Strategic HRM Report: Hilton Hotel's Internal and External Analysis

This report provides a comprehensive analysis of Hilton Hotel's strategic human resource management (HRM). It begins with an executive summary and an introduction that highlights the significance of HRM in achieving organizational goals. The report then delves into an internal environment analysis using SWOT analysis, identifying Hilton's strengths, weaknesses, opportunities, and threats. Following this, an external environment analysis is conducted using PESTLE analysis, examining political, economic, social, technological, legal, and environmental factors impacting the hotel. The report further explores various models of strategic human resource management adopted by Hilton, including corporate strategy, business strategy, and HR strategy. It discusses HR policies and procedures, such as compensation and workplace diversity, while also addressing employee separation, laws regulating employees, HR information systems, staffing, and training. Finally, the report offers recommendations for attracting, recruiting, and retaining talented employees to enhance productivity, concluding with a summary of findings and a list of references.

STRATEGIC HUMAN
RESOURCE

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
Internal Environment Analysis...................................................................................................3
External Environment Analysis..................................................................................................4
TASK 2............................................................................................................................................6
Models of Strategic Human Resource Management...................................................................6
Human Resource Policies and Procedures..................................................................................8
TASK 3............................................................................................................................................9
Recommendations relating to attraction and retention of talent.................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

EXECUTIVE SUMMARY
Human resource is the main resource of any organisation. Human resources are the
people who make up the workforce of an organisation, business sector, or economy. It is the
department of a business or organization that deals with the hiring, administration, and training
of staff. The report is about Hilton Hotel which is a multinational company in hotel and
hospitality industry. It describes the internal and external analysis of the company with the help
of SWOT and PESTLE analysis respectively. The company is adopted some strategic human
resource management models to make the appropriate and increase productivity. Here the Hilton
Hotels and Marriott hotels both are having human resource policies with some differentiate rule.
The policies are compensation policy and workplace diversity policy. The company is not having
talented employees, so here some recommendations are given to the Hilton hotel for attract,
recruit and retain the talented employees to increase the productivity.
INTRODUCTION
Strategic human resource is the element of every organisation which leads to achieve the
goal and long term objectives of an organisation. Here the organisation is considered as a case
study, that is Hilton hotel. The report is describes about the Hilton Hotel's strategic human
resource management that how it manages to the human resources within organization. The
report describes internal and external analysis of selected organization with help of SWOT and
PESTLE analysis respectively. The analysis is about factors which affects to the business. The
report covers the models and HR policies and procedures adopted by the firm. It describes that
what are the elements company should adopt in management to attract and retain the talented
employees which help to enhance the productivity of business.
TASK 1
Strategic human resource is an approach to managing human resources that supports
long-term business goals and outcomes with a strategic framework. Is gives direction on how to
build the foundation for strategic advantage by creating an effective organisational structure and
design, culture, employee value proposition, system thinking etc. in this case study the
organization considers is Hilton Hotel (Mello, 2014). Hilton hotel is a hospitality company that
manages and franchises a broad portfolio of hotels and resorts. It operates worldwide.

Internal Environment Analysis
Internal analysis is the process of identifying and evaluating an organisation's specific
characteristics which includes the SWOT analysis. SWOT is an acronym used to describe the
particular Strengths, Weaknesses, Opportunities and Threats that are strategic factors for a
specific company (Walsh, 2015). SWOT analysis of chosen organisation Hilton Hotel is
following below:
Strengths of Hilton Hotels:
 Hilton is highly recognized brand across the world.
 It has experienced CEO and executives.
 Excellent customers service through provision of customized quest experiences.
 Formidable loyalty programme with unique point of difference (Double Tipping).
 Strong focus on branding.
 Widely varying product offerings through multiple brands.
 Occupancy rate that exceeds break even.
 Increased synergy and cost saving through unification of Hilton Hotels corporation and
Hilton international.
 Huge partnership with 25 airlines, 3 car rental firms and other firm. Good supply chain
management (Armstrong and Taylor, 2014).
 Technical innovation periodically.
 Higher brand recognition makes the company priority choice from clients.
 Global presence and strong brand portfolio.
 The company has a Professional Standard worldwide.
Weaknesses of Hilton Hotels:
 High leverage combined with downgrade.
 Weak financial performance affecting to the company.
 Challenges managing customer expectations due to varying offerings.

