Human Resource Management System in Hospitality

Literature Review

Introduction

Although human resource management (HRM) adds extra cost for businesses, it generates huge benefit and survival of the company, especially those operating in a competitive industry like hotel and hospitality. A good understanding of effective management practices and systems and their implementation is vital to successfully attracting and retaining qualified employees. The success of any business requires a dedicated team (British Columbia Cook Articulation Committee, 2018). In the hospitality industry, human resource management seeks to satisfy, offer superior customer services, reduce turnover, and increase profit. Most human resource management systems in hospitality fall under the function of human resource planning, job analysis and description, recruitment, selection and orientation, training and development, and compensation (Nieves & Quintana, 2018, p.75). Human resource management is a key function in the hospitality sector since most hospitality firms, like restaurants, depends on their employees to achieve a competitive advantage. According to Bowen and Ostroff (2004, p. 8), the HRM system explains how employees' attributes accumulate to affect organizational effectiveness. Hospitality is diverse, making it challenging to achieve the actual definition. Ottenbacher et al. (2009) define hospitality as the provider of food, beverages, accommodation, leisure, entertainment, travel, and other related services (p. 273). Hospitality is broad, and it covers sectors like hotels, lodgings, food services like hotels and restaurants, travel, conventions, and attractions. The hospitality industry comprises a star rating system ranging from one to five, which is recognized as a universal standard (Hoque, 2013). The literature review explores the main concepts and theories used by human resources in hospitality, employees' challenges in hospitality, training, and development, staffing based on recruitment and selection, and respect for culture and backgrounds.

Main Concepts and Theories

. HRM in the hospitality sector works towards implementing various innovations to improve employee performance, increase customer satisfaction, and maximize profit ( Chang et al., 2011) . The success of hospitality innovations is linked to the excellent practice of HRM.HRM in this industry is keen on selecting and training employees since they bring skills and innovations to the industry. When hiring and recruiting employees, the organization considers the industry's fluctuating nature ( Boella & Goss-Turner, 2019, p. 34) . Employees are hired on permanent terms (full-time employees) while others are temporary or part-time and work only during the peak seasons. The organization ensures it has adequate employees, and it does not go extra cost keeping employees during off-peak. Hospitality is a very competitive industry that requires quality service, customer loyalty, and employee satisfaction. 

The human resource management system in hospitality is understood by exploring various organizational behavior theories that influence manager's and employees' behavior. The debate is based on how management can motivate employees to boost their performance appraisal and achieve excellence. Max Weber's theory of bureaucracy points that maximum productivity is achieved where HRM treats every employee equally by establishing an open line of communication and division of labor (Nahavandi et al., 2013, p. 132). HRM should establish a system that values employees from every sector to build a healthy work relationship based on achievement-based advancements. Another theory that helps understand the HRM system in hospitality is Abraham Maslow's theory of the hierarchy of needs. Figure 1 below shows the five hierarchy needs in a pyramid. Maslow's theory of the hierarchy of needs asserts that employees are motivated to perform excellently when their needs are met (Nahavandi et al., 2013, p. 144). Managers can satisfy employees' social needs by establishing a friendly environment, conducive collaboration, communication, and recognizing an individual employee's unique contribution.

Maslow's hierarchy of needs (Nahavandi et al., 2013, p. 144).

In an organization, individuals have different needs that need to be fulfilled as they motivate them to work hard and become innovative. David McClelland’s acquired-needs theory shows that employees have three types of needs; the need for achievement, the need for affiliation, and the need for power that drive their behaviors (Nahavandi et al., 2013, p. 164). Employees driven by the need for achievement strive to improve their performance and look upon the management to offer training programs to develop their innovative skills (Nahavandi et al., 2013, p. 164). Managers need to understand their employees' dominant need to motivate them effectively and satisfy their needs, reducing turnover.

Challenges Faced by Employees in Hospitality

Hospitality is a very involving industry in terms of time and services. HRM management practice selected by the form determines its ability to satisfy employees and customers to achieve competitive advantage. In his theory of bureaucracy, Max Weber shows a close relationship between a human organization in behavior, job satisfaction, and overall performance (Nahavandi et al., 2013, p. 122 ). Despite being a vital component for the industry’s success, HRM has taken few actions to improve the work conditions. Organizations assert that human resources' cost is very high and that the HRM system's improvement means inquiring more cost. Employees must understand the challenges they are likely to face while working in the hospitality sector. Firstly, the hospitality industries run day and night throughout the year. Therefore, employees must have dynamic work schedules as they are likely to encounter changing schedules in this industry. Sometimes employees are forced to extend their work time to continue offering services ( Boella & Goss-Turner, 2019) . Due to this inflexibility, employees are not fully satisfied, hence the high turnover rate. A study conducted by Yang & Cherry (2008) shows that high turnover in hospitality contributes to high HRM costs. Most firms in this industry, especially hotels and restaurants, face the challenge of frequently replacing employees and training them.

