The HRM Practices that Lead to Hotel Performance

Human resources management practices can have a large impact on the overall success of hotel operations. These functions may appear to be subtle but influences nearly every aspect of human capital that makes its way into the customer service experience. It also impacts the ability of an organization to weather changes and develop to market realities. New research helps define which aspects of human resource management impact hotel success and which do not. Human resource administrators would be wise to take into consideration this research.

First, it is necessary to define human resource management. Proper human resource management entails the practices that encourages the organizations knowledge, skills and abilities to contribute to business outcomes (Huselid, et. al, 1997). In other words, it manages and fosters those human elements that make a business successful. This can include everything from recruitment to strategic training. 

Human resource management often entails a theoretical lens for understanding and studying its impact on the organization. According to Mudor & Tooksoon (2011) a conceptual framework of HRM practices includes supervision, job training and pay to foster understanding. The supervision is the practices and techniques managers use, job training is the enhancement of capital, and compensation is the pay practices. When each of these concepts are done well the entire organization will do well in terms of its employee management.

The study conducted by Nakhleh, Patel, & Dagarwala (2012) brings to light which type of HRM practices have the largest impact on hotel performance. Surveys were sent to all three star hotels in Vadadara based upon the website Cleartrip.com. The target group consisted of managers, assistant managers, and reception heads of 13 hotels. The researchers sought information on the independent variables associated with HRM such as selection, staffing, training, performance appraisals, performance rewards, employee relations and internal controls. The dependent variable was the hotel performance in the form of effectiveness, efficiency, quality, satisfaction and occupancy rate. 

Results:

-Selection, staffing, training & development, performance appraisal and performance reward had an association with hotel performance. 

-Employee relations and internal communication had a weaker association with hotel performance. 

Analysis and Business Application:

The results help show that the people we recruit and their development have a positive impact on hotel performance. Once strong employees are selected it is the accurate feedback that allows employees to gauge their ability and find areas where they can emphasis improvement. Such motivation is maintain through the use of adequate rewards. Such rewards are an external appreciation for an internal experience. In alignment with studies discipline isn’t a major detractor to performance as long as it is perceived to be just and fair. Relationships are fostered primarily through the immediate manager and this takes precedence over more formal communication strategies. Organizations would do well to consider this when designing their own communication approaches.

Huselid, M.. (1995), The impact on human resource management practices on turnover, productivity, and corporate financial performance. Academy of Management Journal, 38(3)

Mudor, H. & Tooksoon, P. (2011),Conceptual framework on the relationship between human resource management practices, job satisfaction, and turnover.  Journal of Economics and Behavioral Studies, 2 (2).

Nakhleh, H., Patel, N., & Dangarwala, U. (2012). The effectiveness of human resource management practices on hotel performance. International Journal of Research in Commerce and management, 3 (3).