Innovation and management of change Essay Example | Topics and Well Written Essays - 1000 words

Innovation and management of change - Essay Example The Fragmented Culture is one of the cultures identified on the Goffee-Jones Matrix as shown in Figure 1. In the 1990s, the company had a poor level of internal communication between the management and the employees. This lack of cooperation between the management and the workers shows that the level of sociability in the organization is very low. This also a feature of the Fragmented culture identified in the Goffee-Jones Matrix. This culture is identified by distinct goals of the leadership in Whirlpool. The expenditure on Research and Development department and Marketing was less than 4% of the total sales revenue for Whirlpool. The management thought that every strategy of brand management had been tried on the products of Whirlpool but not in a sustained or integrated way. The reason for the decreasing rate of actual sales increase was the lack of cooperation of the strategies and inappropriate expenditure. The company had the focus on excellence in operations and distribution of the products. This focus led to focus on tasks rather than what the consumers wants. High level of focus on tasks shows that the company has low sociability. The company was not able to analyze the needs and wants of the customers which caused the downward trend in the actual sales figures. This shows that the employees and the management could not think together which shows the organization has low level of solidarity. The anticipated rise in sales from 1990 to1996 was very high but actually only 13% sales could be lifted. Although the company was able to manufacture products at costs and quality that were competitive in white goods market, but the company was not able to centre the design and product specifications according to the needs and wants of the customers. The decision to go global and to become the first white goods manufacturer in the US to step in global trade was taken by an Executive Committee which comprised of the top managers of

Time Value of Money Paper Research Example | Topics and Well Written Essays - 1000 words

Time Value of Money - Research Paper Example Calculation regarding future values of present values is extremely important when making important investment decisions (Andrew, 1997). A manager who would be uncertain of what would be the future value of his investment today, he would be uncertain whether to take on the investment or not. Suppose, a manager takes on an investment to invest in a bond that will pay him $ 1000 at maturity at 5% interest. How would he value the investment in terms of today? What is explicitly of importance to the manager is that how much the investor should pay today in order to get that $ 1000 principal at maturity (Brealey, 2005). The investor should use the application of time value of money in order to determine whether the amount that the borrower is asking is appropriate or not. Similarly, an investor might want to know that if he deposits a certain sum of money in the bank, then what would be the future value of the payment that he would receive at the relevant interest rate few years from now ( Andrew, 1997). The basic concept I have learnt from this assignment is how to apply the application of time value of money in different situations. Sometimes, we have been given the future value and all information and we had to find the present value, while sometimes we had been given present value and we had to calculate the future value. In summation, I have learnt the practical application and usefulness of time value of

Microeconomics Term Paper Example | Topics and Well Written Essays - 2500 words

Microeconomics - Term Paper Example However, since the buying and selling is common to all participants of economy, therefore microeconomics plays an important role in determining the supply and demand of goods. As this factor is responsible for price fixation of goods and services, the change in supply vs. demand position can lead to change in price. As resources become limited, microeconomics tries to analyze the relationship between market conditions, product prices, as well as the market mechanism which establishes this relationship. Such mechanism has a great role to play in the allocation of resources, in such scenario. Therefore, microeconomics has a significant role in determining the conditions required for a perfect competition. It also studies the conditions which may have led to market failure, when results are not produced efficiently. However, microeconomics can only establish the theoretical conditions, while actually market behavior may be different, sometimes. Accordingly, studies in this field of econ omy would include decision making ability under uncertain market condition. It also includes the study of market, which may not follow any pattern. This term paper would discuss about the principles of microeconomics, along with its fundamentals, in the following pages. Principles of microeconomics As there is a great relationship between a household and economy; Greek ancestors have correctly named the manager of a household as ‘economy’. Looking at the wider scenario, the household is an economic entity within a larger society. The society must ensure the allocation of funds and jobs to different members, while managing the available limited resources. Therefore the decisions need to be taken, keeping in view certain fundamentals, which are considered as the principles of microeconomics, which help people in making their decisions. Supply and demand In economic terms, demand means willingness, need and ability to purchase certain goods or services. However, desire to purchase may meet the requirement of willingness, but same only cannot generate demand. The purchaser must be able to pay for the specific good or service. The payment method can vary, as sellers except cash, credit cards, deferred payment or lease payments, nowadays. The capacity to purchase the good determines the ability for generating the demand. Readiness to purchase the good, right now, comes after the above two requirements of demand have been met. Once the immediate purchase willingness is confirmed the demand gets generated. (beggs 1) Supply relates to the available quantity of a particular good or service at a point in time, in a particular location. Supply would primarily comprise of two elements. One is the quantity of goods produced by a firm, while other is the combined quantity of same goods produced and offered for sale by different firms, involved in manufacture and trading of that particular item. However, total availability of such goods in market refers to the su pply of the same. Supply would relate with the profit to be generated by offering such goods for sale. As companies prefer to sell their products at maximum profit level, this would determine the quantity and quality of goods that the firm can offer at any particular point. Maximum profit is calculated, based on the cost inputs, production costs, marketing costs and other variables. Therefore, all these factors would ultimately determine the supply position a

Time Value of Money Paper Research Example | Topics and Well Written Essays - 1000 words