Most hospitality industries adopt temporal labor strategies that deny employees ample opportunity to grow their skills and become innovative. Most hospitality industry employees get low wages and have limited training opportunities, which hinders their career development (Davidson & Wang, 2011). Due to this, most hospitality industry employees move to higher wages, rewards, and compensation. A study conducted by Zhao & Ghiselli, 2016) shows that in 2014, over 81,000 employees left the hospitality industry in America in search of better-paying jobs. Since employees are likely to produce better results if their needs are fulfilled, the human resource management system should focus on satisfying the most basic physiological needs before satisfying other needs of safety, social, esteem, and self-actualization ( Nahavandi et al., 2013, p. 118 ). A study conducted by Poulston (2009, p. 28) shows that employees working in the hospitality sectors view the conditions as dissatisfying. Many young employees leave the industry since the chance of getting promoted is less than in other industries. Employees spend many years in hospitality before getting a promotion, which affects their opportunities to grow their skills, get promotions, and earn a higher income. The high turnover rate is also caused by the huge sacrifice of private life, invasion, and long working hours. The loss of talented employees affects the organization's overall performance and affects its ability to adapt to new technology in its various sectors.

A study conducted by Fathy et al. (2018, p.118) shows that most HR managers in the hospitality industry assert that departments like housekeeping, laundry, and stewards suffer a huge blow from employees' shortage. The nature of their job, which depends more on physical effort, low income, and low chance of getting a promotion, hinder them from growing their skills hence opt to move to other better industries. 

A major HRM system adopted to solve employee challenges is by raising the salary and ensuring job rotation. Employees are allowed to shift from kitchen to laundry, housekeeping, and other sectors within the firm. The issue of high turnover is solved by improving the hiring process and ensuring on-going training. The management is currently hiring employees through training programs to ensure they hire qualified employees. Most HRM in hospitality are using the internet and social media sites like Twitter, LinkedIn, and Facebook groups to advertise vacancies and allow qualified candidates to fill these jobs. As the field of hospitality continues to grow, HRM needs to develop better strategies to motivate employees either through better salaries, benefits, and good work conditions. Today, human resource management in the hospitality industry, especially in large-scale luxury hotels, is adopting highly formalized, systematic human resource management practices and policies to minimize cost and improve employee satisfaction.

Training and Development System

Studies show that training and skill development is the major HRM practice studied in the hospitality industry. The hospitality industry needs effective training programs to solve high turnover, shortage of qualified employees to increase performance efficiency. According to Armstrong (2012, p. 268), human resource management needs to develop effective people skills for better leadership, improve customer satisfaction, and gain excellent results. Employees also prefer to work in an organization where their contribution is valued through advanced training programs for career development. Training represents an excellent opportunity for employees to grow their knowledge and improve their job skills to become more effective in the workplace. HRM training system focuses on system establishing training programs to motivate employees and improve performance ( Fathy et al., 2018.p. 118) . Training programs motivate employees and increase overall outcomes, which further reduce the turnover rate. McClelland’s theory of acquired needs shows that employees who are high in need for achievement require managers to offer adequate training and development programs to boost their skills (Nahavandi et al., 2013) . Hospitality firms that fail to put training programs ahead in their HRM have shown poor performance and insufficient employee awareness of their job function (Wang, 2011, p. 311). This has a negative impact since it affects employees' ability to relate to customers leading to customer dissatisfaction (Wang, 2011, p. 312). Today, many hospitality industries, especially those in four and five stars, have adopted modern technology in their various departments. Human resources in hospitality have seen the benefits of a steady increase in the use of the internet by employees and other non-work-related activities that impact the organization ( Boella & Goss-Turner, 2019, p. 34) . Hospitality firms have installed internet connection, opened up working websites and social media to communicate with local and international customers. Training employees on using the internet and social media apps are vital for visibility, brand promotion, and overall performance. 

