Strategic HRM: Analysis of the Ritz London Hotel, Hospitality

This report provides a comprehensive analysis of human resources management at the Ritz London Hotel, a renowned hospitality organization. It examines both internal and external factors influencing HR strategies and practices through PESTLE and SWOT analyses, along with a VRIO framework to assess competitive advantages. The report also discusses recent trends and developments, such as safety and hygiene protocols, the use of robots and chatbots, and mobile check-in services, that impact HR strategy. Furthermore, it explores strategic HRM theories, including the Universalist Approach, and emphasizes the importance of change management models and supply chain management contributions to organizational growth. The report concludes by highlighting effective monitoring and measurement techniques for HR management, underscoring their role in enhancing organizational effectiveness. The document is available on Desklib, a platform offering AI-based study tools and solved assignments for students.

HUMAN RESOURCES
MANAGEMENT
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Table of Contents
INTRODUCTION...........................................................................................................................3
Main body .......................................................................................................................................3
The Ritz London Hotel SWOT Analysis: ...................................................................................4
Recent trend and developments that may influence the HR strategy of an organization:...........5
Theories and concepts of strategic HRM ....................................................................................6
Appropriate change management models support HR strategy...................................................7
Contribution of the supply change management in the growth of the company. ....8
Monitoring and measurement by the human resources management ........................................8
Effectiveness of HR management...............................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................10
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INTRODUCTION
Human resources management refers to the plans of action for hire, manage and control the
employees for accomplishing the goal of the organisation in effective as well as efficient manner.
the present report is based on the human resources management of the Ritz London organisation
which is hospitality industry that have high brand value in the domestic as well as international
marketplace. due to exclusive services of the company it considered as the five star hotel which
is established in the London, united kingdom. The report will determine the external and internal
factor of the organisation along with the current trend and development that encourage the
human resources plans of action. furthermore the study will apply the relevant theory associate
with the HR strategies. Beside this the study will demonstrate effective monitoring techniques in
human resources management which deliver assistance in growth and development of the
organisation.
Main body
Examination of internal as well as external factor that encourage HR strategies and practices
Pestle analysis
The present report examine pestle analysis in the hospitality industry and explores macro factors
affecting the global industry. The hospitality industry has different business categories such as
travel and tourism, food and beverages, and entertainment (Abdiyev, and Alimardonov, 2022).
On the other side, pestle analysis study these factors in the industrial environment and their
impact on the hospitality industry.
Political Factors: Political factors have a straightforward impact on the hospitality industry and
its stability is great for the industry. Hospitality is facilitated through government support and the
major role of other government initiatives. There are various ways the governing body can
influence the hospitality industry which including tax policy, business rules and regulation, real
estate development, and many other element. For illustration, many hospitality industries around
the world have been damaged by blockades and other hospitality industries. With the assistance
of government or political business the organization is increasing the profitability and
productivity.
Economic momentum: Tourism bring benefits in the UK economy and brings costs to the
economic system. Economic factors are critical to marketing and opereration, which have a
direct impact on the hospitality industry. In terms of economic factors, tourism offers better
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opportunities for the development of regions affected by structural changes, as well as economic
conditions that affect the tourism industry. Economic factors represent UK's unemployment rate
of approx 10% and UK hospitality GDP of 5% in 2021 which is lower than compare to the other
department (Arbab, and Mahdi, 2018) ..
Social Factors: In pestle analysis, the social trends that shape the tourism industry. In the UK,
eating out regularly in restaurants is strong, and people go on holidays every day, which
strengthens the culture. Hospitality serves one society to another because consumers have
different tastes and preferences which is a great opportunity and development for the company.
The social factor deliver negative as well as positives outcomes in the hospitality industry as
many people have a negative perception and therefore do not seek employment opportunities in
the industry. On the other hand many people willing to service the organization fruitfully.
