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Requirement
Prepare a report which critically evaluates the HR issues in the company, making recommendations for change. Justify any suggestions that you make, supporting your
ideas with relevant theory and examples of best practice from the hotel industry and other comparable sectors, based on Huntsman Hotels plc case study.
Solution
Introduction
The given case study is about the Huntsman Hotels, PLC, who owned more than 60 hotels throughout the United Kingdom. In this report, we will discuss the different HR issues identified in the case study. On the basis of these HR issues, various suggestions are suggested so that these issues can be resolved immediately without any hurdle. This will help the organization in gaining competitive advantage in the market and can easily expand its business in Europe (Armstrong, 2014). During 1986 the Moles family took on the Huntsman Hotel and since then, they are engaging in operating the functioning of Huntsman Hotel. It is a group of the hotel which was operating by Giuseppe Salieri who was the Managing director of the hotel group. He owned 51% share of the hotel. As per the given case study, the Huntsman Hotels faced lots of challenging during their working time which makes it difficult to survive in the existing market. It has done various steps to identify the available problems so that they can be resolved without making any delay. Many parts of the building, structure, and layout like the main lounge, have been reinforced many times since being taken under the efficient management and is estimated to be over 200 years old. The hotel provides various services to its customers such as local beers, and residential facilities. This makes it competitive in the available market and can gain customer loyalty in an efficient manner (Bratton, 2012). Apart of this it also provides various charities and music or art facilities so that it can gain the confidence of customers. But it is not so the organization faced lots of problems which makes difficult to survive in the available market. But at last, it proved its efficiency and able to establish itself in the European Market.
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HR Issues
Human resource management is considered a most difficult task for the management of the organization. It is the responsibility of the organization to plan different beneficial policies for its human resources so that they utilize their full potential in performing different tasks. But the organization was failed in doing all such things (Brewster, 2016). Due to which it suffers from different problems. The following are the different HR issues which faced by the organization while managing its operations:
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Employee Retention: The big problem which Huntsman Hotels faced is employee retention. It is unable to retention its employees for a long time. The main task for the organization is to perform different efforts to retain its employees for a long time. Managing people was not the strength of Giuseppe Salieri. Due to this, he faces a large number of employee turnovers in his organization. He doesn't know how he can efficiently manage the employee turnover, consequently had a high turnover of staff, especially in his senior management (Matthews, 2015). Employees are considered the lifeblood of an organization, providing the experience and skill required to keep productivity levels up. In the absence of employee’s retention strategy, the organization is not able to gain competitive advantage and establish itself in the European market. The organization spent huge time and money into ensuring maximum productivity wherever possible. And it is the responsibility of key HR to manage and protect this valuable asset.
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Recruitment: The second main issue faced by the management of Huntsman Hotels is a selection of talented employees. Due to the high competition in the hotel industry from groups such as Premier Inns, Travelodge, and Lbis, the organization, has faced lots of recruitment problem in hiring talented employees. Finding staff with the required personality, skills and motivation is critical, even when the pool of available candidates is very large. It is the responsibility of the management of an organization to handle the recruitment process efficiently (Yadav, 2014). But due to lack of potential candidates, the organization is not able to high sufficient candidates for performing functions in the organization. Whether recruitment is managed solely by the assistance of a third party or the internal HR department, it is necessary that the selection and recruitment process is managed effectively and centrally.
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Lack of Training and Compliance: Training is considered an essential part of the employee development, both to ensure the performance of the employees and for their education. Lack of training is the main reason behind employee turnover. This has influenced on Huntsman particularly badly and restricted the growth plans of the organization. In the absence of adequate training employees of the organization are not able to deal with the different culture and background which causes various conflicts between them. In the same time due to lack of training, they are not able to manage the functioning of the hotel. This has led to canceled bookings on short notice. Due to this the organization faced a decline in its profit level and reputation in the market.
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Lack of Reward and Incentives: Reward and Incentives are the main factors which motivate the employees to give their best. It works as petrol which inspires employees. Due to the lack of incentive and reward schemes the employees not performing in an efficient manner. This will bring dissatisfaction and high turnover in the organization.
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Favoritism: The most important issue which the organization faced is favoritism. The organization has been accusations of favoritism by some disgruntled employees towards Giuseppe's inner circle, especially family members who hold different top positions in the organization as well owning as the majority of the remaining organization shares. As per the Equality Act of 2010, every employee is equal to others, and they have the same rights as the others. So, it the responsibility of the organization to remove all this so that it can earn a higher profit and establish itself in the European market.