According to Knox and Walsh (2005), most HRM practices in Australian luxury hotels focus on employee training and skills to achieve functional flexibility. Immediately after hire, new employees in the hospitality sector undergo initial induction training and later on-the-job training. The sector also comprises various functional flexibility initiatives like multi-skilling and cross-functional training sessions to expand their roles. The multi-skilling initiative increases the quality of service delivered and increases staff retention. Chen and Tseng (2012) researched 70 hotels located in Taiwan to explore the benefit of cross-functional training among supervisors. According to Chen & Tseng, cross-functional training is vital in improving service quality and reducing turnover (2012, p.8). There is a close relationship between cross-functional training, job satisfaction, and employee careers. Cross-functional training enhances the ability of employees to perform different tasks and rotate in various departments. An organization that performs cross-functional training makes it easy for employees to cope with the cyclical variation of customer demands (Crawford, 2013); employee training also improves communication within departments and allows for a better understanding of customers and reduced turnover.

Staffing Based on Recruitment and Selection System

Staffing is an essential human resource management system that increases employee satisfaction and reduces turnover. Knox & Walsh show that when designing staffing policies, the hospitality industry considers numerical flexibility and contingent workforce caused by seasonal demand (2005, p.69). Large hospitality firms have specialized HRM departments that handle recruitment and selection of employees to occupy various positions. A study conducted by Lockyer and Scholarios (2004) examine the staffing practice of 81 hotels in Scotland, where they compared large firms' staffing with that of the small-scale hotels. The study findings show that large hotels have more structured staffing procedures where the head office is centralized and controlled. According to Nieves and Quintana (2018, p.75), the recruitment and selection system determines employees' innovation performance in the hospitality industry.

The selection of employees follows a holistic approach where the HRM considers every aspect of an individual, including skills, interests, and personality. Hospitality industries in many countries have established various selection criteria like staffing processes, interviews, and multi-hiring. Multi-hiring, common in hospitality, is an HRM practice whereby permanent employees temporarily work in other departments (Knox & Walsh, 2005, p.69). For instance, employees who work in the accommodation sector may work temporarily in a hotel when the demand is high. This HRM practice allows employees to gain skills and experience in a different department and improve quality. Large hotels emphasize high employee commitment and flexibility to meet changes in service demands. A study conducted in Malaysia shows that employees' low wages bring s challenges to HRM in recruiting and selecting skilled workers (Ahmad & Scott, 2013). The Malaysian hospitality industry relies more on part-time employees, making it hard to get a skilled and innovative team. An innovative team can improve the workplace by designing better arrangements, booking systems, and improving the menu. Also, the turnover rate is very high in those firms since employees are unsatisfied with low wages. HRM in this industry can improve its selection and recruitment by increasing contacts with students and establishing good working relations with colleges and universities to provide qualified candidates ( Hewagama, 2015, p.5) . The industry can also offer internship programs to students to train and equip them with knowledge, placing them in a better position for being hiring.

Respect for Different Cultures and Backgrounds

Human resource management in hospitality deals with the management of employees and customers from diverse cultures. While in the past decade, HRM in hospitality dealt with personal management issues, the current industry deals with strategic human resource management to gain a competitive advantage and increase productivity. It is the mandate of human resources to turn specific cultural challenges to intercultural management and cross-cultural communication (Armstrong, 2012, p. 268). Restaurants, airlines, hotels, and tour and travel firms depend on foreign tourists and travelers globally. Since these customers are from diverse cultures, HRM must ensure all cultures and backgrounds in the organization are respected, and the service is up to standards. The management expects employees to bridge the cultural gap in the workplace. 

A key cultural aspect that needs to be managed is communication. HRM has been at the forefront to manage cross-cultural communication to ensure customer satisfaction. Intercultural communication depends solely on proficiency in a foreign language ( Hewagama, 2015, p.6) . HRM encourages multilingual communication to help employees communicate effectively with customers and colleagues from different regions. Multilingual communication goes beyond communication since it also deals with an ethnocentric approach to intercultural management. Employees and other hospital employees are expected to place themselves in the position of guest and communicate and relate to them from the perspective of the customer's culture ( Hewagama, 2015, p.7) . The HRM needs to emphasize bridging the existing cultural culture.

Strengths and Weakness of Studies

Various works of literature studied on HRM in hospitality provides adequate information to improve overall performance by ensuring customer and employee satisfaction. Various studies show that employees' problems in the hospitality industry can be solved by adopting an HRM system that encourages flexibility (Wang, 2011; Hewagama, 2015) . The studies show that hospitality is highly susceptible to fluctuating demands hence cannot ignore numerical flexibility staffing strategies. Studies by Wang, 2011 and; Knox & Walsh, 2005 show that large hotels have adopted temporal labor strategies to solve fluctuating demand and high employee turnover. HRM in hotels and restaurants are mixing labor strategies and combining functional and temporal/numerical flexibility practices.

