Human Resource Management: The Success Rate of an Organization

Problem Statement

There is a need for an effective human resource management system in any organization and this is very instrumental for all types of organization and this applies also to the hotel industry of any country. When an investor in a new country wants to enter into a particular industry, there are various considerations and analysis that the investing organization needs to invest in. These include the PESTLE analysis and Porter’s 5 forces in the market. One of the most important departments in an organization is the Human Resource Department which is responsible for ensuring that the organization has well taken care of personnel and also that the employed staff are capable of handling the challenges that may arise during the running of the organization.

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Summary

Human resource management is very instrumental in ensuring that the organization is successful and it is also beneficial for the overall outlook of the company. The human resource is also very important in ensuring that the organization retains its competitive nature and that it is able to handle the competitive nature of the market in which it is located.

Report Statement

This Report is to look into how human resource management is instrumental in ensuring that the organization can cater for the challenges that may arise. This is done strategically and the Report will look into how the human resource management will help in ensuring that the organization adopts effectively in any market and in any industry. The report will focus on the hotel industry in the United Kingdom and how the human resource management will be instrumental in the success of the company.

Introduction

The hotel industry in the United Kingdom is faced with many challenges and investors in this industry need to do some research before venturing into the business. According to the Mintel Research of 2007, the Hotel industry in the United Kingdom has been declining. The industry has a stiff competition with many major hotels being found in the country and this emphasizes the need for new entrants into the market to consider carefully their chances of success and how their success chances would be enhanced by the kind of services they offer the population. It is important to note that many new entrants have failed after a period of time and this can be attributed mainly to the kind of research and analysis they did. This sums up to the overall quality of the service they offer in relation to the market and other competitors in the industry. Quality is very instrumental in the service industry although the same applies to all other industries and this means that any investor who would like to venture into the industry will have to consider the quality of the service that will be most appealing to the society. The investor will have to look into the cultural background of the society and this will be very instrumental in ensuring that the clients get the service that will be the best for them (Fleetwood, 2009).

Other needs of the clients have to be put into consideration and this include such things as the investor needs to consider are the needs of the potential customers and this include such things as communication systems of the hotel. In a study conducted by Mintel, a significant number of people cited that they would opt for a hotel because of the availability of the internet service to the clients. Other needs include the locality whereby the clients will feel secure as well as being able to explore the vicinity of the facility with ease (Sparrow, 2009).

According to the Mintel Research of 2007, it is important to note that one of the greatest assets of any organization is the human resource and this is very instrumental in ensuring that the organization is successful. Apart from the success of the company it is also important to note that Human Resource Management is very beneficial to an organization in tackling the future problems of the organization and this means that if the organization adopts the right policies concerned with the management of the organization’s human resource, the future problems will be handled efficiently. The strategic human resource management is very instrumental in ensuring the success of a hotel in the United Kingdom as well as ensuring that any future problem will be tackled efficiently by the organization (Sadler-Smith, 2008).

Methodology

Findings and Analysis

According to Mintel the incorporation of a strategically placed human resource management will be very instrumental in ensuring that an organization is successful. Apart from that there are other strategies that a company should adopt and this include such things as a quality management systems which when integrated with a well performing human resource management system will work towards ensuring that the company can handle their future problems. There is also the need by the company to ensure that the human resource department is well equipped to handle the challenges that may arise now and also in the future and this means the company being able to come up with positive solutions to the problems that the company may face in the future. This entails being prepared in the present for future events which may not be accepted (Mayrhofer, 2008).

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In order to analyze the problems that the hotel may find in the United Kingdom in the future, we need to use the PESTLE analysis and this means analyzing different factors that might act as hindrances in the success of the company. This means that the company will have to look into various factors that will needs to address by the company. This means that the organization will also have to use Porter’s 5 forces model (Schuler. 2007).

Environmental Analysis

PESTLE Analysis

The PESTLE analysis is used to analyze the environmental factors that would hinder the success of a business enterprise in a country. These factors include political factors, technological factors, social factors and also economic factors. It is important for an organization to consider various aspects of these factors and how they would inhibit the success of the company. Since we are concerned with the hotel industry in the United Kingdom the various political, economical, social and technological factors that may hinder the success of the company needs to be analyzed critically. This means that the organization will have to incorporate the human resource management when considering these factors (Sparrow, 2009).

Economical Factors

According to Mintel research, the economical factors of the United Kingdom at now are very unstable especially due to the Financial Crisis that has affected a lot of businesses in the country. This means that the industry in the United Kingdom could be negatively affected by the economical factors of the country and the company will have to engage very strategic human resources management to be able to handle these economical factors.

