Human Resource Management In Service Sector


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Human resource management is a practice of operating and managing various processes such as recruiting, selecting, planning and controlling in an organisation. The main aim of this project report is to build an understanding about the concept of HRM and its importance in an organisation. In order to which an hospitality company is selected named as Intercontinental hotel group. IHG is a hotel group which has its headquarters in United kingdom. This hospitality company operates in both luxurious and midscale hotel properties. As a HR management trainee of this company an understanding about this concept is developed. In this report, role and purpose of HRM is analysed along with justification of its plan. Job title and description is also identified in this report. Comparison between selection process of two companies is assessed in this report along with function of training and development.


P1.1 Explaining importance of HRM and analysing it’s role and purpose

Human resource management is a management function which is adapted an organisation to achieve their strategic goals. This function helps in creating a positive attitude among workers and maximises use of resources. IHG is a diversified company which operates in multiple hotel properties, in order to efficiently control and manage all their activities it is important to bring professional growth. HRM helps in developing effective personnel policies which enables to train employees and facilities professional growth.

Another importance of HRM includes developing better relationships between employee and employer. It is considered that key of a healthy environment is the professional and better relationships among employees of a company and principles of HRM helps enables to make these relationships effective. Human resource management assists an organisation like IHG to fill the gap between individual goals and organisational goals. Effective HR practices such as team work helps in employees to tend towards fulfilling overall aims of business.

Other importance of human resource management includes selecting appropriate candidate at suitable position, improving nation's economy, appropriate training and development and many more (Amidu, Effah and Abor,  2011). Few roles and purposes of HRM is mentioned below:

Role of HRM:

HRM, by its name suggests it helps an organisation like IHG to manage all their employees and their operations. This concept plays a significant role in bringing together all the personnel in order to ensure team work. For example: HR manager of IHG, arranges activities for employees of this company to make relationships between employee better.

Human resource management also plays an important role in resolving all the issues of employees. For example: HR manager of IHG, consults all their employees to resolve their employees issues regarding wages, work stress and many more. HRM also helps an organisation to build effective strategies for business so that company can make effective decisions. Commitment building and building capacity are also two roles of human resource management.

Purpose of HRM:

Main purpose behind using HRM by IHG to improve productivity of employees and enhance profitability of an organisation. HRM is a concept which is used to define organisational structure and also drives productivity. Another aim of HRM is to create coordination between the department of a company. For example: IHG is a hospitality company which has several departments such as finance, marketing and others. Human resource management helps in bringing coordination in these departments by effective communication.

Providing satisfaction to employees is also a purpose of HRM as employees are considered as backbone of an organisation and it is important to satisfy them so that they can result as an asset for the organisation. Another aim of HRM is to ensure that IHG follows all the ethical model and principles (Carlsson-Wall, Kraus and Lind,2015).

P1.2 Justifying human resource plan

Human resource plan is a framework which includes all the strategies and policies which are developed by the management of an organisation to develop organisational operations. This plan is created with the help of human resource planning.

Human resource planning is a process of identifying needs of the business by which aim for the plan is ascertained. IHG is a hospitality company which is trying to enter into other segments of hospitality like food and beverage. In order to ensure that their plan will successfully implemented. It is important to create an effective human resource plan. This plan can include various operations that are required to be done along with number of employees that will be required to complete those tasks (JOSHI and et. al, 2011).

Hospitality is a service industry and in order to increase the number of services by IHG, it is important to ensure that an effective HR plan is implemented. This plan is usually based on two aspects that is demand and supply. It is important to analyse both of these aspects before creating such type of plan. These aspects helps in identifying availablity of human resource in the organisation and HR of that entity makes sure that they supply all the demanded personnel. Demand and supply, here are used in the reference to demand and supply of personnel which can be used by the organisation like IHG to execute their plan for growth and development. Cost and availability of human resource are also key considerations which are considered while preparing such plan.

Management and HR of Intercontinental hotel group has adopted an approach in which they believes that if a plan for growth is prepared using two aspects of demand and supply then there are high chances for successful implementation.

