Leading Human Capital Challenges Confronted By Management Management Essay

Overall there is a deficit of endowment in the market and everyone is viing for it doing a “ endowment Crisis ” Ashley Lauren Perez states on her web log, that to pull endowment, your company needs to be good represented in the market. It is expected that employees will carry on a survey of an organisation to see their civilization and how it best fits their ain. It is of import that visibleness on web logs & A ; societal media are present. Bing recognized as a good employer with good values will hold campaigners with endowment lined up to fall in. Finding originative attractive ways to enroll gifted employees should be your focal point. ( Perez, 2012 )

Ashley Lauren Perez ( July 2012 ) Creative thought. Blog. Avaialble from hypertext transfer protocol: //ashleylaurenperez.com/2012/07/10/company-branding-to-attract-talent/ [ Accessed September 15th,2012 ]

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Issues in Pull offing the Generation spread & A ; Prolonging them in the company

Jennifer J. Deal states in her journal article that even with generational differences, there are many similarities amongst all coevalss. Organizations need to capitalise on this similarity to pull off them expeditiously. Eg- All employees would wish to be valued irrespective of their age. They want their directors to be honest with them, Loyalty given by employees is based on their ranking in the organisation and non truly their age. Eg- More hours of work are contributed by direction as opposed to line degree employees. Equally long as the organisation is right running itself it will be easy to retain the employees involvements irrespective of which age class they come from.

Jennifer J. Deal ( 2007 ) Generational Differences: Leadership Excellence, Vol. 24- ( 6 ) , 11


Economic Slowdown

Most companies are keeping off on investing with the fright of close recession. Unemployment is on the rise and uncertainness still remains in companies and the employees heads every bit good. The slow down has caused a decrease in investings and concern are concentrating on their nucleus advantages and seeking to remain as productive and cost efficient as possible. This will assist the concern get through the storm but will non needfully heighten futuristic growing.

Referee: Classroom panel treatment with Sri Lankan HR professionals

Restriction of Women in leading place

Harmonizing to Havard concern school Business acme 2008, the treatment involved Women in leading place as one of the cardinal challenges in pull offing human capital.Women in the workplace still have a few hurdlings to leap to derive more leading.

The Centennial Global Business acme ( 2008 ) Pull offing Human Capital: Global Trends and Challenges. [ Online ] .Available from: hypertext transfer protocol: //www.hbs.edu/centennial/businesssummit/global-business/managing-human-capital-global-trends-and-challenges.pdf [ Accessed on September 2nd,2012 ]

Connie Glaser expresses that ‘Men have ailments excessively ” As she footings it as ‘Reverse Discrimination ‘ that work forces make claims that adult females are being given the opportunity to travel in front in the corporate ladder based on gender and non accomplishments. She advises companies to be prepared and to guarantee that both genders are treated reasonably at all times, and have proper concluding behind why some employees may acquire increases and non others. Eg- All pay increases should be public presentation based. Connie Glaser ( August 2010 ) Gender Negotiations: Leadership Excellence, Indian Edition, 15

Issues caused by Globalization & A ; Competition

HR is concerned with the consequence of globalisation, most organisations can see the universe opening up to hold a wider range. Globalization is said to raise competition in the market and motivate companies to vie on efficiency, but with the emerging economic systems offering a competitory advantage of low labor cost, frequently The Americas & A ; Euro Zone have no better option and in bend they receive many advantages such as enlargement into new markets, doing new confederations. However there is ever a concern on who is managing the work and a designated individual will be required to do certain they are on the right way and they respect and stick within fiscal guidelines. Overall we can see that globalisation has caused a concern for HR professionals as they try to keep their employees in the most cost effectual mode.

2.0 Leading Human Capital Challenges confronted by Aitken Spence Hotels Management

2.2-Local Challenges

Making Employer Branding

We see that AS human resources ( HR ) frequently looks at the overall cost deductions of employer stigmatization. Employer stigmatization should be the involvements of every employee, nevertheless it needs to be funneled by ASH HR, through it ‘s employees communicating and externally develop it ‘s Employer branding instead than merely the names of their hotels.

Most people know the trade names Smirnoff, Jonnie Walker, Guinness, but they have non heard of Diageo. They aim at making the involvement in Diageo as a prospective employer. They actively participate in CSR undertakings like Smart Drinking runs. All these will highlight Diageo as a prospective employer.