Political Factors

The Mintel research asserts that in the present and in the future, the political nature seems to be stable and this means that the organization does not have to worry about the political stability of the country in the present and also in the future. This means that the organization will only need to put in place a human resource management that will work efficiently with the prevailing political nature (Hesketh, 2006).

Social Factors

Mintel states that the social setting in the United Kingdom highly encourages the entertainment industry and this means that the organization will have to put in place a human resource management that will be able to handle the social needs of the country. Apart from that, the country also has a huge influx of foreigners who also encourage the hotel industry diversification and this means that the organization will have to put in place a human resource management system that will cater for different cultural settings of the people who are foreigners in the country. This also means that the organization will need to enact a human resource management that caters for the needs for people of different cultural settings and this will be very instrumental in ensuring that the hotel will have a competitive outlook in both the local and the foreign sectors of the country (Zimmermann, 2008).

Technological Factors

Mintel asserts that it has been noted that many people who use the hotel industry’s services in the country are inclined to good communication systems and this falls under the technological factors of the country. This means that the organization will have to use the technological infrastructure that is highly available in the country. The country offers one of the best technological infrastructures in the world and this means that the organization will have to put in place a human resource management that will be able to use the technological services that are to be found in the country. This human resource management will have to be able to trap in the technological resources of the country and this means that the human resources management will not only take the communication technologies but also the other technologies that are very instrumental in the hotel industry (Sparrow, 2009).

Porter’s 5 Forces Model

The Porter’s 5 Forces model is also very instrumental in assessing the strategies of the organization and this caters for the environmental factors that may affect the country. This model caters for such elements as threat of entrants, supplier power, buyer power and the available substitutes (Gattrell, 2006).

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Available Substitutes

According to the Mintel research of 2007, in the United Kingdom, there is a huge collection of substitutes to the hotel industry and this means that the organization will have to put in place a human resource management that will be able to compete with the other substitutes efficiently. The substitutes include such things as the tourist facilities that are not affiliated to the hotel industry and this means that the organization may face stiff competition from these facilities. Other substitutes include such things as Castles (Fleetwood, 2006).

Threat of entrants

According to the Mintel research of 2004, the hotel industry in the United Kingdom is very attractive to new entrants and this means that many organizations have an interest in investing in the country. This means that the organization will have to brace for stiff competition from new entrants and this means that the human resource management will have to be able to provide the best quality that will ensure that the organization remains very competitive in the market. The reason for the thriving industry in the United Kingdom is that the country has good business entity and this means that the hotels have a lot of clients. In addition to this there are many conferences and international meetings held in the country and this means that the country would need to have a lot of high quality hotels that offer the best services to the clients. However, this does not mean that since there is a big customer base in the country that the organization can relax on its human resource strategies as this would prove to be very costly to the organization (Brewster, 2007).

Supplier Power

The Mintel research asserts that any organization needs to look into the supplier in the market of the United Kingdom and how they will be able to provide the organization with the best of supplies to cater for the quality services and products to the customer. This will be very instrumental in ensuring that the organization offers the best services and products to the clients. This is very important for the competitive nature of the organization considering that the country is very competitive. In recent times, there have been various concerns about the quality of the hotel products which are being offered in the market. The human resource management of the organization will have to look for ways in which the suppliers of the organizations are reliable in the present and in the future to supply quality products to the hotel so that there will be no complications in the future (Sparrow, 2009).

Competition

The Mintel Report also asserts that the hotel industry in the United Kingdom is very competitive and the human resource of the organization will play a very important role in ensuring that the hotel will be able to provide quality products and services to the clients. In this respect, the department of human resource will be instrumental in ensuring that the organization does not loose its clients to other hotels on the basis that the services offered by the hotel are substandard and that they cannot compete effectively with other hotels in the industry (Dewe, 2007).

Theory and Analysis

Human resource management is a coherent and strategic approach of the management of an organization and its deemed to be responsible for ensuring the welfare of the organization’s most valued asset, the human resource. The human resource is the people who work in an organization and they are individuals or a collective group which contribute to the running of the organization. They are deemed very important because they are the ones that ensure that the organization’s activities are coordinated so that it can realize its overall objective. Human resource management is seen as the system of an organization which have been put in place to oversee the management of the people who are working for an organization and how these organization will help in ensuring that any challenges that the organization can face will be handled in an efficient manner and that the organizations will also have the proper mechanisms of ensuring that if the same challenge happens again it can be dealt with ease (Hosie, 2006).

