The report gives a detailed description of the organisation’s strategic analysis which includes the organisation’s mission statement, vision statement and core values, a detailed PEST as well as SWOT analysis of the organisation, the role of HRM in achieving the business issues facing the organisation, different types of functions that are performed by HR within the organisation, includes a brief commentary on an ethical consideration, techniques used by HR affecting the organisation and in the end includes an HRM plan which involves the objectives, implementation strategies, responsibility and also KPI’S.
As part of this assessment part 3 I have chosen my previous workplace Shangri-La’s Hotel and Resorts as an organisation.
Vision Statement – is to always remain the first choice for their guests, stakeholders, colleagues and business partners.
Mission Statement – Providing unique and enjoyable experiences for guests at all times. This mission is achieved through a consistency of excellent service in a distinctive environment that’s like no other. Shangri-La’s Hotel and Resorts strive by taking care of the guests via the upmost level of service provided by the staff members and providing satisfaction through the hotel design, food and beverage and facilities on offer.
Core Business Activities
• Deeply committed towards corporate social responsibility by making a positive contribution towards the community, stakeholders, guests, sub-ordinates, business partners, environment etc.
• Maintaining proper communication across all hotel departments to ensure efficient operation of the hotel.
• Creating an environment where our employees can achieve their personal as well as career goals with the help of training and development.
• Making sure that all the policies as well as procedures are guest as well as colleague-friendly
• P = Political:
When it comes to political factors affecting the hospitality and tourism industry the most prominent political aspects have to be the danger and effect of tourism, international relations, political unrest and visa requirements in popular tourist destinations. An example of a terrorist attack is the 2008 Mumbai, India attacks on Taj Hotel and Oberoi Trident in November 2008 where multiple customers were held hostage and some of them were shot dead and others were injured. This can affect a hotel greatly as potential customers may be deterred if they are concerned that another terrorist attack can occur. This can result in cancellation of bookings, reduction in bookings made, in turn reduction in revenue. This can apply to any hotel including Shangri-La’s.
• E = Economic:
Consumer spending is based on consumer confidence which is defined by monetary status, inflation, exchange rates and the general health of the economy. Inflation, which is an increase of product price will influence how much consumers spend. Consumers will have to spend more if inflation increases and if they are spending more, then their budget may not allow for disposable income to be spent on holidays or hotels. This can affect Shangri-La’s revenue because it would decrease the amount of leisure guests booking.
Exchange rates can greatly affect the hospitality and tourism industry. For example if the AUD is strong, then anyone in Australia will be more likely to travel to India and stay in Shangri-La’s Hotel and Resorts because they can get a decent exchange from AUD to INR.
• S = Social:
In terms of social changes; languages are considered really important when it comes to hotel industry. For example many employees in InterContinental Hotel Group are bilingual. This means they can speak more than one language which is considered very beneficial in today’s world; particularly in hospitality. Shangri-La’s Hotel and Resorts have employees who can speak different languages such as English, Mandarin, Japanese and Korean depending on the clients. India is renowned for getting clients and customer base from all over the world; primarily China who visit for both business and leisure.
The location also plays an important role when it comes to choosing a hotel to stay at. Shangri-La’s Hotel and Resorts is located in the capital (Delhi) of India within close proximity to the attractions.
• T = Technological
Shangri-La’s Hotel and Resorts put a lot of thought and innovation into the technology for the use of hotel guests and staff members. Guests have access to smart phone app technology and complimentary internet. Smart phone technology includes express check in/out, it can be used as a remote for lighting and a key for the hotel room and facilities. This provides the guest anonymity as an option and saves service time for hotel staff, which can improve work efficiency.
SWOT Analysis (https://www.mbaskool.com/brandguide/tourism-and-hospitality/4277-shangri-la-hotels-and-resorts.html)
Strengths Weaknesses Opportunities Threats
Represents Asian Culture. Fame is restricted in Asian market only Other international chains are building mid-market hotels in this region Terrorist Attacks and natural calamities
Multi-Lingual skills of the staff members Competition from long established hotel chains means limited market share
High potential in emerging markets Risk of losing staff with the entry of several international brands.
