STRATEGIC HRM: CASE ANALYSIS
Since the introduction of Hilton hotel in china in the year 1988, the hotel brands have significantly developed to a number of 30 hotels and it projected that the number will be 100 in 2015. The attributes leading to the development of the hotel are Economic acquisition of various hotels and the incorporation of technology. These factors have enhanced establishment of economies of scale thereby making the corporation to be economically stronger. The establishment in china considered franchising and development mode strategies for the expansion across the international borders. The key success factors associated with Hilton in china is the aspect of rational allocation of human resources and performance appraisal in the franchise market. The hotel management has ensured that the work force and work culture enhanced in the hotel are ideal for the attribute of satisfying the customers. The major problems faced by the hotel can be grouped into three and these included decentralized organization structure, high staff turnover rate and small managerial talent pool in china. The strategies to overcome these problems include adopting a regional head office and sourcing employees from the other economic sectors. Finally, employee training is highly recommended because it leads to establishment of standards and culture.
Hilton hotel has developed to be one of the most popular brands of hotels and it developed to encompass more than 91 global countries since its establishment and the critical factor leading to its development is the aspect of strategic human resource management. Analysis conducted in 2012 revealed that the hotel has 3897 hotels with over 642 rooms. Economic acquisition of various hotels and the incorporation of technology have made the hotel stronger in the recent years. In this regard, the hotel has been capable of performing better then the competitors that include Starwood hotel, Hyatt Corporation, choice hotel international and Marriott hotel international.
Hilton in china
The aspects of international business expansion have ensured that regional boundaries are overlooked during the conduction of international business. In this regard, Hilton group of hotels introduced its branch in shanghais china in 1988 and this consideration has helped in the generation of revenue. During the expansion, china adopted the franchising strategy that enhances expansion because it involves spreading of branches through the use of local outlets. Another strategy adopted by Hilton hotels is the brand diverse development mode because the hotel has sort to introduce different brands of services to the Chinese market and these includes hotels and luxury brands (Ameresekere, 2001). Today, Hilton hotel has 30 hotels spread across the cities of china but it is projected that the number of hotels will increase to 1000 by the year 2015.
The key success factors associated with the enhancement of these strategies includes the aspect of rational allocation of human resources and the consideration of adopting performance appraisal in the franchise market. Another success factor is the attribute of attracting and recruiting the local talent which is immensely beneficial in enhancing the attributes of innovation and organizational development (Amy J. Mazur, 2010). Finally, in the course of these developments and application of these strategies, the corporation has ensured that comprehensive marketing is conducted to help in the training and improvement of the employee’s human qualities and this incentive is critical in enhancing competitive advantage. In this consideration, the attributes of strategies adopted has proven to be immensely beneficial.
Customer experience associated with any corporation is immensely beneficial because it helps in the development of satisfaction thereby leading to the development of brand loyalty and enhancement of general economic performance. The aspect of enhancing organizational development is the attribute that ensures ideal consideration of customer loyalty. In this regard, Hilton group of hotels have enacted significant measures to ensure that significant attributes that increases customer satisfaction are enhanced in the organization. In the wake of the rising competition, establishment of customer satisfaction and loyalty are the ideal attributes that are of concern to the managers and the human resource manager of Hilton hotels (Chon, 2012). Equilibrium approach to quality is the ultimate culture that has been developed to ensure that quality is maintained and the attributes of customer satisfaction are enhanced.
Finally, the hotel management has ensured that the work force and work culture enhanced in the hotel are ideal for the attribute of satisfying the customers. In order top do this, the corporation has ensured that ideal training opportunities are delivered to the new and existing employees because this will help the organization is maintaining the culture of quality and customer satisfaction. Each department of the organization has training manager who ensures that each employee completes program to attain necessary skills and organizational culture. The attributes of product knowledge and communication skills are also tested during training (Cohen, 2007). In all aspects of training, there are significant attributes that are considered and these include meaningful learning, active learning, practice and precision and finally, the provision of feedback. Upon completion of the training program, the corporation must ensure that performance and appraisal system are enhanced because this will be crucial in the consideration of self identification. Analysis of the Chinese market has revealed that in-depth interviewing method has been effectively beneficial in china because it has resulted in the growth and development of the Chinese market.
