Strategic Human Resource Management Report: TUI Travel Analysis

This report provides a comprehensive analysis of strategic human resource management (HRM) within the travel and tourism industry, specifically using TUI Travel as a case study. The report begins with an introduction to the importance of HRM in the industry, followed by an examination of existing trends and developments impacting organizational strategy, such as employee expectations, workforce diversity, health and safety, and globalization. The report then delves into the external and internal factors influencing HR strategy and practices, including a PESTLE analysis and a SWOT analysis of TUI. It explores concepts and theories relating to the growth and development of strategic HRM, such as Maslow's theory of motivation and the contingency theory. The report also examines change management models and their support for HR strategy, along with how to monitor and measure HR outcomes using effective evaluation tools. Finally, it concludes with a discussion on how effective HR management and development support sustainable performance within the organization. The report highlights the importance of strategic HRM in achieving organizational goals and adapting to the changing business environment.

Strategic Human Resource
Management
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Table of Contents
INTRODUCTION...........................................................................................................................3
Main body........................................................................................................................................3
P1 Existing trends as developments that impact the organizational strategy of Human
Resource.......................................................................................................................................3
P2 External and Internal factor influence HR strategy and practices..........................................4
P3 Concepts and theories relating to the growth and development of strategic human resource
management ................................................................................................................................7
P4 Change management models and its support to the HR strategy...........................................8
P5 How to monitor and measures HR outcomes with effective evaluation tools........................9
P6 Effective HR management and development support sustainable performance..................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13
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INTRODUCTION
Travel and Tourism industry is one of the fastest growing industries within the world. It is
considered as a foreign exchange as well as employment generation of several nations. It is one
of the most remarkable as well as social process. HR is an important function in firm. it consists
of hiring, selection, training etc of employees. there are various practices which is followed by
HR. for this they develop effective strategies and implement it. However, strategic HRM refers
to attaining of goals through increasing performance of staff (Hyde, 2015). It consists of many
elements in it. Reports focuses on trends and development, External and Internal factor,
Concepts and theories relating to the growth and development, Change management models
and Effective HR management and development support sustainable performance to the HRM.
Main body
P1 Existing trends as developments that impact the organizational strategy of Human Resource
In recent times, there are many trends which are emerging in organisation. it is highly
impacting in HR and strategies made by them (Gretzel, 2018). this is because trends are
changing culture, perception etc, of employees. along with that, it is useful in managing HR in
effective way. therefore, these trends exist at inside and outside of organisation. they are defined
as below :
Expectations of employees
Employees nowadays are more skilled and better educated than earlier. They are more
demanding as well as joint protests when it comes that employee's expectations are not
accomplished. The TUI HR should have to take maximum concerns about the expectations of
their staff member as well as current trends. It is also needed managing turnover within firm by
human resource planning, training and many more that all are vital within the development of the
firm (Hyde, 2015).
Work force diversity
It is a vital trend within the firm as it focuses on similarities and difference among staff members
within term of cultural background, gender, religion, sexual orientation ,age ,physical abilities
and many more. TUI's firm Human Resource are aware about such differences present within
their firm as well as creates their strategy as per the requirements.
Health and safety- HR of the Firm must have to make their strategy through concerning their
health and safety of the consumers. Management of Human Resource provides continuous health
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services by free medical services as well as health insurance of the staff members. TUI also
recruits some supervisor that plays a vital role within monitoring their staff members or focusing
on the safety of the consumers.
Modifying skill requirement
Developing skilled staff members is vital for the firm as the HR must have to concern about
managing, quality, productivity, managing as well as competitiveness a diverse firm effectively.
HR also focuses on several strategies to enhance their knowledge ,skills as well as their
hesitations. So the HR manager of the TUI provides several training programs so that they can
help them for their deficiencies.
Globalization –Nowadays globalization needs no description as business are not had any
national boundaries as needs to be assured that staff members have very high skills, cultural
ability to handle global department within the TUI travel firm. This aid that he firm has several
efficient as well as train employees to meet the challenges of globalization within the sector of
the Tourism (Vellas, 2016).
Continuous improvement programs
The management of the Human resource plays a vital role within the implementation of regular
improvement programs within the firm as several programmes are helpful for staff members to
understand changing work culture as well as polices within the firm.
health and safety- this is a trend in which organisation needs to ensure heath and safety of
organisation. they need to form new policy and procedure to be followed in it.