The literature review weakness is that most studies use a small sample size of empirical studies in large-scale hospitality sectors like hotels to generalize. The few studies identified to explore HRM systems in hospitality fail to explore the current trends in the sectors that affect global operations. Studies need to show how human resources can integrate training with current technology trends to boost brand image locally and internationally. Few studies have explored the relationship between human resource management practices and innovation in the hospitality sector.

Future Studies

A research gap exists on how human resource management can integrate employees attributed and digital technology to increases satisfaction and reduce turnover. Future studies should focus more on the attributes caused by emerging technological trends and their impact on employee performance. 

Proposal

Aims and Objectives of the Proposed Project

The hospitality industry is a service-oriented business that seeks to attract qualified employees who offer excellent services to local and international customers. As a service-provider, hospitality requires an effective HRM system to manage human behaviors to provide excellent and quality services. An effective HRM system enhances employee and customer satisfaction. Human resources play a vital role in service quality, loyalty, customer satisfaction, and organization performance ( Nahavandi et al., 2013, p. 33 ). Employees and employers in the hospitality industry understand the benefits and challenges of attracting and retaining good employees. In this industry, human resource management seeks to continue empowering employees by placing good hiring and recruitment processes, training them, and good pay and motivation to enhance retaining and reduce turnover. Advancements in technology and globalization have changed human resource management in the hospitality industry. Today, HRM in hospitality faces the challenge of shortage of qualified employees, high turnover rate, training and development programs, and selecting and recruiting qualified employees. The industry experiences a production loss of up to 60% from a high turnover rate. The high turnover rate force hospitality firms to keep on recruiting and training new employees, which is costly. Due to the high cost of selecting, recruiting, and training, many hospitality firms end up recruiting unqualified employees, which affects the quality of productivity and reduces innovation. 

The research will explore human resource management in hospitality to determine the most appropriate development tasks. Further, the study will examine the effectiveness of is adopting a training, selection, and recruitment system, culture, and background to boost overall performance and solve challenges faced by employees. Firms in this sector are aware of the challenges faced by employees while in the line of duty and are at the forefront to implement an effective HRM system that addresses these various needs of employees. The systems will solve low wages, few benefits and compensation, and minimal opportunity for growth and promotions. Large hotels have adopted temporal labor strategies to solve fluctuating demand and high employee turnover. HRM in hotels and restaurants are mixing labor strategies and combining functional and temporal/numerical flexibility practices. The research will explore how HRM in the hospitality industry is integrating the various systems to solve employee's challenges and boost overall performance.

Research Questions

What are the most appropriate development tasks?

What training systems do hospitality workers experiences?

How does the business shape training system for they need? 

What staffing systems in selection and recruitment are appropriate in HRM.

Recap of the Relevant Literature

The human resource management system in hospitality deals with human issues, especially those affecting employees' overall performance. Studies show that the HRM system influences employees' performance, reflected in the organization's production. It is the manager's responsibility to satisfy employees' various needs and create a friendly environment where they can grow their skills and innovations. Various theorists have explored the concept of HRM and its impact on overall organizational performance. In his theory of Bureaucracy, Max Weber argues that employees are motivated to perform excellent if the HRM treats them equally and builds an open line of communication (Nahavandi et al., 2013) . Maslow's theory of the hierarchy of needs and David McClelland's acquired-needs theory supports the unique contribution of HRM by meeting various needs.

The hospitality industry is very involving in time and services creating a need to establish an effective HRM system that motivates employees. Employees in the hospitality industry are employed on both permanent and temporary terms due to the high fluctuation faced in the industry. Employees also experience dynamic work schedules and are sometimes expected to work longer hours during the day and night when the demand for services is high. Employees often shift from one department to another, where service demand is high ( Boella & Goss-Turner, 2019, p.39) . For instance, employees working in the laundry may shift to the hotel as waiters and waitresses. Temporary employment and shifts affect employees' ability in this industry to grow their skills and innovations; hence, opt to move to other industries that offer an opportunity for self-development. A study conducted by Poulston (2009,p.28) shows that employees working in the hospitality sectors view the conditions as dissatisfying. The major challenge faced by employees in hospitality that contribute to high turnover is low wages and benefits. Compared to other industries that employ similar skills and education levels, salary and benefits for hospitality are very low, and chances of motivation are also lower. The loss of talented employee employees affects the organization's overall performance and affects the company's ability to adapt to new technology in its various sectors.

HRM in hospitality is adopting a training and development system to improve human performance, achieve employee satisfaction, and reduce the turnover rate. The hospitality industry needs effective training programs to face a shortage of qualified employees to increase performance efficiency. A study conducted by Wang (2011, p. 311) shows that the hospitality industry depends on the quality of service as a competitive advantage to acquire customers of a labor-intensive industry. Another study conducted by Knox and Walsh (2005) shows that most luxury hotels in Australia have created employee training and development systems that increases staff retention. Today, many hospitality industries, especially those in four and five stars, have adopted modern technology in their various departments; hence, they need to train employees on changing trends to achieve high performance regularly.