Time Value of Money - Research Paper Example Calculation regarding future values of present values is extremely important when making important investment decisions (Andrew, 1997). A manager who would be uncertain of what would be the future value of his investment today, he would be uncertain whether to take on the investment or not. Suppose, a manager takes on an investment to invest in a bond that will pay him $ 1000 at maturity at 5% interest. How would he value the investment in terms of today? What is explicitly of importance to the manager is that how much the investor should pay today in order to get that $ 1000 principal at maturity (Brealey, 2005). The investor should use the application of time value of money in order to determine whether the amount that the borrower is asking is appropriate or not. Similarly, an investor might want to know that if he deposits a certain sum of money in the bank, then what would be the future value of the payment that he would receive at the relevant interest rate few years from now ( Andrew, 1997). The basic concept I have learnt from this assignment is how to apply the application of time value of money in different situations. Sometimes, we have been given the future value and all information and we had to find the present value, while sometimes we had been given present value and we had to calculate the future value. In summation, I have learnt the practical application and usefulness of time value of

Final Essay Example | Topics and Well Written Essays - 750 words - 3

Final - Essay Example It impacts the reserves held by banks and other institutions to lend money to corporations and households. On a larger scale, it affects the supply of reserves in the banking system, and thus the interest rates and overall growth in the economy. a) If central bank sells government bond, it takes money in exchange for the bonds. This reduces the reserves of private sector banks, and their capacity to make loans to households and corporations and thus cause money growth to decline through money multiplier mechanism. The central bank usually targets a certain level of bank reserves or a particular interest rate for these reserves. OMO allows Fed to affect the supply of reserve balances in the banking system and therefore influence short term interest rates. Given that Fed sold 1 million dollars’ worth of government securities, and that the money multiplier is 5. The reserves of banks and lending institutions to go down by $1 million, this money could have been used to give out lo ans worth $5 million (Amount X Multiplier). This is part of Fed’s tightened the monetary policy. The graph below shows how a change in the supply of money influences interest rates. The supply curve of money shows the quantity of money supplied, with all other things remaining constant. As the quantity of reserves is determined by the Fed’s monetary policy, the supply curve of money is assumed to be vertical line. ... The components of GDP include: Consumption (C) Investment (I) Government Expenditure (G) Net exports (X - M) These components are easily influenced by changes in interest rates. When interest rates are high, people do not want to borrow money through loans as it is more expensive to repay. This reduces the demand for most of the products such as cars, new houses or house renovation, large appliances, luxury goods etc. which causes the overall consumption in the economy to fall. Businesses also avoid raising money for expansion or start up through loans because the interest rates are higher. Similar is the case for government borrowing. As interest rates increase, the foreign investment will tend to rise because foreigners will get a large return on their investment. This drives up the demand for dollar and causes exchange rate to rise. As exchange rates surge, our imports will become cheaper and their demand will rise; exports will be more expensive for foreigners, so their demand wi ll fall. The graph below depicts how a change in the aggregate demand will impact price level and real GDP of the economy. The graph above shows a shift in aggregate demand curve from AD to AD’, it shows the impact on price level as prices have reduced from P to P’; the real GDP in the economy has fallen from Y to Y’. As we know that the demand for labor is a derived demand, that is, it is required only when a higher quantity of other goods is required. If the aggregate demand for goods and services in the economy goes down, a lower quantity of labor will be required to produce these goods. People who are willing and able to work will not find jobs,

Outdoor-lifestyle retailer Essay Example for Free

Outdoor-lifestyle retailer Essay Executive Summary BBQfun will be the leading outdoor-lifestyle retailer, catering to the growing need for furnishing new and renovated dwellings in the greater Brisbane area. The assortment offer of BBQs, outdoor furniture and BBQ accessories will position BBQfun as best inclass for outdoor-lifestyle retailing. BBQfun will reinvent the way people shop for outdoor-lifestyle products. BBQfun will build its reputation on offering the fullest assortment of products possible in our chosen fields, incorporating both local and imported goods with products sold on easy to manage long-term payment plans. Our after sales service and 3 year guarantees will find traction with a market dominated by low-quality. Situation Analysis BBQfun is close to entering its fifth year of operation. Te initial rollout of stores has been well received, and marketing is now critical to its continued success and future profitability. The store offers wide-ranging outdoor-lifestyle items on easy to manage payment terms and supplies a three year guarantee on every item sold. The basic market need is for quality, fashionable and unique outdoor-lifestyle items that caters to the house-proud needs of our market. Market Summary BBQfun possess good information about the market and knows a great deal about the common attributes of our most prized and loyal customers. BBQfun will leverage this information to better understand who is served, their specific needs, and how BBQfun can better communicate with them. Market Demographics †¢ Accessibility. The patron can gain easy access to the store with minimal wait. †¢ Customer service. The patron will be impressed with the after sales service and Guarantees. †¢ Competitive pricing. All products/services will be competitively priced relative to comparable high-end outdoor-lifestyle lines. Above all, BBQfun believes that easy to access stores with extensive choices in our chosen fields, that are sold on an easy to manage payment plan with a three year guarantee are the keys to our customer’s needs and wants. Market Trends The market trend for outdoor-lifestyle stores is headed toward a more sophisticated and informed customer. The outdoor-lifestyles patron today relative to yesterday is more sophisticated in a number of different ways. †¢ Item quality. The preference for high-quality items is increasing as customers are learning to appreciate the qualitative differences. †¢ Unique. Our patrons appreciate the opportunity to include outdoor-lifestyles in their home that stand out from the mass produced and sold low quality items. †¢ Selection. People are demanding a larger selection of choices, they are no  longer accepting a limited offer in outdoor-lifestyles. The reason for this trend is that within the last couple of years there has been an explosion of media in the form of TV shows and magazines that have promoted exotic and different outdoor-lifestyles. Our patrons no longer need to accept a limited