2. Identify the purpose and key objectives of the HR function in contemporary organisations and be able to demonstrate the process of evaluating current and future human resource needs within the business environment; both in terms of numbers of people and skills and competencies.
3. Appraise the relationship between organisational performance and effective HR management and development. Know how to identify and respond to short-term changes in the business and external contexts and provide solutions to address them.
4. Explain the significance of employment legislation to an organisation’s HR practices and evaluate how to harness effective HR practices in a global marketplace in terms of adding value and positive contribution to sustained organisation performance.
Human Resource Management (HRM) is the concept of employee governance and management through structured manner (Purce 2014). HRM is the function for maximizing the performance level of the employees towards the strategic objective of organizations. The organization described in this case study is a medium sized hotel located in London with 80 employees. The business of the organization has been known for friendly and customer focused approach. However, since the last year, the organization has been under huge pressure due to tough competition. The organization is not able to improve its performance and profit level. However, no clear reason for declining profit has come into notice. The reason might have been poor performance level of the employees or not engaging into innovative ideas. On the other hand, the organization might not have provided fair salary to the employees, which minimized their motivation level. Under such circumstances, the human resource manager of the organization has suggested the owner to revise the staffing strategy and developing the employees. The owner has looked upon the matter and asked HR manager to prepare proper human resources management plan.
The study will describe three human resource functions for the above mentioned scenario. The study will also analyze two workforce-planning methods suitable for the situation. Apart from that, some methods will be described for improving the overall performance of the organization. Furthermore, two employment legislation laws will also be described in this study.
The organization has been suffering from declining profit and tough competition since the last year. The organization needs to improve its performance and increase profitability. Therefore, the business owner has decided to turn over the business and expected the managers and employees to work hard. This situation needs suitable human resource functions to improve the employee performance.
Motivation is an internal drive, which causes employees to do work. It is the intrinsic enthusiasm of employees, which leads them to accomplish activities related to organizational objectives (Renwick, Redman and Maguire 2013). The employees of this hotel are to face change in shifting time. Along with working in normal day shift, the employees are also to work in morning or night shift. The employees working in night shift and morning shift high level of employee motivation to perform at their peak.
According to Alfes et al. (2013), financial rewards in terms of increased salary, incentives from the management part will motivate the employees to work best. While, the employees will realize that they are being highly benefited from their management as compared to the competitor companies, they will contribute more towards organizational success. They will show their heartiest effort to satisfy the hotel guest. In order to be competitive in the market, the hotel needs to provide unique service to the customers (Buller and McEvoy 2012). It may need complex and innovative tasks to be accomplished by the employees. In such situation, supports from superiors will be one of the best ways to motivate employees. These kinds of employees will be less likely to leave the organization and exert great effort for improved business performance.
Since the profit level of this organization is declining from the last year, it needs to improve organizational performance through enhancing business quality. Organizational performance is largely dependent on employees’ individual performance. The hotel will be able to improve its whole business performance, when each of the employees will work at their best level. Apart from that, as the organization is completely employee oriented, each employee should be equally responsible towards organizational success. Therefore, performance management would be extremely vital for the HR manager of the organization.
Performance management is a broader aspect of HRM function, which includes activities like joint goal setting, constant progress review, communication, feedback collection, training and rewarding. According to Jiang et al. (2012), the hotel should jointly make clear job description and performance management plan by including both management and employees. The HR manager should align the organizational objectives with the agreed skills, competency and delivery of results. In this way, the employees, who are underperforming will be come into notice and they can be improved as per the organizational needs. On the other hand, Kehoe and Wright (2013) rewarding the employees, who are over-achieving should be rewarded for their contribution to the organizational success. It will motivate them to put more effort and interacting with customers in effective way.
