Running Head: HUMAN RESOURCE MANAGEMENT AT HILTON HOTEL

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Running Head: HUMAN RESOURCE MANAGEMENT AT HILTON HOTELInvestigation of Human Resource Management Issues in the Hotel Industry: Case Study ofHilton Hotel in the UK[Your official name][Degree Title], [university], 20XXThesis Submitted in Partial FulfilmentOf the Requirements for the Degree of[Name of program][Name of University][Last month of quarter you plan to graduate] 20XX

Human Resource Management at Hilton HoteliiABSTRACTThe main purpose of this research was to identify the key human resource management issueswithin the hotel industry along with similar key human resource issues that Hilton Hotel UK isfacing. The specific objectives of the study were to identify the factors affecting employeeturnover at the Hilton Hotels, to examine the relationship between performance appraisals andemployee turnover, to analyse the impact of performance appraisal system of Hilton Hotels onemployee turnover and to offer recommendations to Hilton Hotels to design an effectiveperformance appraisal system to reduce employee turnover. In order to achieve the establishedobjectives, an inductive, explanatory and qualitative research design was used whereby theinterview surveys were used. 5 HR managers working in Hilton Hotel UK along with 10 HiltonHotel UK employees were interviewed. The purpose of this survey was to measure the impact ofdifferent factors, such as factors affecting employee turnover, performance appraisal feedbacks,and the subsequent impact of performance appraisal on employee turnover in the hotel industryand for Hilton Hotel UK. The study revealed a significant positive relationship between thesefactors and the effectiveness of performance appraisal and employee turnover. However, thisstudy is limited in several ways. The findings cannot be generalised to include the entire hotelindustry since the performance appraisal systems and practices of Hilton Hotel UK may bedifferent. The sample size was also limited and only one organization was taken as a case study.

Human Resource Management at Hilton HoteliiiACKNOWLEDGEMENTI wish to thank my who were generous with their knowledge and valuabletime. A special thanks to [Insert Name] and [Insert Name] for their countless hours of reflecting,reading, encouraging, and most of all patience throughout the entire process. Finally I would liketo thank my mentors, supervisors and teachers who supported and assisted me throughout thisproject. Their feedback made this research a truly valuable learning experience.

Human Resource Management at Hilton HotelivDEDICATIONI dedicate this work to my parents, my family and all of my friends. I also dedicate thisdissertation to all those who supported me throughout the process. I will always appreciate whathave done, especially for . I dedicate this workand give special thanks to and for being there forme throughout the entire journey.

Human Resource Management at Hilton HotelvTable of ContentsABSTRACT. iiACKNOWLEDGEMENT . iiiDEDICATION . ivCHAPTER 1: INTRODUCTION . 11.1 Introduction . 11.2 Contextual Background . 21.3 Organisational Background . 31.4 Research Problem . 41.5 Aim and Objectives of the Research . 41.6 Research Questions . 51.7 Rationale of the Study. 51.8 Significance of the Study . 61.9 Structure of the Research . 6CHAPTER 2: LITERATURE REVIEW . 82.1 Human Resource Management . 82.2 HRM: Past and Present . 92.3 Issues in Contemporary HRM . 112.4 Employee Turnover . 122.5 Reasons for Employee Turnover . 122.5.1 Causes of Employee Turnover in Hospitality Industry. 13CHAPTER 3: RESEARCH METHODOLOGY . 163.1 Research Paradigm. 163.2 Research Approach . 173.3 Type of Investigation . 183.4 Research Design. 183.5 Research Strategy. 193.6 Sampling Method, Technique and Sample Size . 193.7 Data Collection and Analysis. 203.8 Accessibility Issues and Ethical Considerations . 203.9 Research Limitations . 21CHAPTER 4: CONTENT ANALYSIS . 224.1 Factors Affecting the Employee Turnover at Hilton Hotels . 22

Human Resource Management at Hilton Hotelvi4.2 Challenges in Performance Appraisal at Hilton Hotel . 244.3 Fairness, Objectivity, and Employee’s Perception of Performance Appraisals . 254.4 Outcomes of an Effective Performance Appraisal. 274.5 Discussion . 29CHAPTER 5: CONCLUSION AND RECOMMENDATIONS . 305.1 Conclusion . 305.2 Future Implications . 335.3 Recommendations . 34References . 36Appendices. 41Appendix A: Interview Questions . 41

