Human resources are regarded as one of the foundation pillar for an organization. They are fundamental resource to produce each product and service (Importance of HRM, 2016). Every organization or business entity is managed, regulated and monitored by different departments. Human resources are managed and governed by Human Resource Management. The management process recruit and select the skilled workforce for an organization. It provides proper training and development skills to the available human resources of organization. Further, the assessment of employees, providing benefits and compensation, motivation them and maintaining proper relations with employees and trade unions are its key features. The management also takes care of maintain g employee safety and welfare by monitoring employment laws.
This report focuses on impact of HRM on the functioning of hotel company Ritz-Carlton. The current company operates in 29 major cities of different countries providing luxury hostels and resorts. The report focuses on HRM issues and the effect of employee relations and employment law on the hotel company.
1.1 The role and purpose of human resource management in service industry
In an economy there are three sectors- primary, secondary and service sector. The industry covers various field of services such as hotels and resorts, theme parks, event planning and transportation (Human resource management, 2016). Tourism is an additional field of hospitality industry. Hotel and restaurant business of hospitality industry contributes wide range of opportunities for an economy. In the present report, Ritz-Carlton is taken into consideration to understand HRM role and purpose in the company.
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Human resource management has a crucial role in the hospitality industry to sought out problems related to act of employment. The managers play a significant role in engaging, training, retaining and protecting the personnel. The domain of the management process has improved a lot with time being. Nowadays, due to globalization and competitive market more focus is led on the human resources (Avey, Luthans and Jensen, 2009). The HR mangers make efforts to motivate and achieve the desired outcomes from the employees. It procures, develops and maintains the human resources of the organization to increase its profitability. Apart from selection, training and development functions it is responsible to monitor employment relations with the subordinates and staff. The management takes care of employment acts and laws and their health and safety measures. Ritz Carlton is an eminent luxury hotels chain providing globally accepted standards services to its elite class visitors. It is a subsidiary branch of Marriott Hotel. In the organization, HRM creates opportunities for skilled manpower, trains and develop them, retain them in the organization (Bondarouk and Ruël, 2009). Benefits them with performance appraisal and protects their employment rights. The role and impact of HRM in the company can be understood through following points:
Attaining better manpower: The primary objective of HRM department is to provide skilled and qualified employees to the hotel group. First of all the mangers attract the candidates through communication and advertisement modes. Managers of Ritz-Carlton make use of internal and external recruitment process. They perform the internal recruitment process through transfer and promotion, while the external recruitment provide opportunities to the new appointees. The candidates have to pass through various stages of recruitment and selection procedure (Bratton and Gold, 2012). It includes preliminary screening, aptitude tests, group discussions, interviews and medical tests. After these procedures the selected candidates are appointed on the job.
Development and growth of the employees: After the selection process, the employees are provided proper training and guidance to achieve organizational goal of the hotel group. As it is customer-oriented business so to gain better customer satisfaction the staff is provided with on job and off job training sessions. Various training tools and techniques are applied in the probation period of the trainees. Regular seminars and development sessions are organized to make them aware and practice the requirement in the current trends. Also, HRM monitors performance appraisals of employees individually.
Sought employment based issues: In the hotel group, HRM also deals with employees problems and provide preventive measures in the critical situations. Employees Grievances & Redressal procedures contribute in sough ting issues related to service agreement, dismissal and discharge etc (Budhwar and Debrah, 2013). These provide detail guidelines to be followed by the concerned department head for its subordinates. These create motivation and security in the mind of the manpower.
Monitoring employment laws: The managers of the mentioned hotel group are always made to build strong employee-employer relations. The Employment Rights Act, National Minimum Wage Act, Employment Relation Act and many more are legislative tools used by the hotel group in favor of employees (Guest, 2011).