Managing Diverse Workforce
As a medium sized hotel, this organization is to deal with diverse set of customers having different culture, language, values and norms. The organization can only be able to sustain in the market competition, when it will provide unique service as per the needs of different customers. In such circumstances, managing diverse work will be effective for this hotel. According to Maertz and Boyar (2012), workforce diversity will bring bilingual advantage to the hotel. Having employees, who are experts in variety of languages, will be able to interact effectively with customers having different languages. Thus, the organization will be able to satisfy diverse group of customers and improve their business performance. It will also reduce the cost of the employees by the means of hiring an interpreter for translating language. On the other hand, Tang and Tang (2012) opined that managing diverse workforce increases organizational productivity to an unlimited extent. The hotel will be able to get diverse different talents from diverse workforce and solve complex problems immediately. It will definitely improve the performance level of the organization. Apart from that, diverse workforce can also employ innovative ideas towards initiating unique business strategies to satisfy customers. Therefore, the hotel will be able to provide unique service for beating the competitors in the market.
Workforce Planning Method
Skills audit gap analysis
According to Shaw, Park and Kim (2013), skills audit gap analysis identifies the skills needed for the achievement of organizational goal and current skills have in the organization. On the other hand, Hong et al. (2013) opined that organization can also determine whether it will be to meet its goals or not. In order to be competitive in the market, the hotel should invent new strategies for serving the customers. For implementing these new strategies, the employees should pose some specific skills. Here is the area, where the hotel needs to analyze skills audit gap. The hotel will measure individual skills of the employees and recognize the employees, who will be able to perform new set of work. In this way, the organization will be able to assign right task to right employee so that it is accomplished effectively. It will lead to better organizational performance and profitability.
According to Wang, Tsai and Tsai (2014), skills audit gap also identifies the gap among the employees, who have the potentiality to improved organizational objectives. On the other hand, Karatepe et al. (2014) opined that it also identifies the training needs for the potential employees towards better performance. Hiring new set of employees for the innovative business strategies of the hotel can be too much expensive. In such a situation, training and developing internal potential employees would be cost effective for the organization. It can ultimately increase the profitability of the organization.
Labour demand and supply analysis
According to Torres and Kline (2013), labour demand and supply analysis measures the future demand and supply of the employees. On the other hand, Vasquez (2014) opined that potential human resource requirement should be measured as per the objective of the organization. Likewise, this hotel in London should also analyse the future human resource needs for its improved business. The organization should ask to its each departmental head regarding their human resource requirement and analyse the demand for future employees. On the other hand, the organization can also perform workload analysis for estimating total production and activities needed for specific future period.
According to Buil, Mart?nez and Matute (2016), supply forecast estimates supply of human resources by considering the current human resource inventory and future availability. On the other hand, Hon, Chan and Lu (2013) opined that supply forecast also identifies the availability of internal employees to match with new requirements of organization. In this case, the hotel will check the human resource inventory by department wise, age wise and gender wise. After that, the organization will search for internal availability of the employees to match improved business requirements. If any employee from internal source is found to be able to perform as per new business requirement, then it should employ it internally. It would in turn minimize cost in term of new hiring process. On the other hand, if the specific number of employees needed for future requirement is not available internally, then the hotel should go for external sources.
Ways to Improve Overall Performance
Better Customer Service
According to Chan et al. (2014), excellent customer service creates good and lasting impression on the mind of customers in hotel industry. On the other hand, Benavides-Chicon and Ortega (2014) opined that better customer service would entertain all the queries of the customers before, during and after providing service. Delivering memorable experience to the customers through better customer service will make it able to get repeated customers. It will create competitiveness for the hotel and make huge profit. On the other hand, delivering service as per promise of the hotel will exceed the expectation of the customers.
According to Pereira-Moliner et al. (2014), the employees will be able to provide better customer service, when they will have all the ideas associated with the customer requirements. Training and development of the employees is extremely essential for this hotel to enhancing the skills of employees in understanding the customer requirements. On the hand, Molina-Azor?n et al. (2015) opined that the employees should also give training to their employees enhancing their abilities in solving customer complaints quickly.
According to Kara et al. (2013), innovation in hotel organization leads to memorable experience for the customers. On the other hand, Dimitrov (2012) innovation also makes the organization able in providing customized service to the customers. In order to improve the performance level of this hotel, it is highly required to bring innovation in its service criteria. It will make the organization to be competitive in comparison to other hotels. The hotel can make their own identity and create improve their profitability level by getting huge customers.