Human Resource Management at Hilton Hotel1CHAPTER 1: INTRODUCTION1.1 IntroductionWith the evolution of the global economy and the overall prognoses in terms of thebusiness dynamics, the concept of multitasking has taken centre stage. Fundamentally, managersand owners of organizations are expecting more of their employees and increasing emphasis isbeing placed on the shoulders of the employees to perform more than one aspect of their jobsimultaneously. In terms of sustainable competitive advantage,organizations that have a dynamicand diversified group of employees have attained far greater success than the average companies.With respect to the rapidly changing marketing environment, the scope of human resourcemanagement has also intensified. Human resource managers globally are facing the dauntingtask of being asked to initiate multitasking activities. In the words of authors Berman,Bowman,West and Van Wart(2015, p.94), the hospitality industry has been marred by a decrease in theefficiency levels. Multi-Skilling could serve as the solution for the hotel industry to sustain acompetitive advantage over its competitors in the market. It could serve as a tool for coping withthe contemporary issues such as the demographic changes and the intensity of the growingcompetition (Chen and Wallace, 2011, p. 25).As predicated by authors Bratton and Gold (2012, p. 68), human resource managementplays a significant role in the overall progress of an organization. Theoretically, the humanresource department of an organization is normally tasked with either the recruitment of a newemployee or the termination of an exciting employee’s contract. However, in the words ofauthors Bresciani, Thrassou and Vrontis (2012, p.407),the new form of human resourcemanagement has seen major changes in terms of functionality and applicability. Today, the

Human Resource Management at Hilton Hotel2human resource department within an organization is additionally tasked with the wellbeing ofthe employees as well to cater to the grievances of the employees and to ensure that theemployees are intrinsically and extrinsically motivated to work. The two major problems that arebeing faced by the Hilton Hotels in the United Kingdom are shortage of qualified workers andthe high turnover rate of the staff. This aspect highlights the importance of labour flexibility andthe establishment of a positive employee relationship between the management and theemployees. Therefore, in the following study the author has further investigated the humanresource management issues faced by the Hilton UK, and based on the data analysed thisresearch provides relevant recommendations that can enable the organization to overcome suchimminent human resource problems (Carter, Danford, Howcroft, Richardson, Smith and Taylor,2011, p.88).1.2 Contextual BackgroundThe emergence of innovation and diversification in the field of human resourcemanagement has necessitated the need for organizations to adopt new practices within therespective domain in order to enhance their overall effectiveness and efficiency ratings. In thewords of authors Chen, Ployhart, Thomas, Anderson and Bliese (2011, p.163),the concept ofhuman resource management takes the centre stage with respect to the hospitality industry.According to Connell and Stanton (2014, p.15),the hospitality industry is one such domain wherethe interaction of managers and the employees is necessary. Further, elaborating upon thesignificance of human resource management, in the context of the hospitality industry, Croucher,Wood, Brewster and Brookes (2011) postulate that the majority of middle sized, and even thelarger, organizations today are facing increasing human resource problems which primarily stem

Human Resource Management at Hilton Hotel3from the issue of difference in culture and society. As one of the fastest expanding industries, themain business of the hospitality industry is to spread its root in new, emerging and diversifiedmarkets. However, authors De Cuyper,Mauno, Kinnunen and Mäkikangas(2011, p.258) negatethat like every expansion situation the hospitality industry also faces issues with integrating theirorganizational policies with the policies of the market they are expanding into.Further stressing upon the significance of human resource management, De Cuyper et al.,(2011, p. 260) opine that with respect to organizational resources like technology and capital, thefield of human resource management is more unique and dynamic. Therefore, Katou (2015) putforth the idea that in order to saturate the maximum amount of effectiveness of the humanresource at hand, organizations need to have a proper human resource management departmentin place along with installing policies that are positive and encouraging to the employees. Hence,in the words of authors Martínez‐Sánchez, Vela‐Jiménez, Pérez‐Pérez, andde‐Luis‐Carnicer(2011, p.719), human resource management can enable the firms to improvetheir organizational behaviour in areas such as flexibility, staff competency, and commitment.This in turn leads to the improved performance and allows the organization to achieve aprominent strategic management goal that is to createa sustainable competitive advantage.1.3 Organisational BackgroundHilton Hotels, which is now known by its new name Hilton Hotels and Resorts, areconsidered to be the primary and most important hotel in the entire hotels and resorts chainowned by Hilton Worldwide. The foundation for the dynamic hotel chain which has nowevolved into a five star hotel chain was laid by pioneer Conrad Hilton in 1919, and as of 2010there are 530 Hilton branches spread across 80 countries. Hilton ventured into the UK hospitality