Technical Factors: In the hospitality industry, hotels utilize information technology in a variety
of ways to better serve their patrons and enhance their experiences. Today, customers can book
vacations and restaurant tables online, many apps are used by businesses for immediate food
delivery to their doors, and people deliver orders in a short amount of time. Technology factors
play an important role in the development of the hotel industry.
Environmental factors: Environmental factors also affect the hospitality industry. Industry has
a direct impact on national pollution. The hospitality industry is responsible for protecting
environment and the development of country, in context to that the individual person also need
to think about impurity in nature as this factor attracts new customers and retains existing ones
(Bavik,2019) .
Legal Factors: Regarding legal factors, there are various regulatory or rules and requirements
for opening hotels, restaurants and parks. The united kingdom has several food safety laws and
food hygiene standards, and the UK also correspond to gas safety regulations to protect visitor
welfare and protect guest by acknowledging information. Also, it comply with the Industrial
Safety and Health Act that regulates this.
The Ritz London Hotel internal Analysis:
SWOT Analysis is a plan of action utilized by hotel employees to manage hotels, identifying
internal opportunities that represent the strengths and weaknesses of the company, external
opportunities, and threats to the business. .
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Opportunities: Today, the hospitality industry has opportunities for global growth. The Ritz
Hotel company provides better service to its customers and gains sustainability in the
marketplace. Since customer preferences are of paramount importance to hotel companies, they
can also scale their business and develop their customer preferences. Therefore, the organization
have added various functions based on customer preferences. Opportunities can arise from a
variety of Ritz factors, including Increased consumables, economic growth, innovation, changing
customer preferences, political change and political development. To increase brand loyalty, the
association need to focus on market trends (Machado, 2019).
Threat: Technological change is the biggest threat to Ritz, as all customers like groceries online
and no one visits the hotel, which is the biggest threat to hotel companies. Technology
development is both a threat and an opportunity for a company. Rising operating costs are also
affecting hotel prices. The biggest threat to Ritz these days is competition. All hotels offer the
best service, which is detrimental to the hotel. Negative customer feedback negatively impacts
corporate value. The shortage of talent is a loss for the hospitality industry.
VRIO analysis
Resource Value Rare Imitation Organisation Competitive
advantages
Brand positioning Yes No Yes Yes It is temporary
Capability to attract
the customers
Yes No No Not Deliver strong
values
Customer satisfaction
and loyalty
Yes No Yes Yes Providing strong
competition in the
marketplace.
The VRIO is considered as one the best framework which deliver values to the organization.
With the assistance of this model the organisation is able to determine the competitive
advantages in the domestic as well as international marketplace. Along with that due to the
utilization of this framework it is easy for the organization to determine the resources which are
beneficial for the workers of the association for performing the task in effective as well as
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efficient manner. The VRIO analysis is measure the survival and success of the organization.
The model is consist of different elements which are mentioned as follows:
Values: for leading the marketplace in effective as well as efficient manner it is important for
the association to deliver the values to the customers. In context to that the Ritz Calton follow the
business ethics in appropriate manner. Along with that manager and hotels regularly monitor
guest behaviour and manage each guest's files. Ritz not only provides customers with quality
service, but also focuses on employee satisfaction and encourage the workers to provide better
service. For the better experience of customer the organization provide training and development
programme to the employees of the organisation that bring the professionalism and improve the
standard of working within hotel.
Rare: Competition is intensifying in the luxury hotel and hospitality industries. Hotel costs are
high, meticulous attention is required, and it is difficult to provide a personalized experience to
multiple customers of hotels, which is one of the brand's rarity . Maintaining the brand image of
the hotel industry in these circumstances is a difficult task, and providing luxury to customers is
a difficult task. Another one is lack of meeting culture demands of customers as each culture has
a different definition of luxury and it is essentials rarity of the organization which need to
addressed in adequate manner. As a result, services can vary from culture to culture and it is not
possible for the Ritz Hotel to serve all groups. Along with that the marketing of the hotel is rare
which need to implement as soon as possible as it attract large numbers of the customer toward
association.