number of options. With more choices, patrons have become more sophisticated. This trend is intuitive as you can observe a more sophisticated patron in larger city markets such as Sydney or Melbourne where there has been more choices available. BBQfun strongly believes that customers are more interested in range of products, after sales service and easy to manage payments than any other issues. These are the reasons that they will shop with us and become loyal patrons. Technological developments with the broadband rollout across greater Brisbane and Australia is opening up significant opportunities for internet shopping and for providing information for our customers about our product range. Market Growth In 2008, the National outdoor-lifestyle market reached $300 million dollars. Outdoor lifestyle sales are estimated to grow by at least 6% for the next few years. This growth can be attributed to several different factors. The greater disposable household income from the two income families, the greater availability of affordable and interesting quality imports with the high value of the Australian dollar and the marketing by popular TV shows like ‘Homes Beautiful’ and ‘Better Outdoor-lifestyles’. Economy Based on economic forecasts, BBQfun assumes that interest rates are staying steady and so will have no affect on disposable income. The same assumption is made about employment levels, where BBQfun assumes that unemployment levels remain the same at 4.7%. Political From research carried out, BBQfun identified that the Government focus and emphasis in future legislative direction will be about ‘growing the economy’ and ‘population base which BBQfun sees as a positive for their business model. There is also a strong push for environmentally sound business practices in the legislative framework. BBQfun, as business operating in Australia, will abide by the law in all its dealings and comply with all legislation that impacts on its business activities. SWOT Analysis The following SWOT analysis captures the key strengths and weaknesses within the company, and describes the opportunities and threats facing BBQfun. Strengths †¢ Excellent staff who are highly skilled and knowledgeable about outdoor-lifestyles. †¢ Great retail space that is bright, functional and efficient for a commercial urban district. †¢ High customer loyalty among repeat customers. †¢ Assortment offerings that exceed competitors offerings in quality, range and accessibility. Weaknesses †¢ A limited marketing budget to develop brand awareness due to the lack of critical mass and store cover. †¢ The struggle to continually fund the growing long term repayment plans taken out by our customers. Opportunities †¢ A growing market in a high growth area with a significant percentage of the target market still not aware of BBQfun’s offer. †¢ Increasing sales opportunities outside of our target area – greater Brisbane. Threats †¢ Competition from local independents that can reduce prices as owner operators lower than our staff run stores. †¢ Competition from National chains moving into the Brisbane market. †¢ A slump in the economy reducing customers disposable income spent on outdoor-lifestyles. Competition National Competition †¢ The Yard: has a limited selection but significant depth. All Australian made. No significant marketing or promotion. The price point is high, but the quality of products are quite good. Not in Brisbane. Mostly in Sydney and Melbourne. †¢ BBQ’s R us: Broad range of outdoor-lifestyle products including trinkets and furnishings. Lots of cheap imports. Concentrating on established markets. Strong in the replacements segment. Not in Brisbane. Mostly in Melbourne and Adelaide. †¢ Outdoorz: Large operations of only a few stores per city. Mass markets outdoor lifestyles at good value prices. No imported goods. Extensive advertising. Low to medium quality. Not in Brisbane. Strong in the replacement segment rather than new and refurbished  dwellings. Strong in other capital cities. Local Competition †¢ All independents. These stores are owned by individual owner operators. Ranges vary according to owner preferences. Very little imports. Mostly retailing Australian manufactured goods. Collectively their average item sale price is $250, have a market share of 48%, and are growing at about 8% per year. BBQfun do not see the competitors changing their marketing strategy or product offer in the foreseeable future. Growth and Share Analysis New dwellings – growth in potential customers 10%. Estimated Brisbane customer numbers in 2010 is 95,000. Renovations – growth in potential customers 7%. Estimated Brisbane customer numbers in 2010 is 35,000. Replacement – growth in potential customers 5%. Estimated Brisbane customer numbers in 2010 is 120,000. Service Offering BBQfun has created a outdoor-lifestyles range of retail products that are differentiated and superior to competitors. Customers can see the quality of the product as it is displayed in the stores. The following are characteristics of the product: 1. BBQfun’s credit offer is backed by a top tier bank. 2. Imported products make up 33% of the assortment. 3. The 3 year guarantee is unique in the market place. 4. Broadest possible range in chosen fields. BBQfun’s prides itself on providing service that is on par if not better than any of the local independent stores and far in excess of the national chains. BBQfun will ensure that all aspects that are involved in the delivery of satisfaction to the customer will work using an integrated approach. At a GlanceThe Prototype BBQfun Store: †¢ Location: a commercial, suburban neighbourhood, or urban retail district. †¢ Design: bright and functional. †¢ Size: 1,000 to 1,500 m2. †¢ Employees: 15 to 20 full time plus casuals †¢ Types of transactions: 60% cash, 40% on long term repayment plan. Keys to Success Location. BBQfun’s site selection criteria are critical to success. Scott Bremmer, former partner of an international chain, helped us identify the following site selection criteria: †¢ New dwelling populations. †¢ Shopping patterns requiring easy access. †¢ Customer car parking counts. Critical Issues BBQfun is still in the speculative stage as a possible franchise concept or joint venture. Its critical issues are: †¢ Committed to sales growth which allows for greater options in import assortments and in reduced price with volume buys. This will promote our uniqueness and contribute to improved profit margins. †¢ Continue to finance the easy manage long term repayment plan for customers. †¢ Locate in easy access sites close to the growing markets in new dwelling development. Marketing Strategy BBQfun’s advertising budget is set at $250,000 for the year. The advertising program will target local letter-box drops, radio and magazines. BBQfun’s will do direct mail and local advertising, with coupon inserts in the BrisNews magazine likely to be the most successful of the campaigns. BBQfun will try to get articles about BBQfun into the BrisNews magazine. Previous features in the BrisNews magazine has seen a dramatic increase of sales immediately after the article was published. Mission BBQfun’s mission is to provide customers with the most extensive assortment of quality outdoor-lifestyle products available in the market. Our after sales service is second to none supported by our easy to manage long term repayment plans which make unique, imported and high quality outdoor-lifestyle affordable to all. BBQfun exist to attract and maintain outdoor-lifestyle customers wishing to purchase products that give our customers pride in their homes. Our services will exceed the expectations of our customers. Marketing Objectives 1. Increase sales from $15million per year to $20million per year in the next  three years 2. Increase our loyalty customers list from 10,000 to 16,000. 