In order to justify the above human resource plan various evidences are provided as follows. Cost of employees can be ascertained by the demand for human resource. For example: If the expansion plan of IHG requires 500 employees then this company has to bear cost for total of 500 employees. Availability of employees are dependent on supply aspect. For example: If number of employees available to IHG is 100 then they can supply those employees for their expansion plan (Granlund, 2011).


P2.1 Assessing current state of employment relations

Employment relations is a concept of cooperation and effective understanding among various relations of an organisation. This relationships are employer- employee relationship, employee- employee relationship and management to employee relationship. It is important to control and manage all these relationships positively to ensure efficiency in operations. Hospitality industry is the most influenced sector which gets highly impacted by organisational relationships. Main aim of bringing efficiency in this system is to avoid conflict and issues between employees and business managers so that they all can effectively contribute towards achievement of business goals.

In current scenario, these employment relations has shaped in the form of unions. Trade union is most influential and effective structure of employee relations. These trade unions are a legal structure which is legalised by The world federation of trade unions which aims to bring together all trades of the world. A trade union is described as a group of employees mainly of same company or industry. Main aim behind developing this type of union is to protect interest of every employee in order to avoid their exploitation. IHG has its own trade union and there are certain aspects which impacts current state of employment relations of an this organisation. These aspects are mentioned below:

Culture - This aspects is related with the cultural standards of IHG. This can include uniform which has to be wore by all the employees of this hotel or it can be the way of greeting and addressing visitors in the hotel. Culture of a business organisation reflects the working environment and satisfaction of employees from that working environment.

Negotiation - This is the another important aspect of current state of employee relations. According to this aspect, employees has the ability to negotiate and bargain about their work affairs. These work affairs can include salary, working hours, promotion and other monetary and non monetary benefits. For example: employee of IHG can negotiate with their manager or HR manager about wages earned by them.

Personnel empowerment - Under this aspect of employee relations, rights of employees are empowered. In the current scenario, it is considered that it is important for an organisation to provide their employees relevant rights so that they can be satisfied. For example: employees of IHG has provided right over all the orders which are given to them to question their suitability.

Grievance solving - In the current state of problem solving organisations like IHG has provided their employees, a proper structure and administration for problem solving. Using this structure, employees of these company can solve all their issues regarding working environment.

From the above aspects, it can be justified that current scenario of employee relations are much more tend towards betterment of employees (Klychova, Faskhutdinova and Sadrieva, 2014).

P2.2 Discussing various employment laws which affect management of human resource

Employment law - Law is a combination of various acts, statutes and legislations. Employment law is the legal rules and regulations which are developed in order to protect the interest of an employee. There are different law in every nation for employee protection. There are various laws for various issues. In the case of United kingdom, there are several legislations which aim to protect employees and their rights. Few legislations which work for employment protection includes Equal pay act. This act states that employees working on same position with same skills and for same hours should be given same value of wages and any discrimination regarding caste, gender, ethnicity or religion should not be justified (Johnson,  2013).

Another legislation which affects management of human resources for Intercontinental hotel group is Employment right act. This act states that all the rights mentioned by governmental authorities must be provided to employees and any firm working against these rights must be punished. IHC follows this law and provides all relevant rights to their employees due to which productivity of employees gets affected. Health and safety is also a statute which states that all business organisation should fulfil rules and regulations regarding work premises and environment in order to ensure safety of employees. For example: IHG follows all safety instructions provided by this law such as not standing continuously for long hours which affects own rules of the organisation.

Amendments has also impacted working of business organisation. For example: Intercontinental use to follow rules of Employment rights act 1999, but due to amendments in this law this organisation has to follow new regulations provided in employment rights act 2004. Along with these amendments, there are few policies developed by governmental authorities which affects profitability of the business (Dražić Lutilsky and Dragija, 2012).


P3.1 Identifying job title and discussing it’s job description and person specification

Recruitment is the procedure which involves appointment of employees suitable for specific vacant position in the organisation which is done through identification of factors which affect the labour market, identification of organisational needs and conducting job analysis. Selecting is the process of choosing the suitable candidate from the ample of applicants for a specific job by the managers in accordance with the job requirements and goals of the organization. 