Priya de Langen, Diageo on employer stigmatization, HRM, issue 12.8,18-21

Aligning Human resources to company schemes

Aitken Spence successfully undertakes developing initiation and enlisting & A ; healthy and safety concerns. However they do non look at the progressive long term vision of the company. They have non aligned their HR scheme to that of the corporate scheme. Currently HR is merely taking the function of a support map to other sections.

Lack of HR information system

ASH demands to be after for a more advanced HRIS that will let them to administrate employee information, preparations, wellness & A ; safety, benefits, in order to concentrate on more importance countries like Strategic HR.

Chandra. R ( 2009 ) , ‘Role of HRIS in bettering Modern HR operations ‘ , Progresss in

Management,2,12, pp21-24, Business beginning Prime Minister, Ebescohost [ Accessed 12 September, 2012 ]

Employee Engagement

No attempts have been made to advance an employee battle program.. Employees are given needed preparation but they have non set up motive factors harmonizing to the outlooks of employees.

Sequence Planing

As top rank places are occupied by older work force, employees do non see the option for growing. Career programs have non been set for each employee and ratings are simply done one time a twelvemonth for procedural interest but no existent feedback is evaluated and concerns addressed.

3.1 -Employee docket

Great Atmosphere to work in

Giving them the tools to work and leting a safe and happy environment. We have seen more unfastened offices set ups in order to heighten networking & A ; changeless communicating. Harmonizing to our interview conducted this is one of the top 3 of import factors for employees at ASH. Sumathi V Selvaretnam explains that ‘ Soft accomplishments can be a critical discriminator in today ‘s Social work environment that call for greater interaction and battle ‘ .

Sumathi V Selvaretnam, Best served soft, HR ASIA 12.8, 49-52

Equality & A ; Fairness

All employees wish to be treated every bit and to hold a clear transparent HR section who will esteem them. Mark Butler observes, “ Bad times should n’t do us to bury the values we one time held beloved, such as equity, openness and answerability ” . Butler, M 2010 ‘Do n’t allow travel of values ‘ , People management,17, Business Source Premier [ Accessed online: Ebescohost, viewed 11 September,2012 ]


Recognition plans are of import to maintain lesson of staff high and to guarantee that the importance of difficult work is recognized. Such plans enhance competition amongst employees and highlights the best out of the harvest for calling development. Aitken Spence employees expect to hold a sound acknowledgment plan with wagess that makes sense.

Career Development

Most employees join a house with the purpose to travel up the corporate ladder.There should be a roadmap for each employee of where they can be and how to acquire at that place. This creates enthusiasm around progressive acquisition and sustains employee in the organisation.

Good Remuneration bundle

It is cardinal that ASH is in line with market wage in order to be viewed as an attractive employer. Harmonizing to the tower Perrin theoretical account of entire wagess The Transactional wagess ( Pay & A ; benefits ) are indispensable to retain staff, and already offered by many companies. The relational wagess ( Learning and Development & A ; Work environment ) are necessary to complement the Transactional wagess. It looks like ASH employees are looking for the entire wages strategy with a balance of both

Interviews conducted with ASH Employees:

Marketing Executive

Engineering, Executive

IT Executive,

Reservation Co-ordinator

International Properties- Assistant co-ordinator

Interviewed by Ruvika Peries ( August 31st,2012 )

3.2 -Human Resource Agenda

Staff keeping scheme

Retaining staff and guaranting that they are trained and developed, will give them the assurance they need to take on any challenge “ Sustaining employees means maintaining them happy and motivated which is what we strive to make ” – Head of Aitken Spence HR.

Engagement & A ; employee grudges

HR acts as an go-between toward any grudge and happen the best solution to end the state of affairs. HR says its function is to guarantee that any work related issues are kept under control and any personal issues can be discussed with assurance and counsel will be given.

Health & A ; safety concerns

Health & A ; Safety of their staff is ever a precedence. ASH HR has appointed a wellness and safety commission with representative from every department.The commission meets one time a month to discourse any insecure country or jeopardies or preventative steps. 10-minute trainers are besides conducted and distributed amongst section, giving them a Health & A ; safety subject to concentrate on each month. Eg-Robbery, chemical spills.

Recruitment & A ; On get oning experience

HR takes duty for choice of employees guaranting they fit the occupation function and the overall attitude of the company. ASH HR ensures that they choose the best campaigner by forming a series of Team interviews, Personality questionnaires. Once the employees are onboard HR takes duty to give them a sound orientation.