1.2 Human Resource Plan in the service industry
Human resource plan is the analysis of supply and demand of human resources in an organization. It explains and evaluates accurate number of employees required for attainment of the organization. To forecast the future needs and requirements of human resources at different level. It also focuses on the existing human resources of the organization. Its objective is to foresee the impact of technology on jobs and requirement for human resources (Jiang and et.al., 2012).
The hotel group Ritz-Carlton considers great need of human resource plan to meet its organizational goals. The primary reason is it brings right type of people in right amount and within the precise time. It helps to make optimum userise in emoluments of existing workers and provide other fringe benefits. It compels management to critically analyses the strength and weakness of its employees and take corrective measures to improve the conditions (Pichler, Simpson and Stroh, 2008). Through these plans and procedures the company is able to increase its skill, knowledge productivity and job satisfaction among the employees.
This process builds a supportive and work environment and enhances capacity of of individuals for the success of organizations. There are various steps followed in human resource plan which are delivered below:
Review of business goals: The managers of Ritz-Carlton first understand and review the business goals. It asses organizations business priorities, performance indicators and budget allocations. Also, government key priorities or emerging directions are taken into consideration in evaluation process.
Analyses of environment: In this step the external and internal factors are considered to meet the objectives. The external factors include technological advancement, labor market trends, changes in legislation and cultural and social values. The internal factors include changes in policy platform, guidelines, program delivery and organizational structure (Vallaster, 2005). Through the evaluation of internal and external factors the business environment is studied of the hotel company.
Identifying Gaps: Here, the current and future human resources needs are determined. It identifies possible skill shortage in the specific departments of the company. The possible needs for succession planning and management are determined and denoted. Also, the HR managers of the group ensures that they meet obligations related to diversity and employment equality and learning and development (Schuler and Jackson, 2005).
Development of plan: Now, based upon the collected information from the above steps development of the plan is laid. This regards tom include human resources priorities and key issues in the organization report on Plans and Priorities. Then the budgetary considerations are are made and communicated to all its stakeholders.
Measurement of progress made: The final step is performed where focus is led on the monitoring of the plan (Appelbaum and Gandell, 2003). It measured through various set standards that the human resources are performing in the direction of organizational goals. The establishment of a process that make regular review, adjustments and communication of changes.
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The above mentioned steps will provide human resource plan to Ritz-Carlton which will enforce better and optimum use of resources of the organization. It will generate more employment opportunities in the hotel group to fulfill its organizational goals. The concept leads better ways to focus on the new entries in the organizations and promoting the existing workforce (Bell, 2007). of resources and reduces labor cost substantially. Secondly, the managers of the hotel group enhance the existing employees by way of promotions, rise in emoluments of existing workers and provide other fringe benefits. It compels management to critically analyses the strength and weakness of its employees and take corrective measures to improve the conditions (Pichler, Simpson and Stroh, 2008). Through these plans and procedures the company is able to increase its skill, knowledge productivity and job satisfaction among the employees.
1.3 Current state of employment relations in Ritz Carlton
Employment relationship can be stated as the legal connection between employers and employees. However, it exists when a individual performs or carry out the task under certain conditions in regard of consideration. Also, it is very essential part of business that helps firm to support high interest among workers (Avey, Luthans and Jensen, 2009). Thus, it helps organization to achieve desired objectives and offer them effective products and services to consumers. Developing employment relationship also helps firm to encourage workers and support them in order to boost their morale and work effectively to achieve organizational goals. In support to this, employee relation is a legal aspect within employee and employer and thus aids them to offer right to workers so that they can carry out best operations within the workplace. Also, it is essential for firm to reduce the differences and unethical practices as it affects the commitment and motivational level of employees.
With the assistance of this, Ritz Carlton focuses on maintaining proper employment relations for the aim of deriving high value for both country as well as employees. Also, it is essential for management of firm to develop the policies and practices in favor of its workers so that they get satisfied. Management of hotel is required to undertake various human rights such as equality to employees, adequate working hours etc, that helps in developing morale of human resources. It also helps them to carry out their work effectively and efficiently. With the help of this, development of employees is attained and thus business is able to function within hotel as per the desired standards (Bondarouk and Ruël, 2009). However, it is essential for business to maintain current state of employment relations as it helps in attaining appropriate competitive position in the market.
