Human Resource Management In Service Sector

TASK1

P1.1 Explaining the Importance of Hrm and Analyzing Its Role and Purpose

Human resource management is a management function adopted by an organization to achieve its strategic goals. This function helps in creating a positive attitude among workers and maximizes the use of resources. IHG is a diversified company that operates in multiple hotel properties. To efficiently control and manage all their activities, it is important to bring professional growth. HRM helps in developing effective personnel policies, which enable training employees and facilitate professional growth.

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Another importance of HRM includes developing better relationships between employee and employer. It is considered that the key to a healthy environment is the professional and better relationships among employees of a company, and the principles of HRM help to make these relationships effective. Human resource management assists an organization like IHG in filling the gap between individual goals and organizational goals. Effective HR practices such as teamwork help employees to tend towards fulfilling the overall aims of the business.

Other important aspects of human resource management include selecting appropriate candidates for suitable positions, improving the nation's economy, appropriate training and development, and many more (Amidu, Effah, and Abor, 2011). A few roles and purposes of HRM are mentioned below:

Role of HRM:

HRM, by its name, suggests it helps an organization like IHG to manage all their employees and their operations. This concept plays a significant role in bringing together all the personnel to ensure teamwork. For example: the HR manager of IHG arranges activities for employees of this company to make relationships between employees better.

Human resource management also plays an important role in resolving all the issues of employees. For example, the HR manager of IHG consults all their employees to resolve their employee issues regarding wages, work stress, and many more. HRM also helps an organization build effective strategies for business so that the company can make effective decisions. Commitment building and building capacity are also two roles of human resource management.

Purpose of HRM:

The main purpose behind using HRM by IHG is to improve the productivity of employees and enhance the profitability of an organization. HRM is a concept that is used to define organizational structure and also drives productivity. Another aim of HRM is to create coordination between the departments of a company. For example, IHG is a hospitality company that has several departments such as finance, marketing, and others. Human resource management helps bring coordination in these departments through effective communication.

Providing satisfaction to employees is also a purpose of HRM, as employees are considered the backbone of an organization, and it is important to satisfy them so that they can result as an asset to the organization. Another aim of HRM is to ensure that IHG follows all the ethical models and principles (Carlsson-Wall, Kraus, and Lind, 2015).

P1.2 Justifying Human Resource Plan

A human resource plan is a framework that includes all the strategies and policies that are developed by the management of an organization to develop organizational operations. This plan is created with the help of human resource planning.

Human resource planning is a process of identifying the needs of the business by which the aim of the plan is ascertained. IHG is a hospitality company that is trying to enter into other segments of hospitality like food and beverage. To ensure that their plan will be successfully implemented. It is important to create an effective human resource plan. This plan can include various operations that are required to be done along with the number of employees that will be required to complete those tasks (JOSHI et. al., 2011).

Hospitality is a service industry, and to increase the number of services by IHG, it is important to ensure that an effective HR plan is implemented. This plan is usually based on two aspects, which are demand and supply. It is important to analyze both of these aspects before creating such a type of plan. These aspects help in identifying the availability of human resources in the organization, and the HR of that entity makes sure that they supply all the demanded personnel. Demand and supply are here used for the demand and supply of personnel, which can be used by organizations like IHG to execute their plan for growth and development. Cost and availability of human resources are also key considerations that are considered while preparing such a plan.

Management and HR of the Intercontinental Hotel Group have adopted an approach in which they believe that if a growth plan is prepared using two aspects of demand and supply, then there are high chances for successful implementation. To justify the above human resource plan, various evidences are provided as follows: The cost of employees can be ascertained by the demand for human resources. For example, if the expansion plan of IHG requires 500 employees, then this company has to bear the cost for a total of 500 employees. The availability of employees is dependent on the supply aspect. For example, if the number of employees available to IHG is 100, then they can supply those employees for their expansion plan (Granlund, 2011).