Training and development

Changeless Training and development is indispensable for an ASH to maintain growing.HR is in charge of the legion preparation and development Sessionss for employees either in house or by sing trainers.HR takes great importance in doing certain that employees and given the cognition and accomplishment to stay competitory and to stand out at their occupations.

Head of Human Resource, Aitken Spence, Interviewed by: Ruvika Peries

( August 23rd,2012 )

3.3 What is the perceptual Gap?

Benefits set by HR do non fulfill the employee outlook

It was mentioned by ASH staff that the medical strategy is the lone existent benefit they receive other than their wage. Where employees need to pay for medical measures and submit through a drawn-out reimbursement period. Many employees mentioned that HR does non orient to the staff but merely plants by the book. Eg ; A petition for a interruption out room for relaxation & A ; gym ranks has still non been responded. “ All we want is communicating on what ‘s traveling on, and to run into our outlooks! ” Said an ASH staff from Engineering section.

HR is non perceived as a people section?

HR says they work on behalf of employees. There is much room for betterment and they need to guarantee that employees can swear them and come to them for solutions. HR needs to link with employees on a personal degree. Right now ASH employees prefer to decide issues on their ain than speak to HR, which is non a good mark.

Rewards & A ; acknowledgment strategy executed by HR are non be of value to actuate the employee

Employees have expressed that the acknowledgment offered is non of value to them. Eg Employee of the month is merely a rubric. They are rewarded for their public presentation but they want more than a rubric. The HR section thinks ASH employees are motivated by this acknowledgment strategy.

HR Department does non apportion any clip for calling patterned advance from within.

They would wish to be recognised for their endowments and be ready for senior place through preparation, HR conducts preparation and development on current accomplishments but they do non hold any Personal development programs in topographic point for employee for their growing.

Training and development is non harmonizing to employee demands

Employees expressed that they wished they had preparation that would assist them execute better in their occupations. HR preparation program is yearly and is non set harmonizing to the alteration in demand for accomplishment but it is a humdrum routing of preparation.


3.4 Resolutions in Narrowing the Gap

Constructing a better relationship

Building trust is the first measure & A ; demoing you care. HR needs to acquire more involved in the lives of their employees by celebrate happy occasions Eg Birthday Celebrations, Employee grasp hebdomad, Ensure that HR is out of their office linking with Staff. Job rotary motion for HR. Spend a hebdomad with the selling squad to understand their challenges and A good versed HR section will be able to decide jobs more expeditiously. HR should put in communicating systems. Aitken Spence does non hold any communicating systems in topographic point to guarantee co-ordination between HR & A ; it ‘s employees. Keeping employees upto day of the month on new go oning in the organisations will promote engagement and they will populate and experience the organisation by this engagement. Tools such as Screen rescuer messages, Staff quizzes, suggestion box are all helpful tools.

Harmonizing to the Press release ( PRWEB ) March 24, 2010 -SnapComms Internal Communications Tools Empower Abacus to Foster Internal Brand Engagement [ Online ] Available from hypertext transfer protocol: //www.snapcomms.com/case-studies/internal-brand-case-study.pdf [ Accessed on September 10th,2012 ]

Retention of staff through calling planning

Puting a clear cut uninterrupted program will give way towards ends set, that are ever germinating. HR with the section directors need to put single programs and allow employees compose out their ends by inquiring inquiries. Where do you see yourself in the hereafter? HR needs to sit with the employees and put preparation consequently to do it more meaningful to them in accomplishing their ends.

Upgrading the Training procedure

Training is required for every employee to win and develop in their current occupation function continuously. ASH must see what understanding and capabilities the employees have in their occupation and what preparation is required, and how best the trainee can run into this spread, Therefore HR needs to follow a preparation demand analysis

Training demands to be designed harmonizing to practicality. Siting with section directors and planing a preparation that will be effectual in day-to-day work and meets the budget of preparation.

Effective execution of preparation is required by the facilitator. Making usage of practical designated methods and bringing to guarantee that employees reap maximal benefit.

Measuring how good the preparation has accomplished the preparation demands. Most of the clip really few trainee put into pattern what they learn at preparations. The inquiry lies if this is truly deserving the investing?

Aitken Spence needs to better this preparation procedure at the designing phase, during the preparation attempt to accommodate it to existent work experience for employees to be able to contextualise, and behavior after developing ratings and wages employees who are practising component learned in preparations.

