Topic: Author: Description:

How Human Resource Management contributes to the achievement of Hilton Hotels Objectives. Uzoamaka Mbadiwe Submitted Class Assignment for EDEXEL Level 7 Course, Human Resource Management.

Acknowledgement: All cited and quoted resources are hereby acknowledged with thanks.

TABLE OF CONTENTS TITLE PAGE 1. 0 How HRM Contribute to the achievement of Organizational Objectives................................................................................................1 1. 1 Organizational Structure of Hilton Hotel.....................................................................1 1. 2 Three key HRM activities of Hilton Hotel........................................................................1 1. 2.1 Recruitment.............................................................................................................1 1.2.1.1 Achieving the Hotels objective through Recruitment.....................................................1 1. 2.2 Selection........................................................2 1. 2.3 Training.........................................................2 1. 3 How Hiltons objectives are achieved by effective management of human resources using two HRM models.............................................3 1.3.1 Best Practice model ..................................................................................................3 1.3.2 Harvard Model of management...........................................................................................3 2. 0 HR Planning and development Methods........................................................................3 2. 1 Human Resource Planning..............................................................................................3 2.1.1. Three identifiable HR planning areas in Hilton Hotel and how they are carried out..................................................................................................4 2.1.1.1 Workforce Planning..........................................................................................................4 2.1.1.2 Succession Panning.........................................................................................................4 2.1.1.2.1 Recruitment schemes.....................................................................................................5 2.1.1.2.2 Career Development Schemes.......................................................................................5 2.1.1.3 Compensation Planning...................................................................................................5 2. 2 Human Resource Development in Hilton Hotel..............................................................6 2.2.1. Training..............................................................................................................................6 2.2.2. Hiltons Development Programs......................................................................................6 2.2.2.1 Online Career Paths............................................................................................................6 2.2.2.2 Management Development Schemes.................................................................................6 2. 3 2.3.1 2.3.2 2.3.3 2.3.4 3. 0 3. 1 Analysis, Shortfalls and Critique of Hilton Hotels HR Planning and Development methods..............................................................................................6 Internally focused................................................................................................................7 Not aligned with current and changing objectives...............................................................7 Too technological oriented .................................................................................................7 No consideration for disability.............................................................................................7 The effectiveness of Hiltons HR Planning and Development methods in meeting organizational objectives...............................................................7 Recommendations.............................................................................................................7

References Appendices

1. 0

How HRM Contribute to the achievement of Organizational Objectives The goal of HRM is to maximize the productivity of an organization by optimizing the effectiveness of its employees while simultaneously improving the work life of employees and treating employees as valuable resources. HRM effort in a typical organization encompasses all activities that promote personal development, employee satisfaction, and compliance with employment-related laws and these activities are therefore, evident in the following roles; planning, implementing, and managing recruitment, as well as selection, training, career, and organizational development initiatives within an organization. [Susan M. Heathfield 2011; Stinchcombe, 1964; Mote D. 2011] Organizational Structure of Hilton Hotel An example of an organization, whose Human Resource Management efforts contribute to its achieving its objectives, is Hilton Hotels Worldwide. Hilton Hotels is a leading global hospitality company, with more than 3,500 hotels, 550,000 rooms and over 130,000 team members in 81 countries around the world. Its business area spans across all segments in the lodging sector of the industry; from luxurious full-service hotels and resorts to extended-stay suites and mid-priced hotels and it has been credited with being the best Hotel Chain in Eastern Europe in 2010. [Hilton Worldwide 20102; Energy star, 2011] HRM contributes to the achievement of the hotels objectives by aligning its objectives to the corporate objectives of the hotel in order to ensure the realization of the organizations overall corporate objectives. A description of how this occurs is presented below to reflect how the following HR activities are organized to achieve Hiltons sustainability objective:

1. 1

1. 2 Three key HRM activities of Hilton Hotel 1. 2.1 Recruitment Being an international organization, Hilton Hotels applies a global approach to recruitment, Lockwood C. 2010, describes this as involving the use of a combination of the best of expatriate staff from headquarters and nationals from its global subsidiaries to develop consistent worldwide practices which ensures close co-operation between the different parts of the chain, consequently, implementing both universal and local standards for evaluation and control. This approach was further described by Muratbekova-Touron M. (2008), as a geocentric approach; which he concluded often yielded better results than ethnocentric approach in global contexts. Recruitment in Hilton covers every aspect from job analysis (including; job description, person specification and job evaluation) to design communication (involving activities relating to the jobs advertisement in suitable media) e.g. News papers, hotels website or its associates websites like employment agencies etc. Workers are also, recruited through the hotels various graduate placement and management schemes and senior managers are sometimes recruited when their hotels are acquired or through headhunting. [HTS, 2009] 1.2.1.1 Achieving the Hotels objective through Recruitment The Hotels sustainability objective is To ensure system-wide sustainability performance of its hotels globally, by the year, 2014. And this is assured not only by recruiting individuals with the right understanding of environmental and conservation matters; but also, by the hotels HR department making sure that recruitment activity is carried out with utmost consideration for conservation and environmental friendliness. It does this by ensuring that applications are made on-line, through its dedicated web portal; thereby, discouraging paper applications. However, another angle to view this, is weighing the effect of the mark-off between environmental conservation by the use of less stationery and the increase in energy cost on the other end, when applicants make their applications using different computers. [Energy star, 2011]

With regard to the hotels internationalization needs; recruiting for a global establishment like Hilton has its peculiar challenges in terms of labour turnover, cultural differences, availability and suitability of skills, legal restrictions, fluctuating exchange rates etc. and the HR must overcome these challenges and ensure that staff with suitable qualifications are recruited not only to ensure that the hotel achieves its objectives but also, to ensure that the employees are properly motivated and engaged so as to avoid frequent labour turnovers. [Arabian Business, 2011; CIPD, 2010; Williams B., 2007; Yaritza R., 2009] In a related scenario, Hiltons HR will need to consider using social networking media like the face book, Twitter and others, to further generate a regular pool of applicants, by so doing, ensuring that the hotel not only saves on advertising but also, meets up with the more specific job fit for any particular role in question. Further, the Hotels HR should also, consider introducing programs that facilitate recruitment, selection and training of candidates with disability to ensure their inclusion and foster better diversity within the hotel. [CIPD, 2010; 2010; Walsall Council 2010 Work Support 2010; Hyatt 20102] 1. 2.2 Selection The selection process spans across the short listing of qualified candidates, final selection of successful candidates after series of interviews, informing candidates of their results and carrying out required checks for the advertised positions, such as reference, health and CRB checks depending on the role. The HR department achieves the hotels objective by carrying out computer based assessments, with a two-fold objective; assessing the candidates IT ability as well as, removing paper based assessments. The elimination of paper ensures both the conservation of stationery to save cost as well as, being environmental friendly. Furthermore, the computer based assessment not only facilitates the compilation and collation of the data on successful candidates, but also, saves time and reduces the chances of applicant details being inappropriately handled thereby protecting their privacy. The limitation of this method however, is that it maybe considered discriminatory since it does not provide for candidates with limited IT skills and those with disability (e.g. blindness) who may consequently be left out. The process should also be designed to incorporate on-line CRB checks rather than paper checks if the hotel is aiming at reducing paper usage. [CIPD, 2010; Walsall Council, 2010; Direct CRB, 2011] 1. 2.3 Training Hilton training starts with an induction program after successful recruitment. The hotel also offers internal programs (like SHINE and Elevator programs), and external development programs to help its employees progress their careers in the directions of their choice. It also, creates conducive environment and allows flexibility to make such programs worthwhile and accessible to its employees. To fulfill the hotels objective, most of these programs are carried out on-line; which not only, saves cost but also, provides flexibility and convenience to participating staff. The limitation however, is that given Hilton Hotels standardized and integrated worldwide system; such programs encounter problems of accessibility among staff of different cultures with less developed economies; preventing employees in these areas from realizing their developmental objectives. Moreover, not all Hiltons employees are IT savvy and may find such training programs unnerving. [CIPD, 2010; GTI Media, 2010; Hilton Elevator 2010; Hilton Worldwide 20101; Kranz G., 1995; Univ. of Portsmouth, 2009]