Furthermore, Ritz Carlton has also developed its organizational structure in such form which is highly focused upon the national policies of the workplace (Paillé and et.al., 2014). Thus, it assists firm to create brand image in market and thus enhance the sales and profitability of firm. Considering this, there are large number of individuals who wants to work with the firm and build their career. Apart from this, trade union also plays a crucial role that helps in optimizing the working conditions through which ethical and legal practices have been followed within workplace. Such policy also provides benefit to the employees as they are able to raise their voice against any unethical practices such as discrimination at the workplace and thus overcome them so that rights of individual does not get obstructed (Bratton and Gold, 2012). Additionally, with the help of this chances of discrimination within the hotel decreases and thus equality has been achieved. Also, Ritz Carlton management helps in maintaining healthy relationship with their workforce so that it minimizes the work related issues and conflicts and attain best results.
Furthermore, the concept of collective bargaining also helps in building a base where demand and requirements of employees can be showcased in front of the employer. Thus, it provides a platform for the Ritz Carlton workers where negotiation and bargaining from both the side i.e. employer and employee happens in order to solve the conflict. With the help of mutual understanding, management concludes to a better decision which is in favor of employees so that healthy relations can be maintained with employees and satisfaction can be attained. With the help of this best working conditions can be developed and thus employees are able to provide best services to guests in order to attain satisfaction (Budhwar and Debrah, 2013).
1.4 Effect of employment law on the management of human resources in Ritz Carlton
It can be assessed that it is essential for each and every business enterprises regardless of their industry to comply with all the employment laws so that best legal rights and duties can be offered to employees (Employment Law in the United Kingdom, 2016). Thus, it helps in defining the legal capacity and expectation of both the parties and thus provide them best employment contract to achieve desired results. However, implementing such laws and regulations helps in developing sound relationship within employees and carry out the operations effectively within Ritz Carlton (Guest, 2011). In regard to this, there are certain legal obligations that need to be focused by the firm so that rights and duties of workers are not overlooked in any manner. Following are the effects of different employment law on the functioning of Ritz Carlton-
Equality Act 2010- It states that each and every employee is given equal opportunities within the business. Thus, it reduces the chances of discrimination among employees from which their morale could be obstructed. Furthermore, it states that business is required to not practice discrimination on any respect i.e. age, sex, nationality, culture, beliefs etc. Such law helps at the time of recruitment and selection of candidates and thus recruit individual on the basis of their skills and capabilities (Jiang and et.al., 2012). Thus, it helps firm to develop a better workplace which is culturally diverse and maintain cross cultural relationship among their workers to attain desired outcomes. For instance, Ritz Carlton operations might get affected due to such employment law as diverse cultural individuals work together in a team to achieve results.
Health and Safety Act 1974- It is another crucial employment law that focuses on providing best health and safety environment to workforce so that their welfare can be maintained. However, it is the duty of the management of Ritz Carlton to provide best working conditions and safe environment to workers so that they can raise the productivity and achieve organizational goals effectively. In regard to this, it is essential for the management of firm to comply with the essential adjustment and thus fulfill the needs of employees. Also, hotel management provides effective training and development to its employees so that they can ascertain necessary information and take appropriate action at the time of emergency situation. Thus, it helps in overcoming the situation and employees also feel safe while working in the hotel (Pichler, Simpson and Stroh, 2008).