Keeping up to date with digitalisation and the trends in technology taking place around and is now focusing on online sales. Global expansion worldwide and high number of hotels may lead to brand dilution Global hospitality sectors are looking at a boom Another threat is the organisation’s reputation which will be at stake if it doesn’t follow a broader view towards corporate social responsibility.
From the SWOT Analysis it can be seen that the business has two major challenges/ threats that needs addressing.
In order to achieve these challenges HRM needs to play a very critical role. HRM is involved in every aspect of the organisation be it the mission, vision statement or an organisation’s core business values. The role of HRM is very critical from the recruitment and hiring process then going on to the training and development of the employees.
• HRM needs to provide training modules for the development of the employees. By providing training and development the job performance of individuals becomes better. With training and development the performance of an organisation also improves, but also increases the productivity and efficiency. It helps organisation achieve a competitive advantage over others. Training and Development further leads to an improvement of employee’s skills, knowledge and attributes (KSA’S), employee motivation, career development of employees. They need to make sure that they are providing the right training to maximise their performances, satisfying the employee needs by promoting key words such as promotion, job security, employee satisfaction benefits such as improved wages, leaves etc. HRM needs to follow the right procedures where the employees will feel valued, recognised and motivated and this well also help an organisation in employee retention
• Another challenge for the business is the brand image. Therefore, an important aspect of HRM is to make sure that an organisation is following the policies and procedures. HRM has to make sure that the organisation adapts to a broader view towards corporate social responsibility by making contribution towards the community. HRM provides support in the development and implementation of CSR strategies. They make sure that people management practices are ethical. For example an organisation can partner with a deaf society where they can develop the life skills and children’s education. CSR is everybody’s business in today’s world. Other HRM initiatives could include tree plantation, earth day, donating books and clothes to non-profit organisations, taking measures in order to be an eco-friendly hotel. By adopting to a broader view of CSR HRM can make sure that they are indeed creating a positive impact among the stakeholders, community, investors, employees, guests etc. and the brand image will also remain positive and in return this will get them loyal customers.
Following are some of the functions performed by Human Resources in this organisation:
• Recruitment – In Shangri-La’s Hotel and Resorts HR plays a very important role when it comes to recruitment. Recruitment is very critical as they need to attract eligible potential candidates for different roles. And that too when there are different brands competing at the same stage. HR designs appropriate job descriptions, job analysis, post advertisements. Recruitment can be done both internally and externally. HR acts as a mediator between the employer and suitable candidates when recruiting. They go through resumes, cover letters. They have tie-ups with schools, colleges, universities so that they can attract potential applicants.
• Selection – After the stage of recruitment next comes selection. At this organisation it usually happens when the preliminary interviews, in-person interviews have been conducted. It is the last stage of an interview round where background checks, reference checks are conducted by the HR. HR makes sure that they are hiring suitable candidates based on the job descriptions and etc. A suitable candidate as per HR is someone who has knowledge, skills as well as attributes and who can fit within the needs of the particular department as well as organisation.
• Remuneration – When it comes to remuneration HR at this organisation decides as per the enterprise agreement who will be paid at what rate which includes working on a 7 day or a 5 day roster. The gross monthly rate fixed by the HR includes compensation for all hours worked at any time on public holidays and penalty rates. In accordance with the enterprise agreement people are paid on a monthly basis into a bank account of their respective choices.
• Employee Retention – Employee Retentions are very crucial for an organisation. And therefore HR needs to do anything they can to retain their best people and especially when there is so much of competition going around the world. In order to retain employees HR at this organisation promotes the use of key words such as employee training, promotion, job security, employee satisfaction benefits such as improved wages, leaves etc. Employees need to feel valued, acknowledged for the amount of hard-work they are putting in the organisation.
