Marriot Hotel HRM – Introduction
This Marriot Hotel HRM Assignment Help is aiming to identify an organization and then conduct a analysis in context of different HR functions and HR theories. Organization which is selected for this assignment is J.W. Marriot hotels pvt ltd. Australia. J.W. Marriot is the holding company which runs a long range of hotels under the brand name of Marriott (Beaver, 2002). In this assignment different approach used by Marriot hotels to manage its human resources and principles which guide these approaches would be discussed in a logical manner. This assignment is a secondary research assignment conducting a exhaustive literature from different reliable resources like online data bases, previously done research studies, journals, books and online publications.
Marriot International is the parent organization for J.W. Marriott hotels pvt ltd which has hotels in all most every major country of the world. It is named after its owner and CEO MR. J. W. Marriot. Headquartered in USA Marriot have more than 3700 properties in more than 73 countries. Nett revenue of the organization is 12 billion USD in year 2011 and they have approximately 120000 employees (Annual Report, 2011). To manage such large number of work force it is very important for organization to develop very effective and firm HR policies.
Fayol’s Principle of Management and Application
Fayol’s principles or fayolism is a derived by Henry Fayol who is a well known management theorist and philosopher. Fayol’s theory of management basically identifies and determines the role of management in an organization. In his early 20th century work Fayol developed a total of 14 principles of management which collectively defines and provide boundaries to the role played by its management in an organization. Since these principles were developed in early 20th century they might not be applicable in their purest form in all organizations today but they are still very much useful as basic principles. Each country or organization has some cultural aspects, organizational structure and general aptitude which change the fayol’s principles and their applicability. Marriot Hotels, Australia is also following fayol’s principles in a generalized manner all though there strict applicability and perfect alignment is not present.
These principles are as follows:-
(1) Division of work:- this is the first principle developed by Fayol. According to this principle management needs to divide the work among employees and define who would be responsible for which type of work. In Marriot hotel there are different departments like marketing, finance, HR, Operations and supply chain, maintenance, planning etc. these departments take care of their responsibility and role in the entire organization. In each department there are different levels of employees and the conduct their duties as allocated to them. Head of the department generally play a supervisory role and conduct long to medium term planning for the department.
(2) Delegation of Authority:- In Marriott different levels of employees and managers have different type of authorities and decision making capacity. A department head or a senior manager would have the decision making capacity of higher level and he can take decisions which might impact the working style or effectiveness of entire department. Similarly a country head would be having authority over business of entire country. Marriot Australia is following this principle of foyle.
(3) Discipline:-discipline of working hours, working area, code of conduct during working hours by each employee is well defined. There are many offences which are considered as zero tolerance offences like sexual harassment of an employee, corruption, racial discrimination etc on which Marriot takes very stern actions. There is set guideline for each aspect of work which defines presence of discipline in work (Fleetwood & Hesketh, 2009).
(4) Chain of commands:-Marriot have a hierarchy in its structure and chain of commands is top down where orders are floated from top management to middle management and from there to junior management and other employees.
(5) Congenial workplace:- work place is congenial in nature and there is a general pleasantness in all work centres making them fit for working for all types of employees. Males, females, late adults, physically challenged employees etc. Marriot has designed itself in such manner that it is easily accessible for all type of employees.
(6) Interrelation between individual interests and common organizational goals:- In long term strategies and goals it is ensured that both organization and employees are aligned with each other in Marriot, their personal growth and performance is linked with organizational growth and performance.
(7) Compensation package:- salaries and other perks are given to each employee according to their agreement.
(8) Centralization:- head office of Marriot International in USA is the primary head quarter where major decisions are taken. Further country offices and other offices are delegated power thus power is de centralized as per need.
(9) Scalar chains:- Not fully Applicable in case of Marriot
(10) Order:- along with discipline in work a particular order of work is followed which is logical in nature and attains goals and objectives properly.
(11) Equity:- It is a listed company with many share holders thus they all have equity in this organization.
(12) Job Guarantee:- job guarantee is associated with the performance, working ability and serving job roles satisfactorily.
