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Business Issue in The Context of Human Resource

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Business Issue in The Context of Human Resource

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Introduction to Human Resource Management

Human resource management is the management of the organization design which maximize the employee performance to achieve the strategic objectives and goals of the organization. HRM is an essential part of an organization which helps in managing the human resources in the organization. The main function of HRM is to make better utilization of human resources to the organization. Marriott International company is that which deals in hotel and lodging facilities. The main aim of the company is to provide best hospitality to their customers. For achieving this aim or goal, company should have better human resource management.

1. Description of The Organisation and The Management Functions

Marriott international is an American multinational company. It deals in hotels and resorts services. It is mainly related to the hotels and lodging facilities (Boxall and Purcell 2011). Its headquarter is in Bethesda Maryland in Washington. It is the industry of hospitality and tourism. In every organization management plays an essential role. It is the work of the management to control all over the work of the company. Each company has different levels of management working under it. There are generally three types of management levels such as top level, middle level and lower level management.

How a company operates is lays down under the organizational structure which is design by the management of the company. It is the structure in which policies, rules and regulations, norms are set by the management. This structure will determine that how an organization will work, what will be the different channels of communication, to whom the work and responsibilities will be delegated, which techniques will be used in decision-making process, etc. There are several organization structures which are used by an organization on depending on the company's needs. Some of the organizational structure are functional structure, divisional structure, matrix, etc.

As Marriott International is a hotel management company, generally, used the functional organizational structure (Cook, Gildner and Gildner, 2006). This functional organizational structure avails a hierarchy of one or more executives visualising the entire operations of the company. In this structure the organization will be divided into the functional groups such as housekeeping, food and beverage services, front desk service, administrative service, accounting and human resources. The functional structure in this hotel is beneficial for it as it focus on the specific tasks, which helps the employees in higher productivity.

Functional Structure of Hotel

Marriott hotel follows functional organisational structure which defines roles and responsibilities of each individual effectively. The above mentioned structure possess three levels here at the top level all the strategic function is carried out by the Board of Director of hotel. In addition to this, it is the board of director only which sets the direction of other employees who are working within firm. However, under board of director number of managers operates their functions who carries out varied type of operation.

For example, marketing manager handles all the marketing related work and make all the decision which are associated with the given department. In the similar way, HR department meet the skill employee related need and demand of buyers. In addition to this, there are number of employees works under each department. For example, the staff who are working under marketing department will tend to follow all the instructions which is formulated by marketing manager of firm.

The role of the management in an organization is very essential. It is the duty or responsibility of the management to design the organizational structure. The basic functions of the management are planning, organizing, staffing, directing and controlling. As per the information given by the Ulrich Model HR managers tends to fit in four categories such as HR specialist, corporate HR, embedded HR and service centres. Different levels of management will practice different level of functions provided or delegated to them by the superiors or the higher management. The managerial functions of HR managers are:

Planning

In HR planning function the number and the type of employees are determined to achieve the organizational goals (Kim and Sung-Choon, 2013). Here, the management make plan that from where they get the human resources and what will be the process for their recruitment. The plans are made by management to achieve the goals and objectives of the company.

Organizing

Under organizing the HR managers implement the plan made by them. It is the process of the structuring, integrating, co-ordinating the goals and and the managerial activities to accomplish the set objectives of the organization.

Staffing

Staffing is the process of recruitment and selection. Staffing is an essential element for Marriot Hotel. Through staffing the management recruit and select the human resources which will help in achieving the organizational gaols. It helps the management in finding the best and suitable employees for the organization ( Taticchi, Tonelli and Cagnazzo, 2010).

Employee Development

It is the main function of the HR managers after selection process to provide training to the newly appointed employees in the organization. Through training the employees are guided and explained that what is the mission and vision of the organization. This hotel's management will help the new comers in understanding their work. Thus, it is an essential function of the management.

Employee Maintenance

It is the responsibility of the HRM to look over the work of the employees and provide a good maintenance facilities in the form of performance appraisal, career planning, compensation and other benefits.

Handy's Model of Organization Culture

An organization is consist of set of individuals who work together to achieve common goals and objectives. In Marriott hotel, the employees has to work with co-ordination and perform their functions to achieve the targets for smooth functionaing of the organization. Every organization has its own policies, values and culture which differentiate it from the others. The interaction of the employees amongst themselves as-well-as outsiders shows or describe the culture of the organization. Here, as per Handys the organisational culture is of four types such as role, person, task and power culture.