Endowment direction

Talent direction systems are proven to be a signifier of keeping and it adds value to the employee and the organisation. One of the employee supplications is that they do non hold meaningful acknowledgment. With talent direction it will stream out the endowment and develop employees and put them in the limelight for future growing as good.

ASH can look into the 3 stairss to be taken when puting up talent direction systems:

Measure 1 Demarcating the endowment

Endowment must be selected based on their competences are checked by endowment board to avoid nomination of friends and favors. Marcus Buckingham and Curt Coffman gives grounds in their book, First, interrupt all the regulations, what the universe greatest directors do otherwise, where directors need to foreground endowment on first cognizing what endowment you are looking for?

Measure 2 Conducting several Checks in the system to see who can be developed

Expression for countries of preparation & A ; concept preparation & A ; development to rectify and heighten campaigners

Continuous follow up to guarantee that endowment system is running right

Measure 3 Career Development -Setting a program

All campaigners much have a program or future place they are looking at based on their current strengths and properties.

Mention: Harmonizing to Dr Lester Massingham ‘s talk notes

Micheal et Al ( 2001 ) identifies five chief points to look into for talent direction:

Ensure that Aitken Spence has a competitory border to pull endowment

Ensure that Aitken Spence looks at making a long term enlisting scheme.

Using work experience, development to better the prospective abilities in directors

Raise the degree of the endowment pool by intensively concentrating on top endowment, budding 2nd phase endowment and positively thought of the phase 3 endowment.

The overall thought should be that Aitken Spence will derive a competitory border by recognizing endowment at all phases.

Micheals, E G, handfield-Jones, H and Axelrod, B ( 2001 ) The war for endowment, Harvard concern school press.Boston, MA

Rewards & A ; Benefits to fulfill Employee demands

On a monthly wage stubs notices can be attached on what employees are really receive, such as employee price reductions on hotels, Use of gyms in the hotels, complimentary massage from hotel watering place, discounted repasts. Working on a direct sedimentation insurance claim can besides be an option to rectify the negativeness. Not all benefits need to be pecuniary, non pecuniary wagess are sometimes appreciated more, as it creates an experience. Eg- Restaurant repasts for squad, jaunts, Golfing. The advantages of experiential wagess is that it besides brings a great squad spirit, trueness and unforgettable employer stigmatization.

Vivien Shiao Shufen, Accelerating public presentation with wagess, HRM Asia, 12.8,59-63

4.3Key implicit in challenges in Strategic Human Resource Management

Presently HR has no linked scheme

It is really hard to enforce strategic HRM and expect positive consequences when HR presently schemes are non linked to the ASH ends. Currently HR has it ‘s ain set of ends with respects to engagement and recruitment but these do non associate to the overall corporate vision.

Inadequate Succession Planning

Enrolling from within is non an option that has been freely exercised by Aitken Spence as they do non put adequate clip or resources to convey the current employees to take on new places. Surveies suggest that the chief ground why most sequence planning is non carried out is due to limited fundss, hapless planning and inability to track public presentation.

Paradise, A 2010, Many barrier inhibit success: Sequence planning, T+D,64,6, 60-61, Business Source Premier, Ebescohost [ Accessed on 16th September,2012 ]

HR concentrates on HR section marks

ASH -HR Division brags about it ‘s first selling HR plan for employees. Training and workshops which will assist employees to understand the necessities of HR.They are great at heightening HR related mileposts but they have yet to get down believing on strategic degree.

Head of HR Aitken Spence, Aitken Spence Conducts the World ‘s First Program on MarketingA HR, [ Online ] Available from: hypertext transfer protocol: //aitkenspenceplc.wordpress.com/tag/rohan-pandithakorralage/ [ Accessed on September 4th,2012 ]

Resistance to alter

Most senior direction have been at Aitken Spence hotels for many old ages and have made a grade in open uping most of the hotels now standing. Change is a chilling word for most employees as it means they need to alter themselves and accommodate to the current conditions put across them. The senior status in the company will be immune as they will hold to alter their end scene to be more strategic, and accomplishing ends possibly harder cutting into their one-year fillip.

Employees are non driven

Employees do non hold the competences to transport out a strategic HRM scheme. Employees are non engaged and non focused to endeavor towards the Companies ends. Employees have no trade name values, leading or employee battle in their current scene, which are lending factors to developing employee committedness and competences.