Working time 1998- Furthermore, in such type of employment law it is related to the working time for employees. As per this law, regulatory bodies set the specific working hours per week and thus it is essential for business to follow such law regardless of peak workload. Thus, because of such law management of firm faces challenges in managing the work and hence they are required to hire more number of workers for the particular job role so that activities can be carried out effectively. Hence, firm is able to manage the work and maintains their brand image in market by allowing workers to work for the specific working hours. Such law also focuses on giving break in between the work so that employees could not under pressure or stressed (Training and Development - Meaning, its Need and Importance. 2015). However, it is complied by the Ritz Carlton management so that productivity and profitability of firm does not get hampered.
2.1 Job description and person specification for selected service industry job
This report states the job description and person specification criteria for Ritz Carlton Hotel:
Job description - It shows the roles and responsibilities of person who is employed in the company in order to complete its proposed tasks and achieve the specified goals. It, generally, involves duties and responsibilities of the candidate (Jain, 2005). It could be like whom to be reported, its roles, duration of work, skills required and description of the salary, etc. For hotel industries, there are mainly three departments for services which are front office, housekeeping and food & beverages services. For further studies, job description of Front office manager has been taken in this report. Hotels manager run day–to-day functions of a hotel, including overseeing personnel, ensuring that the facilities are properly maintained, taking actions to ensure customer satisfaction and maintaining the administrative and financial records (Dhar, 2008). Moreover, to expand the perspective of the report, Front office manager's job description has been stated
Administrative Service manager or Front Office Manager at Ritz Carlton Hotel
Assistant General Manager or General Manager or the prior position holder
Direct and supervise rest of the front office personnel in the hotel, to ensure the proper completion of all the responsibilities and job duties of front office that involves maintaining activities of reception, reservations, guest services, telephonic services, planning monthly budgets for front office departments etc.
Front office manager has higher post in a hotel's office that is responsible for maintaining a professional environment, supervising staff and supporting administrative work. It also includes the duties like;
- selecting, training and retraining the office personnel,
- Scheduling and supervising the staffResolving guest problem quickly, efficiently and courteously, overcoming the complaints and reviews by the guests (Kotey and Sheridan, 2004).
- Proper communication while attaining the room status
- Conducts regular meetings in the office to maintain discipline in the staff
- Maximize room revenue, daily deposits with the bank
- Crisis handling, troubleshooting the problems, maintain customer service and increase office morale
As per the requirement of Ritz Carlton hotel, the person should have an associate degree of minimum two years in hotel management from recognized colleges. It should cover areas like accounting, recording management, document processing, desktop publishing and human resource management.
- Ability to read, write, and understand the communicated language i.e. English in the Hotel, person with knowledge of Spanish, Russian and French would be given priorities (Mello, 2014).
- The candidate must have a minimum experience of two year of hotel's front desk supervisory, handling cash, accounting procedures and general administrative duties.
Ritz Carlton Hotel offer salary to Administrative service manager, also said to be the front office managers, an average salary of $92,550 in June, 2014 and job opportunities in the field are expected to increase by 15% between 2005 and 2025, as reported by the Bureau of Labor Statistics (BLS).
Person specification – As the front office manager represents the hotel to the guest throughout all the stages of the guest's stay. Its duties starts from the very beginning of a guest's reservation, assigning rooms, accommodating special requests by guest and verifying guest payment in the end. However, to perform the job of front office manager in Ritz Carlton Hotel, the person must be able to perform each essential responsibility to satisfactory standards (Salaman, Storey and Billsberry, 2005). The candidate must know his skills and knowledge to successfully complete its task as per their duties and responsibilities.
Candidate must have High School Qualification, a college degree of two years in Hospitality management or Hotel Management. The degree should also cover the classes of:
- Document processing
- Human resource management
Candidate must have the ability to communicate clearly, possess leadership skills, perform well under pressure, highly motivated, multitasking and able to manage time. Excellent knowledge of the primary language, i.e. English, is mandatory as well as the ability to write, speak and read clearly (Panayotopoulou, Vakola and Galanaki, 2007). Candidate should have the ability to write, read and listen to the instructions, memos, short correspondences and messages. Computer data handling and software knowledge required.