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Among these culture, it is examined that manager of Mariott hotel follows person type of culture. In this context, it gives importance to the needs and demands of employees. Furthermore, in this culture manager of firm make sure that it will enhance satisfaction level of its workers. Thus, with an aim to do the same manager of firm involves its workers in the decision making process. However, the main limitation of given culture is that it is proved as ineffective when manager of firm will have to make quick decision. This is because, in case of emergency it becomes very difficult for enterprise with regard to involve its employees in the decision making process.

2. Business Performance Addresses Key Contemporary Business Issue

Every organization has some internal key issues as-well-as external issues. The internal factors which influence the organizational functioning are management changes, employees morale, cultural and financial changes (Alexander, 2013). These factors generally, have both negative and positive impact on the Marriott Hotel. These are discussed as below:

Management Changes

The flexibility in management of the organization impact directly on the development of the organization. It affects the whole organization, which will have an impact on the working environment. Through the changes in the management, the functions of it will also changes and will effect the functioning of the other employees also.

Employee Morale

Generally, increase in employee morale will help the organization in better productivity and good functioning. As Marriott is an hotel management company, the high morale should be available in the employees working there. Morale may be increase through the motivation, performance appraisal and rewards (Paul, Yeates and Cadle, 2006.).

Cultural Changes

Marriott Hotel is an American multinational company which has a different culture. A company generally, adopt such culture where it is situated and the management and the other staff also belongs to that culture only. But sometimes the people from other culture also work there. The cultural changes or flexibility among the people working over there also affect the organizational working. Under PEST analysis of Marriott Hotel following are the factors that impact the business are:

Political Factor shows environmental issue, current and future legislation, etc. In addition to this, it also involves factors such as change in the rate of interest and government policy regarding taxation. For example, manager of Marriott hotel have taken decision to reduce prices of services which is being given by it. The given decision of firm is affected when government of nation enhances the rate of taxation on hospitality services. Hence, in the given circumstance it will become very difficult for enterprise with respect to deliver its services at low prices.

Economic Factor is related oversea issues, inflation and deflation etc. The condition such as regression also have effect on the operation of hotel. Marriott is the luxurious hotel which can only be afford by those individual who resides in high income category. However, the situation such as recession will tend to direct effect on the purchasing power of customers. In this condition, it become very difficult for hotel with respect to make improvement in its sales and profits. Thus, the given thing will also hamper the performance of enterprise.

Social Factor includes lifestyle trends, customers attitudes and opinions, etc. Herein, it is being required by the hotel manager that it should give consideration to the need and demand of workers. This is because, it is by complying with given type of activity only firm can maintain satisfaction level of its buyers and hence perform significant improvement in the sales and profits. But, if firm will not make changes in its operation as per the demand of buyers then it will have to incur impact of that in the form of decline in the sales and profit of enterprise.

Technological Factors of this analysis shows competing technology development, information and communication, etc. The development in information and communication technology has opened the new source of giving services to buyers which is of e-commerce. Here, with an aim to maintain competitive position in market it is being required by manager that it should upgrade itself with the development which are incurring in ICT. This will lead to have positive effect on overall performance of enterprise.

Environmental

The manager of Marriott hotel also comply with environmental rules and regulations. In this regard, it makes effort in terms of minimizing impact of its operation on the operation of company. But, in case of firm will not give importance to the natural environment of company then in this circumstance brand image of enterprise will be affected in a negative way.

Legal

It is also required by manager that it should abode with all the rules and regulations which are incurring in the hospitality field. This is because, given rules will help in streamlining the operation of firm.

This hotel company uses the two tools to measure and control the performance of the business are benchmarks of profit and key performance indicators. Under the benchmark or profits the company compare last two years of profit of the company to attain the current year's set targets and profits. Through the key performance indicator the management analysis the performance of the each employee of the company and set the different targets for the different employees according to their performance (Raskin, 2005.).

3. Identification and Evaluation of The Major External Contexts Affecting The Organisation, Including International Factors

Marriott international is the leading and global brand in hotel industry of nation. There are many competitors of Marriott International i.e. Hilton hotel and resorts, Starwood hotel and resorts, etc.

Porter's Five Force Model

In order to know the competitive position of Marriott, a Porter’s Five Forces model shall be analysed. It comprises of buyer’s power, supplier’s power, threat of new entrant, threat of substitutes and degree of rivalry.