4.4 Recommendations for Aitken Spence Hotels in taking on HRM

Instruct HR and top direction to be the leader for execution

Schuler ( 1992 ) explains that ‘ Strategic Human Resource direction is mostly about integrating and version. Its concern is to guarantee that: 1 ) HR direction is to the full integrated with the scheme and strategic demands of the house. 2 ) HR policies cohere both across policy countries and across hierarchies and 3 ) HR patterns are adjusted recognized and used by line directors and employees as portion of their mundane work. ‘

Schuler, R.S ( 1992 ) Strategic human resource direction: associating people with the strategic demands of the concern, organisational Dynamics, 21 ( 1 ) ,18-32 as cited in: Micheal Armstrong ( 2009 ) Handbook of Human resource Management pattern, Kogan page.

This means HR & A ; direction demand to take duties to put to death a well planned scheme. AS can do usage of HR Strategic tools like Strategy map to map out AS overall place, HR Scorecard to aline fiscal and non fiscal aims with HR maps to accomplish & amp ; proctor public presentation. AS can do usage of the digital dashboard.HR can see a graphical image on their current standing after analyzing the fiscal & A ; non fiscal execution with the HR Strategy. Execution has to get down with HR & A ; top direction.

Gary Dessler & A ; BijuVakkey, ( 2011 ) Human resource Management,12th edition, Pearson learner hall, 105.

Make a strong corporate civilization

From the clip of enlisting to initiation to mid-year reappraisals, the corporate civilization needs to run in the organisation and HR is the cardinal section to guarantee it is implemented. Corporate civilization frequently creates an emotional bond between the employee and the organisation. It encourages trueness and reduces turnover, hence AS demands to endeavor to work towards a strong corporate civilization of their ain for all employees to populate

As a best pattern the Inter-continental hotels group has a set of IHG winning ways in which all hotels in the concatenation follow it at work and their personal lives. It is used at employee events and acknowledgment plan. IHG Winning ways are set to accomplish the IHG their chief end “ great hotels invitees love ” . A InterContinental Hotels GroupA , n.d, What are our winning ways, [ Online ] Available from: hypertext transfer protocol: //www.ihgplc.com/index.asp? pageid=350

Making Succession be aftering a cardinal aim

Every employee needs a personal program that should co-occur with the company objectives. HR needs to see this through and guarantee that they collaborate the program and guarantee that it is executed.With many senior executives making retirement, it is up to HR and the section directors to convey motivated ambitious employees to take over and hold prospective employees ready in line to be trained by the retired person itself. Personal Development plans need to be drawn up for every employee and should to be looked at continuously to guarantee all employee are aligned to the ends set, ( non merely one time a twelvemonth ) AS is non being pro active and they look for replacings when it is excessively late. A well planned sequence program must guarantee that the operation will non be disrupted, concern continuity will be present, and developing future leaders is present. It is imperative that AS gets into sequence planning and talent direction systems as this will hike motive with internal patterned advance.

Knowlton, J 2010, ‘Building a Successful Sequence Plan for a Financial Service Practice ‘ , Journal Of Financial Service Professionals, 64, 1, pp. 60-65, Business Source Premier, EBSCOhost, viewed 13 September 2012.

HR pull offing to accomplish aims

AS demands to look at pull offing to accomplish aims. Peter Drucker provinces, ‘what each director does must do sense in footings of the company ‘s overall program ‘ .Peter Drucker has lineations 5 stairss:

Set organisational Goals- Set together by higher direction. Aitken Spence executive commission would sit and discourse what they need to accomplish this twelvemonth for the whole company and to fulfill all stakeholders.

Departmental Goals- Setting ends for the section will be assigned by Department director and employee. Eg Raise guest satisfaction by 10 %

Set Individual goals- Raising overall guest satisfaction tonss by 10 % .Eg Employees will personalize their friendly service.

Give Feedback- Constant meeting with employees to guarantee they are on path and what needs to be improved to raise guest satisfaction tonss.

There lies the inquiry should directors allow employees prosecute in puting their ain ends or should it be directed by directors? Overall we see that participative ends have less opposition from staff as they are involved in the compilation procedure and are motivated to accomplish them.

Gary Dessler & A ; BijuVakkey, ( 2011 ) Human resource Management,12th edition, Pearson learner hall, 90.

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