TASK2

P2.1 Assessing the Current State of Employment Relations

Employment relations is a concept of cooperation and effective understanding among various relations of an organization. These relationships are employer-employee relationships, employee-employee relationships, and management-employee relationships. It is important to control and manage all these relationships positively to ensure efficiency in operations. The hospitality industry is the most influential sector, which is highly impacted by organizational relationships. The main aim of bringing efficiency to this system is to avoid conflict and issues between employees and business managers so that they all can effectively contribute towards the achievement of business goals.

In the current scenario, these employment relations are shaped in the form of unions. A trade union is the most influential and effective structure of employee relations. These trade unions are a legal structure that is legalized by the World Federation of Trade Unions, which aims to bring together all trades of the world. A trade union is described as a group of employees mainly of the same company or industry. The main aim behind developing this type of union is to protect the interests of every employee to avoid their exploitation. IHG has its trade union, and certain aspects impact the current state of employment relations in this organization. These aspects are mentioned below:

Culture: This aspect is related to the cultural standards of IHG. This can include a uniform that has to be worn by all the employees of this hotel, or it can be the way of greeting and addressing visitors in the hotel. The culture of a business organization reflects the working environment and satisfaction of employees from that working environment.

Negotiation: This is another important aspect of the current state of employee relations. According to this aspect, employees can negotiate and bargain about their work affairs. These work affairs can include salary, working hours, promotion, and other monetary and non-monetary benefits. For example: employees of IHG can negotiate with their manager or HR manager about wages earned by them.

Personnel empowerment: Under this aspect of employee relations, the rights of employees are empowered. In the current scenario, it is considered that it is important for an organization to provide their employees with relevant rights so that they can be satisfied. For example, employees of IHG have the right over all the orders that are given to them to question their suitability.

Grievance solving: In the current state of problem-solving, organizations like IHG have provided their employees with a proper structure and administration for problem-solving. Using this structure, employees of these companies can solve all their issues regarding the working environment.

From the above aspects, it can be justified that the current scenario of employee relations is much more geared towards the betterment of employees (Klychova, Faskhutdinova, and Sadrieva, 2014).

P2.2 Discussing Various Employment Laws That Affect the Management of Human Resource

Employment law: law is a combination of various acts, statutes, and legislation. Employment law is the set of legal rules and regulations that are developed to protect the interests of an employee. There are different laws in every nation for employee protection. There are various laws for various issues. In the case of the United Kingdom, several legislations aim to protect employees and their rights. A few legislations that work for employment protection include the Equal Pay Act. This act states that employees working in the same position with the same skills and for the same hours should be given the same value of wages, and any discrimination regarding caste, gender, ethnicity, or religion should not be justified (Johnson, 2013).

Another piece of legislation that affects the management of human resources for the Intercontinental Hotel Group is the Employment Rights Act. This act states that all the rights mentioned by governmental authorities must be provided to employees and any firm working against these rights must be punished. IHC follows this law and provides all relevant rights to their employees, due to which productivity of employees gets affected. Health and safety is also a statute that states that all business organizations should fulfill rules and regulations regarding work premises and the environment to ensure the safety of employees. For example, IHG follows all safety instructions provided by this law, such as not standing continuously for long hours, which affects the rules of the organization.

Amendments have also impacted the workings of business organizations. For example, Intercontinental uses the rules of the Employment Rights Act 1999, but due to amendments in this law, this organization has to follow new regulations provided in the Employment Rights Act 2004. Along with these amendments, there are few policies developed by governmental authorities that affect the profitability of the business (Draï¾ić Lutilsky and Dragija, 2012).

TASK3

P3.1 Identifying Job Title and Discussing Its Job Description and Person Specification

Recruitment is the procedure that involves the appointment of employees suitable for specific vacant positions in the organization, which is done through the identification of factors that affect the labor market, identification of organizational needs, and conduct of a job analysis. Selecting is the process of choosing suitable candidates from the ample pool of applicants for a specific job by the managers of the job requirements and goals of the organization. 