Person should have at least 2 years of professional experience in previous Front offices at a luxurious property is required. Person worked at five stars would be preferred.
2.2 Selection process of Hotel industry and Airline Industry
Recruitment process of Ritz Carlton Hotel :
Staff requisition/ demand – From the starting step of recruitment process, the Human Resource Department of the hotel generally conduct a process of identifying the demand for employees in the hotel. Further, Human Resource team checks the existing staff which can be promoted in manner to overcome the demand. However, the need for the new hiring remain the same, for which the hotel advertise for vacancy in newspaper, TV, internet etc. (this step takes up to 20 days).
- Advertisement: It attracts the candidates searching for jobs which is appropriate as per their requirement and qualification. They contact the hotel for interview and selection procedure.
- Collecting & Selecting CV: The recruiting staff collect CV from the applicant applied for the advertised job. It can be via mails, to the hotel's desk, personal meetings, references, etc (Hartmann, 2006). Further, the Human resource team starts checking the applicants which overcome the requirements needed for the job. The checked applicant’s CV is selected for the next step of tests.
- Personality test : It involves the test regarding Psychological ability, candidate's Aptitude, English Efficiency , etc. which creates a imaginary status as per the value and effectiveness (Amar, 2004). These test are generally on the basis of intelligence/mental ability of the candidate to know its alertness and response over the situation. Also the Tests specifies the training required to be provided to the candidate to improve its skills. They are further classified as:
- Simulation Test : It is a test which duplicates many of the activities and problems an employee faces while at work.
- Graphology Test : It involves using a trained evaluator examine the hooks, loops, stokes, curves and flourishes in a person's handwriting to assess the person's personality and emotional make-up (Gloet, 2006).
- Interview : Clearing the tests invites the candidate for interview which is used to find whether the candidate is best suited for the required job or not. The competence of the candidate is judged on this stage. Generally have three to four rounds which are:
- First Round : General interaction between the candidate and the Human resource member. To know the candidate perceptive about the job, its behavior, nature, talking manner,etc. The evaluator gets to know them better and checks their aptitude for hospitality (Miller, 2006).
- Second Round : Coming to the next round makes the candidate closer to get the job. Generally, the interviewer ask face to face questionnaire to know the reaction of the candidate clarifies the candidates ability to solve the problem without being nervous. Documents verification is done in this stage of selection process.
- Last Round : The selection process involves which is the final interview with the panel and generally conducted on different day and place than the above two rounds.
- Placement : Clearing all the above tests and interview, the candidate is offered the appropriate salary and incentives. After negotiation and medical checkup process the candidate is placed in the hotel (Price, 2011).
Recruitment process of Easyjet Airline Company :
- Staff Demands : As in case of Airline Industries there are less demands for staff/employees as compare to the hotel sector.
- Advertisement : Easyjet generally hires the professionals in their sector for which they have a contract from the agents and companies like Peoples in Britain which provide them the trained candidates with proposed qualification and ability to perform the task.
- Interview : The airline sector has a direct personal interview with the applicant which are trained by the agents, this interview conducted is for analysis the applicant's mental ability, nature, ability to solve the problem, perspective to handle situation, working on critical condition, etc (Shi, 2010). the candidate must achieve in medical and physical test conducted during the interview.
- Trial : The candidates clearing the interview round is invited for trial basis for a week duration to assess the practical knowledge and its abilities. Trial process conduct a imaginary situation of workplace for the candidate, to get the overview and induction of working conditions. Sometimes, the candidate is paid during this period for food and house accommodation but it is avoided mostly by the company (Pynes and Lombardi, 2011).
- Placement : After clearing the trial period, Human resource team offers the salary and other allowances to the candidate. Further, the Candidate is acknowledged by the legal norms like working under critical conditions,etc.