(13) Initiatives:- new projects, new hotels, purchase of properties and their developments are all part of the initiatives taken by organization. Change in HR policies, hiring etc all initiatives taken by organization on a regular basis.
(14) Team:-Spirit or Esprit de corps:- entire department works as a team to achieve departmental goals, further all departments collectively achieve the goals set by a particular unit and then units belonging to a country collectively fulfil the country level organizational goals as a team (Carre, et al. 2000).
General environment of Marriot, Sydney is very professional and they take their business and their guests very seriously. It is observed in general behaviour that each employee of Marriot, Sydney ensures that his actions and his work should enhance the name and fame of Marriot and it should be of highest standards. Management of organization is also very firm but considering for their employees. When it comes to business principles, efficiency in work and delivering services to the guest Marriot’s management is very particular and give no lee way to the employees to compromise on those fronts. However if we look at the other side then compensation structure, work environment, fairness in policy, proper number of holidays and additional benefits to its employees are also take care by the management. They ensure that their employees remain happy and satisfied with the work environment and overall working experience at Marriott. General environment can be explained in one word as conducive in nature for business growth and employee’s productivity (World Tourism Organization, 2000).
1. Brand name and brand value is one of the biggest strength associated with Marriott. Marriot is known all over the world for its quality services, efficiency in running a hotel and taking care of its guest. Since its Inception Marriott always ensured that their guests are their top priority and developed a unmatchable brand equity and brand awareness in Hotel Industry.
2. Financial strength of Marriott is also very good. Presently Marriott group have more than 3700 properties in 72 countries and they are profitable hotel group all over the world. They have sufficient financial means to invest in new projects and developments.
3. Number of employees in Marriott is also one of their great strength. Their huge human resources management challenges give them the flexibility to develop a sustainable competitive advantage over their competitors.
1. Considering the revenue of the entire organization their profit margins are very low. They need to improve their efficiency in financial matters.
2. Cost of some of the properties brought by Marriot is questioned by industry experts as well as shareholders of the company. It might be a possibility that some of the properties brought by Marriott were over priced because of the boom in market at that time (Jithendran and Baum, 2000).
3. Marriot as a hotel is not able to reduce its cost and expenditure and inflation is eating their profits in a strong manner.
1. Australia as a tourism destination is gaining popularity worldwide, especially for adventure tourism and wild life exploration. This opportunity can be used by Marriott greatly to enhance their business and earn more revenue. They can also use this opportunity to increase their capacity (Smith, 1996).
2. Australian government along with tourism Australia is executing an international level program to attract international visitors to main tourism destinations of Australia. Sydney is one of the preferred destinations by tourism Australia. This indicates that in near future more international tourist would visit Sydney and they prefer five star properties like Sydney Marriott for their lodging and boarding needs
3. Entire global economy is now recovering from the meltdown and both individuals as well as organization are lifting the cutbacks they had on travelling, business travels etc. this will also help hotel industry to gain more customers and ride with the boom.
4. Real estate industry is still sluggish in nature which means Marriott can take this opportunity to purchase properties at a lower price.
1. High level of competition in hotel industry is a serious threat for Marriott.
2. Many tourists prefer to go for a close to nature stay like staying in resorts and camps. This preference is increasing and Sydney Marriott is an urban establishment close to the harbour area of Sydney.
3. There are other destinations in Australia where number of tourists are rapidly increasing. They all do not have a Marriott property (Becton and Graetz, 2001).
Political environment:- political environment of Australia is stable and have a positive attitude towards growth and development of business. Even with change of government there are no radical changes in the policy framework which can be against business growth and development. Political environment is practically promoting and encouraging tourism industry in Australia which in turn would enhance the growth of hotel industry.
Economic environment:- economy of Australia is strong and growing with a healthy rate. It is estimated that soon economic growth rate of a developed economy like Australia would cross by 2 percent annually. Tourism industry is growing by a 4 percent. With global economic recession of year 2009-11 Australia economy also shrank temporarily but now it is on a recovery path and leading towards an economically stable and healthy environment. Disposable income of people of Australia is again on the pre recession level and they are spending on leisure time, vacations and tours sufficiently (Mistilis and Daniele, 2000).
