Essay about Global Leader of Hospitality Hilton Hotels and Resorts
“Spirit to Serve” reward scheme starts with recruiting quality candidates and continually thriving to develop their training centers. The Fresh recruits are given toolkits that are equipped with job description called “Employees at Hilton”. Training centers starts with an overview of the hotel, meeting executives and departmental awareness. In order for Hilton to maintain their Brand standards, the HR department evaluates the fresh recruits as well the old members in monthly meetings where Performance Development Reviews (PDR’s) are conducted comprehensively (Stensgaard, 2004). This system includes aspects such as competitive training, development initiatives as well as programs where employees have an option to select which benefit suits their need.”
“Mentioned by Ulrich & Black (1999), the objective is to have high standards of human resource where employees can develop and increase their capacity. Hilton also launched a university where students can learn and improve their skills so that when signing for the Hotel, they are better equipped with both operational and technical skills necessary for the hotel industry (Treven, 2001)”.
2.2 Hilton’s Performance Management System
A performance management system is the fundamental capability of any organization that has a vision to where it wants to be in the long run. In today’s world, it is vital to have an effective PM system to forecast that the organization is always moving forward and develop their quality. The image below defines the weakness and the strength of all employees and the adjustments takes place:-
Source: HR council of nonprofit sector 2010
Moulik & Mazumdar (2012) have stated that “Performance development and management practices would have to be designed in such a way so as to capture the best of development opportunities”. :
Watkins (2007) describes a PM system which enables individuals and organizations to achieve strategic ambitions through processes that are systematic. Compensation package programs are offered to employees of Hilton however these packages do differ depending where the hotel is situated is geographically. maYing-Chang (2011) assesses Hilton’s PM system as a systematic project which includes inspectors, performance assessment tests, performance management system designed from six yards of management, career development, other supporting staffs of the perfect system, the letter to sleep and the timely feedback respectively thus proving a vintage clarification of the fundamental PM system or the conventional PM system.
Hilton should be well matched with the criterion that specific, measurable, achievable, realistic and time relevant (SMART) thus developing and efficient PM system which is an integral part of the entity.
Hilton is also equipped with the annual appraisal of employees. A correction list is given to the employees whose evaluation has resulted to a poor performance and the HR department gives them a certain time limit frame to rectify and improve their efficiency before the next evaluation takes place by the management who then hands it over to the manager who then evaluates the pros and cons of the employee’s performance individually (Chang, 2011)”.
“This communication process plays a pivotal role in the efficiency of corporate performance in Hilton. The appraisal process in the hotel would not only be used to analyze and judge the good employees from the underperforming but also it’s a key to training and development, pay rate and reward system of the performance management. There are four segregations where Hilton evaluates the performance appraisal results which are, Selection, Training and developing the potential staff, resignation, promotion and rewards (Chang, 2011)”.
“Hilton developed a performance management system called “360 degree feedback”, this is where employee performance are supervised by the HR department as well by their co-workers, and their performance is graded according to a scale.
This is a system where employees receive a feedback from their co-workers, managers and everyone else who is directly in contact with them in the workplace. 8 to 12 members fill a form asking them to rate their fellow member based on his capabilities, skills and quality of the work he or she is putting through and any comments of what you examine about them for business purposes. The rating scale is then used to inspect and asses the performance of the employees and rate them as a worthy or underperforming performer predicated on their rating.
3. Evaluation of Hilton Hotel3
3.1 Evaluation of Reward Strategies
“Upon evaluation, the rewards strategies implemented by Hilton “Spirit to Serve” are all linked to the caliber and quality efficiency worked by the employees hence motivating the employees as they are vigilant of the fact that outstanding performances will be awarded by fringe benefits or financial rewards hence not only enhancing the productivity in the company as well prompting a competitive advantage in the market resulting to higher reputation. This system was a massive hit for Hilton hotel as the total rewards satisfaction score rose from 14% to 16% in 2011 exhibiting that employees were glad and relishing their work at the employee retention rate (Achievers, 2013).
Hilton not only provides their employees vigorous and gratified pay rate but additionally acknowledges their performances by providing an emolument package which includes of health care programs for individuals and their families, providing more preponderant vocation prospects in future and engendering a balanced life between their personal and work life. However this is mostly predicated on their achievements which they have managed to consummate during a given time frame”.