3. Establish brand recognition in Brisbane so that at least 2 in 3 people recognise our brand in a random survey taken in 18 months time. 3.3 Financial Objectives 1. A double-digit growth rate for each future year. 2. Reduce the overhead per store through disciplined management of expenses. 3. Continue increase our gross profit margins. Target Marketing The market can be segmented into three target populations: †¢ New dwellings – generally want to purchase entire suites. Typically shopped as couples. Price sensitive to a point but co-ordination is the highest priority. †¢ Renovations – demand for high quality and different items. Unique and exotic over rides price concerns. †¢ Replacement – basic functional products that replace and broken or worn item. Single shopper. Cheap price required. The BBQfun customers are mostly aged between 20 and 50, making up 50% of the new and renovated dwelling market. Outdoor-lifestyle stores have been very successful in stand alone, extensive car park access, close to new housing estates being established. These areas have families who have household disposable incomes of over $40,000 per year. Combining several key demographic factors, BBQfun arrives at a profile of the primary customer as follows: †¢ Sophisticated people who are house proud. †¢ Shoppers who will drive to an easy to access store. †¢ A customers who requires payment plans to spread their commitment over an extended period. †¢ Renovators and new home builders †¢ 20-50 year olds Positioning BBQfun will position itself as a broad assortment, quality, unique outdoor-lifestyle retailer. Brisbane consumers who appreciate high-quality and uniqueness will recognize the value and unique offerings of BBQfun. Patrons will be single as well as families, ages 20-50. BBQfun’s positioning will leverage their competitive edge: †¢ Product. The product will be wide ranging, quality and unique. It offers the house proud customer a different  option from the cheap mass produced offer prevalent in the market †¢ Service. BBQfun offer the only 3 years guarantee in the market. Our easy play payment scheme is just what our mortgage repaying customers welcome. Our experienced staff can assist with product knowledge second to none in the industry. By offering a superior service in range and uniqueness, BBQfun will excel relative to the competition and achieve our objectives. Strategy Pyramids The single objective is to position BBQfun as the premier outdoor-lifestyles store in the greater Brisbane area, commanding a majority of the market share within five years. The marketing strategy will seek to first create customer awareness regarding their services offered, develop that customer base, and work toward building customer loyalty and referrals. The message that BBQfun will seek to communicate is that BBQfun offers the widest, most exotic, easy access outdoor-lifestyle products in Brisbane. This message will be communicated through a variety of methods. The first will be direct mail. The direct mail campaign will be a way to communicate directly with the consumer. BBQfun will also use ads and inserts in Brizzy magazine.The last method for communicating BBQfun’s message is through a grassroots PR campaign. This campaign will invite people from Brizzy for lunch to get articles written about BBQfun into the news. Because of this level of effectiveness and low/zero cost, BBQfun will work hard to get press in the Brizzy. BBQfun also believe that the local patrons far prefer to receive information from the store via flyers in the letterbox. Marketing Mix BBQfun’s marketing mix is comprised of these following approaches to pricing, distribution, advertising and promotion, and customer service. †¢ Pricing. While BBQfun will price at comparable prices for comparable quality, it will not be cheap. We push value over cheap and back this up with a 3 year guarantee. †¢ Distribution. BBQfun products will be distributed through a chain of retail stores which customers can access easily via the large car parking arrangements. †¢ Advertising and Promotion. The most successful advertising will be ads and inserts in the Brizzy as well as a PR campaign of informational articles and reviews also within the Brizzy. Promotions will take the form of in store entertainment and competitions with prizes to exotic overseas destinations. †¢ Customer Service. BBQfun’s philosophy is  that whatever needs to be done to make the customer happy must occur, this investment will pay off with a fiercely loyal customer base who is extremely vocal to their friends with referrals. Product development It is envisaged that new products will be developed on a regular basis in line with changes in customer taste which is targeted at every 12 months. The plan for product testing is to engage market research firms. By getting feedback from these firms, changes can be made or products ‘canned’ so that only tested and proven products make it onto the store assortment list. Marketing Research During the initial phases of the marketing plan development, several focus groups were held to gain insight into a variety of patrons of outdoor-lifestyle stores. These focus groups provided useful insight into the decisions, and decision making processes, of consumers. An additional source of market research that is dynamic is a feedback mechanism based on a suggestion card system in store. The last source of market research is competitive analysis/appreciation. BBQfun management will continually visit local outdoor-lifestyle stores for two reasons. The first is for competitive analysis, providing BBQfun with timely information regarding other store’s service offering. The second reason is that local business owners, are often part of an informal fraternal organization where they support each others business. Financials, Budgets, and Forecasts This section will offer a financial overview of BBQfun as it relates to the marketing activities. BBQfun will address Break-even Analysis, sales forecasts, expense forecasts, and how those link to the marketing strategy. Break-even Analysis The Break-even Analysis indicates that $1.1 million in sales per year will be needed to reach the break-even point. Fixed costs are estimated at $150,000. Variable costs are 40% of sales, therefore sales of $1.0 million will be sufficient to pay for the fixed and variable cost. Sales Forecast The first year of the plan will be used to get the cafe up and running. By year two things will get busier. Sales will gradually increase with profitability being reached by the beginning of year two. Gross profit is  anticipated at 50%. Ongoing sales forecasting will be to use the services of Cannon’s Consultants who will advise on all aspects of the marketing function that BBQfun will be engaged with. Cannons will also be given access to the marketing cost data so that they can periodically examine and validate marketing costs in line with industry benchmarks. They have always been the preferred consultants because they are locally based unlike the national group of consultants, Brown Holingsworth, based in Melbourne.

