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    Managing Human Capital

    Introduction to Managing Human Capital

    Managing human capital is about how employees are managed by an organization to meet specific objectives of the business. It is a process of recruiting and selecting people and developing them for improving their value in the workplace. The main functions of managing human capital are planning, organizing, directing and controlling human resources. The report is based on Hilton hotel of UK. It is the chain of hotels operating in more than 550 locations across six continents. This project covers important aspects such as history of the company and achievements of Hilton hotel. Further, the report also identifies the staff attrition rate in Hilton Hotel over the past three years. The current problems and challenges faced by human resource department in Hilton and impact of these issues in the organization are discussed. The solutions of various issues are justified with the suitable suggestions to Hilton. In further section, suitable theories and models have been used for the organization. The report also emphasizes on individual element of Managing Human capital in the organization.

    TASK 1

    History of Hilton hotel

    It is started when Conrad Hilton bought his first hotel in 1919. The Conrad Hilton opened its first hotel with cold running water and air conditioner in the public room in 1927. After this, he started many services for their guest in 1947 to 1987. He installed first televisions in guest room in the Roosevelt hotel in New York City. Further, he also introduced modern day reservation system which is known as multinational reservation system. Hilton created its first special amenity for women i.e. a sewing kit and booklet with necessary telephone numbers. Hilton hotel offers for their guest room first brand-wide direct-dial telephone service. Then he opened its first airport i.e. Hilton hotel launched eforea spa in China, Thailand and the United States. In 2014, First hotel i.e. Hilton Times Square brand live stream a concert on YouTube. Recently, the hotel expanded its business in 100 countries and now it is operating in more than 550 locations.

    Milestones achieved by Hilton hotel

    The milestones achieved by Hilton hotel is given below

    1. The Hilton hotel generated revenue in 2014 more than 10.5 billion U.S. Dollars which is highest revenue in UK hotel industry.
    2. Light stay announces result in 2010 that the hotel has saved more than 74$ million in utility cost and it has decreased its energy use by 6.6%.
    3. Hilton hotel has become one of the multi-national organization to be certified, ISO 9001 certification for quality management and ISO 14001 certification for environmental management system.
    4. Hilton hotel has received award for best use of social media for Europe in the year 2015.

    Industry position and key competitors of Hilton hotel and resorts

    In 2016 ranking the position according global Forbes list Hilton hotel rank on 476 in worldwide(Forbes, 2016). The key competitors of mentioned hotel is Marriott International, Inc.,Starwood hotel and resorts and Intercontinental Hotels Group PLC.

    No. of employee in above hotel

    In the all Hilton hotels the Total number of employees is 164000(Forbes, 2016). and the attrition rate in hotel is high in over the past three years

    TASK 2

    What HR delivers and what business unit needs

    At Hilton hotel, HR department’s role is to support the organization so that management would concentrate on the growth of business and instruct the employees accordingly to attain the set goals. There are many roles which HR department at Hilton Hotel has to play. Some of them are as follows:

    Employee’s concern

    Role of HR department is to recruit skilled employees, review the job description and assign the job according to their skill. At Hilton hotel, HR department also include compensation and benefits that are to be given to employees based on their performance. Along with that, it also includes keeping a close eye on wages as well as observing and controlling the division of labor among departments.

    Morale and mentoring

    HR department creates employee development program, for continued the growth of their employees. They also focus on employee’s development through mentoring and guiding them on different stages for accomplishing their goals. They also make a specific plan for staff members for providing directions in the areas where attention is needed.


    At Hilton hotel, HR department is responsible to give training to employees so that they would provide better services to the ultimate customers. Through cross training, employees get opportunities to work on multi task. Along with that, training helps employees in improving their skills by which they can work more efficiently and effectively for hotel.


    HR department delegates the workload among experienced and skilled staff. Different culture customer come in organization. Staff are required to make their customer comfort by giving them room service or any other facility they want in their hotel.

    List the challenges and give brief explanation of the issues


    HR department not only hires new talent for Hilton Hotel but also make initiatives to retain the existing talent in organization. In the present scenario, it is one of the major challenges to make employees stay in the firm in the long run. HR manager’s responsibility is to protect the valuable assets of firm, that is, human resources. Hiring and retaining the best employees is the biggest challenge for HR department.

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    At Hilton hotel, employees sometimes get demotivated due to heavy workload. To keep the workforce motivated to perform their jobs effectually is another challenge for the hotel. In this case, HR manager required to motivate their employees so that they can perform their best for the hotel. Employee motivation is also a challenge for business because their performance affects the overall development of org

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