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2.3 Contribution of Training and development in Hotel industries
Improves Performance – Proper training provided to the candidates improves their performance and enhances the working tactics and improves task handling. Training encourages their morale value to handle critical circumstances during the crisis and leads the situation to positive outcome (Training and Development - Meaning, its Need and Importance, 2015). Basically, training develops consistency in working of the employee, as in Hotel sector requires employee as per their policies and procedures which are consistent and perfect for their duty. Thus training to the employees depicts its duties and responsibilities during the working at the workplace (Niles, 2013).
Skilled and Trained recruits – Trained employees have prior knowledge of professional working manner at the working place, hence it gives plus point for the company to instruct their task and responsibilities. Job training specifies the description and specification to the trained employees which helps in encouraging their potential to cross the initial positioning of the Ritz Hotel that is limited to the hotel's policy and their benefit. Training under expert workers commute the best resources and enhance with better outcomes for the company (Harris, Cortvriend and Hyde, 2007).
Achieving the necessity – To achieve the targets in specific areas the company has to assess the situations where it lacks guest interest and reports dissatisfaction. Training is useful for Hotel staff to turn the guest complaints to their appraisal. Placing the trained employee under the existing and experienced staff, will improve the practical knowledge of the employee (Deckop, 2006).
Morale and Profitability – the main goal of the hotel sector is to provide the best comfortableness and luxurious feeling to the guests. Training strengthened the base for the new staff to attract the guests attention and their interest by providing them their best services. Thus, the training and development programs as being organized by the firm provides opportunity to the hotel worker with regard to give their best services to the firm. Thus, in return of giving best services they will receive the reward or appreciation from the senior member of firm. Thus, it is right to said that the training and development programs helps in enhancing the morale of workers in an effectual way.
Advance Development – after the training sessions overs, panel team members monitors the new staff working manner which helps in generating a list of candidates who can get advance level of training & development. Advance development can be in manner of promotions, increment in wages & salaries, incentives,etc (Appelbaum and Gandell, 2003). which motivates the willingness of working in the employees. It helps in maintaining a consistent level of gaining guest satisfaction and interest over the time which generates a reputation of excellence in services and frame a brand name for the Hotel.
Reduction in Cost – trained candidates have the ability to take self decision over the critical situation, which reduces the responsibilities of supervisors and managers. Although, trained candidate would execute the task more efficiently and avoids negative outcome (Pynes and Lombardi 2011).
It can be concluded from the study that human resource management within service industries plays effective role in order to boost the morale of employees and thus attain productivity and competency. Also, hotel is required to employ skilled workforce so that organizational goals can be attained. Furthermore, it has been found from the analysis that importance of human resource is effective within the service industry as well because here, employees provide wide range of services to consumers in order to attain their satisfaction. Moreover, different employment laws such as Health and Safety at Workplace and Working hours etc. has been complied within business as it affects the management of human resources of Ritz Carlton. In addition to this, a human resource plan has been drawn in business in regard to recruit and select skilled candidates for job. At the end, requirement of HRM is very high within service industry so that morale of workers can be enhanced and thus it raises the performance of business.
Books and Journals
- Amar, D. A., 2004. Motivating knowledge workers to innovate: a model integrating motivation dynamics and antecedents. European Journal of Innovation Management.
- Appelbaum, H. S. and Gandell, J., 2003. A cross method analysis of the impact of culture and communications upon a health care merger: Prescriptions for human resources management. Journal of Management Development.
- Avey, J. B., Luthans, F. and Jensen, S. M., 2009. Psychological capital: A positive resource for combating employee stress and turnover. Human Resource Management.
- Bell, L., 2007.Training managers constructing their identities in English health and care agencies. Equal Opportunities International.
- Bondarouk, T. V. and Ruël, H. M., 2009. Electronic Human Resource Management: challenges in the digital era. The International Journal of Human Resource Management.
- Bratton, J. and Gold, J., 2012. Human resource management: theory and practice. Palgrave Macmillan.