Comparing personnel management and HRM

Comparing personnel management and HRM Human resources must be appreciated, located and recovered, organised and managed with great care. Sound human resource management practices are necessary for retaining effective workforce. The HR function of Hilton Hotels focuses on actions that build workforce competencies and motivation that in turn positively influence their corporate strategies and gives them a competitive advantage. INTRODUCTION 2.1 Terms of reference According to some authors, Human Resource Management (HRM) is no different from personnel management and maintains that the obvious change is a relabeling process (Legge 1989, Torrington 1989). However, the new terminology may at least rid personnel management from its unfortunate welfare image and other negative connotations Sisson (1990) and thus save the ailing function from marginalisation. Some Human Resource academics argue and maintain that new labels on old bottles may have their uses even if it is only for marketing purposes. (Armstrong 1987, Guest 1989). The aim and objective of this report is to critically analyse the human resource strategies and policies of Hilton Hotels. In order to critically analyse and evaluate the human resource methods of Hilton Hotels critically, human resource management theories and models have been discussed and related to the success of Hilton Hotels The main themes for this report are General HRM overview of Hilton Hotel, learning and development, reward systems and training and development. The ways in which their strategies and policies support organisational goals have been evaluated. Recommendations have been made in areas that require improvements. 2.2 Overview of HRM Human Resource Management emerged in the 1990s.It can be traced to Drucker, McGregor and Bennis Drucker (1955) who introduced management by objectives (MBO) proposing that managers should direct employees towards a common goal through directed leadership. McGregor (1960) advocated management by integration and self control a strategy for managing people which increases motivation and pervades the whole business. Bennis (1964) introduced the idea of organisational development (OD). He argued that people have complex cognitive and social need, they respond better to collaboration and reason rather than power based on coercion and threat; and an organisation should be based on humanistic, democratic ideas, replacing the mechanistic value system of bureaucracy. Factors such as globalisation, competition and technological innovation caused the fading of personnel management. This change increased people management which addressed more strategic issues that personnel management ignored. There was therefore the need for managers to be more strategic in terms of managing their work force hence a new way of managing people strategically. Human Resource Management can be defined as the planning, acquisition and development of human resources necessary for organisational success. (Kreitner, 1995, p. 331). French (1964) expressed the importance of human resources by saying it creates organisations and make them survive and prosper. He advocated that it is the talent and skill of employees in using other materials and energy that result in the creation of useful products and services. (Braton and Gold 2003) defines HRM as a strategic approach to managing employment relations which emphasizes that leveraging peoples capabilities is critical to achieving sustainable competitive advantage, this being achieved through a distinctive set of integrated employment policies , programmes and practices. Human Resource Management involves five key models; The Michigan model of HRM (USA) ( Tichy, Fombrun Devanna (1982), Fombrun, Tichy Devanna 1984) The Harvard model (USA) (Beer, Spector, Lawrence, Quin Mills Walton 1984) Guests (1987) Model of HRM (UK) The Warwick model of HRM (UK) (Hendry and Pettigrew ,1990) Storeys (1992) Model of HRM (UK) (lecture notes) 2.3 Background Hilton Hotels Corporation is recognized around the world as a pre-eminent lodging hospitality company, offering guests and customers the finest accommodations, services, amenities and value for business or leisure. The Hilton brand has, for more than 80 years, been synonymous with excellence in the hospitality industry. Hilton is able to offer guests the widest possible variety of hotel experiences, including city center hotels, convention properties, all-suite hotels, extended stay, mid-priced focused service, destination resorts, vacation ownership and airport hotels. (Hilton webpage ). Hilton Hotels was founded in 1919 by Conrad Hilton. Hilton has 2,645 hotels offering over 485,000 rooms to the general public. Currently Hilton employs 135,000 members worldwide. Positions at Hilton range from receptionists to general managers to CEOs. The company manages property holdings under different names around the globe. These include Hilton Hotels, Conrad Hotels and Hampton Inn and Suites. METHODS 3.1 Data collection methods The data used in this research has been obtained mainly from secondary sources. Hiltons corporate website, independent websites, online journals and text books have been used. These sources gave insight into Hiltons human resource management strategies. Text books helped link HRM theory to the practices of Hilton. 3.2 Issues and challenges The first challenge encountered by the group was deciding on which organisation to choose. Several organisations came up but eventually we decided on Hilton Hotels because they had a very attractive website with a lot of information we needed to complete the report. There was also the challenge that comes with working in a group. The Elevator graduate scheme for this year has been postponed. This made it impossible for us to gather adequate information in that section for the report. There were also problems accessing information for the other graduate schemes because such information is only made available during recruitment times. There was the issue of time constraints for the report due to other assignments due in the same week. RESULTS 4.1 Business strategies Traditionally, the firm had focused on place, product and promotion, by establishing the finest hotels in the most attractive, convenient and sometimes expensive places in the world. In the new millennium, particularly after the attacks on September 11th, Hilton has gone after the mid-priced client and the more affluent lodging clientele. The Hilton hotels focuses on the brand identity and quality, structural growth, brand equity, operational efficiencies and 100% customer satisfaction guarantee when it comes to their business strategies. In 2006 a new strategy that boosted the hotels profits was to maintain management contracts rather than full ownerships. Another business strategy of the Hilton hotels was to ensure to keep up to the promises of all the connectivity demands of the Hilton guests. This was done in May 2009 as Hilton hotels connected with BT (British Telecom) and ensured high speed internet usage in 60 Hiltons across United Kingdom and Ireland. This strategy ensured Hiltons commitment to extra ordinary levels of customer services (Wolf G.M. Neumann, Area president UK). Hilton opened midsized hotel segments to mark 20 years of award winning leadership in 2004. Hiltons started carrying out 20% reductions in carbon dioxide emissions, waste output and energy consumption, 10% reduction in water consumption t o prove themselves as environment and customer friendly. 