 Relatively limited network size and distribution.
Opportunities of Hilton Hotels:
 The organization targets other customer segments (Wilton, 2016).
 Increased market penetration (Hilton Honours members spend 4.6 billion on
accommodations per year but not all with Hilton).
 Acquisition of other hotels.
 Boost brand loyalty.
 Increased expansion into emerging markets and Caribbean.
 Personal trainers.
 Gaming activities would escape regulations, etc.
 Take advantage of emerging markets, especially with business class and mid-priced
markets.
Threats of Hilton Hotels:
 Competition- Primarily with Marriott International, Starwood Hotels &Resorts and Hyatt
Hotels.
 Availability of information about each hotel's operations.
External Environment Analysis
External environment analysis is a primary study and analysis of macro environmental
forces, industry analysis and competitor analysis in purview of an organisation's growth
(Gatewood, Feild and Barrick, 2015). For analysing external environment the organisation uses
PESTLE analysis. The PESTLE analysis is a standard way of environmental scanning. It groups
together the factors which managers must be aware of and plan for. The analysis external
influences affecting a business. It includes factors such as Political, Economic, Social,
Technological, Legal and Environmental factors. PESTLE analysis of chosen firm Hilton Hotel
is given below:
Political Factors: Political stability is the key to success of any industries and it is
applicable to hotel industry as well and it needs to cope with political situations everywhere in

the world. The political approaches can influence the number visitors, both, tourists and business
traveller's visit to a nation (Buckley, Wheeler and Halbesleben, 2015). Moreover, following acts
of terrorism in London on July 7, 2005, UK has been justly branded as a place that
accommodates a set of extremistic religious organisations and a risk or threats of acts of
terrorism are most likely to reduce the numbers of visitors to London and UK with negative
impacts on Hilton Hotel performance in the market.
Economic Factors: National macroeconomic situation and factors and events impacting
the situation are major factors affecting Hilton Hotels & Resorts business in the UK. For e.g.,
during the Olympic times in the UK in 2012 most of the hotels were occupied and booked fully
for the whole period. Additional economic factors that affect the entity may include the extent of
expected and real economic growth of country. Although more than five years have been passed
since the global financial and economic crisis of 2007-09, national economy in country is faced
with a set of significant challenges and a risk of another economic crisis may not be too distant.
Moreover, GBP exchange rate against other major currencies and inflation rate in UK
represent significant factors that can impact Hilton performance.
Social Factors: The Hilton brand is very well known among international visitors and the
UK is one of the popular destinations for the tourists and shopping lovers (Ambrosini, Jenkins
and Mowbray, 2015). A wide range of social factors impacting the selected enterprise include
emerging trends in consumer lifestyles, consumer demographic variables, the impact of role
models in consumer decision making, and growth rate of population. Changing patterns of
family in the society and associated values such as increasing numbers of single people, same-
sex marriages and families without children might also have certain effects on business
performance of company in its market.
Technological Factors: An overall development of technological infrastructure related to
catering industry might have great impact on the firm performance. Matters associated with the
use of energy and their costs and the potential for innovation within the industry can be
classifies\d as important technological factors. Furthermore, hotel bookings have become very
sophisticated than ever before (Jackson, Schuler and Jiang, 2014). Anyone can book a hotel
room in a simple step with the help of internet.
Legal Factors: Legal factors are also important source of external impact on Hilton
performance and they include any changes in the UK jurisdiction that affect the catering industry

in direct and indirect ways. Immigration rules and procedures of getting a UK visa becoming
more strict can be mentioned as an example for legal factors that do impact company
performance in country in indirect ways.
Moreover, Hilton's performance is directly affected by consumer protection and
employment laws in UK, as well as, the nature of competitive regulation, and risks of military
invasion in the country.
Environmental Factors: The hospitality and catering industry often becomes a point of
criticism for polluting the environment particularly in most of tourist attractions such as
historical places, beaches, forest areas, hills etc (Kramar, 2014). A range of activities related to
tourism not only creates pollution, but also disturbs animals and related environment.
Moreover, hotels and related businesses are contributing a considerable amount of carbon
emissions with negative implications to the issues of global warming. Accordingly, businesses
like Hilton are facing tight regulations to operate their business. These regulations are inevitably
increasing the levels of operational costs for the firm. Additionally, the UK being a part of the
European Union, Hilton performance is also impacted by relevant jurisdictions introduced by
EU.
TASK 2
Strategic human resource management includes typical human resource components such
as hiring, discipline, and payroll, and also involves working with employees in a collaborative
manner to boost retention, improve the quality of the work experience, and maximize the mutual
benefit of employment for both the employee and the employer. It is a proactive management of
the employees of a company or organisation.
Models of Strategic Human Resource Management
There are various models of strategic human resource management which adopted and
implemented in the selected organisation (Sikora and Ferris, 2014). The models are following
below:
1. Corporate Strategy: It is the direction a firm takes with the objective of achieving business
success in long term. This strategy is formulated at the top mangier level. The strategy may be
influenced by both internal and external environmental forces. The Hilton hotel is adopted this
strategy to achieve mission.

