HR Management in Service Sector


The selected organisation for this HR management in service sector assignment is Inter Continental Hotels Group PLC, which is also informally known as Inter Continental Hotels or IHG. Inter Continental Hotels is based in Denham, UK, and it has multinational hotel operation. IHG is considered as the largest hotel company in the world in terms of room counts. As of February 2014, the hotel operates more than 687,000 rooms across more than 100 countries. The group has more than 4,600 hotels located across the globe. On an annual basis, the hotel reportedly serves 161 million guest nights. The hotel manages a number of brands including Holiday Inn Express, Staybridge Suites, Crowne Plaza, Holiday Inn, Even, Candlewood Suites, and Hotel Indigo. Most of the hotels under the group are operated under franchise agreements, and the rest hotels separately owned by the company. The brands are primarily held through franchising model, which enables the company to transfer the expertise in three fields including systems, hotel management, and marketing to the franchises. The real estate investment which are mainly the hotel properties are owned by the franchises. The company has formulated a common goal to be followed by all the franchises and partners, which is Great Hotels Guests Love. The company has aligned al its functions and activities to the common goal. All the human resource related activities are also aligned to the common organisational goal.

Task 1

A) Briefly define the concept HRM and examine the role of human resource function in the service sector organisation. Discuss how it is contributing to the success of your chosen organisation

Human resource management (HRM) is a planned and long-term based approach of going on the subject of the people management related aspects in an organisation, rather than the old approach of simply managing the employees. In service industry, people or the employees are considered as the most valuable assets of an organisation. The role of the human resource management practises are identified by the service sector companies in order to attain competitive advantages by utilising the employee pool efficiently. The purpose and role of human resource management is multi-faceted and it has a long-ranging approach in its applicability. The concept and the driving principle behind the human resource management practices in service sector organisations are to run the people management process in the best way possible, and efficiently aligning the forces working with the organisation. In the UK labour market context, HRM practices have been responsible for taking care of various issues like providing equal opportunities to all, maintaining fair practices of employment, offering better benefits and compensations to employees, and developing the employees by training them properly. The role of HRM is also useful in the outside matters including maintaining the labour relationship and taking care of safety and health matters in the organisation.

The chosen organisation is InterContinental Hotels Group PLC, which has been practising the HRM exercises keeping the company’s long term strategic approach lined up with the proper employee management tactics. The HRM approach has been helpful for InterContinental Hotels in terms of increasing the effectiveness and expertise of the people working with the organisation across various geographical locations. The purpose of human resource management practises at InterContinental Hotels is broadly to make sure that the organisation is following in every part of the employee management system. The hotel has a solid approach towards the recruitment process (so that the best people are recruited to serve the purpose of organisation), managing and developing people (which makes sure that the employees are shaped in the best possible way possible), and also towards the employee reward process (to keep the employees motivated). With an overall approach, the hotel group has been able to taste success because of the employee commitment and employee motivation. The group has created an image in the sector for its better employee interaction, which is exhibited in the way customers and guests are treated at the hotel facilities. Better employees are attracting more customers, and hence the business is also doing better (Dowling et al, 1994).

B) Outline a brief human resource plan for your chosen organisation by analysing the supply and demand for service sector personnel in your business environment. You should be able to determine your future requirements and say how you plan to meet the needs

Inter Continental Hotels Group PLC is the largest group of hotels in the world in terms of rooms (as of February 2014, the company had a room count of 687,000 globally). The hotel group operates over about 4,600 hotels located across more than 100 countries across the world. For such a big scale of operation, it is very important that the human resource planning is well sketched out in terms of supply and demand. If we consider the employment-related situation in hotel sector, then we need to examine the latest trends in the European market scenario, at the time of various market and economic strains and crunch situations. The hotel industry, in overall global market scenario, is relatively more worrisome in terms of the employment opportunity. Specifically the European market is seen as an inelastic employment market; in terms of employee’s mobilisation and employer’s affinity towards hiring certain group of population. As a result, this trend results in high unemployment rate in certain European markets. The inflexibility in the job market is reflecting in finding out proper employee for various positions at Inter Continental Hotel. Inter Continental is operating in such an industry, which has been traditionally suffering from high rates of employee turnover. Stricter work routine and excess work pressure have resulted in higher employee turnover. Hence, the hotel group needs to examine the requirement of better approach towards managing human resource and planning amidst the difficult market conditions in the Europe and other geographical locations across the globe.

The mode of managing hotels at InterContinental is different. It primarily manages various hotels owned by the franchises and makes sure that the global brand is kept intact, even though they are owned by other parties. The hotel group basically tries to sell its proficiency and expertise in the hotel management field to the franchises. This model requires skill intensive and people specific systems that are managed directly by the organisation. The hotel annually serves about 161 million guests’ nights through its various hotels and facilities across the locations. Moreover the goal of the company is to create the “Great Hotels Guests Love” theme across its facilities. In order to make everything fall into places, the hotel group needs to plan its future leadership trend. The growth at global scale will also result in demand for more work forces, and the human resource planning will be to fill up the vacancies amidst the tight European conditions. The hotel group can divide its workforce broadly in to four categories: Europe, America, Australasia and Middle East, Chinese territory. This will help in identifying the regional trends of employment, and help the management to take region specific steps to serve the purposes. In order to fill up the future leadership positions, InterContinental Hotels Group needs to groom the graduate recruits and shape them properly into future leaders. The group has to find the talents from the above mentioned four geographical groups and groom them with the local culture and guest needs. However, each future leader at InterContinental Hotels Group must have cross cultural mind set in order to serve the global customers (Wood, 1999; Storey, 2001).Order Now

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