The major problems faced by Hilton
Decentralised organisational structure
The attribute of adopting Decentralised organisational structure has proven to be significant challenge because the attributes of uniformity cannot be maintained. Hilton has adopted Decentralised organisational structure and this ensures that power and the authority to make decisions are delegated down the hierarchy line right from the head office to the local managers. In this attribute, any delegation of any duty down the hierarchy line should be backed the aspects of financial resources. The reason for this consideration is that decisions will; be made at the local level to initiate the attributes of local incentives and circumstances. Even though this system can be beneficial for tapping into the wider pool of local customers, it can also be detrimental for the establishment of uniformity because various branches of the same organization will have significantly different set up and provisions (Enz, 2009, Hanqin Qiu Zhang, 2005). This is the case with Hilton hotels and the customers are being confused with this consideration. Over the period, analytical results have continued to note decentralised organisational structure as a challenge because the managers may intently focus on the local issues while disregarding important national issues on the bigger picture. This has the effect of causing the managers to miss out on ideal opportunities that may increase performance eof the corporation. Furthermore, global customers may not like the contribution of being non-uniform in their global branches and the differences in the available branches. This situation may be more challenging to the hotel if the customers branches unfavourably. Analysis of the operation of Hilton hotels in china has suggested significant challenges associated with the hotel because each of the 30 different hotels has unique set-up and materials and this results in significant differences in the quality of services and satisfaction customers.
High staff turnover in front line staff
The development of Hilton hotels in china has taken the initiative of various planners and implementation of the policy resulted in the establishment of 30 branches of Hilton group of hotels amongst the leading cities of china. This incentive proved extremely beneficial because of the significant amount of revenue that the organization generated for the expansion into the Chinese market. Despite the consideration of performance in the Chinese economy, the performance of Hilton group of hotels is characterized by significant challenge because of high employee turn over. Employee turn over refers to the rate at which employees leave the company and are replaced by the strategic human resource department. High rate of employee turnover in an organization is detrimental because it implies that many significant numbers of employees leave the company but are not replaced (Jackson, 2008, Liao, 2009). The rate of replacement may be lower than the rate of exit and this result in reduction in the delivery of services to the customers. Furthermore, when the rate of employee turn over is high, the organization must spend significant amount of money and other resources inn the conduction of training for the incoming employees. This is the case that happens in china when the branches of Hilton hotels in china suffered the detrimental attributes of high rates of employee turn over causing the hotels to spend significant amount of resource on training new employees. Furthermore, the quality of services was significantly reduced because of the consideration of lead time when the incoming employees had to undergo training about the culture and other attributes of the organization like the equilibrium culture and decentralized organizational management.
Small managerial talent pool in China
Over the period, the establishment of Hilton hotels in china has continued to impact positive changes in the economy. The most notable change is the expansion in tourism according to the sentiments of Muzaffer Uysal (2012). In view of this consideration, the brands of Hilton hotels in china have experienced significant growth thereby prompting the hotels to enact expansion programs to accommodate more visitors. This program of continuous expansion calls for the aspect of recruiting new employees on a periodical basis and this incentive has detrimental effects on the provision of quality standards. Continues recruitment of employees in the Chinese economy has detrimental effects on the establishment of quality standards and the existing culture. Another significant problem facing the human resource managers during the attribute of employee recruitment is the realization that there is minimal managerial talents in the economy and this propels the human resources to generate employees from a cross the pool (Price, 2007). This is detrimental and expensive to the organization because employees with no basic information and knowledge in hotels and management are sometimes hired because of shortages in the supply of talents. Furthermore, this consideration becomes a significant problem to the organization because the organization must spend significant costs of resources the incoming employees must be trained about the operations of the organization. The incoming employees must also understand about the cultures and provisions of the company. On average, culture and training are significant and the members must be trained to understand these attributes. The standards brand elements considers the attributes of overall guest experience, overall design, in-room amenities and culinary offerings and services amongst others. Notably, these elements are significantly beneficial because first time travels to china will not have the opportunity to learn from hotel attendants who are informed.
