Human Resource Management For Hospitality

Table of Contents

Introduction. 3

Main body. 4

Organizational description. 4

Approaches of managing people. 4

Ways of organizing employees. 7

Pay and reward structure. 7

Inviting employees for management problems. 8

Overview of the employment relationship. 8

Management of well-being of the workforce. 9

Conclusion. 10

References. 12

Introduction

Hospitality management covers a broad field which involves managing operational, commercial and day to day administrative activities of an organization belonging to the hospitality industry (Gardini, Ottenbacher and Schuckert, 2021). Under one umbrella, several parts of the hospitality sector are managed in the hospitality management procedure which makes it distinct from basic hotel management (Madera et al., 2017).  Travel, lodging, delivering food and beverages, accommodation, event management all are done in the hospitality management and when these activities are done internationally then it is called the international hospitality management (Jiang and Wen, 2020).

Employee wellbeing is a complex concept. As the employees are the main value creating workforce of any organization, managing their well-being is important (Davahli et al., 2020). Ensuring psychological as well as subjective wellbeing both are equally important in international hospitality management. As indicated by Agarwal (2021), provisioning ample opportunities for career growth, reducing work stress by cutting down associated psychological and physiological costs, stimulating personal growth and development the employees, motivating the employee with increment or remuneration are some of the approaches of managing employee well-being in the international hospitality industry. Hilton hotels and resorts is a multinational hospitality brand that has several hotels and resorts in different global locations. The international hotel chain has presence in six continents (Europe, North America, Asia, Africa and many more) and more than 94 countries (Hilton.com, 2022). The essay is going to discuss the organizational structure of Hilton and the approaches it has taken to manage the workforce. Critical analysis of the training, absence management and the ways of organizing people in the form of departmental structure are going to be highlighted in the essay. Pay structure, analysis of employment relationship, taking feedback of employees in problem resolution and ways of maintaining employee wellbeing are the critical analyses that are going to be focussed in the essay. Analysis of the ways of managing people in Hilton hotels internationally is the thesis statement of the essay.

Main body

Organizational description

Hilton hotels and resorts is one of the most widely spread international hospitality organizations. As of 2019, globally 584 Hilton hotels are there. It has its presence in six major continents and across 94 countries including USA, UK, Thailand and many more (hilton.com, 2022).

Implementing the STR parameter the chain scale of Hilton Hotels can be determined where average room rate of the hotel plays the main role (hospitalitynet.org 2022). Hilton hotel consists of 18 brands named Hilton collection, Hilton Luxury Brands, Hilton Upper Upscale, Hilton Upscale, Hilton upper-midscale, Hilton Midscale and many more (hoteltechreport.com, 2021).

Divisional structure is a specific type of organizational structure, where each group functions into a division. Therefore, it can be said that luxury hotels, Midscale hotels all act as separate divisions. In each division a hierarchical structure of management is followed in Hilton hotels. Hierarchical structure is such an organizational structure that executes organizational activities in a chain of command manner (nibusinessinfo.co.uk, 2022). As per the statistics of 2020, Hilton Hotels have 141,000 employees globally (statista.com, 2021)

Chris Nassetta is the CEO and president of the Hilton hotels who manage all the operations of the hotels across the international borders (linkedin.com, 2022). Majority of the organizational activities of the hotel is directed by the CEO and all the divisional managers execute the orders.

