Impact Of HR Strategic Planning On Hospitality Industry

Main Discussion on Human Resource Management

Discuss about the Impact of HR Strategic Planning on Hospitality Industry.

Human resource management can be considered as one of the most important matters of considerations in the recent competitive business environment. This can be regarded as a formal system for operating internal activities of a business organisation (Jackson, Schuler, & Jiang, 2014). This is a fruitful way with the help of which, the employee can be managed and redirect them towards a strategic direction. Staffing, employee motivation and benefits and allocation job to the employees in accordance with their needs and demand are there major activities which are performed by HR professionals in a firm.

However, as the business scenario is changing rapidly, the role of HR professionals are also changing at an increased level. Now a day, HR professionals are becoming more resourceful and innovative to achieve predetermined organisational goals and objectives. Prompt improvement of globalisation is also creating urgency among the HR professionals to improve their business process for existing in this instance competitive business environment. Present essay will highlight the impact of HR strategy and plan particularly for the case of hospitality industry (Kramar, 2014). Different factors that are shaping the activities of human resource management will be discussed. Different skills and knowledge which must be integrated within human resource management will also be evaluated. This essay will help to assess the way through which increased level of competition is modifying the role of HR professionals within the hospitality industry.   

There are incredible numbers of factors which are creating pressure on the companies to be more and more efficient. These factors include fast progress of globalisation, increased competition level and advancement of technology and growth of labour market. It is important to note in this context that, all these factors associatively creating necessary for the firms to transform their internal functionality in order to sustain the market and increase the rate of profit margin (Kehoe & Wright, 2013). It is important for the companies to change their organisational structure for which would enable them able to cope up and satisfy changing demand of customers. Society for Human Resource Management (SHRM) has stated that it is important for the HR practitioners to be more skilful and expertise for attaining predetermined business goals and objective.

Proper modification in strategic planning is very much needed in this context. Presently, companies are experiencing changes in the organisational hierarchy, new methods for assigning works for the employees. At the same time, workforce priorities and demographic characteristics are also changing. All these aspects are creating increased level of pressure among the activities of human resource department of a firm to play a crucial role in terms of assisting the companies to navigate with these transitions.

Evolving Labour Market

One of the most significant factors which are changing the role of human resource is evolving labour market. Presently, the labour market has become very much effective in order to sustain in this competitive business environment (Messersmith & Wales, 2013). The economically active population is the significant factor which is acting as the driving force to boost the labour market. The structure of the economically active population is also experiencing a shift as a number of financially active women are entering the labour market (Boxell & Purcell, 2011).  This improving situation of the labour market and lack of skilled and efficient employees is creating difficulties for the business organisations to satisfy the expectations of the customers. This is also in the case of the hospitality industry. Presently, the hospitality industry in the UK is experiencing a lack of skilled and efficient workers which is creating a hindrance for attracting a large number of employees (Hospitality Net, 2017). 

Recently, UK labour market has experienced rapid changes in manufacturing jobs and quick development in the service sector. This labour market has also experienced the highest rate of self-employment and female labour market participation. De-industrialisation is one of the most significant factors results of this de-industrialisation has caused lesser jobs in manufacturing sector and decline in trade unions.

Figure 1: Rate of De Centralisation in UK

(Source: Economicshelp.org, 2017)

These changes are creating intense pressure on the service sector to improve themselves as the entire business environment has been shifted to them. Therefore, it is important for the service sector to increase part-time jobs (Jackson, Schuler, & Jiang, 2014). The flexible working hour must also be formed for generating commitment among the employees. At the same time, the human resource professionals of hospitality sector must also higher a number of female employees within the labour force as they prefer service sector rather than the manufacturing sector.

Globalisation has increased the competitive pressure on the service sector to improve their business process for due to improvement in labour market flexibility.   

Figure 2: Improvement in labour market flexibility

(Source: Economicshelp.org, 2017)

It can be seen that service sector generate commitment among them to be more skilful and knowledgeable for attaining organisational goal and objective and sustain in the labour market where competition is too much high (Wright, Russell Coff, & Moliterno., 2014). At the same time, rules and regulations must also be developed which can help the service sector to provide necessary protection to the workers to let them perform their assigned roles and responsibility in a cost effective manner (Dessler, 2013).    

Globalisation and Increased Competition

This issue is generating among the higher level management of the hospitality industry to improve their brand name for strengthening the relationship with the customers. Therefore, it is prime responsibility for the management of hospitality industry to improve their recruitment process for hiring knowledgeable employees who can handle the employees and provide best service to them (Shani, Uriely, Reichel, & Ginsburg, 2014). This can assist them to acquire customer loyalty by attracting a large number of potential customers and thereby improving the rate of profitability. The safe working environment must also be integrated into the workplace for motivating the employees and generate commitment among them to boost their performance level. Moreover, the human resource management of the companies must also be concerned to improve their corporate social responsibility (CSR) for availing satisfaction of the people in the community in which they are operating their business (Benavides-Velasco, Quintana-García, & Marchante-Lara, 2014).  