Strategies to address the challenges
The aspect of decentralized organizational management may be extremely beneficial for the development of an organization because of its effects of capturing the local attributes of the organization. This system depicts the local cultures of the community thereby enhancing development through adoption of local cultures. This provision has proven to be detrimental for the performance of Hilton hotels in china because they have the aspect of depicting difference cultures thereby they fail to highlight the sense of uniformity in the hotels (Pine, 2005). In response to the significant challenge, the top management of Hilton hotels have initiated measures to ensure that all the senior managers are grilled through the conduction of training which is aimed at raising a awareness about the culture and standards of the organization. The need for uniformity amongst the hotels in china is also crucial and this call for the coexistent of both attributes of management that includes centralization and decentralization. In this regard, all the branches of Hilton hotel brands in china will obey orders issued by the head quarter inn china while regional hotels will ensure prevalence of both centralization and decentralization governance. Furthermore, the aspect of minimizing cultural differences will call for the choosing of senior managers from different regions and then projecting vibrant training to them with the aim of alleviating cultural differences in the hotel brands.
The problem of high staff turnover in the front line staff has continued to be a significant problem that has derailed performance of the Hilton hotel brands in china. The brands of Hilton hotels have expanded at a higher rates and the ideal solution that can be adopted by the managers and the senior management of the hotel brands is to acquire employees from the other sectors of the economy. The hotel may be engaged with the aspect of acquiring senior executives with proven skill sin development, human resources, government affairs, franchising, acquisitions, marketing and constructions (Liao, 2009, Chon, 2012). The establishment of this incentive will be critical in fulfilling the gap that arises in the organization due to high rates of turn over and the consideration of this incentive will also ensure increase in productivity and growth of the organizations because the aspects of culture and standards will be adequately observed.
Finally, the aspect of generating ideal talents in the organization will encompass the attributes of building outstanding brands that will have an effect in attracting the right talents. In this aspect, developing and training of the right talent is crucial because it will help in the establishment of growth in the industry. The establishment of smooth relationship with the relevant authorities is also crucial because this will enhance generation of talents with the organization and it will also enhance the aspect of developing ideal talents to fulfil the needs and wants of the organization. Research analysis has stated that international companies like Hilton hotel must continue to invest the development of human capital development and also consider the implication of ideal measures of retention that are tailored to meet the requirements of the local market (Muzaffer Uysal, 2012). Adoption of the retention program will help the organization in the aspect of employee retention because it will reduce the rate of employee turnover thereby enhancing development of the organization through consideration of standards, culture and customer satisfaction. Finally, the build up of the head office in the national territories will be immensely beneficial for the performance of the hotel brands in the area as this will guidance regarding the implementation of development attributes. The head office will oversee the performance of the branches of the hotels with regard to the decentralized system of organizational management. With the establishment of a strong base in china, Hilton hotel brand will have the necessity to develop similar culture and policies and it is the role of the head office to ensure these provisions are realized.
Hilton hotel has continued to expand its scope internationally by opening branches in various countries globally. Hilton group of hotels introduced a branch in china and it has continued to develop resulting in 30 hotel brands in 2012. The performance of Hilton hotel can be ideally be attributed to the human resources management strategies that have helped in development, growth and expansion. Some of these strategies include operational strategies, franchising strategies and global development strategies. Despite the increase in performance, the hotels in china have received significant challenges attributed to decentralized organization structure, high staff turnover and small managerial talent pool. In this regard, it is recommended that the Hilton hotels in china acquire senior executive managers from other sectors of the economy and the head quater for the hotels are established to oversee their management. Finally, it is recommended that the hotels should build strong brands that will attract the best talents.
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