Approaches of managing people

Training and development policy

Training is such a planned process which helps in modifying knowledge, attitude, skill behaviour while improving the learning behaviour of the employees. In order to improve the employee performance as well as ensuring organizational growth, training and development is essential (Altin et al., 2018).  Hilton hotels always try to conduct industry-leading development and training programs. Therefore, $2000 savings per team member is done. Most of the training is executed using the virtual-instructor led courses which decreases seat learning time by 25% (managementservices.hilton.com, 2022). Not just on job training but Hilton Hotel with the help of the Hilton Worldwide University (HWU), provides training sessions worth 5, 000, 000 hours each year in the form of 2500 courses including class room training, on the job training. HWU has strategic partnership with business leaders which provide the Hilton employees exceptional growth opportunities (hwu-overview.com, 2022). The company even uses Oculus for the business platforms to enhance the development and learning process. In order to develop empathy this kind of viral training has been useful. SweetRush has helped Hilton to design a cutting edge virtual training process.   Many of the corporate team members of the hotel have never worked in a hotel environment. Therefore, their brainstorm solutions can be unrealistic for expecting practical hotel operations. SweetRush has created such a virtual reality that team members have strategic decisions properly (business.oculus.com, 2022). Merging the gap between hotel teams and corporate has been done using proper training measures.  Role playing is an important training approach that Hilton is using through the SweetRush platform (business.oculus.com, 2022).

On the other hand, as an innovative training approach Hilton has declared its team members as the brand ambassadors. Each team member is the on-job trainer of new fellow members. Language and skill development training both are being given by this. One example of this kind of training can be found from Timor-Leste where six team members were given the opportunity of this type of training for six months to enhance their English skill and join the Hilton property in New-Zealand (hcamag.com, 2020). Skill and professional development are the two core aspects of managing employee well-being in an organization (Baum, 2002). As the result of innovative and well-managed employee training initiatives of Hilton, it has been listed in the 100 best companies to work by the Forbes magazine in 2016. Hilton hotel is also recognised by the Association for Talent Development for three consecutive years.  It is included in Learning! 100 list with other organizations providing training to the employees (hwu-overview.com, 2022). Thus, it can be said that Hilton hotel globally is managing the employee talent and development process efficiently.

Illness and absence management

Absence management is related to reducing employee absenteeism due to injury and health through organizational policies and procedures. (Karlshaus, A., 2020). Maintaining the health and safety of the employees and safeguarding themselves from any kind of illness related with workplace activities are important in reducing employee absence. As a pioneer hotel group Hilton hotels try to manage all the aspects included in health and safety legislations across borders. As an example, it can be said that Health and Safety at Work Act 1974 deals with protecting mental as well as physical health of the employees (hse.gov.uk, 2022). As per the responses of the Hilton employees in the job portals, it can be observed that employees who are working remotely can enjoy 6 unpaid leaves in the first year. After completion of one year they get 6 paid sick leaves. Total number of sick leaves is around 40 hours in a year and with doctor’s note the sick leave extension with salary payment can also be permitted. Hilton also offers paid parental leaves up to 12 weeks to their employees (indeed.com, 2022). As the leave policy of the hotel is good, employee absenteeism is low in Hilton hotels (newsroom.hilton.com, 2019). As soon as the hotels have opened after the COVID 19 lockdown, Hilton has revised its health and safety guidelines. So, neither the customers nor the employees fall ill. Hilton has partnered with Reckitt the manufacturer of Lysol and Dettol for organizational health and safety. Contactless arrival, regular sanitization of all the departments, prioritizing face coverings, taking care of food hygiene are some of the initiatives that reflect that Hilton management is concerned about the health of employees and trying to reduce illness (hilton.com, 2022).  Not only the physical health but the mental health of the employees is also important who work under the busy schedule of the hospitality industry. Hilton has partnered with Thrive Global so the stress of the employees can be reduced and among them resilient, optimistic and focused towards work. As supporting engagement activities, volunteering local charities, yoga, meditation, nutritional programs are done with the help of Thrive (peoplemanagement.co.uk, 2017). Therefore, it can be said that Hilton hotel internationally is managing employee absence and illness issues successfully.

Removing centricity and adopting global decision making

In case of a multinational organization over reliance on the parent country national or organizational culture can cause challenges.  Being flexible and encouraging global management rather than centricity is important (Testa, 2007). Though at first the hotel used to follow a centric strategy but with time it has started to follow globalized strategies where key decision makers come from a variety of countries. Managers from all the countries are treated equally in Hilton. As an example, if the present executive board of Hilton is observed then Simon Vincent represents Europe, Alan Watts represents Asia Pacific, Danny Hughes represents American operations. All of them put their valuable points while making decisions (hilton.com, 2022). Thus, it can be said that Hilton is a global company by means of operations. 