Imitability: the services of the organization are imitable it means the services of the association
can be cooped by the other organization. Even many other organization are providing the same
services to the people which includes the facilities of room services, dinning hall, coffee or the
restaurant area or near the pool sites. Along with that the organization provide the facilities of
collecting feedback from the customers due to which the organization brings the invitation in the
organization. Similar Hilton hotel also using the strategy for improving the quality.
Organization: the organization positioned itself in the domestic as well as international
marketplace. The organization has the ability to attract large numbers of customers in effective
as well as efficient manner.
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Recent trend and developments that may influence the HR strategy of an organization:
Ritz is a one of the best leading company hospitality company and always keeps up with the
latest hospitality trends. Global events can also influence hospitality trends. The latest hospitality
trends that respond to changes in customer behaviour due to blockades liker covid 19 (Ozkeser,
2019). Trends that influence HR plan of action and can result from further changes in consumer
behaviour are mentioned in the following manner:
Safety and Hygiene: For COVID 19, it is important to address the safety and hygiene issues as
it is essential concepts for bars, hotels, cafes and restaurants Human resource management needs
to manage and show concern on customer's safety in context to the responsible person should
provide masks, disinfectants and provide the hotel with health and safety equipment.
Hotel and restaurant robots: Hotels and restaurants use robots to greet customers and provide
customer information about the services of the organization in order to acknowledge them and
shares values with the patrons. It also plays a role in providing security operations fort the
welfare of the organization. In addition, collecting customer information using robots reduces the
burden of personnel management and helps to reduce the way of dealing with hotel customers as
much as possible. With the assistance of that the organization increase the satisfaction of the
customer which is important for the business enterprises (Rhou, and Singal, 2020) .
Chatbots: Chatbots are another hotel trend related to customer service. Chatbots can answer
customer questions frequently or within a second, reducing the stress level of human resource
management. It can be used even in the absence of human staff and does not require the hiring of
employees.
Mobile Check-in Service: The provision of mobile check-in service is the latest trend in the
hospitality industry, reducing person-to-person contact and enabling customers to enjoy self-
service and a better customer experience. Human resource management must provide mobile
check-in services to all customers. Due to which the organization is able to provide
comfortability to the customers and services in short period of time (Saks, 2021.) .
Theories and concepts of strategic HRM
The Ritz London is one of the leading organizations by gaining continuous growth in the
hospitality industry. The goal of the organization is to capture both domestic and international
markets in an effective and efficient manner. The branch can add value to an organization by
improving people's engagement skills and knowledge. In this context, companies have the
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opportunity to apply some strategic theories of human resource management. The theory
supports hotels in the management of business and the development of personal and professional
abilities of individuals working in business. The theory of organizational is elaborated in
adequate manner which is as follows:
Universalist Approach: This is considered as one of the most effective learning theories, which
suggesting that the organisation can shape people and change their perspectives for improving
the performance of the organisation. it suggest that the human resources management play huge
role in improving the quality of association. , The Ritz London Group can use this theory in an
effective and efficient way to train individuals and improve the performance of the individual
person. To enhance individual skills and knowledge, organizations offer a variety of roles and
services depending on the behaviour of workers (Sims, and Bias,2019). Organization deliver
values and increase the employability workers by providing a positive culture within the
organization. Basically, HR is responsible for pleasing the long-term contributions of workers
within the organization for improving the brand value in the marketplace. It is also considered an
effective theory for organizational growth. The human resources management department of
Ritz London Group build better relationship with the workers for improving their employability.
In this context, Ritz London managers focus on the physical and mental health of the employees
who are associated with the organization. For this purpose, the manager used problem-solving
skills. For example, managers help worker solve their personal and professional problems, which
further reduces people's stress and allow them to work freely.
