Strategic Human Resource Management on the Example of TGI Friday’s Restaurants Chain
Name: Kateryna Tyshchenko Class: BA Autumn 2011 Module Code: 6SZ012 Lecturer: Jaco von Wielligh Word Count: 3954 Due Date: 04.11.2011
The aim of this research is to investigate on the practices implemented by strategic human resources management (SHRM) in hospitality industry. The importance of practices and examples of benefits gained from the implementation are described. The evaluation of the external and internal environments by means of SWOT analysis and Porter’s five forces is presented on the example of the award-winning restaurant chain, namely TGI Friday’s. Basing on the results of the analysis, the challenges and recommendations were identified. Additionally, research covered the general definition of SHRM and its practices as well as giving the examples from chosen company. The resources used in order to conduct the research include relevant literature and official and reliable online sources, namely the official TGI Friday’s, Carlson Restaurants Worldwide and Rosinter web-sites.
Table of Contents
1. Introduction 2. Aim and objectives 2.1. Aim 2.2. Objectives 3. Methodology 4. Analysis 4.1. The TGI Friday’s Brand 4.2. SWOT Analysis 4.2.1. Strengths 4.2.2. Weaknesses 4.2.3. Opportunities 4.2.4. Threats 4.3. Porter’s Five Forces 4.3.1. Threats of New Entry 4.3.2. Buyer Power 4.3.3. Supplier Power 4.3.4. Threat of Substitutions 4.3.5. Competitive Rivalry 5. Impacts of Human Resource Management 6. Strategic Human Resource Management 6.1. Recruitment and Selection 6.2. Training 6.3. Rewards 7. Challenges and Recommendations 8. Conclusion 9. References 4 4 4 5 5 5 5 6 7 7 7 8 9 9 9 10 10 10 11 12 12 13 13 14 15 16
Hospitality and tourism industries are in the list of the biggest employers nowadays. According to World Travel and Tourism Council (WTTC) estimated the number of 8.7 % of jobs worldwide is in travel and tourism related fields (Nickson, 2007, p. 5). The employment policies, such as selection, hiring and placement, are developed to meet the aims of hospitality establishments (Tanke, 2001, p.119). One of the definitions of human resources management (HRM) states that it is “all management decisions and actions that affect the nature of the relationship between the organisation and employees” (Armstrong, 2009, p. 4). This statement supports the idea of Dessler (2011), who suggests that at some extent all managers are human resource managers as they are involved in decision making process such personnel related activities like recruitment and training (p.32). Despite the significant scope of hospitality industry it is still competing for hiring and retention of qualified workforce inside and outside the industry (Ciulu & Dragan, 2010, p. 55). Human resources are dealing with the company’s biggest asset – people. Their activities are aimed to maximize the benefits from the people’s knowledge, skills and abilities. Recently, it was noted that HRM function obtained a more important role in helping the companies to create a competitive advantage (Nickson, 2007, p. 32). In order to maintain competitive advantage, the companies are formulating the strategies for each of departments, including Human Resources (Dessler, 2011, p.112). According to Torrington et al. (2008), human resource strategy is expression of company’s aims and goals trough philosophies, policies and cumulative process towards the management of employees (p. 28). In the modern hospitality establishments human resources management is intensively affirming its strategic role (Belout & Gauvreau, 2004, p.57). The example of global restaurant chain T.G.I. Friday’s and practices and benefits of strategic human resource management are discussed further in this report.
2. Aim and Objectives
The aim of this report is to investigate on the practices which can be implemented as a part of strategic human resource management...
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