Job analysis - The process of job analysis involves detailed study of the job requirements and person specifications needed for the job by gathering, analysing, synthesizing and reporting information about the roles and responsibilities of the job and the conditions under which the job will be performed (Ruiz-de-Arbulo-Lopez, Fortuny-Santos and Cuatrecasas-Arbós, 2013).

Job description - In order to understand this concept better, position of director is selected. Director of intercontinental hotel group must work in co-ordination with the General Manger for managing major property issues relating to capital projects, customer service and refurbishment actively and efficiently. Another requirement for the position of director of IHG includes providing assistance in development of hotel budgets and other related short term and long term strategic goals. Director of this company must ensuring that the targets are met by proving effective leadership to hotel management team and team members. To respond to audits completed by company for continuous improvement. In order to plan, direct and co-ordinate provision of services by operations department in accordance with guest expectations. Comply with Hotel Service standards is also an operation that must be performed by the director of the company. Director must set up team with the aim of  a regular analysis and regular results of department to highlight problem areas and take appropriate actions for controlling costs. Management and development of Heads of Department for career progression and effective succession planning within the hotel. To seek and respond to feedback from guests for achieving positive outcomes through customer satisfaction.

The above requirements are must be present in the director of IHG which are mentioned in job description (Moser, 2012).

P3.2 Comparing selection process of two companies

Selection process - This concept is related with the process of selecting the suitable candidate for the vacant position in an organisation. Selection process of an organisation can vary according to the requirements and suitability of the management. This process is slightly different from other human resource processes such as recruitment and screening. This process is not a long term procedure and is only focused to selecting a suitable candidate which can result as an asset for the business and can contribute towards achievement of organisational goals.

Selection of Intercontinental hotel group - As discussed above, selection process of organisations can vary according to their suitability. This company has adapted a full fledged version of selection process, in which various processes like screening and recruitment is involved. In a hotel industry, it is important to appoint professional and trained employees in order to ensure best quality services provided. Under the selection process of IHG, an advertisement is published using various mediums with the aim to attract maximum number of applicants. After receiving those applications, a screening process is conducted by the human resource of IHG to select few candidates for personal interview on the basis of benchmarks set such as qualified degree, expensive etc. After completion of job interview, most eligible candidates are selected and trained with relevant skills and techniques.

Selection process of McDonald's - Second hospitality company which is selected is McDonald's. This company operates in food and beverage industry which requires less professionalism and qualifications when it comes to personnel management. Selection process of this company for recruiting employees is comparatively is short and pilot than IHG. Various applications are invited by this company and screened according to the requirements of the job. After shortlisting few candidates, all of them are invited for selection process where techniques such as group discussion is used to selection more than one individual as this is considered that employees in bulk are appointed by this organisation. In this organisation also, relevant training is provided to selected employees (Schaltegger and Csutora,  2012).

In both the organisations same recruitment process is followed all the steps of the process are as follows:

Step 1: Recruitment planning- In this stage the human resource managers of the companies decide to recruit new employees for the vacant posts. It includes a detailed analysis of the job profile and than advertisement is provided on the job portals and newspapers.

Step 2: Strategy development- In this stage appropriate strategies are developed in which the managers decide the qualifications, experiences, skills and qualities for the new applicants.

Step 3: Searching- human resource managers of the companies search for the best suitable candidates after deciding the appropriate skills, qualifications and other requirements for the new candidates.

Step 4: Screening- When the complete the searching phase than they screen all the new candidates and analyse all of them so that best of them can be selected for the job profile.

Step 5: Evaluation and control- When all the candidates are screened by the managers than they evaluate potential of all of them and than make recruiting decisions.

All the above described steps are followed by the human resource managers of Intercontinental hotel group and Mc. Donalds for recruitment and selection process. It help and guide them to hire the best suitable candidate for the vacant job positions of the company.