Social Environment:- Social environment of Australia as a country is healthy and progressive. Australia is a developed country with constitutional rights of social equality. Government of Australia takes care of the population of Australia for their civic needs and provide a social security cover to people who are not able to sustain themselves. In such situation at community level there are no problems for business like hotel industry and they can thrive easily.
Technological environment:- technological environment of Australia is also very advanced. Proper emphasis is given by government of Australia and its academic institutions to research and develop new technology in every field and then put it for practical application. It is also observed that people of Australia who would be making the work force of organization are also technologically sound and savvy and they are well versed with any form of advanced technology which can be used at work place. Marriott can also use knowledge of advanced technology and its availability to reduce the cost of its operations and develop new projects.
Legal Environment:- Legal environment of Australia is fair in nature and they are neither opposing or supporting any particular business. Australia laws and constitutional rules are developed keeping in consideration that no individual or organization would be above the court of law and this forms the basis of entire judicial structure. This environment is very positive for industry because it promotes a healthy competition in hotel industry or any other industry for that matter.
Environmental:- environmental issues and challenges are critical in Australia and organizations have to ensure that their carbon foot prints are below the maximum limit allowed and all employees of organization are working in a healthy environment (Cooper, 2000).
Managing Diversity-Diversity in a business environment is a very common phenomenon and every organization keeps a policy in place to manage human resources belonging to different culture, religion, nationality and ethnic groups. Australia has a very diverse population belonging to different ethnic groups like aboriginal Australians, Asians, Japanese, crustaceans, people belonging to Middle East region of world etc. Australia is a tolerant country where people belonging to various cultures and countries are co existing and developed mutual respect and trust with each other. According to the annual report provided by Marriott Sydney they are a equal opportunity employer and they ensure that all posts which are available to them should be filled on the basis of merit only. Fair work act, 2009 which is developed by the government of Australia is followed by Marriott Sydney properly and they maintain transparency in all decisions which impacts the human resources of the organization. All these factors adopted by Sydney Australia ensure that diversity is managed by the organization at policy level itself. Management of Sydney Australia also believes that their work force should be diverse and there are people who are ensuring such development by regularly auditing the hiring and recruitment process and keeping an eye for the signs of biased or prejudiced behaviour (Harvey, 2012).
According to social theorists these models of hiring and management is also called as social justice model. According to this model both dominant and people who are outside the dominant group of population should be given opportunities to uplift themselves. There are certain advantages associated with the organization itself by keeping a diverse work force. They are able to understand that demographics of the area in a better manner and they can address to the needs of different population groups and ethnicity who might be their customers. In hotel industry this fact is more applicable than any other industry (Bitgood and Benefield, et al. 1986). Guest of a hotel can belong to different nationalities, ethnicity, communities etc. it would be better for Marriott if they have a diverse workforce to take care of them.
Marriott moved one step forward in diversity management and incorporated the concept in their long term as well as short business strategy. They aligned the strategy of the business with long term goals and objective. A diverse workforce would bring in alternative ways to perceive same concept and the give the required opportunity of innovation and creativity in operational procedure. At this point of time Marriott also needs innovation in their strategy because they are looking for cost reduction and improving efficiency in their operational procedures.
Role of leadership is very important in maintaining diversity in business. In Marriott top management of the organization took the decisions of managing diversity in their work force. Since it is a top management decision so all subsidiaries of the organization are following it religiously and they get instructions from the head quarter of the organization regarding methods to manage diversity in organization (Branine, 2011).
Marriott international Inc. was established and conceptualized by J.W. Marriott. He is considered as the transformational and charismatic leader of Marriott who lead the organization towards its current stature and image in the industry. Marriott was founded in year 1927 and it began its story by a small bear stand opened by him and his wife. He was able to understand that there is a gap and people in area of Washington DC really needed a good place for cold drinks. This indicates that he was a visionary since his early days. His vision and continuous zeal towards growth thrived the business and in a period of few years organization expanded into a chain of hotels and restaurants all over USA (World Tourism Organization, 2000).