Bargaining Power of Buyers

With reference to Marriott hotel, bargaining power is moderately high (Kusluvan and et.al., 2010). It is because; customers are brand loyal towards Marriott with the help of which, it is is a strong brand in the market. Marriott International provides high quality services to their customers so that they would be attracted to this hotel. Also, hotel made them well aware with the facilities which it is offering.

Bargaining Power of Supplier

The supplier’s bargaining power is very low because there is high competition among them which are providing raw material to the hotel. As Marriott is doing partnership with airlines as well, they are making food supply in airlines also. It increases the number of suppliers in the market (Chand and Katou, 2007).

Threat of New Entrants

As threat of new entrant is high. There is large number of hotels that enter in this industry. Initial cost to get established is also high in this sector.

Threat of Substitute

There are large number of substitutes available for customers as Marriott is having lots of competitors that are serving the society with almost similar services. However, as Marriott is a luxury hotel, so there is no direct substitute which provides the same services.

Internal Rivalry

There is always a moderate competition in this hotel due to presence of number of local hotels. There were various oligopoly luxury hotels in the market. The local hotels provide competitive prices which increases the internal rivalry among firms in hotel industry (Farley, 2005).

PESTLE Analysis

The analysis of external factors which are affecting the working of Marriott International is done by using the tool, PESTLE which includes political, social, technological, economical, legal and environmental factors.

Political Factors

These factors may be defined as the changes in political parties, reducing prices due to change in policies, etc. Political factors affecting marriot Is happening of the terrorist attack on various tourist sides. This terrorist attack will reduce the travellers that visit Marriott (Farndale, Scullion and Sparrow, 2010).

Economic Factors

Economic factors are like recession, boom, inflation, interest rate changes, etc. which may affect Marriott International. as economy rate of china is low so their purchasing power is not good. This purchasing power of china will reduce the Chinese travellers to visit Marriott

Social Factors

Social factors are related to various things such as lifestyle, culture, family, education and location which affect the behaviour of individuals. There are various social factors affecting business of Marriott like increase in number of travellers as well as due to changes in income, spending power of people on travelling has also become high (Caldwell, 2008).

Technological Factors

Latest technology also affects Marriott. Like Tas Airbnb is another hotel who is providing online services to their customers. They provide service rent the room to customers online. Due to this services provided by airbnb affect the Marriott.

Legal Factors

Legal factors are consider as changing in the law, various banns in the country etc. Various legal factors affecting organisation are: status of the services which is giving by Airbnb.

Environmental Factors

Various environmental factors affecting Marriott is are changes in the price of fuel, in order to launch greenhouse in the hotel the company faces many problem related to greenhouse. change in the climate like rise in ocean level, floods, etc.(Baron, 2008)

Impacts of Government Policy and EU Regulation on Marriott

Change in the government policies put a lot of impact on the working of Marriott as there are the laws which are made by government like: Creation of policy related to minimum wage which has extended to 18 years. Requirements of business to cater disabled people that they build ramps into the hotels, business. That they launch various facility in the hotel for disabled people like building of ramps etc.

This all the legal changes put there impact on the Marriott hotel as hotel has also to manage wage rate etc. changes in the tax rate by the government also put lot of impact on the business (Narayanan and Fahey, 2005)

There are various regulation made by the EU which would put impact on the business of Marriott. For example: EU has made the regulation related to food and feed which has put a lot of impact on the working of Marriott. There are various regulations which are related with food and safety standards which has put a impact on the Marriott as it a hotel industry.

EU has also made a regulation which is related with the export. In this export regulation they include food health requirements, anti dumping, technical requirements etc. this all the requirements that are made by the EU has made their impact on Marriott. In order to follow EU regulation the business of hotel is very well affected (Navarro, 2008).

Impact of Globalization and International Factors on Marriott

Globalization may be defined as the integration of one country to another country. By globalization the company can exchange their goods and services internationally. It helps in increasing the growth of the economy and wider range of the products are generated. As if Marriott adopted the globalisation process due to which services of company are improved. Large number of international customers are connected with each other.

There are various international factors which affect the business and services of Marriott. i.e. availability of raw materials (Gerhart, 2005). For example if Marriott wants any raw material for their country which is available in another country affects the working. Another international factor affecting Marriott business is advancement in technology. If the latest technology are invented in another country and they provide better services then it affect business. Labour workforce is also an international factors which has put their impact. Like if in the international country the workforce is very good then they provide better quality service to their customers.