1. 3

How Hiltons objectives are achieved by effective management of human resources using two HRM models. Multiple models exist to explain the processes through which HRM impacts on a companys performance; with regard to the above-mentioned, two identifiable HRM models in operation include: Best practice and the Harvard models. Best Practice model: Best practice is a modern variant of the contingency theory of management which involves the adoption or adaptation of ideas, tools and techniques in a way that measurably improves an organization. HRM Best Practice model can be seen in the light of a definition of a clear, culture-based technology strategy and the relentless pursuit of operational efficiency within a concerned organization. [WorkStrategy, 2003; HaLM, 2010; Morris & Maloney, 2011] In the above HRM activities, Hiltons geocentric approach to recruitment is a good example of the Best practice approach. Like wise, the hotels use of computer based programs for recruitment, selection and training of candidates over the erstwhile paperbased methods coupled with employees training and development and the provision flexibility to allow for the different needs of the participating staff both reveal the progressiveness of the Model. Though Hiltons Best Practice model still leaves much room for improvement but then, this is the beauty the model since it is progressive. [Entrepreneur, 1999; Hospitality Net, 1999; Morris & Maloney, 2011]

1.3.1

1.3.2

Harvard Model of management The Harvard model of HRM sees employees as a unique resource, fundamentally different from other resources, which should be given consideration as significant stakeholders with their own needs and concerns just like other stakeholders like shareholders and customers. The model represents the soft model approach and propounds the notion that workers respond better when an organization recognizes their individual needs and addresses them while focusing on its own overall business objectives. However, Gill C. (1999), observed that "the rhetoric adopted by the companies frequently embraces the tenets of the soft, commitment model, while the reality experienced by employees is more concerned with strategic control, similar to the hard model". [Essaylib, 2008; Gill C., 1999] Hiltons managements emphasis on constant training and development of its team members, not just to match its staffing needs but also, to match individuals developmental aspirations; is a worthy example of the Harvard model, which considers employees as valued assets and a source of the hotels competitive advantage. [Hilton Worldwide 20101; Lockwood C., 2010; Price A., 2010; Hilton Hospitality, 2011]

2. 0 2. 1

HR Planning and development Methods Human Resource Planning HR planning in Hilton Hotel encompasses all the processes by which the hotel recruits people with the right qualifications, in the right number, at the right place and time and doing the right things for which they are suited, in order to achieve the hotels goals. It links people management to the organization's mission, vision, goals and objectives, as well as its strategic plan and budgetary resources. In Hilton Hotel, HR planning usually starts from recruitment and progresses to retirement with the aim of ensuring long term retention of its personnel. In accordance with this objective, the Hotels HR planning is often aimed at securing personnel with excellent qualities who will not just deliver on the hotels chosen objectives, but also, bring with them qualities that continuously elevate the hotels standards through innovation and selfless service in order to give the hotel a competitive

edge over its peers; the hotel recently, demonstrated this commitment by acquiring two prominent top executives from their competitor, Starwood, with the aim of creating a new portfolio of luxury suites after the fashion of Starwood Hotels Luxury Suites. [Bacal R., 20022, Dunlap D. 1999; Seath I. 2008; Letzing J. 2009; Lattman P. 2010; Komolafe A. 2010; Schwind etal. 2010] 2.1.1 Three identifiable HR planning and development areas in Hilton Hotel and how they are carried out 2.1.1.1 Workforce Planning This is composed of 2 parts; analyzing workforce gaps and formulating strategies to fill these gaps; and these are closely tied to the ensuing planning activities. (See diagram below for illustration and see appendix1 for more details)