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Recruitment and Selection help the organization in finding the talented potential employees for any given post. It is the responsibility of the organization to follow the following stages for efficiently conducting the recruitment and selection:
Each element of the selection and recruitment has a significant contribution towards finding the most suitable candidates. These are following:
• Job Vacancy: It is the first step towards significant selection and recruitment of employees. Before rushing to fill a position the organization should consider following things:
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Do the organization aware why the vacancy has arisen? It may be possible that the previous employee of the organization left due to the problems in the business and unless these are solved, the new employee will likely be unhappy too (Vickers, 2014). So, firstly the organization should focus more on measuring the reasons of employee turnover so that it can be resolved immediately.
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The organization should measure that Is there potential to promote and appoint an internal candidate to the vacant position and then recruit externally for the lower cost? By doing the organization able to attract a large number of potential candidates and also able to satisfy the internal employees. This promotion activity work as a strong motivation factor which improves the overall productivity of the organization.
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Once the organization has focused on all above points, it can then reflect upon the second stage.
Job Analysis: Employee recruitment is potentially a very subjective process, and it is necessary that the organization should perform innovative steps to minimize the level of subjectivity. If the organization not reduces the subjectivity level, it will make poor recruitment decisions which will hamper the overall growth of the organization. In addition, the organization should establish criteria for the selection of a potential candidate (Quinn, 2014). In the absence of selection criteria the organization not able to take an efficient decision regarding the potential candidate.
Attracting Candidates: If the organization wants to hire talented employees it should conduct advertisement. With the help of advertisement, the organization is able to reach the desired target audience and can attract the required number of suitable candidates. So, to enhance its level of productivity, the organization should conduct advertisement with which it can attract a pool of employees.
Screening Candidates: During screening of potential candidate the organization should focus on following elements:
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It should utilize the job description and employee specification to compare against the resume.
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The organization can conduct a short telephone interview to gauge an individual’s suitability.
Interviewing Candidates: It is the most important element which the organization should focus more. For selecting the potential candidate, the organization can organize Psychometric tests with which it can easily check the personality and ability of the candidate. Apart from this, the organization can use different assessment centers which helpful in searching required candidate.
Selecting and appointing candidates: The organization should select the candidates who have enough potential and skills as per the requirement of the job. After selecting the candidate, the organization should give a written appointment level which ensures the involvement of both parties. With this, the organization need not follow any problem in its near future.
Training and Induction: Every employee remembers their first few days in the organization. So, it is the responsibility of the organization to make these days special and memorable. Training should be provided to the candidates because it enhances the skills and knowledge of the employees (MUSTAPHA, 2013). After training the candidates are able to perform their responsibilities in an efficient manner and the organization can grow in the European market successfully.
Employee Evaluation: Measuring performance of employees is considered an essential function for the organization. With the help of evaluation, the organization is able to evaluate the performance of the employees on the weekly and monthly basis with which it can interpret its overall growth.
Rewards:
Consuming efficient time and resources to select the right person for the required role is likely to have following positive influences:
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The organization can hire efficient employees who have a higher retention rate. With this, the organization can easily manage its operations in other countries.
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It can hire high performing employees with this it can easily enter the European market.
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Good employees can motivate and develop other staff also.
Risks:
The suggested changes also have some disadvantages which are following:
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Conducting the above functions consumes a lot of efforts and money of the organization.
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It involves very much time.
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It is quite inflexible because if any alteration is made in between the process whole being unfruitful.
