Vang (2012) defined human resource management (HRM) as ‘employing workers, developing their capacities, utilizing, maintaining and compensating their services in tune with the organization requirement’. Strategic HRM (SHRM) is the connection between business strategy and human resource management. Human resource is integrated into business and its environment (Holbeche 1999).
In this essay, Mariott International is used to illustrate on the relationship between business strategy and five key HRM functions – recruitment, human resource development, performance appraisal, remuneration and retention.
Background of Marriott International
Mariott International was founded on ...view middle of the document...
Choosing the right talents is very important for a business hospitality industry and a failure to do so would doom or slow down an organisation growth (Boxall & Purecell 2003). Strategic recruitment allows an organisation to hire employees with the best ‘fit’ into the organisation. According the report from Entrepreneur (2005), potential Marriott employees have to undergo a minimum of four interviews and achieve a high score on a standardized evaluation metric to be hired for front desk position. These interviews and performance measurement tests ensure that newly hired employees have the relevant skills and competencies. A best ‘fit’ employee will be able to bring service excellence to the customer. Selected applicants are with attributes that aligns with the organisation culture and goals. This strategy of recruitment through tests will ensure service excellence which in return improve clients’ satisfactory. Clients’ satisfactory will bring good impression and reviews hence building organisation loyalty.
In order to hire the best ‘fit’ employee, Marriott International has to attract a larger applicant pool. The other strategic function for recruitment is by image and culture of an organisation (Boxall & Purcell 2003). By increasing the applicant pool, the probability of finding applicants that are able to fit into the organisation increases. One way of attracting talents is reputation. According to Denton (1997), Marriott International had launched a 24-hour-a-day employee hotline. This hotline is able to assist employees to find affordable child care or deal with immigration and landlord issues. By launching this program, it greatly built its workplace reputation of giving concern to their employees. This work culture is able to attract more applicants to join the organisation as there is job security for the Marriott’s employee. The other way of recruiting through reputation is employees’ referral. Marriot’s employees are able to refer their friends to the company. As Marriott’s employees, they know what the organisation wants and needs, therefore they are able to ensure that referrals have qualities that meet the organisation expectations (Arthur 2012). Research shows that employees who are referral by their friends tend to stay longer (Rashmi 2010). However, referral recruitment depends on remuneration to be successful (Swain 2012) where employees who referred their friends or relatives are given extra incentive.
Furthermore, Marriott international’s website has implemented a ‘Search and Apply’ function which able to assist applicants to apply for job vacancies in every Marriott International’s properties and franchise worldwide. This program also allows Marriott International to solve its overseas labour issues. Using both website and employee helpline programs, it is able to solve scarce labour issues in countries like Singapore or Japan which are facing aging populations and lack of young labours. Vacant positions are posted...