Several studies have shown the need for firms in the hospitality system to adapt to a better staffing system that ensures qualified and skilled employees' employment. A study conducted by Knox & Walsh (2005) points out that firms should consider the numerical and flexibility of the workforce caused by seasonal demand when designing staffing policies. According to Nieves and Quintana (2018, p.75), employees' innovation performance is determined by the recruitment and selection system. Multi-hiring is a common staffing system where employees can work temporarily in other departments when the service demand is high.

Lastly, several literature works show that the HRM system in hospitality should focus on establishing a respectable culture that values diversity. Restaurants, airlines, hotels, and tour and travel firms depend on foreign tourists and travelers globally. HRM is expected to establish a system that bridges the cultural gap and crosses the chasm between different cultures. 

Proposed Methodology

The study will apply the published survey research methodology. Since the study is quantitative, a published survey will be vital in describing essential factors associated with HRM behavior in the hospitality industry ( Glasow, 2005, p. 1 ). Survey research is considered appropriate for answering questions that have been raised, solve problems that have been posed, determine whether specific objectives are achievable, and establish a baseline for comparing and analyzing trends 

The study will begin by gathering relevant data from credible academic sources. The survey research method will use a variety of data collection methods of questionnaires and published interviews. Surveys will be self-administered, and systematic desk research will be carried out in ScienceDirect and EBSCOHost, the leading academic and most complete databases for the hospitality industry. ScienceDirect and EBSCOHost datasets will be consulted to get the most credible surveys and publications to use quantitative scales to measure various quality HRM systems.

Sample selection of published survey will be based on relevancy and accuracy of information. Articles selected should be ten years and below and should widely cover human resource management systems in hospitality. The articles selected will be easily accessible, and the results from the selected sample size should have the desired degree of precision ( Glasow, 2005, p. 3 ). The study will use a published survey from ten selected academic sources to analyze the results and discuss common development tasks, training, and staffing systems adopted by the hospitality industry to enhance performance.

Data collected through the published survey is essential for examining the relationship between various variables. Published survey research uses a portion of the selected population where subjective data is later generalized to the population. Since the study involves a large sample of the population from different hospitality firms, the survey will obtain adequate generalizing information. According to a published survey, research is essential since it produces empirical data and produces a large amount of data quickly and at a reasonably low cost.

Ethical Issues 

The research process will adhere to the ethical duty of respect the individual autonomy of the participants. When conducting the proposed research, the participants' identity will not be revealed, and their confidentiality will be respected. The research will adhere to any requirement for data protection. Before conducting the research, participants will be informed of the aims of the survey, and their consent to participate will be obtained.

An environment of trust will be created before conducting the survey. An environment of trust makes it easy for the researcher to conduct the survey, and also the participants feel free to open up, participate, and offer factual and accurate information. An environment of trust is built by showing credibility, honesty, and respect for autonomy and participant’s privacy. All this is achieved by giving factual information regarding the research and giving full information on the research's risks and benefits ( Yip et al., 2016, p. 684 ). Participants are likely to withdraw from research or give false and incomplete information if they do not trust the researcher. 

The researcher should prevent causing harm when conducting research. The ethical principle of beneficence or “do not harm” includes a professional mandate to do effective and significant research to serve and promote the welfare of the constituents ( Yip et al., 2016, p. 684 ). The researcher can withhold some information to avoid altered behavior that might cause harm. Since hospitality consults employees and customers from diverse cultures, the researcher should consider the cultural and emotional barriers that require simple language to understand the participant. 

Conclusion

The hospitality industry is demanding; hence dynamic work schedule is needed from the employees. The HRM should create a system that ensures employees work the required legal maximum time to prevent burnouts. The industry should increase wages for employees, and any over-time should be well compensated to increases work motivation and reduce the turnover rate. A training system is required to hone the skills required for the standards of the industry. Employee training and development systems increase staff retention and boost overall organizational performance. Since the hospitality industry employs many employees temporarily, there is frequent selection and recruitments. HRM has benefited from establishing a staffing system that leads to selecting and recruiting qualified and skilled teams who bring innovative ideas to the company. The industry has customers from diverse backgrounds; hence employees should be trained to be respectful to all. Once HRM in the hospitality industry adopts the proposed strategies, employees will be satisfied, the turnover rate will reduce, and overall performance will be boosted.

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