Job analysis: The process of job analysis involves a detailed study of the job requirements and person specifications needed for the job by gathering, analyzing, synthesizing, and reporting information about the roles and responsibilities of the job and the conditions under which the job will be performed (Ruiz-de-Arbulo-Lopez, Fortuny-Santos and Cuatrecasas-Arbós, 2013).

Job description: To understand this concept better, the position of director is selected. The director of the International Group must work in coordination with the general manager to manage major property issues relating to capital projects, customer service, and refurbishment actively and efficiently. Another requirement for the position of director of IHG includes assisting in the development of hotel budgets and other related short-term and long-term strategic goals. The director of this company must ensure that the targets are met by providing effective leadership to the hotel management team and team members. To respond to audits completed by the company for continuous improvement.To plan, direct, and coordinate the provision of services by the operations department guest expectations. Complying with Hotel Service standards is also an operation that must be performed by the director of the company. The director must set up a superteam with the aim of regular analysis and regular results of the department to highlight problem areas and take appropriate actions for controlling costs. Management and development of Heads of Department for career progression and effective succession planning within the hotel. To seek and respond to feedback from guests to achieve positive outcomes through customer satisfaction.

The above requirements must be present in the director of IHG, which are mentioned in the job description (Moser, 2012).

P3.2 Comparing the Selection Process of Two Companies

Selection process: This concept is related to the process of selecting a suitable candidate for a vacant position in an organization. The selection process of an organization can vary according to the requirements and suitability of the management. This process is slightly different from other human resource processes, such as recruitment and screening. This process is not a long-term procedure and is only focused on selecting a suitable candidate, which can result in an asset for the business and can contribute toward the achievement of organizational goals.

Selection of Intercontinental Group: As discussed above, the selection process for organizations can vary according to their suitability. This company has adopted a full-fledged version of the selection process, in which various processes like screening and recruitment areas are involved. In the hotel industry, it is important to appoint professional and trained employees to ensure the best quality services are provided. Under the selection process of IHG, an advertisement is published using various mediums to attract a maximum number of applicants. After receiving those applications, a screening process is conducted by the human resources department of IHG to select a few candidates for personal interview based on benchmarks set, such as qualified degree, expensive, etc. After completion of the job interview, most eligible candidates are selected and trained with relevant skills and techniques.

Selection process of McDonald's: The second hospitality company that is selected is McDonald's. This company operates in the food and beverage industry, which requires less professionalism and qualifications when it comes to personnel management. The selection process of this company for recruiting employees is comparatively shorter and more pilot than that of IHG. Various applications are invited by this company and screened according to the requirements of the job. After shortlisting a few candidates, all of them are invited for the selection process, where techniques such as group discussion are used to select more than one individual, as it is considered that employees in bulk are appointed by this organization. In this organization also, relevant training is provided to selected employees (Schaltegger and Csutora, 2012).

In both organizations, the same recruitment process is followed All the steps of the process are as follows:

Step 1: Recruitment planning: In this stage, the human resource managers of the companies decide to recruit new employees for the vacant posts. It includes a detailed analysis of the job profile, and then advertisements are provided on the job portals and newspapers.

Step 2: Strategy development: In this stage, appropriate strategies are developed in which the managers decide the qualifications, experiences, skills, and qualities of the new applicants.

Step 3: Searching—human resource managers of the companies search for the best suitable candidates after deciding the appropriate skills, qualifications, and other requirements for the new candidates.

Step 4: Screening: When they complete the searching phase, they screen all the new candidates and analyze all of them so that the best of them can be selected for the job profile.

Step 5: Evaluation and control: When all the candidates are screened by the managers, they evaluate their potential and then make recruiting decisions.

All the above-described steps are followed by the human resource managers of Intercontinental Hotel Group and McDonald's for the recruitment and selection process. It helps and guides them to hire the most suitable candidates for the vacant job positions of the company.

TASK4

P4.1 Examining Training and Development Function and Assessing the Contribution of Training and Development Activities

Training is the concept of providing reliable and suitable training to employees to ensure that they contribute to the organization. Training includes various programs, which are usually designed by human resource managers to help employees develop themselves. For example, IHG arranges training programs for new employees to ensure that they can effectively adapt to the work culture of IHG and can benefit from the performance enhancement programs (Windolph and Moeller, 2012).