4.2 HR Strategies Goals and Missions The Hiltons want to establish themselves as a world premium choice of hotels and want Hilton to be a brand inclusive of everything. It wants to boost its international connections and mark many locations as Hilton. Hilton hotels want to operate the business in a way that provides for current needs as well as allowing future generations to meet their own needs. Hilton hotels set their annual goals based on the prior years actual results and performance. At the end of the calendar year a hotel must have achieved their goals in each of the Key Performance Indicators of the Balanced Scorecard, the Hilton award winning performance measurement system.   The Key Performance Indicators are   Operational Effectiveness,   Revenue Maximization,   Brand Management,   Loyalty, and   Learning Growth.   Their mission is To be the first choice of the worlds travelers, building on the rich heritage and strength of our brands by: Consistently delighting our customers Investing in our team members Delivering innovative products and services Expanding our family of brands Continuously improving performance in our balanced scorecard (Hilton hotels corporation). The objective of Hilton is to matain a high standard in HRM and to create a business culture which everyone can grow and develop their careers. Giving themselves a 10 year time frame, Hilton is looking to add another 1000 properties to its international decision. They intend to move into areas such as Russia where they have never been before. HR strategy involves a central philosophy of the way that people in the organisation are managed and the translation of this into personnel policies and practices.It requires personnel policies and practices to be integrated so that they make a coherent whole and also that this is integrated with the business or organisational strategy. Hilton offers comprehensive HR support for managed properties. This support includes but is not limited to all of the following areas: full review of HR systems and standards to ensure corporate and governmental compliance, compensation administration, team member relations, risk management, professional education and training, HR information systems, in-house benefits support, legal and labour compliance, HR communications and workforce planning and analysis. Our HR team is dedicated to the pursuit of excellence in every area of team member loyalty and support. Hilton follows different approaches to manage HR(Hilton webpage). Ethnocentric approach: In which central values and business practices of home country are prelevant. The criteria for valuation and control are ascertained centrally from the headquarters. Polycentric approach: In this, under the supervision of local managers, subsidiaries are developed in each every country which results in little communication between headquarters and subsidiary. Geocentric approach: it tries to involve more integration between centre and subsidiaries to ensure close co-operation between the different parts of the chain, and implement both universal and local standards for evaluation and control. (Johnson 2003). 4.3 Overview of Hilton HR practices Successful organizations keep people issues at the fore front of their thinking and at the core of their decision making and planning. At Hilton hotel they believe Only those who feel valued can truly add value. This is the ethos behind every decision they make. A highly successful organization is one that has a unique organizational culture. Hill Jones (2001) described organizational culture as the specific collection of values and norms that are shared by people and groups in an organization and that control the way they interact with each other and with stakeholders outside the organization. At Hilton, There is a culture of support and sense of belonging that all workers of the Hilton family of hotels are made to feel at the work place. On their careers at Hilton page, emphasis has been laid on the fact that, recruits will be part of a growing company and a special family that is dedicated to a positive, productive and diverse working environment. Management looks forward to the special skills that individuals will bring to the job and at the same time, they have made an assurance that they are committed to the success and growth of their workforce. This implies that, they have in place a very good employer employee relationship at a strategic and operational level which creates job satisfaction ( see appendix A).The word family has been used considerably in their site. And if you join us, what should you expect from Hilton Hotels? Yes, you should expect to work hard, but above all you should expect to be treated as an individual, be rewarded for good performance and giving the little extra touches to our customers those Hilton Moments and, of course, enjoy your time with the Hilton family. So whether you are a seasoned professional or just starting out in this very diverse industry we would be delighted to welcome you to our family. (Hilton Hotel website). It clearly employs that there is an atmosphere of collectiveness of the workforce and a feeling of belongingness which does not only benefit the workforce but the organisation as a whole and effect contribute to satisfactory productivity, motivation and morale. It is therefore not surprising that they have one of the most enviable records of consistent international growth. Their work force is also referred to as team members. Team consists of individuals with different skills, knowledge, ideas and capabilities drawn from different background to execute a particular task. (Stuster 1996). Hayes (2002) suggests that a team is unlikely to function well unless its members are able to communicate effectively with one another and unless it is able to get over the interpersonal problems and conflicts which arise between individuals. Referring to the workforce as team members implies there is effective communication, engagement and also the influence of one another among employees and management, which enhances their performance. Engagement can be seen as ultimately about performance, because harnessing the discretionary effort of people does improve performance. If individuals are performing at their top potential, then it makes sense that teams, divisions, departments and organizations will work more effectively. Customers will receive better service, efficiency will improve, waste will be reduced, and overall performance will be enhanced (LGA, 2009:1). Hiltons HR team is dedicated to the persuit of excellence in every area of team member loyalty and support. 4.4 Training and Development The continuous learning and development of individuals are of crucial and strategic importance to organisations and thereby also to the overall economy. Organisational approaches vary greatly, but organisations that demonstrate a high commitment to HRM policies include as part of this commitment extensive training learning and development enabling them to achieve superior performance through their people. (Beardwell 2007:263). Hilton relates the success of their business to the skills, energy, initiative and commitment of their employees and team members. There is constant review of benefits available to employees to make sure they are competitive and can attract and retain the best people. (CSR Report 2005). Esprit is a Human Resource Management Programme based on Hiltons brand service standards which are truly extraordinary, focuses on courtesy, communication and guest satisfaction. Esprit helps employees develop their skills through ongoing monthly reviews, evaluation, certificates, and rewards for improving their knowledge and skills. This leads to higher employee satisfaction, higher standards of guest service and higher revenue and profits. With such great employee satisfaction Hilton International is able to recruit and retain the best in the industry and maintain high standards of people management (David LeMan, Regional Director of Human Resources Arabian Peninsula).