NH Hotels – The Human Resource Function in Organizations Harvard Case Solution & Analysis

NH Hotels - The Human Resource Function in Organizations

                        In any organization, various HR function is involved for the employee’s motivation and other factors are associated with it. Usually, HR function comprises of recruitment and selection, employee relations, compensation and benefits, work safety or job security, compliance associated with labor along with employment & training and development. The main objective of the HR function is to motivate employees in the best interest of organization’s success in the long term. If the HR takes care of its employees in a better manner; then they participate in enabling that organization to be successful. In the case of NH Hotel, human resources were very concerned about their employees and considered them as an asset for the success of the organization. If we talk about the NH Hotel’s selection policy, so it can be seen that it was totally based on merit and they also hired employees if it was necessary.

Performance based compensation was always available for deserving employees; the good thing about the organization was that they were not only encouraging and motivating the deserving candidate but they were also interested in encouraging the de-motivated employees in order to utilize their capabilities and  resources in the best interest of the organization. No discrimination element was present in the organization, which was one of the positive mechanisms for the HR department of NH Hotels. Training and development facilities were also designed for employees for their professional development in order to keep them focused on their areas of interest and capabilities in order to utilize the maximum output from them, which proved to be a significant factor for the organization.

- Strategic Human Resources Analysis

            NH Hotel HR concern was very effective for the success of the organization. The reason behind it was that they totally focused on their employees and considered them a part of the organization up to the highest level; NH Hotels was providing ample opportunities to the employees in order to grow. They provided them a solid platform for the purpose of gathering knowledge and sharing it among the bosses, subordinates and higher level employees as well. There was an efficient communication among the supervisors and the employees through performance evaluation and development plans. Supervisors had to give feedback to the employees over the actual performance and if there were any advice and suggestions for employees then supervisors also provided them in details.

HR’s concern of the NH Hotels was totally based on the team work performance rather than individual performance; they believed that the performance of team work was much more efficient and effective than the individual outcomes. One of the other positive points that NH Hotels did so effectively was the functional mobility of the employees, they were nominated the jobs as per their capabilities and abilities to the best interest in the organization. HR was not only restricted to the specific job requirement nor on job rotation, but one thing was sure they were trying to avoid unnecessary rotation in the employees job. The implementation of Performance Management System was a significant factor in driving the NH Hotel’s success as they also became a pioneer in the Spanish Hotel industry.

-The change in organizations (Change Management)

            This is the age of technology and modernization; globalization affects significantly in the lives of the people. Customer buying behavior, needs, priorities, perceptions and decision making criteria has changing rapidly due to globalization. Social and cultural values are also changing, it is now a challenge for the organization to learn these factors and facilitate the customers as per their buying needs and priorities. NH Hotel is also concerned about that factor as they are making lot of changes both internally and externally to keep them competitive in the industry. They are always looking for strategic change in the society for the best interest of the organization and their hotel chains began to expand at global level including Latin America.

They were also involved in “Diversification” of the businesses and signed various cooperation agreements in the year 2000. One of agreement signed with Ferran Adria in order to introduce and launch new culinary concepts in the chain; the second agreement with Adolfo Dominguez to plan uniform for the employees and the last with Jesus del Pozo for the formation of special fragrances for the customers.  NH Hotel’s main aim was to expand globally to increase their market share in the areas which they were not operating in the past. They were also considered and implemented product development strategy and keep increasing their standard of the hotels including room facilities, creation of new rooms etc.

- Analytical model of corporate culture

            NH Hotel was very concerned about the culture ..........................

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