add extra
cost to the company which may reduce the profitability of the firm ( Fottler, Khatri and Savage,
2010).
3.2&3.3 Critical evaluation of the role of physical resource management and appraisal of the
process of planning physical requirement
Role of physical resource management in Ritz-Carlton hotel has been evaluated in critical
manner. According to the viewpoint of Mello (2014) physical resource management is highly
required in every organization. Though it is quite effective for the hospitality industry in order to
carry out the working of a company in a most effective manner. Further, this kind of
management plays an equally important in the hotel because, through this other functional
activities are carried out. Moreover, Enders, (2012) described that physical resource management
leads to simplification of work so that objectives could be focused upon and this way they could
be achieved in an easier manner. Furthermore, these resources require heavy investment so the
misuse of such resources is non-affordable by the company. Further, the firm needs to retain for
longer time thus, management of them can help in in retaining it for longer period of time. On
the contrary, Potter (2015) argued that heavy investment is required for hiring and maintaining
them, thus it may leads to the reduction of profitability. Along with that, a human resources are
hired for this aspects and this is an additional work to be carried out which does not add to the
profit of the company. However, Perrault, Aversa and Wohlmuth (2013) stated that, if these are
not maintained than customers won't get good amenities like attractive furniture, high-end
automated rooms because they will become obsolete earlier.
Furthermore, the process which are used for the physical requirement is highly effective
in Ritz-Carlton. It is because they use, inventory management theory that is EOQ, LIFO and
FIFO method. Further, this helps in managing the physical resources like furniture, food and
beverages, etc. in an appropriate manner (Warnier, Weppe and Lecocq, 2013). The EOQ method
helps the manager to order the economic quantity so that optimum utilization can be done.
Moreover, there will be less wastage of items and this way losses can be reduced. Along with
that, by using the 360 degree appraisal method, the process of physical resource requirement can
be assessed. In this firm, company order as per the EOQ method and this way they do the
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