Contingency approach: it refers to the theory which suggest that there is no particular way to
mange the operation of the association. According to this theory the manger of the association
are responsible for performance of the organisation. In this context, the company's HR manager
provides feedback to the workers on the basis of personal behaviour, emotions, views, and
performance related to the company's growth. Feedback is both positive and negative, depending
on the quality and standard of work within the association. It deliver assistance in Improve the
performance of individuals and allow organization to survive and get succeed in the domestic as
well as international marketplace. The manager provides workers with the appropriate
information to identify action plans that support the growth of the organization. Manager
provides training and development programs to help workers properly fulfil their duties and
responsibilities. For development, HR allows employees to make suggestions and participate in
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the decision-making process (Sudarmo, 2020). This allows employees to attract many customers
to their organization. Basically, it encourages workers to reach their goals in a rational way.
Furthermore it result in providing the opportunity to deal with the forthcoming challenges and
develop the best career path. It also satisfy the numbers of the workers working in the
organization and treat them as the assets of the organization rather than give feeling of being
treated as liability or debt on the organization. It worked as the plans of action for increasing the
profitability and employability of the company. It is the main function of the human resources.
Appropriate change management models support HR strategy
Change management plays a significant role in the functioning and operation of the company.
Change Management defines each person's roles and responsibilities to perform tasks effectively
and efficiently as well as perspective of leading the market. With the help of this change model,
HR management can bring creative as well as innovative changes to the organization. For this
reason, it is considered the most important factor for a company's success in domestic as well as
international marketplace. In general, this allows the personnel department to prepare for a
variety of challenges. In this context, organizations provide training and development programs
to improve performance and take responsibility to employees. Change management allows
organizations to provide their employees with a variety of work environments and standards. In
addition, there are instructions for employees on how to properly implement the action plan
(Tambe, Cappelli, and Yakubovich, 2019).
Kotter model: change management model provides a great deal of support in change
management when human resource management changes policies and procedures related to the
operation of the company. Basically it refers to the process which deliver assistance to the
manager of the organisation in accomplishing the goal in effective as well as efficient manner. In
order to bring the changes it is important to create urgency and need to believe that it is
important adopted the innovation in the organisation. in context to that the Ritz business, the
manager can discuss with the employee that the organization is ready to implement the changes
based on their satisfaction with the new changes within the organisation. For illustration, a
manager justifies people to the changes needed by an organization. To implement the changes in
the organisation the manager bring the team together. Changes in the operation of the
organization it is important to develop the vision and form strategies. During the implementation
of plan or strategies, the company provides a great deal of support to its employees. For
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illustration, Ritz London managing director offer the opportunity to make comment on business
changes (Triatmanto, Wahyuni, and Respati, 2019). At the same time, personnel will coordinate
and collaborate with employees to achieve corporate goals and ensure that innovations in
operations are effective for the growth and development of the organization.
Lewin’s model: this model is consider as one of the effective model for bringing the changes in
the organisation. it consist of three stages for bring the changes in the organisation. for bringing
the innovation in the manger spread the awareness among the workers in order to enable the
worker to perform the task effectively and efficiently. In the next stage the organisation bring the
changes for improving the performance of the company In addition, according to the model,
managers provide skills and determine workers' ability to make positive changes in the
workplace. To improve the skills and knowledge of 4455 employees, the organization has also
organized an implementation and training program to help the company properly adopt changes
as soon as possible. In the last stage the employees become stable and accept the changes in
adequate manner.
Contribution of the supply change management in the growth of the company.
The change management largely contribute in the growth of the organisation effectively and
efficiently. Due to the management of changes within the organisation the responsible person is
able to reduce the waste of the company and improve the brand value in the marketplace. with
the assistance of adequate or decent management of the business enterprises that also includes
innovation and the creativity the organisation is capable to attract the large numbers of the
patrons from domestic as well as international market. Furthermore, it deliver huge support in
improving the values or the job roles and responsibility of the individual person working within
the business enterprises) Apart from that it allow the workers to develop their interest and
engage or get involve themselves in the production of the company. For increasing the
profitability and scale of growth in an appropriate manner.