CSR is one of the most significant issues faced by the marketers while expanding their business in the much wider business domain. Locally acceptable business practices sometimes encounter difficulties while operating into the global market because of the conflicting rules and regulations. This forms a kind of tug-of-war in between the social responsibilities and intention towards becoming successful. It is the prime responsibility for the HR to understand the situation of the targeted market to identify their desired business practices. This can facilitate the marketers of hospitality sector to establish customised protocols for maintaining supply chain (Supanti, Butcher, & Fredline, 2015). HR professionals need to acquire a perception of the local employees in terms of handling any kind of conflicting situation in the rules and regulations related to the labour market.     

Technology is another significant factor which is stimulating pressure on the firms to improve their business process. Develop of technology can be regarded as one of the important factors which can improve flexibility towards gaining predetermined business outcome. There are a wide number of regulatory mechanisms like advanced tools and techniques, cloud sourcing and integration of social networking sites are the effective way with the help of which a large number of consumers can be engaged in a timely and cost-effective manner (Nieves & Segarra-Ciprés, Management innovation in the hotel industry. , 2015). The human resource department of hospitality industry must stimulate commitment among them to integrate new and advanced technology to boost productivity among the employees. Technology has changed the contemporary business world. In this present age, advancement of computers and introduction of information technology have a significant impact on the internal functionality of the business.

Improving Business Process Using Technology

In recent times, it is impossible for the business organisations to run their operation without using a computer.  Dowling, Festing, & Engle, (2013) commented that, one of the most significant ways in which human resource management has benefited by the technology is conducting recruitment and selection process. It is important for the HR professionals of hospitality organisations to use new technology for conducting strong recruitment process by engaging most efficient HR recruiter (Nieves, Quintana, & Osorio, 2014). This can provide assistance to them to hire best employees who can identify and manage changing demand customers and deliver the best service to them.

Data storage and retrieval are another important consequence of the advent of technology. Performing paperwork is a very much time-consuming process. HR department of hospitality organisations should take special care towards implementing electronic imaging system which can help them to store data without wasting too much time (Stone, Deadrick, Lukaszewski, & Johnson, 2015) . This can also benefit them to retrieve data in an electronic format for any further use. Technology has also made it easy for the human resource professionals to integrate simple format that is needed for letting the employees regarding their roles and responsibilities and organisational rules and regulations.

According to Mello, (2011), performance management mechanism is another important consequence of technical improvement. It is important for HR professionals to use computers for measuring performance level of each employee and engage feedback of them towards the betterment of the organisation.  HR managers need be technically competent to improve their efficiency and connect with a large number of employees in a very limited period of time. HR must take responsibility of undertaking HR technology strategy by building a partnership with information technology to ensure that, proper HR approach has been integrated towards solving any kind of business related problem  (Leonidou, Leonidou, Fotiadis, & Zeriti, 2013). A new wave of Hr technology can also act as a driving force for the HR professionals of the hospitality industry to execute must factor tools like software-as-a-service (SaaS) to improve their design of HR system in terms of satisfying changing needs of service users.        

Emerging economy can have a firm impact on HR practices. As the global economy is rapidly increasing, it has become vital for the human resource department to improve their production procedure for acquiring more amounts of financial resources. Economic growth can be regarded as the most significant variable which generates necessity among the marketers to be more creative innovative to challenge the economic crisis. This economic growth has a firm impact on the determining manufacturing of products and introduction of new and advanced services. At the same time, growing global economy is also a crucial determinant of the level of employment (Jones, Hillier, & Comfort, 2016). Globalisation has a major influence on managing and controlling the human resources of the organisations. It is vital to integrate homogenization within organisational business strategy which can lead the marketers of hospitality sector to gather increased level of customer loyalty and satisfaction. With the enhancement of globalisations, the hospitality organisations have to set new trends within the policy of managing a range of employees. Changes must also be made within the organisational structure for making it more flexible and linear and thereby improve efficiency within organisational functionality.

Corporate Social Responsibility

However, Mondy & Mondy, (2013), argued that this policy of improving organisational efficiency can create a negative impact on the employees. Therefore, Reward Management System must be incorporated into HR strategic planning in order to retain the employees within the workplace and hire part-time workers by cutting the additional cost of operation. This can assist them to run the business in a cost effective manner (Phillips & Moutinho, 2014). The firms must show commitment towards exploring new business opportunities for expanding their business in the much wider business domain.

Globalisation in the world economy is forcing the organisations to reshape their future business strategy to survive the in the market. It is now a widely admitted fact that, the transformation is crucial for the organisation to maintain balance in between demand and supply (Niewiadomski, 2016).  Therefore, it is necessary for the entrepreneurs to change their HR practices for to manage the difficulties related to organisational change along with improving business functions for delivering high quality of services to the customers in accordance with their needs and demands.              

Conclusion:

Changing business environment is making it necessary for the businesses to be creative and innovative to manage the higher level of revelry in the market.  Formulation and implementing proper planning process is very much required for taking effective business-related decisions. Another significant factor which is needed to be considered is the application of competent business strategy. This can help the marketers to be fruitful and thereby acquiring higher rate of revenue. It is necessary to change the organisational structure for attaining the wide amount of customers. The advanced technology must also be included within business practices for attracting a higher range of tech-savvy customers in a very timely manner. Issues related to all these factors must be considered for encountering the challenges related to globalisation.  

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Economicshelp.org. (2017, February 11). Recent changes in UK Labour markets | Economics Help. Retrieved February 11, 2017, from Economicshelp.org: https://www.economicshelp.org/labour-markets/changes-uk-labour-markets/

Conclusion

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