Human Resource Management at Hilton Hotel4industry in the late 21st century and has since captured the majority of the market share withinthe UK’s hospitality industry.1.4 Research ProblemUntil recently, human resource management did not have a special place in the business.Today, however, it has managed to secure a prominent position in the overall businessenvironment, especially in the hospitality industry. With the recent development in the employeeawareness and increase in the competition level, competing organizations are now trying torecruit technical and highly competent employees. However, as authors Mowday, Porter andSteers (2013)narrate, the problem arises within the context of human resource management. Inthe pursuit of market dominance, managers and organization shareholders are heavily recruitingnew staff without paying significant attention to the overall development and training needs ofthe employees.Considering the fact that employees are now driven by personal growth and success,there has been an increase in the figures of annual employee turnover. Employees are constantlylooking for new career opportunities and for organizations that understand their needs and wantsand offer suitable compensation packages. Authors Nielson, Ensher and Grant-Vallone (2015)justify the notion and further argue that understanding the needs and wants of the employees ispart of the human resource management paradigm.1.5 Aim and Objectives of the ResearchThe study aims to determine the reason behind the high turnover rate at the Hilton Hotels inthe United Kingdom. The high turnover rate is proving to be a daunting problem for Hilton

Human Resource Management at Hilton Hotel5Hotels as they invest a lot of time and money in providing training and educating its employees.Along with that, the overall productivity of the workplace also tends to decrease due to the highturnover rate. Thus, the objectives of the study are: To identify the factors affecting employee turnover at the Hilton Hotels To examine the relationship between performance appraisals and employee turnover To analyse the impact of performance appraisal system of Hilton Hotels on employeeturnover To offer recommendations to Hilton Hotels to design an effective performance appraisalsystem to reduce employee turnover.1.6 Research QuestionsFollowing are the research questions that will be addressed in this study: What are the factors affecting the employee turnover at Hilton? How is performance appraisal related to employee turnover? How does the performance appraisal system of Hilton affect employee turnover?1.7 Rationale of the StudyThe following research study allowed the author to inform the future researchers withrelevant study in the area of human resource management issues. There is a need to explore andget important insights as to how human resource management can be effectively used tofavourably influence the management decisions of the organization. However, an initial reviewof past studies has revealed a gap in the literature as there are hardly any noteworthy studiesexploring how human resource management issues can impact the hospitality industry. This

Human Resource Management at Hilton Hotel6study intended to bridge this gap by investigating the link between these two variables in order tounderstand their relationship and significance.1.8 Significance of the StudyThe findings of this study allowthe human resource managers to better understand anddeal with the concerns of the employees and further redesign their human resource managementstrategies. The present research also realizes an opportunity to add valuable contribution to theexisting literature that may guide the conduct of future studies. Furthermore, the researcherscould also use the methodology of this study to investigate the impact of human resourcemanagement strategies of other multinational and transnational organisations on the overallperformance of the organization.1.9 Structure of the ResearchThis research is distributed into five chapters:Chapter One: Chapter One presents an overview and background on the topic,background of the company under consideration, research problem, aim and objectives, researchquestions, rationale and significance of the study.Chapter Two: Chapter Two presents a review of past literature, where past studies arediscussed to develop an understanding of the concepts involved in the study and to sketch thecurrent situation of the research topic.Chapter Three: Chapter Three outlines the research methodology by highlighting theresearch philosophy, research design and approach, type of investigation, sampling techniques,

Human Resource Management at Hilton Hotel7data collection and analysis method, accessibility issues, ethical considerations, limitations of thestudy as well as hypotheses and variables.Chapter Four: Data analysis is carried out in chapter four where the data gathered fromthe literature and questionnaire is presented, interpreted and useful insights are extracted from it.Chapter Five: Finally, chapter five summarizes the results and findings and providesrecommendations that could help Hilton UK to improve its organizational strategies.

Human Resource Management at Hilton Hotel8CHAPTER 2: LITERATURE REVIEW2.1 Human Resource ManagementIn accordance with the old tradition, labour economics have made an extensive effort infocusing towards the labour market rather than assessing the “black box” of the companies.Industrial sociologists and psychologists have contributed immensely towards the concept ofHuman Resource Management (HRM). This phenomenon has gone through several changes overthe last two

To examine the relationship between performance appraisals and employee turnover To analyse the impact of performance appraisal system of Hilton Hotels on employee turnover To offer recommendations to Hilton Hotels to design an effective performance appraisal system to reduce employee turnover. 1.6 Research Questions

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