P2 External and Internal factor influence HR strategy and practices
It is analysed that there are many factors which influence HR practices. it results in
impacting on those practices followed. therefore, it is necessary to find out those factors so that
accordingly measures are taken. the factors are defined as below :
Pestle analysis
It gives us great details regarding the operating challenges as the firm will face the
changes of the external factors ,Pestle of TUI focuses on the impact of travel and tourism such as
Political factors
It is a factor that plays a vital role in determining the issue that influence TUI. It is a
travel and tourism firm as every nation has its own political environment as well as political
system risk. According to the TUI, it analysis closely several factors before investing or take
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entry within a specified market such as tax policy, trade policy, labour law, environment law,
trade restrictions, foreign trade policy and many more.
Economic factors-
It plays a vital impact that how a firm does it business and also at the same time how
profitable it is. Such factors involves exchange rates, economic growth, interest rates, disposable
income of costumers and business and many more. TUI is a tour and travel firm that can be
further broken into micro and macro economic factors, these are the factors that deals with some
management of a demand within a provided economy. Taxation policy, government use interest
rate control as well as government expenditures and many more.
Social factors
These are the factor that are involved within the shared beliefs as well as attitudes of the
firm. These factors includes age distribution, population growth, career attitudes, health
consciousness and many more. TUI focuses skill level and demographics of the population as
well as culture of the nation ( social conventions, gender role and many more)
Technological factors
TUI focuses not only do technical analysis but also the speed through at which the
technology cope. It also includes several impacts such as Recent Technological developments by
the competitors, rate of technological diffusion, impact on cost structure within travel and leisure
industry and many more (Martín, Mendoza. and Román, 2017)..
Environment
TUI focuses on laws regulating environment pollution, climate change ,Recycling,
Waste Management within consumer service sector, Endangered species ,pollution targets .
Legal
These are the factors that includes equal opportunities, health and safety, consumer
rights as well as laws ,product safety and many more (Vellas, 2016). TUI provides equal
opportunities for their employees and also focuses on above factors.
SWOT ANALYSIS
TUI is one of the leading firm within the industry as it can maintain its position within market
through carefully analysis as well as reviewing swot analysis.
Strength
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 TUI has the strong Brand Portfolio- As from many years It has invested within building
strong portfolio as it can be useful as because firm wants to expand into new categories
of products.
 It has also strong Distribution network
 Firms has also strong cash flow
 Customer satisfaction level is high
Weakness
 These are the areas where can improve itself as strategy is about making the choices
while weakness are the areas where the TUI can improves as well as build its strategic
positioning and
 strategic positioning as well as competitive advantage.
 The structure of the TUI is only compatible with existing business thus it has the limiting
expansion within segments of adjacent products (Schuckert, Liu. and Law,2015).
 There were also facing gaps in the product range that can be sold by the firm , this kind of
lack of choice can provides new competitor a foothold within market place.
Opportunities
 Reducing cost of transportation due to the lower shipping prices as it brings down the
cost of the products of TUI as well as giving an opportunity to the firm either it can pass
the benefits to the consumers or it can boost its profitability to increase the market share.
 The new technology gives an opportunity to the firm as it can practices strategy that is
known as pricing strategy within new market as it enables the firm to maintain its
consumers who are loyal accompanied by the great services (Martín, Mendoza. and
Román, 2017).
 Enhance within consumer spending and Economic uptick after the recession as well as
slow growth rate within industry is considered as an opportunity for firm to capture new
consumers as well as increase within market share.
Threats
over the years the supply of the new products are not regular as it leads to low and high swings
within sales over the time.
The firms also faces lawsuits within various market as several laws and continuous fluctuations
regarding products standard of products as well (Buhalis. and Foerste, 2015).
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There is a demand of the products that are highly profitable is seasonal within nature as well as
during the peak season it may impact the firm's profitability within short or medium time period.
Organizational culture – It is mix of beliefs and shared values within a company and human
resource manager should create a better and positive culture of the organization. This culture is
important for the formulate appropriate human resource strategies and policies.
Use of technology – this factor affects HR planning and practices in the HR department and
management of company. The advance technology system plays significant role in the human
resource practices (Vellas, 2016).