HHS, 1999

2.1.1.2 Succession Panning This enables the hotel to recruit and develop employees and prepare them for advancement or to fill up any identified vacancies which may have resulted from necessary organizational developmental needs or due to promotions, resignation or retirement. Succession planning therefore, aims to fulfill the following objectives for the hotel: y Strategizing for the actualization of the hotels long-term (strategic) goals and objectives, e.g. strategizing for the hotels sustainability objective. (see also, example of Hilton versus Starwood Hotel above) y Identifying the hotels workforce's developmental requirements and making necessary provisions for them. y Aligning the workforce with current trends and predictions in line with the actionable Best Practices. [OPM, 1998] (See diagram below for illustration of how succession planning works)

OPM, 2005, pg 2

Different programs have been identified in Hilton with which the hotels HR department carries succession planning as follows: 2.1.1.2.1 Recruitment schemes Include internships and other established placement and vocational training programs that recruit candidates with little skills and then train them in their respective desired areas of choice. Career Development Schemes The Hilton Hotels SHINE and the Fast-track management recruitment and development program, the Elevator program, exist to assist team members grow and develop their careers within the organization, starting out as fresh graduates then progressing to Senior Management and Executive positions within the hotel. It is not uncommon to find that most managers rise through the ranks even from lowly, unskilled positions to senior management positions and the hotel even has a Masters of Arts program in Hospitality and Culinary studies to assist its employees progress to any level of their choice in the hospitality industry. [Hilton Careers, 2011; Hilton Elevator, 2011; Hilton Worldwide, 2011; Arabian Business, 2011] 2.1.1.3 Compensation Planning Careful compensation planning is paramount to achieving a business success because it is the key to dovetailing compensation philosophy to support the organizations strategic plan Compensation planning in Hilton Hotel is aimed at achieving the following objectives: y True pay-for-performance y Finding other acceptable and fair forms of remunerating employees. y Optimizing budgets y Making key savings in relevant areas y Ensuring Proper Systems Control and management [OPM, 1998; Hilton Hospitality, 2011] A great Hiltons part of Hilton compensation plan is enshrined in its Espirit program and some identified staff compensation tools in use include: y Job Promotions y Commendations y Long service awards y Loyalty awards y Paid Holidays y Employee Discounts y Bonuses 2.1.1.3.1 Compensation Planning at Hilton Hilton observes a dual approach to its staff compensation; with personnel at Senior and Management levels having good compensation plans whilst those at the lower cadre, do not, and in recent times, this group of personnel also, had to bear the brunt of the recession by working extended hours with reduced pay. According to Carroll S. (2010)1, bonuses and incentives are powerful tools that can both create success or wreak havoc in a business; the consequences of not heeding to this assertion was amply demonstrated by recent conflicts at different locations of the hotel around the world, resulting in frequent interruption of the hotels business, loss of business opportunities, bad publicity, disengagement of employees leading to high labour attritions and costs as well as, loss of income. [Croft K., 2002; Land V., 2007; Williams B. 2007 Carroll S. 20102; Lockwood C. 2010; Finamore C. 2011].