2. Business Strategy: The next model of strategic human resource management after formulating
corporate strategy is business strategy. It is a long term plan of action designed to achieve a
particular goal or set of goals or objectives. It helps to selected organisation to conduct as well as
achieve the desired goal and objectives of the company. With the help of business strategy the
company achieving the long term objectives which are planned.
3. Human Resource Strategy: The main function of strategic human resource management is to
formulate a well conceived human resource strategy incorporating HR planning and job design
approaches. The strategy helps to the firm with conflict resolution and employee benefits. It is
taking Hilton's those responsibilities and making sure they meet the goals, mission and future
needs of the company (Obeidat and et.al, 2016).
4. Employee Separation: Employee separation is a sensitive issue for any organisation. Usually,
an employee leaves the firm after several years of service. Thus, the permanent separation of
employees from an organisation requires discretion, empathy and a great deal of planning. This
process is a key strategic issue for separation. When employee leave the Hilton hotel from the
job than company do not suffer or important professional relationship do not hamper.
5. Laws Regulating Employees: Employment law mediates the relationship between workers,
employing entities, trade unions and the government. Sometimes regulating authority imposes
embargo on recruitment promotion, pay scale of the organisations and so on. This model of
employment law is affects to the business in terms of pay scale, recruitment, promotion etc.
6. HR Information Systems (HRIS): A human resource information system is a software or online
solution that is used for data entry, data tracking and the data information requirements of an
organisation's human resource management, payroll and book keeping operations. The system is
offered a database to the Hilton Hotel. For making an effective HR strategy some relevant
information are essentials (Jabbour and Jabbour, 2016). Through a strong human resource
information system, the management or decision makers of selected organisation may make a
human resource strategy and perform other HR functions inn the company.
7. Staffing: Staffing means acquisition of human resources for the vacant and potential vacancies
of the organisation. The selected entity is adopted this model to recruit the efficient employer,
which are must be recruited through the effective staffing programme and it leads to increase
productivity of the organisation.

8. Training: After recruit efficient employer in organisation, training is the next stage of strategic
human resource management. It is a process of increasing knowledge, skills, efficiencies and
changing the attitude of employees for attaining goals properly of Hilton Hotel. Training is helps
to the Hilton hotels to increase the knowledge and skill of their employees for doing a particular
job which lead to increase productivity of the firm.
9. Performance Management: Effective performance management systems need employment
results, assess both organisational and individual needs and plan for the future progress. It helps
to Hilton to measure or evaluate the management that it is performing according to plan or not.
10. Compensation: Another important and difficult task of SHRM is to make a well accepted
compensation plan (Engert, Rauter and Baumgartner, 2016). It the plan made acceptable to the
union leaders and general employees. From this the company compensate to the employees
according to performance.
Human Resource Policies and Procedures
HR policies are formal rules and procedures that dictate how certain matters should be
addressed in the workplace, including employee rights and duties. There are two policies which
are adopted by the Hilton hotels and Marriott hotels. Comparison of them are as follows:
1. Compensation and Benefits: The Hilton hotel having compensation policy and other benefits.
It provides the benefits such as reward systems, bonuses, vouchers etc. to the employees. It
compensates to employees on basis of performance as well as behaviour of them. It uses this
policy to motivate employees which lead to increase productivity of firm.
In contrary, Hilton's competitor Marriott hotel is also adopted the compensation policy
but way is different. It gives the incentives to the employees based on their work and behaviour
performance. Its benefit and compensation programmes were built on our belief of putting
people first, so it takes care of employees as well as consumers.
2. Workplace Diversity: Many companies pride themselves on having a diverse workforce, one
that is made up of individuals with a wide range of characteristics and experiences. The Hilton
gives priority to employees as well as customers. It maintains approximately 60% minority
workforce, 50% of which are female. In addition, nearly 30% of those are in management
positions, with 40% of them being woman (Tung, 2016).