Employees of Hilton are very much focused in the development of the company and their aim is to always increase the market share in the hotel industry therefore in order for Hilton to always have a positive vision, they provide incentives to their respective employees in order to always achieve their objectives. They also reward them through the certification of achievement, employee of the month and year hence motivating the employee to work more efficiently and always improve”.
“However the drawback with such non-financial reward strategies would be that managers would face some employees who they see as money being the only motivational factor reward and nothing else. This can lead to a negative effect for Hilton hotel as there could be scenarios in future where employees desire for only financial rewards and demand to get paid more due to work they have done without taking note of other fringe benefits”.
3.2 Evaluation of Performance Based System
Mr. Anthony Capuano who is the European Vice President of Hilton Human Resources worldwide stated that a number of factors should be taken into consideration when providing incentives to its employees such as providing training opportunities for new recruits and old employees, selecting the right people for the right job, motivating them offering them with future better career opportunities in the organization and appreciating and recognizing their work they put into place (Stephonson, 2013)”.
“Hilton recently occurred a problem with its performance management system which was solved by creating a code of conduct as a part of employee evaluation which is open to general public. Under the administration of these codes Hilton can assess that what areas do they need to cover their gaps in and what are our weaknesses (Data Monitor, 2010).
The “360 degree feedback” system in Hilton is extremely necessary as it can prove to be a very important tool. This is because that the system has a number of benefits which Hilton can improve its efficiency in the organization. This system allows a two way communication between the manager and employee due to the feedback form from both ends hence making them acquainted of Hilton’s strategic aims, their respective departmental duties, where improvement is required as well both the managers and employees responsibilities”.
However one of the major drawbacks to the PM system is managers and workers are asked to give conclusions on sensitive or subjective issues such as personal sales and service quotas, employee’s attendance etc.
4.0 Recommendations to Hilton Hotel
4.1 Recommendations of Reward Strategies
“Hilton should pay further attention on improving their career development opportunities for the employees where they can gain experience through their work as employees prefer experience over qualification.
Chantal (2011) director and head of reward, talent and communication at Towers Watson says that “Employees are much more self-centric, and it is a lot more about them and their lives. The deal with the employer is that they know they are not going to be together forever, and what [employees] want to get out of the employer while they are together is fair reward for [their] contribution, but also the right skills and capabilities to make them marketable for their next job.””
“Hilton should also take into consideration the work environment and the organizational culture. These two factors can involve employees in the organization by paying them and satisfying them in a modernized way where monetary rewards can have a less of an impact. Also Hilton should consider their employees having a balanced work and personal life and managers should aid the employees in obtaining that i.e. having flexible hours, regular working breaks hence making the employee to be more creative in tackling corporate issues as he or she will not be stressed”.
4.2 Recommendations of Performance Based Systems
“Hilton Hotel should implement new changes in their PM System such as the “360 degree feedback form does not have a fixed paradigm to base the employee’s judgments regarding their performances and without any true evidence, they will be rewarding some employees and penalizing others not taking enough attention that the other colleague may have lied all about him in the feedback form due to jealousy or other personal problems.
The form can also create befog for the employees as they are not sure what sort of information based criteria will be analyzed and evaluated to their performance by the people and colleagues filling the feedback form resulting the employees not to be so excited about performing well in the entity”.
“Therefore it’s necessary for Hilton to segregate the organizational goals into departmental and individual employee goals and present to the employee where he or she feels enthusiast and excited to do the job thus playing a pivotal role in accomplishing the organizational goal.
“Hilton should realize that financial rewards are not the only way of rewarding its employees and there are many other non-financial aspects to be taken into consideration hence having a better effect on the employees. Hilton should further investigate what sort of rewards or fringes would their employee’s desire compared to the old method of monetary incentives for the beneficial for the company”.
“Using PM System doesn’t improve the performance of an organization. PM system incorporates of not only evaluating performance appraisals but also rewards. As quoted by Sheridan (2009) and Latham (2005), “the cultural maturation of performance based can take decades to implement and requires the organizations to allocate the required resources”. Technology plays a pivotal role in future of PM systems where e-monitoring of performance of employees in Hilton and other entities respectively can change the evolution of performance management thus bringing necessary and important changes to stay competitive in the market as well increasing an individual’s productivity in the company (Sheridan & Latham, 2005)”.