P3 Concepts and theories relating to the growth and development of strategic human resource
management
There are several theories and concepts which is followed in developing HR strategy. they
help in by giving insight on what is relevant and not and how it will impact on organisation
culture. with that concept it becomes easy to grow and develop and attain goals in HR. thus, the
theories are defined as:
Maslow motivation of theory
It presents motivation within outcomes of the attempt of the individual at fulfilling the
needs such as esteem, safety, self actualization, physiological and social needs. As per the
theory these are the kinds of the needs that can develop the several internal demands through
which a person 's behavior can impact (Martín, Mendoza. and Román, 2017).This is the best
theory by which people are motivated by satisfying as well as fulfill their own level of needs
such as foods, water, shelter and many more before thy are reaching the higher level for
example self- actualization. It plays a vital role within growth as well as development of the
strategic human resource management so that the employees are motivating to meet their
requirement.
Human resource management model
Policies human resource- It develops polices as well as guidelines regarding the business issues
as well as HR programs.
Philosophies of approach- It involves how to value as well as treat the employees
Philosophies of approach- It involves how to value as well as treat the staff members within the
organization.
Practices of Human resources- Motivators within the firm needed role behaviors.
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Process of Human resource- It focuses that how all such actions are carried out (Buhalis. and
Foerste, 2015).
Contingency of theory- this theory focuses on complex interactions among the human resource
between the contingency factors and HRM. It expresses aims,polices as well as evaluation of the
TUI firm. It also play a significant role as it must be regular within the external environment,this
theory gives a wide range of the way solve several problems of the HRM strategies (Reino, and
Hay, 2016). It also denotes external fit and proponents to recognizes this model that can be
suited to the HRM
P4 Change management models and its support to the HR strategy
It is necessary to bring changes in HR strategy so that goals are achieved. these changes
help in providing a new process of working. It is essential to imply a model to implement
changes. this is because it is useful in effective implementation. along with it, models support in
developing of HR strategy to a great extent. change management model consists of step by step
method through which it is easy to implement change. similarly in TUI the model followed in
described as below :
Kotters's 8 step model
It is known as the management model which is not only focuses the changes but also at the
same time focused on the people behind such cases. This theory used by the TUI firm as it plays
a vital role to support the human resource strategy in an effective manner.
This theory focuses on several functions such as
1. Inspiring a sense of urgency- Needs to develop this as it will need to get the team
members adopt this.
2. Developing a core coalition= Here the firm will have to gather leaders as well as
stakeholders and also inspire them towards the requirements of change. It aids the firm
directly or indirectly (Schuckert, Liu. and Law,2015).
3. Creates a strategic vision= here HR develops vision as well as changes that the TUI
aiming for
4. Getting everyone on board= Here the firm spreads their thoughts as well as ideas as it
includes regular meeting of employees and HR to discuss several changes as well as
vision.
5. Reduce friction as well as remove barriers
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6. Emerging short term development= Firms should be sure regarding short term
developments as well as linked with several changes that encouraged several employees
7. sustainable acceleration
8. Implementing change within stone- changes have been applying in firm's culture and
documentation.
Lewin's change model
It divides three stages such as Unfreeze,make changes and Refreeze
Unfreeze= This finds outs how modification can be done within the current process
Make changes= After unfreeze steps all are prepared as HR of TUI develops some changes as
well as suggestions that staff members adopt. such as communication to decrease any type of the
difficulties.
Refreeze= Here the HR can refreeze new status quo as it gives better guidelines to the TUI's HR
so effectively for the development of the business (Buhalis. and Foerste, 2015).
P5 How to monitor and measures HR outcomes with effective evaluation tools
It is important to monitor HR outcomes so that it is identified whether goals are attained or
not. also, it gives data and info about weak areas and improvement needed in it. Moreover, by
evaluating further strategies are developed. the use of tools depends on HR policy. there are
various types of evaluation tools available. It follows different process and criteria to measure
outcomes. the tools are defined a below :
10 C'S of the human Resource Management model are mention below as these are the principles
that are useful to the practitioners of the human resource as well as defines several strategies
within the firm (Camilleri, 2018).
Communication= The management of the human resource management must have understood
the several objectives that are related to the firm to accept by the staff members within operations
of the firms.
Credibility= Managers of the Human resource must practice the objectives of the firm as well as
accept through the staff members within the operations of the firm.
Cost – effectiveness= The HRM practices also consider several reward system and promotion
within a very effective manner.
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Creativity – The Human resource management also includes several practices that also includes
creativity. It also includes competitive benefit of the firm as well as also provides the unique
strategies regarding Human resource (TBecker, 2016).
Comprehensiveness= The firm must involves all the several aspects of management as well as
beginning from the recruitment to the various programmes of the post-separation within the firm.