Workforce is very important for any organisation to work. Various supply chain in the international country has a giving a lot of impact. If supply chain is good then working of business is going well all supply are easily made in foreign country. All the supply of Marriott is affected by the supply chain present in international country.

4. Role of HR in Business Planning and The Resources Used By Marriot Hotel

Role of HR in a business planning plays very important role. The human resource professional are responsible for formulation of the strategies and planning that focus on the recruitment and selection of the employees in the company. There are the following roles of HR in business planning:

Selection and Staffing

The goals of the company are set by the management and for fulfilment of such goals human resources are required (Michie and Sheehan, 2005). To choose the right people for the right place is very difficult for the management. So the selection process for hiring the new one is made very difficult by which only the effective persons may selected. And after selection staffing is done in which the the selected people are distributed on different jobs. Here, the management will decide that which person will be more suitable for which job.

Organizational Development

The strategic planning always include the changes in the workplace. All the departments are aware of the functions which they have to perform within their department. The HRM helps in development of the organization (Taticchi, Tonelli and Cagnazzo, 2010). HRM always aware of the functions of the employees and groups of the company. Any changes in the functions of the HR effects the organization in both negative and positive way.

Training and Development

Here, the management of the company Marriot, will focus on the training and development of the employees working over there. First of all managers will see the current status of the company and then analyse the future requirements of the company. For this management will research time to time that how many people required training to increase their efficiency level for better productivity. Then held the training sessions to improve their knowledge and skills. After this process they analyse through their working efficiency that the effectiveness of the training programme ( Cook, Gildner and Gildner, 2006).

There are so many resources available for Marriot Hotel some of they are as follows:

Employees

Employees are such resources which are very essential for an business organization to run it in a smooth way. Every organization requires human resources for its development process. Employees are such factors of the company which influences the functions and activities of the company directly.

Technology

Technology is also a good factor which affects the company in both positive and negative way. It is such resource which is used by the hotel company to manage their functions and activities of the employees and other things. For this the latest technology should be used by the company so that the customers may attract towards the company. Today, every person want a better hospitality and latest technology to use when they walk in a hotel. Therefore, the latest software must be used by the company to attract the customers (Kim and Sung-Choon, 2013). Strategic HR functions and firm performance: The moderating effects of high-involvement.

Suppliers

The suppliers of the company are those who supplies the products which are used by the hotel. It is one of the main resource for the hotel company. The products which are used by the hotel may be the products which are available at each room of the hotel such as furnitures, bedsheets, towels, bathing products, etc.

Conclusion

Marriott is a leading hotel industry. So their aim is to provide a best services to their customer related to hotel industry. It provides various value added service to their customers on t5he factors that they would not be affected by the all the factors. It should be affected by the external, competitive, and international factors. By this report it should be clear that performance management would help a lot to HR.

From the report it should be note that international factors affecting the business. So HR has to look at various aspects at international country like trade rules regulations so it will put not impact on the company order to solve the issues which are arise in the company must be solved by the HR. so they have to adopted various policies to solve the issues.

References

  • Alexander, K., 2013. Facilities management: theory and practice. Routledge.
  • Baron, R.A., 2008. The role of affect in the entrepreneurial process. Academy of management Review. 33(2). pp.328-340.
  • Beardwell, J. and Claydon, T., 2007. Human resource management: a contemporary approach. Pearson Education.
  • Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
  • Caldwell, R., 2008. HR business partner competency models: re‐contextualising effectiveness. Human Resource Management Journal. 18(3). pp.275-294.
  • Chand, M. and Katou, A.A., 2007. The impact of HRM practices on organisational performance in the Indian hotel industry. Employee Relations. 29(6). pp.576-594.
  • Cook, M.F., Gildner, S.B. and Gildner, S.R., 2006. Outsourcing human resources functions: How, why, when, and when not to contract for hr services. Society for Human Resource.
  • Farley, C., 2005. HR's role in talent management and driving business results. Employment Relations Today. 32(1). pp.55-61.
  • Farndale, E., Scullion, H. and Sparrow, P., 2010. The role of the corporate HR function in global talent management. Journal of World Business. 45(2). pp.161-168.
  • Gerhart, B., 2005. Human resources and business performance: Findings, unanswered questions, and an alternative approach. Management Revue. pp.174-185.
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