While, the Marriott hotel is focusing on the development of multi generational workforce.
It gives priority to the customers mainly. It recruits not on the region and other basis to
employees, it recruits to the employees on the skill and ability basis. It prefers to the young age
people in the workforce.
TASK 3
Recommendations relating to attraction and retention of talent
The company Hilton Hotel want to attract and reten the employees who are talented and
helps to achieve the goal of company. There are some elements and policies by which it can
attract to the talented candidates to support the future performance of Hilton Hotel. The
recommendations are as given below:
1. Great Pay: The first thing that company need to do is ensure that the remuneration package is
attractive. This is one of the main reasons why most people work for a certain company. The
Hilton hotel should offer good pay scale or salary package than others to attract and retain the
candidates or employees. The higher the pay is, the more likely employees are willing to devote
their time and energy to help the company succeed. To offer great pay there are some barriers
and obstacles company have to face. The obstacle company will face is the increase in budget.
When it pays higher salary the budget will also exceed and vice-versa.
2. The job itself: Employees are attracted to the satisfaction the job can be given them by the
organisation (Prajogo, 2016). They should able to use and expand their skills in the job and
nothing can stop them from not participating in or completing an assignment given if they are
really interested in the job. The company should provide the job satisfaction level to retain
employees. For this element the company face the barrier of the up gradation as well as
budgeting problems. New candidates are using new technology so for that it company has to
adopt updating technologies and implement in the business which lead to exceed the budget.
3. Working Environment: Businesses should realize that employees will work if the
surroundings are fun and safe. The company should motivate them and it should give the
freedom to complete any given tasks. Employees can also participate in decision making towards
everyday procedures. This thing shows that their views are respected towards the employees.
The company has to face problem of the budgeting in this facility provides to them. Freely, fun

and safe working environment will always attract and retain to talented employees in the
working environment.
4. Cooperative and helpful colleagues: Especially with new employees, the existing employees
are willing to assists them with any difficulties or problems that arise (Rasel 2015). They make
the new ones feel at home by not treating them differently. The Hilton Hotel should make the
other employees helpful and cooperative by which the talented people also attract and retain in
the company. To adopt this policy the company have to motivate them and have to bear extra
cost which lead to exceeding budget. The company should make the helpful environment and
have to assists in terms of cooperation between employees.
5. Growth Opportunity: Management have to make the policies for growth of employees. The
company Hilton Hotel should give the opportunity to growth in carrier which leads to attract the
talented candidates. When the company will give the better opportunity to the employees than
they will attract by which the productivity will also increase in the market (Walsh, 2015). Every
candidate or every employee wants to grow from his existing position in the professional life, so
Hilton Hotel should provide the better growth opportunities in the company.
6. Creative benefits and rewards: Many organisation offer great benefit packages to their
employees. These benefits include bonuses, holiday, health, etc. The Hilton Hotel should adopt
this policy to attract talented people. Company should give the reward for talented employee as
well as it should give the bonuses like festival bonus, good work bonus etc. it should give the gift
vouchers, medical facilities, allowance, compensations etc. to attract talented people and retain
talented employees in the company. When the selected firm will adopt the policy than it will face
some issues and barriers. The hotels have to face obstacles regarding to budget. When it adopts
this policy than the budget will increase in the company.
7. Organization's Excellent Reputation: Many employees find companies that have good
reputation in industry to work for. Businesses like these shows that they pare long established
and know every trick and trade of the industry. The Hilton Hotel should become the better image
or become a brand in the hospitality and hotel industry (Armstrong and Taylor, 2014). The brand
is attracted to talented people, so becoming a brand is lead to attract and retain the talented
candidates in the company. The selected entity face the struggle barrier to become a brand and
provides the better opportunities to the talented people for attract and retain into the organisation.

CONCLUSION
From the above analysis of case study it can be concluded that the Hilton Hotel is having
strong strengths in the market as well as the brand also, which operates across the globe. The
selected firm is affected by some external environmental issues such as political, legal,
environmental, technological, social an economic factors. It can be said that the company is
using models which helps to the management in taking decision and achieve the long term goal.
The Hilton and Marriott hotels are using the compensation and workforce policy in their
business. The selected organisation is not having talented employees in their workplace, so it can
be recommended to firm that has to adopt above explained policies to attract and retain the
talented employees towards company.

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