• Training and Development – This is considered very critical not only in hospitality industry but in every industry. The employer must provide all type of necessary training to their employees which eventually leads to their success within the organisation. In order to help employees in their success HR Department at this organisation provides training that is based on leadership as well as professional development. In leadership training HR is seen organising training manuals for promoted supervisors or new joiners in how they can work on the employee related matters within a particular department whereas on the other hand in professional development HR is seen conducting activities for employees who are willing to achieve their personal as well as professional goals in the short and both long term.
The above mentioned functions are jointly managed with departmental or line managers. As in the major role of HR is support an organisation’s workforce needs. They communicate frequently with each other to ensure smooth functioning among the organisation. For example if there is a vacancy it is the job of HR to design job analysis, job descriptions and then the departmental manager or a line manager will go through it to review if it is accurate or not or if there is more room for accurateness. During Selection process it HR and the departmental managers sit together so they can discuss on how they can redefine their search for qualified candidates. When it comes to remuneration HR considers the salary of all the employees working in the organisation and then they figure out an average range of how much the employees are earning. After this is done then it is performed as a joint venture by the HR department and executives and then they come up with a decision on how much rate they are willing to pay salaries to their employees. Executives are considered advisors to HR in terms of remuneration. Now moving on to the last two functions (employee retention and training and development) that are performed by the HR. In terms of these two functions basically a departmental manager conducts a PDR which can be described as personal development reviews. Departmental Managers conduct one on one meetings with the employees after a gap of every 6 months in this organisation. They discuss the performances of the employees and if an employee needs more training and development. Based on the PDR’S departmental managers then sit down with the HR and then as a joint venture they come up with training manuals, policies which they can design to retain employees by promoting key words. For example promotion, improved wages and etc. As it becomes a difficult process for the organisation to re-invest the amount of time in recruiting and then providing them suitable training that is required to perform the job. In other words it can be said that the above mentioned functions are not only conducted by the HR as they are conducted as a joint venture with other departmental managers as well as executives.
The following are considered to be the 4 HR challenges that are affecting Shangri-La’s Hotel and Resorts:
1) Leadership Development – From an HR perspective leadership development is very critical. The performances of a team cannot be at the same level as it always varies. It is seen that many employees consider to leave their respective areas of jobs because of the poor relationship they have with their departmental managers or departmental supervisors.
Objective Implementation Strategies Key Responsibilities KPI’S
Helping individuals in growth who have high potential Providing mentors, training manuals for leadership programme HR and the line managers
2) Recruiting Talented Employees – Attracting talented employees involves huge amount of time as well as money in. It is considered to be a difficult task as in to run the business as well as hire the talented employees and that too at the right time. And therefore it is really hard to know whether a candidate will be a perfect fit within the organisation until the candidate has worked for the organisation for a period of time.
Objective Implementation Strategy Responsibilities KPI’S
Hiring individuals with advanced skills • Recruitment from colleges and universities
• Social Media Human Resources Co-Ordinator – making sure the recruitment policies of the organisation are well in place Making sure that when interviewing talented employees the process is smooth and fast as if they go through so many interviews they can expect fall-outs.
3) Retaining talented employees – Retaining talented employees is a challenge for all the organisations. As because of competition it has become really hard to retain talented employees. Similarly Shangri-La’s Hotel and Resorts faces competition from other big hotel chains such as Marriott Hotels, Hilton as well as ITC Hotels. As Shangri-La is an Asian brand and is not located in every country and therefore the big brands come often knocking on the door to hire the best.
Objective Implementation Strategies Key Responsibilities KPI’S
Retention of best employees Using key words such as promotion, improved wages etc. HR and Line Managers
4) Harassment – This can be really challenging for HR as any issue of harassment in the workplace can put the organisation liable and then they can face legal complaints, fines, penalties which further leads to bad reputation of an organisation.
Objectives Implementation Strategies Key Responsibilities KPI’S