Monitoring and measurement by the human resources management
Human resource management main job roles in the organization is to determine that the
employees are working properly or not by monitoring the performance of workers. In this regard,
as the department is responsible for running the business, it is also important to effectively and
efficiently measure and monitor performance and strategy. The Ritz London has always focused
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on improving hotel facilities to satisfy many visitors and make their unforgettable travelling
with the amazing or better experience. The organization regarded the tracking and monitoring
process as a step-by-step action plan. For the monitoring process, association utilized software
called Keep Performance Indications (KPIs). This software evaluates employee performance in
relation to accomplish the long term as well as short term goal of the organization.
In this regard, the organization determines that employee and customer satisfaction with the
services the hotel provides to visitant, that includes room service, food and beverage,
accommodation, housekeeping, and laundry, that helps in generate revenue (Zeebaree,Shukur,
and Hussan,2019).. Gather customer feedback along with the HR and analyse the positive and
negative impacts of the implemented strategy on the company's success. Otherwise, The Ritz
London compares the overall net profit and surplus of an organization for measuring the
performance of the company. For illustration, if an employee of your organization makes a
change. HR Management conducts a survey that employees are content with innovation and
creativity. At that point, we also determine the impact of innovation on our customers by
collecting visitor feedback comments and ad ratings it involve positive as well as negatives
reviews of the customers in order to determine the value of the company in the market. In
addition, the HR department compares effectiveness and provides guidance according to
requirements. Apart from that, the company identified the number of customers the hotel
attracted to enjoy the service.
Effectiveness of HR management
Human resource management supports organizations to increase the effectiveness of the
companies in the right way. Human resource management is responsible for maintaing the
ethical value of hotels in the hospitality industry. At the same time, it manages corporate
governance and financial performance. In order to spread the image of the hotel around the
world, the organization will satisfy its employees in a rational way. At the same time, the
company maintains a positive and inspiring culture for the people who work with the company .
In addition, it determines the worker's commitment to shape the company and profession. The
organization's HR department provides value to both customers and employees. In this regard,
HR coordinates and works with senior management to implement action plans in an appropriate
manner. The Ritz London manager defines the company's goal of communicating with staff and
creating a positive culture in the workplace.
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At the same time, individual employees are involved in the decision-making process and treat it
as an asset of the organization rather than making them feel responsible for the hotel. Moreover
for the motivation and sustainable development the company keep providing incentives, bonus,
rewards in order to appreciate workers and deliver values for the long period of time (Yam,
Raybould, and Gordon, 2018. . Moreover it also decrease the stress of the workers by developing
various strategic plans. Beside all the manager of the hotel group provide the briefing. Training
and development programme to employee in order to deliver right information, role, and
responsibility to the right person, so they are able to perform better decrease their stress
contribute in the development of the organisation. moreover the company should focus on the
needs and wants of the employees that add values and contribute in improving the image of the
company and development of the organisation in adequate manner. for the sustainable
development of the organisation the human resources management should be conscious about the
health and safety of the worker at the time of covid 19. Along with that the company develop the
strategy that satisfy the employees and encourage them to perform better. In context to that the
human resources management develop and follow all the rules and regulation of the organisation
in an appropriate manner .
CONCLUSION
From HRM strategies include individual HR strategies that help improve the performance of
employees and organizations. The present reported mentioned that with the assistance of human
resources management the organization can accomplish the goal in effective as well as efficient
manner This report describes human resource management strategies, business strategies, and
their performance based on the Ritz Hotel related to human capital management, and evaluates
effective monitoring methods that contribute to the company's sustainable performance and
growth. increase. In summary, the HR department ensures that the organization is well equipped
to evolve, adapt to new trends, and seize the opportunities that arise in the company.
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