P4.1 Examining training and development function and assessing contribution of training and development activities

Training is a concept of providing reliable and suitable training to employees in order to ensure that they will contribute towards organisation. Training includes various programmes which are designed by usually human resource managers to help employees to develop themselves. For example: IHG arranges training programmes for new employees to ensure that they can effectively adapt work culture of IHG and can be benefitted by the performance enhancement programmes (Windolph, and Moeller, 2012).

Developing is a process of creating policies and strategies in an organisation which can help in developing performance of employees and can even develop living standards of employees. Training and development are two different concepts but has same objective of employee productivity and organisational profitability. Training is related with the programmes which are designed for employees but development is related with the activities and operations done by an organisation and their human resource team. Training is considered as an activity of teaching but in the case of development, process of self assessment is conducted.

Both of the above concepts are different from each other as training is a short term activity and development is a long term activity. These concepts are used for effective operation in IHG. Training and development helps in increasing the productivity of an organisation, it also helps in enhancing the skills of employees working in different departments of the company. These concepts also helps in developing a cooperative environment in the organisation along with avoiding the situations of organisational harm. Training and development is considered as beneficial for employees as well as for Intercontinental hotel group (Ward, 2012).

The organisation is growing because the human resource managers conduct appropriate training and development programs for all the employees it resulted in increased capabilities and skills of them. When the workforce is having appropriate knowledge of their jobs than it can help them to perform all the tasks in appropriate manner. If all the operational activities are performed successfully than organisation will be developed and achieve a high level of growth. Training is provided to the employees on the basis of their requirement. For example new training programs are held by the company for the new employees and for existing workers the organisation conduct normal training sessions so that they may get more aware of their jobs.


From the above project report it has been concluded that human resource management is a process which is used to bring efficiency and effectiveness in an organisation. There are various functions which enables an organisation to find a suitable candidate for their organisation such as recruitment and selection. An understanding about the concepts of training and development is build in this report in order to identify difference between in these concepts and their contribution towards the fulfillment of organisational objectives. Various employment laws are assessed in this report to analyse their impact on business operations. Roles, importance and purpose of human resource management is also analysed in this report to provide an understanding about the uses of this concept


Books and Journal:

  • Amidu, M., Effah, J. and Abor, J., 2011. E-HRM practices among small and medium enterprises in Ghana. Journal of Management Policy and Practice. 12(4). pp.146-155.
  • Carlsson-Wall, M., Kraus, K. and Lind, J., 2015. Strategic management resourcing in close inter-organisational relationships. Management and Business Research. 45(1). pp.27-54.
  • Dražić Lutilsky, I. and Dragija, M., 2012. Activity based costing as a means to full costing–possibilities and constraints for European universities. Management: Journal of contemporary management issues. 17(1). pp.33-57.
  • Granlund, M., 2011. Extending AIS research to management accounting and control issues: A research note. International Journal of Accounting Information Systems. 12(1). pp.3-19.
  • Johnson, H. T., 2013. A New Approach to Management Accounting History (RLE Accounting). Routledge.
  • JOSHI, P. L., and et. al., 2011. Diffusion of management accounting practices in gulf cooperation council countries. Accounting Perspectives. 10(1). pp.23-53.
  • Klychova, G. S., Faskhutdinova, Ðœ. S. and Sadrieva, E.R., 2014. Budget efficiency for cost control purposes in management accounting system. Mediterranean journal of social sciences. 5(24). p.79.
  • Moser, D. V., 2012. Is accounting research stagnant ?. Accounting Horizons. 26(4). pp.845-850.
  • Ruiz-de-Arbulo-Lopez, P., Fortuny-Santos, J. and Cuatrecasas-Arbós, L., 2013. Lean manufacturing: costing the value stream. Industrial Management & Data Systems. 113(5). pp.647-668.
  • Schaltegger, S. and Csutora, M., 2012. Carbon accounting for sustainability and management. Status quo and challenges. Journal of Cleaner Production. 36. pp.1-16.
  • Ward, K., 2012. Strategic management accounting. Routledge.
  • Windolph, M. and Moeller, K., 2012. Open-book accounting: Reason for failure of inter-firm cooperation?. Management Accounting Research. 23(1). pp.47-60.

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