Developing is a process of creating policies and strategies in an organization that can help in developing the performance of employees and can even develop the living standards of employees. Training and development are two different concepts but have the same objective of employee productivity and organizational profitability. Training is related to the programs that are designed for employees, but development is related to the activities and operations done by an organization and audits of the human resource team. Training is considered an activity of teaching, but in the case of development, a process of self-assessment is conducted.

Both of the above concepts are different from each other, as training is a short-term activity and development is a long-term activity. These concepts are used for effective operation in IHG. Training and development help in increasing the productivity of an organization; it also helps in enhancing the skills of employees working in different departments of the company. These concepts also help in developing a cooperative environment in an organization along with avoiding situations of organizational harm. Training and development are considered beneficial for employees as well as for the Intercontinental Hotel Group (Ward, 2012).

The organization is growing because the human resource managers conduct appropriate training and development programs for all the employees, resulting in increased capabilities and skills. When the workforce has appropriate knowledge of their jobs, it can help them to perform all the tasks appropriately. If all the operational activities are performed successfully, the organization will be developed and achieve a high level of growth. Training is provided to the employees based on their requirements. For example, when new training programs are held by the company for new employees and existing workers, the organization conducts normal training sessions so that they may become more aware of their jobs.

Conclusion

From the above project report, it has been concluded that human resource management is a process that is used to bring efficiency and effectiveness to an organization. Various functions enable an organization to find a suitable candidate for their organization, such as recruitment and selection. An understanding of the concepts of training and development is built into this report to identify the differences between these concepts and their contribution toward the fulfillment of organizational objectives. Various employment laws are assessed in this report to analyze their impact on business operations. Roles, importance, and purpose of human resource management are also analyzed in this report to provide an understanding of the uses of this concept.

References

Books and Journal:

• Amidu, M., Effah, J., and Abor, J., 2011. E-HRM practices among small and medium enterprises in Ghana. Journal of Management Policy and Practice. 12(4). pp. 146-155.
• Carlsson-Wall, M., Kraus, K., and Lind, J., 2015. Strategic management resourcing in close inter-organizational relationships. Management and Business Research. 45(1). pp. 27-54.
• Dražić Lutilsky, I. and Dragija, M., 2012. Activity-based costing as a means to full costing possibilities and constraints for European universities. Management: Journal of contemporary management issues. 17(1). pp. 33-57.
• Granlund, M., 2011. Extending AIS research to management accounting and control issues: A research note. International Journal of Accounting Information Systems. 12(1). pp. 3-19.
• Johnson, H. T., 2013. A New Approach to Management Accounting History (RLE Accounting). Routledge.
• JOSHI, P. L., and et. al., 2011. Diffusion of management accounting practices in Gulf Cooperation Council countries. Accounting Perspectives. 10(1). pp. 23-53.
• Klychova, G. S., Faskhutdinova, Ðœ. S. and Sadrieva, E.R., 2014. Budget efficiency for cost control purposes in the management accounting system. Mediterranean journal of social sciences. 5(24). p.79.
• Moser, D. V., 2012. Is accounting research stagnant? rizons. 26(4). pp. 845-855.
• Ruiz-de-Arbulo-Lopez, P., Fortuny-Santos, J. and Cuatrecasas-Arbós, L., 2013. Lean manufacturing: costing the value stream. Industrial Management & Data Systems. 113(5). pp. 647-668.
• Schaltegger, S. and Csutora, M., 2012. Carbon accounting for sustainability and management. Status quo and challenges. Journal of Cleaner Production. 36. pp. 1-16.
• Ward, K., 2012. Strategic management accounting. Routledge.
• Windolph, M. and Moeller, K., 2012. Open-book accounting: Reason for failure of inter-firm cooperation? Management    Counting Research. 23(1). pp. 47-60.

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