(Hilton annual report 2002). With this approach to human capital investment and development, Esprit sets Hilton apart. It is therefore not surprising they have the worlds best hotel brand. Esprit focuses on the four Hilton core values expressed in its training manual; Customer to know who our customers are and provide them with the product and service they want. Quality that the customer is provided with an exceptional product by exceptional staff in terms of service and flexibility. People to work together and enjoy being part of a team and pulling together to provide excellent service. Profit to ensure that sales are maximized in answering the customers needs and that costs are controlled without compromising quality. (Hilton webpage) Hilton has a history of promoting from within the company. They provide opportunities for personal and professional development. Hilton believes that with their mission of becoming the preeminent global hospitality company the first choice of guests, team members and owners alike, they can only achieve this by constantly developing their workforce so that they can keep in tune with trends and developments in the hospitality industry. Hilton University is a worldwide award winning online portal available for team members to learn, train and develop. With more than 700 courses to choose from, employees can discover the best way to welcome guests, manage their time or coach a team of co-workers. This is available in different languages and a wide range of subjects (700 courses) to offer learning opportunities for staff in order for them to develop their skills on the job. It ranges from management skills, personal development courses, learning a language or financial training covering a range of skills for the hotel industry, from operational and technical to finance and general management. (Treven 2001; Johnson, 2003; Data monitor 2004; Brochure) It is a great way for staff to learn because it has been designed to help individuals learn at their own pace. It can be accessed from the hotel or office and even away from work. There are also virtual classroom sessions where staff can learn alongside other team members. Over 10,000 Hilton employees around the world have completed more than 80,000 courses at Hilton University since its inception (CSR Report 2005). This is a clear indication that a large number of employees take active part in the development programmes (appendix B). People are the only source of differentiation and sustainable competitive advantage. Essential to that is learning. Hence the director general for the IDP claimed that staff management and development will become the primary weapon available to managers to generate success (Rena, 200) cited in (Beardwell 2007: 263). The continuous learning and development of individuals are, therefore, of crucial and strategic importance to organisations and thereby also to the overall economy. (Beardwell 2007:263). Hilton has recognised the fact that majority of its team members are not English speakers. In 2003, the company gave 200 people the opportunity to improve upon their English by assessing an on line programme called Global English. This has benefited those employees involved. Most of those who had the opportunity of taking part are form developing and under-developed countries that did not have access to formal education which is often taken for granted in the West. (Brochure; Article, 200 2; Cushing, 2004). Elevator and premier class are also forms of training and development programs at Hilton (Appendix C for requirements). The aim of elevator is to develop a group of talented, internationally mobile people and fast track them to General Management positions within 5-8 years of starting the Program. It entails an initial 18 month training that consists of two international nine month placement. It is a combination of operational, all-round experience working in the 4 main areas of hotel business operations namely Business, development, Human resources and finance. There is also off the job training and business driven projects to complete. During elevator, progress is constantly assessed to make individuals know how well they are developing. Participants take part in four residential courses during the period. They will also have access to Hilton University the online learning and development tool to make use of their online business library. The elevator programme helped Hilton win the Best Development Program for Young Employees award at the 2005 World wide Hospitality Awards. Premier class is a nine month management and development program for employees aspiring to be department heads within the business. It focuses on key management skills needed to drive personnel and business performance in their hotel. Topics covered in this program include managing people and improving quality. We live in a changing world, new ideas and approaches emerge every day. Problems arise that need new solutions. This means constantly learning to keep up with the rapid change in the business environment. Hiltons learning culture acts as a source of job motivation and job satisfaction for employees which in the long run benefits the organization. 4.5 Performance Management and Reward Systems An organisations reward strategy is perhaps the area which, for employees provides the biggest bridge between rhetoric and reality. It is not only an essential tool in terms of retention, motivation and recruitment, it is an opportunity to demonstrate the culture of the organisation in a way that has real impact on employees. (Briscoe 1995; DAnnunzio-Green, 1997). Hilton believes there is the need to recognize and reward deserving and outstanding employees for their hard work and success. Employee benefit package is made up of a wide variety of features depending on the division and grade of the employee. Equilibrium is a worldwide quality initiative developed by Hilton. The aim is to ensure that individual guest needs are met and because Service quality is central to this, Esprit has been developed to embrace the key principles of employee recognition, respect and reward. HILTON INTERNATIONAL ESPRIT CLUB Only those that feel value can truly add value (Hilton hotel website) Human beings are diverse and complex and have different needs at a particular time. Therefore what satisfy one person will differ from another and also how a person is motivated depends on the needs, motive or drive of the individual. (BuchananHuzynski, 2004). Esprit encompasses a series of competitive training and development initiatives and a rewards program that gives colleagues a choice of benefits. Employees automatically become members of the Esprit club after completion of the training program. Employees are encouraged to create Hilton moments. The reward for this is Star points, bonds or certificates the currency for Esprit. This can be earned through Hilton as rewards for achievement and great guest service. The star points can be redeemed through a range of benefits. Examples are discounted hotel accommodation and food and beverage, health club membership, special rates on flights and car rental and mobile phones. Other reward systems include the the bright idea award, employee of the year or month award. Employees can also be nominated to representatives of the Hilton exchange committee, a forum where team members share ideas with the management to improve the hotel. In addition to the basic pay and remuneration received by employees, additional features are made available such as corporate discounts on hospitality services and travel. 