Human Resource Management in the Hospitality Industry - Essay Example

?HUMAN RESOURCE MANAGEMENT IS DIFFERENT IN THE HOSPITALITY INDUSTRY AS COMPARED TO OTHER INDUSTRIES Introduction Human resource management (HRM) is defined as the effective and efficient use of human talent to accomplish organizational goals (Mathis & Jackson 2010). This is reiterated by Ivancevich (2008), that human resource management is the effective management of people at work, through the identification and implementation of actions for improving employees’ productivity and job satisfaction. Bratton and Gold (2001: 14) believe that human resource management is “a body of knowledge and a set of practices that define the nature of work and regulate the employment relationship”. In the case of human resource management in the hospitality industry, it is necessary to take into account the vulnerability of hospitality employment across the globe. This causes it to be subject to regulation in areas such as miminum wages (Lucas 2003). The World Travel and Tourism Council (WTTC) indicates that the tourism and hospitality industry is an important employment sector in both developed and developing countries. It provides over 230 million jobs, or 8.7 percent of jobs worldwide. However, there are concerns pertaining to the type of employment experience within the sector, with pessimistic views of human resource management practice based on nature of the labour market and the reliance on “marginal” workers (Nickson 2007). Thesis Statement: The purpose of this paper is to critically review the notion that the management of human resources in the hospitality industry differs from other industries. Human Resource Management in Organizations The five functional areas covered by human resource management include: staffing through selection, recruitment and motivation of employees with appropriate knowledge, skills and abilities for specific jobs; rewards administration through a system of job evaluation, performance appraisal, and benefits; employee development through training in key skills and competencies; employee maintenance by complying with statutory standards and regulations, in the administration and monitoring of workplace safety, health and welfare policies to retain a competent workforce; and employee relations through employee involvement and participation schemes, and in union work places including negotiations between management and union representatives over decisions affecting the employment contract (Bratton & Gold 2001). Human resource management is an organizational core competency, it has a unique capability that creates high value and distinguishes an organization from competitors “in areas such as productivity, quality/ service, employee skills, and innovative changes” (Mathis & Jackson 2010: 31). Human resource management uses human capital, which is the collective value of the capability, knowledge, skills, life experiences and motivation of an organizational workforce. The responsibilities of human resource personnel can be grouped as “strategic human resource management; equal employment opportunity; staffing; talent management; compensation and benefits; health, safety, and security; and employee and labour relations. Human resource management is a vital part of organizational culture and plays a significant role by impacting human values, competitive advantages and global cultures. Key outcomes include increased productivity and fulfillment of organizational social responsibility. Human Resource Management in the Hospitality Industry “Different economic, social, legal and political factors create particular cultures and diverse employment systems” (Lucas 2003: 1). Membership of hospitality industry employees in trade unions is low, though in some countries collective agreements cover all workers. The approach towards providing good quality service is improving human resource practices. This debate is underscored by a number of theories of human resource management which form a framework for the strategies employed by tourism and hospitality organizations. It is crucial, however not to “over generalize the nature of HRM in tourism and hospitality and there is a need to examine differing practices and try to understand why these differences might exist” (Nickson 2007: 22-23). In some geographical and subdivisional areas, hospitality and tourism industry provides an desirable, high status working environment with competitive pay and employment benefits. This is in high demand in the work force, and benefits from low staff turnover with few staff resignations and new replacements. On the other hand, the industry in some areas has poor conditions, low pay, high staff turnover, problems in recruiting skills in a number of crucial areas, a high level of labour drawn from socially disadvantaged groups, poor status of the sector lacking in professionalism. “Organizations and managers in the tourism and hospitality industry face real challenges in recruiting, developing and maintaining a committed, competent, well managed and well motivated work force” (Nickson 2007: 2) focused on offering a high- quality service to the increasingly demanding and discerning hospitality client. It is important for hospitality and tourism industries to confront some of the significant human resource issues, towards maintaining a competent and profitable service sector. A critical review is necessary of some of the problems which result in the tourism and hospitality industry being characterized as generally unrewarding and unappealing. Additionally, examples of good practice, important policy responses and models of hurman resource management may provide the basis for greater optimism in the way human resources are managed in the hospitality industry (Nickson 2007: 3). Employment relations in the British hospitality workplaces are different as compared to national and private sectors. The management-driven notion of “unbridled individualism” continues to support employment policies and practices based on cost control. It may also reveal a more liberal managerial approach within a customer service philosophy. Employees are not necessarily alienated, and may be in agreement for low pay compensating for other benefits. “The employement relationship is both transactional and relational, and may also reflect ‘resigned realism’ and exploitation” (Lucas 2003: 2). Trade unions in the hospitality industry face a difficult task in attempting to recruit