Ways of organizing employees

Prioritizing the key activities and panning efficiently are important ways of managing employees in a multinational organization(Akramovich and Muratovna, 2019). Segregating departments as per the specified organizational activities and differentiating the workforce accordingly is an effective way of organizing employees. Hilton Hotels have specific customer service, food and beverage, housekeeping, HR departments where the employees are entitled with specific responsibilities. As the responsibilities of one department do not coincide with other Hilton can manage the organizational activities properly. Segregation of work also reduces employee workload making the work process ethical (Islam, Ahmed and Ali, 2018). 

Pay and reward structure

The pay and reward structure of Hilton is totally based on the responsibilities of the employees. Managers manage all the operational activities of the hotel (Kim and Gong, 2009). Therefore, the pay scale of managers does not match with the normal employees.  As an example, if the pay scale of the UK based Hilton hotel is reviewed, then it can be said that The salary of a front desk receptionist is £18,523/yr while the sales manager gets a salary of around £33,457/yr (glassdoor.co.uk, 2022). Comparing the two salaries, it can be said that a reception executive only deals with the check in and check out process of the hotel while the sales manager executes all the sales activities of the hotel. Therefore, it can be said that based on the burden of responsibilities, the pay structure is designed in Hilton hotel which is ethical. The additional rewards that Hilton provides the employees are travel discounts, health and welfare plans, retirement program, flexible schedules (jobs.hilton.com, 2022).  CEO Light & Warmth awards are given to the employees who pay their best efforts globally (jobs.hilton.com, 2022).

There is no such task rotation or job rotation scheme presently existing in the Hilton hotels However, the management of the hotel is supportive towards the mental wellbeing of the employees. Therefore, if any employee faces stress then they try to relieve the stress by meditation, recreational activities and even with leave (peoplemanagement.co.uk, 2017). A positive approach towards the maintenance of employee mental health is really commendable and ethical.

Inviting employees for management problems

Understanding the concern of the employees and giving them the chance so they can place their own concerns ahead of the management is important for managing health and wellbeing of the employees as well (Grobelna, 2015). Employee unions or the trade unions act as the one of the main mouthpieces of the employees. In the case of Hilton hotel trade unions place the concern of the employees aged of management which is then included in the decision making process. Moreover, recreation activities provide employees the scope to voice their opinion.  As per the UK law employees have full right to join unions and Hilton provides that right to the employees (gov.uk, 2022).

Overview of the employment relationship

Talent management is related with selection, attraction, and retention of the employees (Chung and D’Annunzio-Green, 2018). Hilton has a unified recruitment strategy that h is followed by all the branches over different countries. Already, it has been described that each region has different representatives in Hilton hotel. Even balancing with the new trend, Hilton has reduced the number of days in the recruitment process from 43 to 5 globally (forbes.com, 2019). Social media is playing an important part in the process. Managers of the company come from different regions as Hilton is becoming globalized operationally rather than being centralized (forbes.com, 2019). 

Psychological contract

Maintaining the balance of the psychological contract is important in case of maintaining relationships among the employees and the employers. Psychological contract refers to the obligation, belief, expectation of individuals (cipd.co.uk, 2022). In the previous part it is already discussed that Hilton is the leader in providing training and additional benefits to the employees. The company has also provided the scope considering the employee opinion by entertaining the Union officials. Union leaders on behalf of employees talk about the remuneration and other demands of employees (ir.hilton.com, 2022). However, when the organization fails to meet the expectation of the employees it breaches the psychological contract (Kim, Karatepe and Lee, 2018). In the case of Hilton Hartford, the employees were agitated by the closure of the hotel and getting the support of the hospitality labor union, “Unite Here”, the employees hit the roads demanding reopening of the housekeeping department and facility’s bar and restaurants (courant.com 2021). The issue was fixed by the discussion of management with union leaders. Thus, it can be said that Hilton hotel is efficiently managing employee relations globally following an ethical standard.