4.6 Recruitment and Selection According to Armstrong (2005) organizations require employees with the right skills to ensure and sustain competitive advantage. Hilton believes that although year after year independent research confirm that they are the worlds most powerful hotel brand operating over 2800 hotels worldwide in more than 80 countries, in order for them to remain number one, they need to attract and develop the right people to be regarded as an employer of choice. Hilton relies heavily on the internet to advertise for candidates. They use websites like CatererGlobal.com, Milkround.co.uk, jorapido.co.uk and their own corporate website careersathilton.com. Occasionally they advertise in their annual brochures. Beardwell (2007) described outsourcing as a distinct business function from inside the business to an external third party. He goes on to say that outsourcing has become more and more common. Hilton receives over 1 million resumes annually. The company was therefore faced with the challenge of streamlining the hiring process in order for them to effectively assess viable candidates from among hundreds of applicants for specific positions. There was also the issue of administration being burdened with huge paper applications. Hilton deployed Oracles PeopleSoft Enterprise Human Capital Management Suite as Hiltons HR system of record worldwide, improving productivity, efficiency, and flow of critical data. (Oracle web site). This move helped them manage over 1.5million resumes annually, reduced administrative cost and burden, and helped to eliminate the paper based recruiting process enabling candidates to apply online. One of the ways in which they achieve this is through their award winning fast track graduate development Elevator program. THE ELEVATOR SCHEME The elevator scheme comprises of four stages selection process Stage 1- Application form: an on-line application form will have to be filled at this stage. Information such as personal details, education and work experience will be required. Based on this form, you may be invited to progress to Stage 2 of the process. Stage 2 Analytical reasoning tests: The applicant will have to go through a number of tests to assess his or her verbal and numerical reasoning ability. Based on the results at this stage, the applicant will be invited to complete Stage 3. Stage 3 Psychometric tests: This stage entails a series of tests that measure the applicants values and preferences. Successful applicants will progress to the next stage. Stage 4 Assessment Centre: At this stage, successful applicants will be accessed as in depth on several competencies. Only those who qualify will be offered a place on the elevator program. (Hilton.co.uk 28/11/09). 4.7 Managing the Employment Relationship . Beardwell (2007) described the employment relationship as containing an economic component, the exchange of work for payment but also includes a sociological dimension centred by power and authority. Hilton Hotels have their own in house team of attorneys and paralegals that provide various forms of legal support to their hotel management teams. Management of Hilton Hotels believes it is their responsibility to provide their employees with training in employment law, antitrust, privacy and ethics. Legal support is also provided in areas such as hotel operations and resources which include online answers to frequently asked questions and periodic newsletters. A prewritten specialized form of agreement is made upon employment between employee and management .This is made up of pay, working hours, holidays, and notes on grievance and disciplinary procedures. Hilton has available a panel of qualified counsel that help manage both insured and uninsured litigation. They respond to government subpoenas like wage garnishments and other legal orders made by the government. Hilton has a principle of equal opportunities based on merit. No employee or job applicant should receive less favor on the grounds of sex, religion, age, nationality, race, disability, marital status, or disability. Hilton strives to meet high ethical standards. They abide by the provision of Universal Declaration of Human Rights. Being a global hospitality and leisure company means Hilton operates in different communities and employs people with different cultures thus the workforce will be diverse. Having an equal opportunity policy works to the advantage of Hilton. This will ensure fair treatment of employees and the avoidance of discrimination. Hilton operates a whistle blowing policy which allows employees to bring acts of discrimination to the attention of senior management. Health and safety throughout operations is practiced for the entire workforce. A culture of risk management to ensure accidents and incidents is kept as low as possible. 4.8 Employment Involvement Hilton stresses much on employee involvement at all levels of the organization. For example, during the graduate development schemes, participants are assessed based on real life situations. Hilton outsourced giving Susan H.Lickert Hospitality Consulting Group (SHL) the responsibility of handling the assessment centre aspect of the recruitment process. SHL designed the process to take the form of a real hotel day to day experience. Candidates are given roles like receiving guests, taking orders etc and are assessed on their performance. This offers a true picture of the high demands in the industry that the selected candidates will go through. This level of training candidates go through prepares them for any situation they are likely to encounter when they take up their roles in the company. It also helps managers to know whether they are progressing the right and the expected way. It is not surprising Hilton has committed and talented managers in their hotels worldwide. Hiltons goa ls and values are embraced from the very beginning by the trainees and this leads to them performing as a team rather than at the individual level. With the SPARK Management program, employees are assigned senior management mentors who support and encourage them to get involved with projects and activities in the company. Employees are also invited to create career development review of what they have learned and what they hope to achieve in terms of career development within their respective departments. 5.1 HORIZONTAL INTEGRATION Whichever major city one finds him or herself there is a big chance of coming across a Hilton Hotel. Hiltons rapid expansion globally, example in the UK was based on the acquisition of competitor hotel chains like Statis. One of their strategies is gaining 1000 more properties within the next 10 years. This is linked to their HR practices. Their international expansion included the purchase of Scandinavian hotel chain Scandic. The acquired hotels are carefully evaluated to see whether their property profiles fit with the property requirements of Hilton Bran. Those that do not meet the requirements are sold. They enjoy economies of scale that lead to increased profit margins because they have the ability to leverage higher brand awareness by owning more hotels and spending more on marketing communications. They also have the opportunity of expanding operations more efficiently and quickly by gaining access to capital markets. (Bowie 2004). 5.2 VERTICAL INTEGRATION To add value, HR needs to achieve vertical integration. Hiltons business strategy, organizational culture and values impact the vertical fit. Hilton has very clear and certain strategic goals and this helps them in achieving a better vertical fit. They are able to merge their Business strategy into designing of HR practices that are compatible with their strategy. Hilton continues to demonstrate that building a satisfied and valuable workforce is not a quick-fix procedure, but an integrated approach that permeates through every aspect of the organization. Hilton tries to recognize the importance of employ