Change- This is considered as the best practice for the regular development as well as also done
improvement that is vital for the survival within firm.
Commitment= These are considered as the management practices that must committed and
encouraged to the staff members so that they can motivate them to accomplish the goal of TUI
Competence= To achieve the goals as well objectives HRM strategy will be crucial so that the
firm becomes competent (Xiang, Magnini and Fesenmaier, 2015).
Control= It must ensures that the performance of the HR within the firm is consistent
accompanied by the objectives of the business.
Communication= It should be understood that the objectivities of the firm as well as accept by
all the staff members within operations of the firm falls under the Communication.
Coherence= The management practices of the Human resource must have to conduct several
initiatives of the HRM as well as activities importantly for the whole Firm.
A particular organization situation for example Such as TUI is arranging a big campaign for
selection and recruiting of the skilled as well as talented candidates within this situation this firm
can uses the 10 C's model of the Human resource management so that it can monitor as well as
measured several actions and functions of the Human resource. From this model firm can
recognizes that HR has qualities of communication,competitiveness ,control and all the activities
cames under 10 C's model (Reino, and Hay, 2016).
P6 Effective HR management and development support sustainable performance
HRM practices aids the firms to meet the requirement of the staff members or the
employees as well as deal with key aspects of the form such as training, recruitment,
development ,administrative as well as management and many more. It also plays a vital role
within the firm as well as involving several HR functions. It also involves several strategies that
creates a link between to meet the goals as well as strategies of the firm (Xiang, Magnini and
Fesenmaier, 2015). It is also essential as it develops several polices that are benefited both the
employees and firm. The HRM of the TUI also evaluates several programs as well as strategies
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on regular mode. It also useful for the development of the sustainable performance of TUI's
operations.
The strategies of the HRM combines all the firm's management activities within an
organized and integrated program so that it can meet all the objectives of the firm. HRM
also executes several human resource policies and practice so that they can produce the
competencies and behavior of the staff members. Within the TUI, it plays an important role
regarding the better improvement and also provides benefits of the firm
Importance of Human resource management within sustainable growth as well as business
performance
It plays a crucial effective role within sustainable business performance as well as
sustainable growth. It also aids within improving the performance through distributed operations
as per the knowledge and skills of the staff members. It also aids to save expenses that are found
to be unnecessary. It also aids sustainable growth through investing within the development as
well as professional growth for the long duration(TBecker, 2016) .
CONCLUSION
From the above report it had been concluded that Existing trends such as Expectations of
employees, Work force diversity, Modifying skill requirement, Globalization and Continuous
improvement programs. It focuses on effective SHRM develops a better business environment
within the firm. It increase the work performances of the staff members as well as boosts them
to achieving business aim as well as objectives. Several internal as well as external factors
regarding the business environment that impact strategy of the HR as it have to develop
predictable nature to decrease that diverse impacts as well as take several competitive advantages
within the whole market.
REFERENCES
Books and journals
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Becker, E., 2016. Overbooked: The exploding business of travel and tourism. Simon and
Schuster.
Buhalis, D. and Foerste, M., 2015. SoCoMo marketing for travel and tourism: Empowering co-
creation of value. Journal of destination marketing & management, 4(3), pp.151-161.
Camilleri, M.A., 2018. Travel marketing, tourism economics and the airline product: An
introduction to theory and practice. Springer.
Gretzel, U., 2018. Influencer marketing in travel and tourism. Advances in social media for
travel, tourism and hospitality: New perspectives, practice and cases, pp.147-156.
Hyde, M., 2015. Travel and tourism in later life. Routledge Handbook of Cultural Gerontology,
Routledge, Oxford, pp.337-44.
Martín, J.C., Mendoza, C. and Román, C., 2017. A DEA travel–tourism competitiveness
index. Social Indicators Research, 130(3), pp.937-957.
Reino, D. and Hay, B., 2016. The use of YouTube as a tourism marketing tool.
Schuckert, M., Liu, X. and Law, R., 2015. Hospitality and tourism online reviews: Recent trends
and future directions. Journal of Travel & Tourism Marketing, 32(5), pp.608-621.
Vellas, F., 2016. The international marketing of travel and tourism: A strategic approach.
Macmillan International Higher Education.
Xiang, Z., Magnini, V.P. and Fesenmaier, D.R., 2015. Information technology and consumer
behavior in travel and tourism: Insights from travel planning using the internet. Journal of
retailing and consumer services, 22, pp.244-249.
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