The Marriott Corporation, one of the nation's largest hotel management companies, has long professed to adhere to the philosophy that, "Good personnel will work for a competent manager. Go to every length to find, hire, and train good employees and treat them like your family. This is the crux of your whole operation (Marriott Corporation, 1964)." The Marriott Corporation has adopted this position as its management philosophy for nearly fifty years but it runs contrary to the opposing management philosophy that basically treats employees as units, or commodities, which exist as units to be strategically managed. The commodity approach argues that treating employees in such fashion keeps the quality of their work consistent and avoids the possibility of psychological and interpersonal dysfunctions in the workplace. The Marriott approach is argued by many modern human resource managers as the more enlightened one. The traditional approach emphasized the human capital view of employees where employees were viewed as resources that were utilized by the business to provide monetary return and stability to the organization. It was the responsibility of the organization's managers to use the individual knowledge, skills and abilities of the employee in order to maximize the organization's productivity. The traditional view did not attempt to create a family atmosphere within the organization. Everyone had his or her responsibility and everyone's value to the organization was
The Marriott Corporation (MC), had seen a long, successful reign in the hospitality industry until the late 1980s. An economic downturn and the 1990 real estate crash resulted in MC owning newly developed hotel properties with no potential buyers in sight and a mound of debt. During the late 1980s, MC had promised in their annual reports to sell off some of their hotel properties and reduce their burden of debt. However, the company made little progress toward fulfilling that promise. During 1992, MC realized that financial results were only slightly up from the previous year and their ability to raise funds in the capital market was severely limited. MC was left with little choice, as they had to
Marriott is renowned for its elegant and comfortable hotels and resorts. The company caters to a targeted customer base, ranging from the frequent corporate business traveler to the family enjoying their occasional weekend get-away. Marriott has continued its rise in the lodging, contract services, and restaurant industries. The company continuously strives to meet the needs and wants of its customers while strategically maneuvering the rigors of today’s competitive and ever-evolving market of glamorous destinations and convenient services. In order to remain relevant in a highly-competitive environment, Marriott must strike that successful balance of minimizing costs, and gaining and effectively
The idea of repurchasing shares was no stranger to Bill Marriott by January 1980. Almost five million shares of common stock had been repurchased on the open market by Marriott Corporation during 1979 at a total cost of $74 million and an average price of $15.16 in the belief that they were undervalued—a belief that still was not fully reflected in the market price. At $19 5/8, the stock was selling at only six times cash flow per share; and its price/earnings ratio of nine was a far cry from historical multiples as high as fifty times as recently as 1973. Its low price seemed to offer once again an obvious opportunity to benefit shareholders. However,
We determined the WACC of the Lodging business to be 9.70% by using the same method of analysis.
(4) Human resource management ( make employees as ambassadors, and extend philosophy about employee`s lifestyle)
As Market risk premium I take the “Spread between S& P 500 Composite Returns and Long-Term U.S. Government Bond Returns 1926-1987” from Exhibit 5 as appropriate value.
• What is the cost of capital for Marriott’s as a whole at the prevailing capital structure vs. at the target capital structure.
The following case analysis portraits the use of capital asset pricing model to compute the weighted average cost of capital for Marriott and each of its divisions. The flow of events below is following a string of different evaluations, each of which is assessed separately.
The practise of Human Resources is moving from the traditional forms of managing people to a more strategic form whereby the Human Resources function is closely linked with organisational performance and success. This strategic form of human resources has increased the need for the Human Resource professional to understand the linkages between Corporate Strategy, Human Resource Strategy and Employee Integration.
One of the main tasks of the enterprises of various forms of ownership and spheres of activity - the search for effective ways to manage labor to ensure the activation of the human factor and achieve the best production results. The company «Hyatt Hotels Corporation» is today one of the leading companies offering hotel services. The company, headed more than 500 hotels all over the world, is of great interest as an object of study of the corporate culture, because it includes a huge number of employees (more than 30 thousand people). Hyatt Hotels and Resorts are distinguished unsurpassed quality of services precisely because of its staff. At the heart of the corporate principles of the company have the task to give our employees
Marriott International envisions itself to be the world’s lodging leader. Its mission is to provide the best possible lodging services experience to customers who vary in backgrounds, language, tradition, religion and cultures all around the world. Marriot is committed to environmental preservation through using environment-friendly technology and engages in social responsibility and community engagement. We value our shareholder’s so we will only take steps that will ensure our growth. Most importantly, through our “spirit to serve”, we emphasize the importance of Marriott’s people and recognize the value they bring to the organization’s growth and success. It aims to increase revenues by 9% every year, to increase
One of the most dominant factor is the fact that human resources are the most valuable assets of an organization. Another important principle, expressed by Ashly Pinnington in her book ‘Human Resource Management Ethics and Employment’, is that “a succesful business is more likely to be achieved if the personal polices and
People are the key to business success. However nowadays of business this is often neglected and people are seen to be a necessary expense. A successful business does not just rely on a person’s power instead it involves continuous effective teamwork and communication. Storey (1995) defines that human resource management is an individual approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an integrated array of cultural, structural and personnel techniques.
Instead, human resource practices of ‘best fit’ are more effective when they are designed to fit certain contingencies in the organization’s specific context. Consequently, ‘best practice’ is perceived to improve performance within an organization when a select bundle of policies is implemented and the employees are managed more efficiently. Jeffrey Pfeffer’s (1994) work under this conception offers a list of seven practices assumed to be most beneficial to an organization for achieving competitive advantage ‘through people’. (1) The importance of employment security is emphasized because it is unrealistic to expect such hard work and commitment from employees without some expectation of security on their part. (2) Selective hiring is a source of sustainable competitive advantage through its “capturing” of particularly exceptional human talent (human capital). (3) Self-managed teams require efficient teamwork, and are seen as a route to achievement of more creative solutions. Employees deserve to be rewarded for
More firms’ business strategy can be better realized using the integrative model of HRM. Both employees and firms’ aspirations can be met if the right strategy is used. . HR professionals must be well trained to implement this strategy.