members because hospitality employees are different. It is essential to understand why managers and employees do not have the same commonly held assumptions of good employment relations. It is also important to determine how far the employment relationship, instead of the personal values of employees, impacts the psychological contract between employees and the management. Customers are a significant influence on the employment relationship, often interrelating with gender issues. They are included in managerial control techniques in several ways including pay and reward systems based on tips and customer appraisal. Although customer service work can be highly rewarding, it can also be unpredictable since they can both prevent the achievement of managerial goals, and make working stressful for employees. “Labour may be manufactured to appeal to customers by internalizing (male) prejudices with strong gender implications for women” (Lucas 2003: 2). Flexible cost-control employment systems may increase women’s and youth’s disadvantagwe. Future research should focus on including customers, gender and youth in the analysis of employment relations. Managerial evidence reflects continuity, however employee evidence facilitates the reassessment of the state of employment relations, and generally reject the “bleak house” and “black holes” settings. Within specific types of work mediated by the state, the main dynamic key central to a socio-economic customer-service employment relationship is a function of dimensions related to managers, workers and customers. There is scope to re-evaluate the concept of legally enforceable state-sponsored collective bargaining on an industry basis, a more advanced adaptation of wages councils with wider functions. “The extension of employment rights to workers would alos provide greater protection for vulnerable hospitality workers” (Lucas 2003: 2). The pursuit of organizational success through management of the employees is the main role of human resource management. This is reflected in Storey’s (1995: 5) definition of HRM as “a distinctive 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”. Hence, the challenge of human resource management is optimising the method of recruiting, deployment, development, rewarding and motivation of staff, thus guiding them to become a source of competitive advantage. According to Nickson (2007) there are different ways of pursuing competitive advantage, one of which is by “hard” or “soft” human resource management. Hard Versus Soft Human Resource Management The earliest and most enduring approaches to recognize different methods of human resource management were provided by Storey (1987), as the concepts of hard and soft HRM. The hard version is considered as a mechanism for achieving an economically rational approach to human resource management. According to this perspective, strategic considerations drive people management strategies to gain competitive advantage, thereby optimizing control while attaining the lowest possible labour cost. With labour accounted for as any commodity or resource, this quantitative and calculative method is similar to any other approach. Nickson (2007) states that contrastingly, the soft version is far more about adopting a humanistic and developmental approach to human resource management. The tourism and hospitality industry is sensitive to economic cycles and political trouble and can be badly affected in times of uncertainty. As a global industry, it is vulnerable to external events that cause changes in tourist visits and expenditure. For example, the global 2001-2004 economic downturn, the terrorist attacks of September 11, 2001, the Iraq war and the outbreak of SARS in the Far East all led to a drop in revenue in the industry. These factors reduced the numbers of travellers and tourists internationally, leaving uncertainty and fragility in the tourism market. These features are particularly pronounced in the airlines industry, hence trade unions have rebelled against the way employees are used as shock absorbers to protect the industry from the cyclical nature of the market. In recent years, these hard approaches to human resource management have seen many airlines personnel being made redudant, particularly after September 11, 2001. Contrastingly, several companies have used a softer approach to HRM which worked towards increasing the customer responsiveness of their front-line staff. For example, British Airways had a series of initiatives in the 1980s and 1990s such as “Putting People First” and “Winning for Customers”. These initiatives attempted to introduce team working, extensive training programmes, greater quality procedures, and multi-skill staff. Though employees are a company’s greatest asset, they may be expendable as recent history revealed (Nickson 2007). Conclusion This paper has critically reviewed the concept that human resource management in the hospitality industry differs from that of other industries. The evidence indicates that this is true. The hospitality industry is more vulnerable than others to external changes, and to fluctuations in the labour market. Further, the human resource management is more employee-centric because the industry is considered as unrewarding and unappealing for career prospects, and there is a lack of strong trade unions in the industry. Additionally, employment relationship rather than the personal value of employees impacts the psychological contract between employees and industry managers. Both hard and soft forms of HRM are used in the hospitality industry. Bibliography Bratton, J. & Gold, J. (2001). Human resource management: Theory and practice. Edition 2. London: Routledge. Ivancevich, J.M. (2008). Human resource management, 10E. The United Kingdom: Tata McGraw-Hill Education. Lucas, R.E. (2003). Employment relations in the hospitality and tourism industries. London: Routledge. Mathis, R.L. & Jackson, J.H. (2010). Human resource management. Ohio: Cengage Learning. Nickson, D. (2007). Human resource management for the hospitality and tourism industries. The United Kingdom: Elsevier Ltd. Storey, J. (1995). Human resource management: Still marching on, or marching out? In J. Storey (Ed). Human resource management: A critical text. London: Routledge: pp. 3-32. Storey, J. (1987). Developments in the management of human resources: An interim Report. Warwich Papers in Industrial Relations, 17, Industrial Relations Research Unit (IRRU). Read More