The employees should be able to make the customers able towards saying ‘wow’ after getting service. It needs training and development on the part of the employees will encourage the employees to share their innovative ideas in serving customers. On the other hand, training and development will also polish the skills level of the employees towards providing innovative ideas.
According to Kehoe and Wright (2013), teamwork in hotel sector is extremely beneficial, as it encourages multidisciplinary work. Therefore, the organization can enhance its productivity level. On the other hand, Wang, Tsai and Tsai (2014) opined that teamwork also foster responsiveness and flexibility, especially in case of changing organizational environment. In case of this hotel, new changes are going to be implemented for improving business performance and profitability. In such case, the organization should foster teamwork for increasing employee productivity. Teamwork will assists the employees in improving their productivity through shared workload with team members. On the other hand, diversified ideas from different team members will bring innovative ideas to be used in business. It will ensure the innovation in the hotel.
Effective training and development process will foster better teamwork by clarifying specific job roles and enhancing their abilities to perform those job roles effectively. It will improve individual employee productivity. On the other hand, training and development program will also make the team members in understanding each other’s views.
Employment Right Act 1996
While, the hotel is facing huge competition for their competitors and facing declination in business, there is chance of employee turnover. In such situation, implementing “Employment Right Act 1996” will be beneficial for the organization. According to Torres and Kline (2013), this act will ensure that the employees will get proper wage and payments. Increasing employee productivity needs flexible working environment in the hotel. On the other hand, Buil, Mart?nez and Matute (2016) opined that implementation of this act will bring flexible working environment in terms of getting paid time off and healthy working condition. Therefore, this act will boost employee morale and enhance their performance level. The guidelines of this act should be codify in written format and should be provided to the employees with 2 months of their joining.
Equality Act 2010
Employees will be interested to perform at their best level and contribute more on organizational success, when they will realize that they are treated fairy in their workplace. There should not be any discrimination among the employees in accessing the employment. According to Kehoe and Wright (2013), “Equality Act 2010” passed by UK Government ensures the prevention of discrimination in the workplace. On the other hand, Purce (2014) opined that this act ensures equal treatment of the employees in accessing employment regardless of their age, gender, sex, race, marriage and disability. While this hotel will implement Equality Act 2010, it will be able to treat the employee fairly and encourage them towards better productivity.
While concluding the study, it can be said that the hotel mentioned in the case study should improve its business performance. The owner has determined turnaround and wanted to increase employee productivity. In order to increase employee productivity, the HR manager of this hotel should motivate their employees in meeting their demand. When the employees will fulfil their own interest, then they will be interested to contribute more for organizational success. On the other hand, improving overall business performance requires employees to fulfil their target. Therefore, performance management should be conducted at frequent level for checking individual performance. Apart from that, the HR manager should perform skills audit gap analysis for determining the availability of right number of employees in organization having required skills. In order to be competitive in the market, the hotel should provide unique customer service. It will make repeat customers in the hotel and ensure profitability.
Regarding sector competition
The hotel is facing tough competition in terms of business performance improvement. Though the organization is friendly and customer focused, still the organization is having declination in its profit. This means, the organization should diverse its service in a unique way. It needs proper employee motivation to adjust with the new changes to be implemented in the organization.
Regarding Emerging Legislation
Emerging legislation in the hotel will ensure fair treatment of the employees in the workplace. The HR manager of this hotel should communicate all the necessary information regarding the new employee legislation to the employees. Maintaining proper communication will be priority in such situation to ensure fair employee treatment.
Regarding Managing Workforce Diversity
Managing employee diversity will increase the employee productivity by bringing diverse set of ideas towards business improvement. However, managing employee diversity is tough for the HR manager in terms of resistance of the employees in accepting the differences among them. In such situation, providing diversity training will be the major priority for the HR manager. In such kind of training, the employees will learn to respect the different culture of each others.
In case of globalization, the HR manager of this hotel should try to assess the skills level of the employees. The HR manager should try to employ such human resource in globalized business, which has the ability to cope up with international culture.
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