In this respect, human resource management can be seen as a way of ensuring that the organization employs well qualified people who will develop their capabilities with the help of the organization. It entails employing people and developing their resources and also maintaining and utilizing their services and also compensating them in relation to the particular job and the organizational requirements of an organization (Robinson, 2007).

Strategic human resource management

According to the Mintel Research, the situation in the hotel industry in the United Kingdom can be tackled efficiently if an organization invests in strategic human resource management. Strategic human resource is a traditional approach that makes it its objective to help an organization in realizing the long term objectives of an organization as well as laying a strong foundation for the organization to handle the challenges that may arise in the future. This means that the organization is responsible for ensuring that the best organization policies are implemented to ensure that such things as competition and other factors are taken care of in the most efficient and rewarding way. It is also important for the organization to adopt the best policies for the development of the organization and this means that the organization has a responsibility of ensuring that the best practices that can ensure its success in any market. One key aspect of achieving this is through the organization being able to handle its human resource and ensuring that the personnel of the company is up to the task of meeting the challenges that may face the organization and as well as ensuring that the personnel is well qualified to handle the development requirements of the organization (Sparrow, 2009).

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Concepts of strategic human resource management

According to the Mintel research, there are various human resource management concepts that can be very instrumental in the United Kingdom’s hotel industry. One important concept of the strategic human resource is the training of the personnel to effectively do their duties. This is very important for the success of any organization and especially in the hotel industry. In addition, there should be refresher courses for the employees and this means that the employees will be outstanding in their fields of operation. In the same respect, the organization will also need to train and recruit their employees in being very competitive in their field and the benefits are to be seen in the overall performance of the organization. The organization will also need to train and recruit the personnel in such areas as the arising challenges and the expected challenges so that the personnel will work for it (Hoag, 2006).

Recommendations

Environmental analysis

There are various factors that need to be addressed by the human resource management in determining the success of the hotel in the United Kingdom. This means that the various factors like PESTLE and the Porter’s Analysis need to be addressed by the management.

PESTLE analysis

  • The human resource management should be responsible in ensuring that all the personnel of the organization that deals in the economics have been trained to be able to adopt all the challenges that can face the organization in the future in terms of the economical aspects.
  • The human resource management should also fully train the staff on the social needs of the country and this is very important because it will lay a strong basis for the organization in the ensuring that they cater for the different social needs of the country. It is also important for the organization to ensure that the staffs also have the training necessary for interacting with the different social settings found in the United Kingdom and also the foreign cultural settings that will be served by the staff.
  • The human resource management will also play a very important role in ensuring that if any political changes happen in the country, then the staff will be able to handle the changes in an effective manner. It is important to note that though the country is very stable politically at the present, the future cannot be gambled upon and hence the necessity of the staff being trained on such grounds.
  • Human resource management will also play a very important role in ensuring that the personnel has the technical know how in the United Kingdom and this means that the staff will give quality and efficient services to the clients and this should be noted in such fronts as communication and other technological infrastructure.

Porter’s 5 Forces

  • The human resource management will also play a very important role in ensuring that the staff can handle all the challenges that can be accrued to the available substitutes in the United Kingdom. The hotel industry is challenged by other substitutes and this can be a major force to reckon with presently and also in the future. This means that the staff should be able to offer the clients good quality services and this will play a very important role in ensuring that the organization remains very competitive in the market.
  • The human resource management will also have to look into the factor of the entrants threats and this may be a major challenge to the organization. The hotel industry in the United Kingdom is dotted with a lot of thriving businesses and this means that the industry is very attractive to many organizations. This means that the organization will have to be competitive and this means that the organization will have to offer competitive services to the clients.
  • The supplier and buyer power are also very important and the human resource management should train the personnel on recognizing the formidable suppliers in the market as well as ensuring that the organization remains competitive so as to attract more clients who are able to afford the services of the hotel (Hodgkinson, 2008).

Competition

The human resource management of the organization will also need to train its personnel on the importance of remaining competitive and this is through the training of personnel to ensure that they give high quality services to the clients. This means that the organization will have a more competitive outlook if the personnel offer competitive services individually.

Conclusion

Human resource management is very crucial for the success of an organization and this is especially true to the hotel industry in the United States. It is important for the personnel to be trained to cater for the development of the organization and also to meet the challenges that may face the organization in an efficient way.

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