The implication of Changes on Employees600
All suggested changes prove very beneficial for the employees. Today, employees are not considered as a machine but they are considered the human assets of the organization. With the above-mentioned changes, employees influenced in a larger context. Their motivation level becomes high. If the organization follows the suggested recruitment and selection process, it can hire a more talented employee with which it can enhance its profitability. On the other hand, employee satisfaction will be enhanced which ultimately reduce the employee turnover in the organization. In addition, the organization should create cost efficiencies that enable them to achieve superior performance of employees with which the organization productivity is enhanced and can easily gain a competitive advantage in the market (Kaufmann, 2013). For measure its competitive position in the market, the organization should utilize resource-based view which is helpful for identifying its sources of advantage. This approach towards employee management considers the role that internal resources, such as organizational systems, physical assets and human capital play in helping the organization to create value and become competitively unique and profitable. With this, the organization can position itself in the European market in an efficient manner. Most probably the manager of the employees is not able to manage the people who are significant. Due to the lack of employee management, the organization suffers lots in its lifetime. Human resource management is mainly dealing with two forms of resources. The first and the foremost resource is an organization's human capital- the abilities of its employees, knowledge skills, experience. The challenge for the human resource manager is to utilize human capital into organization capability that is rare, valuable and difficult to imitate. If the organization utilizes its human resources in the right direction, it can surely achieve its overall objective without any problem. The second resource is the system of the organization- especially HR practices and policies- that serve to support the development of human capital (Stokes, 2015). For implement this resource in an efficient manner, the organization should choose the efficient, cost-effective bundle that will help employees perform better. Employees are considered the biggest source of gaining competitive advantage in the market. Employees as a form of human capital have abilities, skills, and knowledge that can efficiently apply to their work to generate value for the organization. When they are highly competent and performing their functions in an efficient manner, employees are actually able to work in a strategic manner, meaning that they can easily attend a task at a skill level that is almost instinctive and does not require any planning and efforts.
So, it can be said that with its efficient employee management the organization is able to achieve its overall objectives and can easily establish itself in the European market. For example, Apple establishes itself in the every market on the basis of its product quality which is only possible through effective employee management (Goyal, 2016). Apple follows the above-mentioned steps for hiring its employees due to which it is able to hire more talented employees which enhance the productivity of the organization. In the same manner, Huntsman Hotel can also enhance its quality of its services which makes it different from the other market competitors.
Conclusion
From studying all this it can be said that the organization can efficiency gain competitive advantage by improving its management style. This can be improved through following strategic initiatives. The organization should prepare a plan in advance which helps the organization in tracking the activities of every department. This will help the organization in maintaining the productivity of the organization and can easily track all activities happening in the other departments. The organization declined its productivity due to its own drawbacks. The most important problem in the organization was favoritism which should not be there (Ulrich, 2013). Due to the presence of favoritism employees feel demotivated, and they do not like to work for the organization because they know that their efforts are not ever recognized in the organization. This gives birth employee turnover which is highly dangerous for the organization. Dissatisfaction of employees also reduces the reputation of the organization in the market due to which no any other employee wants to work in the organization. All this can be improved through the efficient management which requires talented leaders who can easily manage the employees. If the employees are managing in a good manner, the organization can easily reduce employee turnover and can gain its market reputation again in the existing market.
Reference
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Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management practice. Kogan Page Publishers.
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Bratton, J. and Gold, J., 2012. Human resource management: theory and practice. Palgrave Macmillan.
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Ulrich, D., 2013. Human resource champions: The next agenda for adding value and delivering results. Harvard Business Press.
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Brewster, C., Mayrhofer, W. and Morley, M. eds., 2016. New Challenges for European Resource Management. Springer.
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Kaufmann, A., 2013. Analyzing the role of employee training tools in the journey towards more sustainable companies' Sustainable and trainable!?.
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Goyal, S. and Chhabra, N., 2016. Benefits of employee training for developing economy. Global Journal For Research Analysis, 4(10).
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Stokes, P., Liu, Y., Smith, S., Leidner, S., Moore, N. and Rowland, C., 2015. Managing talent across advanced and emerging economies: HR issues and challenges in a Sino-German strategic collaboration. The International Journal of Human Resource Management, pp.1-29.
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Matthews, V., 2015. Managing the change: HR issues. Occupational Health, 67(5), p.18.
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Yadav, R., 2014. MANAGING GLOBAL HR ISSUES IN TODAY’S CHALLENGING TIMES.
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Vickers, G., McDonald, M. and Grimes, J., 2014. A cross country comparison of best practices in recruitment and selection. Journal of Management and Marketing Research, 15, p.1.
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Quinn, D., 2014. An evaluation of the recruitment and selection process employed by “Manufacturing Company X” and assessing whether a more advanced process or method of recruitment and selection may reduce staff turnover.
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MUSTAPHA, A.M., Ilesanmi, O.A. and Aremu, M., 2013. The Impacts of well Planned Recruitment and Selection Process on Corporate Performance in Nigerian Banking Industry (A Case Study of First Bank Plc 2004-2011). International Journal of Academic Research in Business and Social Science, 3(9), pp.633-648.
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