A transformational leader keeps on encouraging and motivating its employees to outperform themselves and take steps to move forward in growth and development. A transformational leader presents himself as a ideal in front of employees and subtly encourages them to follow his footsteps if they want to be successful (Bass & Riggio, 2006). There is a healthy mixture of both inspiration and challenge in his behaviour which intrigues the employees to remain interested in his vision and activities. J.W. Marriott’s effort provided the ground work and basic platform on which growth and expansion of Marriott hotel chain was based (Bass, 1998).
Second transitional leader organization found is Bill Marriott who is also known as J.W. Marriott junior. He is son of J.W. Marriot and CEO of the company presently. He formed Marriott international in year 1992 by splitting his father’s company in two parts and ever since Marriott international is experiencing a phenomenon growth story. He took another major decision in 1995 when he acquired 49 percent stake in Ritz Carlton chain of hotel. This hotel chain was troubled and there were heavy debts in their balance sheet. In such situation no other organization would have made this decisions but Bill Marriott was a visionary and he saw that their organization have the necessary expertise and human resources to turn around the situation of Ritz Carlton. They began by making purchase in a few properties and over the period of time Marriott continued purchasing properties and stake of Ritz Carlton. By 1998 they were owner of 99 percent stake in Ritz Carlton hotel company LLC. They brought in their in house expertise and transformed the business of Ritz Carlton. According to the annual report of organization in year 1999 35 hotels of Ritz Carlton company poured revenue of 1.4 billion USD which was a phenomenal success and highlighted the transformational ability of Marriott leaderships (Vaughn, 2006).
Marriott Sydney is also conceptualized after a long term vision of its leadership. It is a 5 star property situated very close to the harbour of Sydney in a locality which is close to the Museum of contemporary arts, downtown business district, Sydney town hall, Sydney museum and circular quay. All these landmarks are important places where a tourist visits during his stay in Sydney. Selection of place and location itself shows that organization’s top management is keeping a long term vision for their every decision.
Manging Decision Making
Decision making process is a step by step procedure which follows a logical flow of information between the decision making authority and party which is going to be impacted by the decision. Both authority and party can be a single individual or a large number of people. At Marriott hotels decision making process follows two principles simultaneously. Their decision making process is both participatory as well as decentralized in nature. A hotel industry is a very dynamic industry where sometimes decisions are to be taken on an immediate basis. To tackle such situation some decision making authority is to be delegated to managers and supervisors at different levels all though these decisions are always operational in nature. Policy related and lasting decision which will have a long term impact on the business is taken in a participative manner.
A decentralized decision making process is a method in which decision making authority is distributed to a large number of people. This large group of people have their designated areas and limits of decision making and within those boundaries they can use their common sense and business acumen to take decision. A good example can be presented here about housekeeping in a hotel like Marriott. If by any reason one of the house keeping employee who was needed for a particular job is not present then supervisor can immediately assign the duty to another employee without making any check with top management. Such decisions are under his purview and he is responsible to rotate employees of his department as and when he needs it. This is a decentralized system of decision making. Authority and decision making power is dependent a lot on the level of employee in organizational hierarchy, his job role and his duties in the organization. Impact of this decision making process have a great impact on the organizational behaviour and management style of the organization.
Marriott international follows a hierarchical system in delegation of decision making power as well. Top management of the organization are present in USA at company headquarters. Big decisions like purchase of new property, stakes in another organization, policy of organization, mission and vision, strategy are taken here. Each country where Marriott property is present is headed by a country head that would be responsible for all the decisions taken at operational level of that country. He would be a taking care of the changes in hotel according to local preferences, local hiring, and management of hotels in the country. Each hotel which is present in the country is again headed by the hotel GM (general manager). He would be answerable to country head and he would take care of all operational decisions of the hotel.
Participative decision requires involvement of employee in decision at all levels. Marriott give due consideration to the opinion of employees while taking a decision and encourages them to be participative in decision making process (Wernz and Deshmukh, 2010).
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