Human Resource Strategies - Research Two ServiceEssay

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¶ … Human Resource Strategies - Research two service industry organizations

Human Resources in Service Industries

The efficiency of companies in the service industry relies on several factors. Human resources are one of the most important factors that can influence companies' efficiency and productivity, allowing them to improve their position on the market and to create competitive advantage. Therefore, it is important that these companies develop and implement efficient strategies in the case of their human resources.

The importance of HR strategies relies on their impact on companies' evolution process. The evolution of companies is based on increasing popularity among customers, increased market share, increased profits, interest in the research and development process, and improving performance of human resources. Companies' success relies on their ability to develop products and services that satisfy customers' needs, but also on their ability to develop their human resources.

However, in order to develop successful human resources strategies, it is important that companies identify the leaders that are able to influence the development of employees and the improvement of their efficiency. Therefore, the leadership style is important in influencing the performance levels of companies' employees. This means the leaders within the company must be involved in the decision making process regarding the HR strategy. In addition to this, the leadership style must be in accordance with the objectives of the human resources strategy and with the company's organizational culture.

The human resources strategy addresses different issues in the case of each company. The strategy is developed in accordance with the size, activity, and objectives of the company. The HR strategy must refer to the recruitment and selection process, to increasing job satisfaction, identifying the human resources needs, improving the employee retention process, and motivation of employees. These activities represent important factors that influence the organizational behavior and the work conditions within the company.

As mentioned above, the human resources strategy must be developed in accordance with the activity and objectives of each company. This means that each business sector requires different skills from the individuals working in the industry in case. The products and services developed by companies address certain types of customers, and their strategy must focus on satisfying customers' needs.

These different types of customers are addressed by different strategies that require different skills involved in these processes. Therefore, the human resources strategies must be developed in accordance with these requirements. Although there are several similarities between different companies in the services industry, their differences are represented by the activities they address.

The tourism industry is one of the most important business sectors in numerous countries. Countries with great tourism potential provide incentives for tourism companies. The success of tour operators depends on the quality of their services. The Hilton Hotels represent one of the most famous brands known on international level. The company has several brands that customers associate with high quality. This market position is achieved by highly trained professionals. This reveals the company's interest in its employees and their development.

The company provides high quality accommodation services for business and leisure tourists. Since its establishment, Hilton Hotels has significantly developed and became the world leader in this industry. The company's success can be attributed to its original hotel and travel concepts, innovative technologies, and focus on customer experience. In addition to this, the company provides services for customers with medium and high incomes.

This business sector requires that employees work directly with the customers. This means that customer satisfaction also depends on the activity of the hotels' employees, not just on its services. Tourists that use the company's services are interested in high quality performance from its employees. Therefore, Hilton focuses its human resources strategy on identifying skilled individuals, training them in reaching the company's quality standards, and motivating them into improving their performance.

The company acknowledges the importance of its staff on the quality of its services and on customer satisfaction. This is revealed by its human resources strategy (Hilton, 2010). Hilton's strategy regarding its employees is focused on increasing the quality of their performance. This is achieved by significantly investing in training programs. This is intended to help employees improve and develop certain skills required by this industry. There are also other effects associated with investing in training programs. Employees that benefit from such programs tend to increase their loyalty towards the company. Therefore, Hilton can improve its employee retention process.

However, the company focuses on developing its human resources by improving the recruitment and selection process. In other words, Hilton is interested in attracting talented people to its teams. This is achieved by hiring specialized professionals for its HR departments. Each Hilton unit has its own strategy and HR department, based on its objectives and necessities. The company prefers to develop a decentralized decision making process. This is because each unit develops research studies about the market it addresses and makes strategic decisions based on these studies. The company's top managers establish the objectives that must be reached, but the strategy intended to achieve these objectives is developed by unit managers.

The company's approach is determined by the globalization process. In order to maintain their competitiveness, most companies must expand their business on international level. The tourism and travel business sector also requires that companies in this field address several regions for their development. Therefore, Hilton has numerous hotel establishments worldwide.

Their activity is significantly influenced by diversity and by the cultural environment. The services provided by the company must be in accordance with the characteristics of each region. The reasons for the company's decentralized approach rely on the different strategies that must be developed and implemented based on these characteristics.

The same situation refers to its HR strategy. Although the company has certain strategies that establish the quality standards that its human resources must meet, its hotel unit managers develop HR strategies determined by the features of the workforce in each country. This is because the different cultures in these countries determine different working styles, different educational levels and relationship styles.

Some companies prefer to develop centralized HR strategies when addressing different regions, in the attempt to find employees that can work in accordance with the company's style. But Hilton prefers to do things differently, and to develop its human resources strategy based on the local culture. This refers to developing a recruitment and selection process that focuses on identifying the best candidates that can satisfy the company's requirements, investing in training programs so that these employees can reach the quality standards established by Hilton, and developing a motivational strategy that is in accordance with the culture in each region.

The company is also focused on technological developments. These are used in improving the services provided by Hilton, but also on improving its human resources strategy. Hilton uses web-based solutions in order to determine the type of employees required by the company's activity and to improve the recruitment and selection process.

Another service industry of great importance is represented by the advertising sector. In this business, companies value the creativity of their employees. Interpublic Group is one of the most important companies in this field. The company provides high quality advertising and marketing services. Interpublic Group focuses on activities like consumer advertising, interactive marketing, media planning and buying, public relations, and others (Interpublic Group, 2008).

The company has developed a globalized business that works with customers from different countries. The company's success on international level relies on the performance of its employees. Interpublic Group hires top professionals that are able to develop innovative strategies in their activity.

The human resources strategy of Interpublic Groups also relies on innovation. This is because the company works in a creative field and its employees must ensure a continuous level of creativity. Therefore, this requires innovative strategies that can increase employee motivation. Such employees are not motivated by financial aspects, but must be provided professional challenges that are able to stimulate them.

There are several similarities between these companies and their human resources strategies. These are large companies that have developed an important activity on international level. In addition to this, they focus on providing high quality services. The human resources strategy developed by Hilton focuses on developing its human resources. The same situation applies to Interpublic Group.

These companies have established high quality standards for their services and must develop strategies that encourage and support their employees to reach these standards. Therefore, another similarity relies on their attempt to identify talented employees. These companies are confronted with diversity in their workplace environments in different countries. Therefore, their human resources strategy must be in accordance with the characteristics of these cultures.

The similarities between the human resources strategies of these companies are represented by:

Focus on high quality services

Improving employee performance

Diversity of human resources

Different cultural environments

Focus on training programs

Improving the recruitment and selection process

There are also certain differences between the human resources strategies developed by these companies. These differences can be attributed to the… [END OF PREVIEW]

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