Management of well-being of the workforce

Reducing any kind of discrimination is one of the key aspects of maintaining employee wellbeing in the workplace (Lin, 2020). Including the best talent in the organization from any global culture is the main aim of the recruitment policy of Hilton hotel. Creating a culturally inclusive workplace is the organizational aim of Hilton hotels. The cross-cultural initiatives of the hotel have succeeded. Therefore, it is recognised as the 7th place holder in DiversityInc index of top 13 companies for the Employee Resource Group in 2018 (hilton.com, 2022).

Employee welling and job satisfaction are interrelated with each other. If the mental health of the employees is intact, employees get proper refreshment and career growth opportunities they are going to be satisfied with. Job satisfaction triggers the employees to perform better (Gede, 2018).

The skill deficit of the employees has been managed based on the partnership with IYF.  Till date, 15000 young people have been trained. 96% of the trained staff have been retained for more than six months. 40% of them were further promoted (passporttosuccess.org, 2022).

Employee satisfaction is the key force which encourages the employees to perform better. As the employees perform better they serve the requirements of the guests properly (Kurdi, Alshurideh and Alnaser, 2020). Aligning with these aspects, Hilton hotel rewards its employees to increase customer satisfaction.  As employees get a pay hike they get motivated to perform their responsibilities and it is directly related with performance. For this purpose, Hilton paid $5 billion in 2014 and it has almost reached $12 billion now (news.sap.com, 2014).

Informal benefits can also increase the motivation of the employees. Pension scheme that secures employee future, educational assistance program, flexible working schedules are some of the informal approaches that Hilton practices to maintain employee well being (jobs.hilton.com, 2022).

Assessing employee performance, psychological appraisal and checking the overall growth of the company are some of the performance appraisal methods that hotels exercise (Prabowo, Noermijati and Irawanto, 2018). Supporting the employees transitioning job, defending the interest of the employees and recognising the efforts of the employees are some of the appraisal techniques that Hilton use to appraise the employees (greatplacetowork.com, 2021). CEO Light & Warmth award is the highest honour that is given to the employees as the supreme appraisal approach (jobs.hilton.com, 2022).From the overall discussion, it can be said that managing employee well-being is important for improving the employee performance in the organisation. Thus, it can be said that the essay has covered all the essential aspects of organisational well-being.

Conclusion

In the end, it can be concluded that managing the well-being of the employees is the most important thing if guest satisfaction is considered as the ultimate parameter. As the company operates over a number of continents and a number of countries, centralized operation was becoming obsolete for the company. Therefore, the global operations of Hilton hotel have been divided in different regions like Africa, Asia-Pacific, Europe, America and many more. Each regional division of the hotel operates following a hierarchical structure. CEO is the central decision maker but representatives of all the regions are included in the executive board to provide their valuable opinions in the organizational decision making. As the paramount of managing employee well-being, Hilton hotel prioritizes the professional growth opportunities for the employees. Therefore, several innovative training initiatives are practices by the hotel which makes it one of the most appraised workplace by global employees. The hotel’s management is highly concerned about the physical and mental well-being of the employees. Partnership with Thrive and Reckitt are two measures that Hilton has taken for ensuring mental and physical health of the employees. Total pay scale of the company is based on responsibilities and clear differentiation of role based salaries can be observed in the hotel. The company has a clear performance appraisal procedure in the form of a CEO award. Other than these, retirement, scheme, travel payments, educational support are some of the informal rewards that Hilton hotel provides the employees.  Therefore, it can be said that Hilton hotel has properly adopted all the ways of retaining employee well gif. It also considers empowering unions in the final decision making process which reflects that Hilton hotel supports the inclusion of employees in strategic decision making. The thesis statement of the essay of analysing the wellbeing of the employees in Hilton hotel has been analysed here achieving the objective of the thesis statement.