2.1.1.2.2

2.1.2 Human Resource Development in Hilton Hotel 2.1.2.1 Training Since employees are considered critical to positioning the hotel in the competitive global marketplace, Hilton makes learning a major part of its strategy therefore, encourages employees by creating outstanding training and learning opportunities to equip them with the right skills for their respective responsibilities. Such programs reflect both the Best Practice and Harvard approach to management. [Hilton 2010; Hilton Careers, 2011; Lockwood C. 2010] 2.1.2.2 Hiltons Development Programs 2.1.2.2.1 Online Career Paths Hilton Hotel has different on-line programs up to university level programs, which enable team members explore wide range of learning opportunities available to support both their work and career development objectives within the organization. [Hospitality Net, 1999; Hilton International, 2007] 2.1.2.2.2 Management Development Schemes Various management development schemes like Elevator and SHINE programs as well as, Fast-track management recruitment program exist to assist team members grow and develop their careers within the organization, starting from fresh graduates up to senior management positions. It is not uncommon to find that most managers rose through the ranks from lowly, unskilled positions to senior management positions. [Buss. Performance, 2003; Unisa, 2009; Success factor, 2011] 2.1.2.3 Analysis, Shortfalls and Critique of Hilton Hotels HR Planning and Development methods. The recent conflicts in various Hilton locations is a clear indication that Hiltons planning and development methods, though useful, maybe insufficient in keeping up with the current requirements of a global establishment that Hilton is. A closer scrutiny of Hiltons methods will reveal the following shortcomings: 2.1.2.3.1 Internally focused The various management development programs like SHINE and elevator programs, directed at developing employees to management cadre leaves little room for inflow of fresh ideas from the outside as these group of managers are groomed from the beginning up to their ultimate choices of management positions; without external inflow of talents, innovation maybe stifled and the hotel may be forced to acquire such new talents when needed at a very high cost both in terms of the employees remuneration (with implications for the morale of other employees); and externally. (As with the case of Starwood hotels) [GMJ, 2001; Eye of Dubai 2010] 2.1.2.3.2 Not aligned with current and changing objectives The fact that such development programs as above, are complete programs they lives little room for adapting such programs to future changing objectives and may make it difficult to adapt such objectives into the hotels culture. [Hyatt Hotels 2009; Hyatt 2010] 2.1.2.3.3 Too technological oriented The emphasis on technology as with the online nature of such programs may present matching and accessibility problems in less developed locations of the hotel; where required support for such programs may be insufficient or non-existent. Further, the inflexible requirement for the use of English Language in such programs also, have further implications for the development of non-English speaking employees.

2.1.2.3.4 No consideration for disability. Unlike their counterpart, Hyatt Hotels (voted the best Hotel in 2010), Hiltons HR plan does not provide for disability. 3.0 The effectiveness of Hiltons HR Planning and Development methods in meeting organizational objectives Hilton Hotel would want to constantly improve its profitability whilst maintaining its vision of providing hospitality in a sustainable manner, especially, in the light of the current recession; it is clearly obvious that HR challenge is how to recruit, retain and train staff to carry out this vision while delivering service excellence in its numerously dispersed locations, at the same time. Hiltons HR department have largely, been successful at least, at management levels in sustaining this vision; its vigorous recruitment, training and development programs like the SHINE Elevator programs and management development programs has been lauded; evident from the CIPDs endorsement of the hotel in 2007 and also, the Hotels rating in terms of customer satisfaction in the US in 2002; these are both testimonies to the effectiveness of the hotels manpower planning and development programs. Recently however, the hotel has been struggling to meet up with its competitors performance globally and a lot still remains to be desired from the hotels programs for recruiting and retaining employees at lower skill levels; characterized by great attrition; especially, in the global frontiers. [CIPD, 2010; CIPD, 20102; Work Support 2010] More over, pressures from globalization are increasingly, influencing these HR activities in recent times therefore, Hilton would do well to make their programs more outward looking and responsive to regional peculiar needs, globally; which presently, is absent in their current programs as it is presently, organized. More importantly, it is a great oversight for a hotel that touts sustainability and diversity as core values; not to have specialized programs to equip its team members in those regard; the same goes for their lack of programs to cater for candidates with disability. [Hyatt Hotels 2009; Hyatt 2010; Entrepreneur 1999] 3.1 Recommendations: 3.1.1 3.1.2 Hilton should benchmark with other players in the industry to allow for better collaborations and innovation. Hilton should embark on the review of their compensation structure particularly, with regard to their lower staff cadre; who are majorly, the frontline staff which forms the bed rock of most service oriented organizations. Hilton should open up their programs to learn new ways of doing things. Hilton should include programs that foster diversity and tailor their programs to match with their objectives.

3.1.3 3.1.4

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