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To cite this article: Lorna Young-Thelin & Karla Boluk (2012): A Case Study of Human Resource
Practices in Small Hotels in Sweden, Journal of Human Resources in Hospitality & Tourism, 11:4,
327-353
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Journal of Human Resources in Hospitality & Tourism, 11:327–353, 2012
Copyright © Taylor & Francis Group, LLC
ISSN: 1533-2845 print / 1533-2853 online
DOI: 10.1080/15332845.2012.690683
LORNA YOUNG-THELIN
Consultant, Ludvika, Sweden
KARLA BOLUK
Department of Human Geography, Dalarna University, Borlänge, Sweden
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INTRODUCTION
Hiring, training, and performance evaluation systems all play major roles
in almost all formal organizations. They have been strategically designed
to meet corporate objectives and ensure business continuity. This does not
however, imply that the other areas are less important. In fact, organizational
development and competency profiling are two of those areas that are highly
complex in nature and have constantly been developed and studied in recent
years.
327
328 L. Young-Thelin and K. Boluk
The following research questions guide us in this study: what are the current
methods in recruitment and selection? Are these aligned with an established
job description? What are the purposes of training and development? Is
training based on individual needs? How often are employees’ performances
evaluated and carried out? Are these based on pre-set agreed objectives?
LITERATURE REVIEW
Concepts of HRM
HRM is comprised of practices and processes that shape the behaviors and
experiences of employees to encourage higher performance levels (Cabr-
era & Bonache, 1999). Such practices are expected to positively influence
the quality of service (Consten & Salazar, 2011; Heskett, Jones, Loveman,
Sasser, & Schlesinger, 1994). Young–Thelin (2011) suggests that HR has the
potential to directly affect an organization’s business operations enhanc-
ing performance and ultimately increasing profitability. Although HRM has
evolved from a traditional/integrative approach to a more strategic approach,
Hughes (2002) and Nankervis (2000) still encourage the need for systems and
HRM in Small Swedish Hotels 329
Functions of HRM
Huang (2001) suggests that high-performing organizations pursue innovative
HR practices by placing emphasis on recruitment, broad and updated job
descriptions, extensive employee interaction, training and development, and
the use of performance appraisals. The quality of these practices directly af-
fect the motivation level of the organization and its workforce (Hughes, 2002)
especially when employees perceive the HR practices as distinctive, relevant,
legitimate, and internally consistent (Sanders, Dorenbosch, & Reuver, 2008).
Harrison (1993) best illustrated the role and methods of HRM (see below in
330 L. Young-Thelin and K. Boluk
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Figure 1). He (1993) concurs with Harrison’s (1993) model purporting that
regardless of the size of the organization, the type of environment it operates
in and the nature of business it has, the organization needs to perform these
three HRM functions in order to survive, become competitive, and adopt the
best practices.
The best practice concept started in the early models of HRM. Accord-
ingly, organizations are challenged to analyze and identify the best HR
practices that might suit the organization. While there is no hard and fast
rule on HRM, the principle of best practices is to implement processes that
will yield high performance while ensuring that these processes are aligned
and consistent with the organization’s strategy (Cho, Woods, Jang, & Er-
dem, 2006; Baum & Odgers, 2001; Bamberger & Meshoulam, 2000). The
term “high-performance” is usually interchanged with terms like “high com-
mitment” and “high involvement” (Gould–Williams, 2004). Studies in high-
performance challenge the organizations to identify a set of best practices in
the industry through the process of benchmarking (Farndale, Hope–Hailey,
& Kelliher, 2011; Whitener, 2001; Yasin, 2002). Boxal and Purcell’s (2000)
study provides a best practice model stressing the importance of improving
employee capability through good recruitment, training, and understanding
the role of rewards through performance management. Alleyne, Doherty,
and Greenidge (2006) and Pfeffer (1998) both support the notion that selec-
tive hiring, extensive training, and performance related pay should be part
of the best HR practices.
High-performance HRM requires a long-term employee relationship. It
enhances employee’s skills and their motivation improving productivity (Sun,
Aryee, & Law, 2007). This however does not discount the need to change
or adjust HR practices depending on the current development stage of the
organization of formation, growth, maturity, or decline (Hughes, 2002).
HRM in Small Swedish Hotels 331
FIGURE 2 Matching the job description with the job applicant (Young–Thelin, 2011, p. 7).
employees with the skills and competencies in handling the current job
functions. It is also an avenue to prepare an employee for duties and respon-
sibilities expected at a higher position. T&D also ensures that the absence
of required skills is acquired through learning programs which demonstrates
the organization’s commitment to its workforce of self improvement and
career development. Employees who are given the opportunity to acquire
new skills as part of their job often perceive this as organizational support.
Hence, they have stronger attachment, commitment, and loyalty to their
organizations (Kyriakidou & Maroudas, 2010; Spector, 1997).What differen-
tiates training from development is training focuses on the short-term needs
and is administered to solve existing problems, while development has a
longer-term focus such as increasing the knowledge and skills or building
new competencies to prepare an employee for duties and responsibilities
of a higher position (Bogardus, 2004; Lundy & Cowling, 1996). T&D fosters
communication, leadership, actions, and behaviors in an organization. All of
which are essential in developing human assets. T&D often takes place in
a supportive environment where there is a clear link between T&D and the
organization’s strategy (Kyriakidou & Maroudas, 2010).
Bogardus (2004) claims that in order for T&D programs to be effective
they should be able to address the needs of the employee through a training
needs assessment (TNA). Iqbal and Khan (2011) describe this as an initiative
in analysing and diagnosing the organization, task, and person to determine
the best intervention and produce the desired results. TNA encompasses
the areas of “training plans, goal setting, employee development, manag-
ing change, career development, knowledge, skills, and attitude, learning
motivation, cost effectiveness, and performance appraisal” (Iqbal & Khan,
HRM in Small Swedish Hotels 333
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people—how they are recruited, how they are managed, how they are
trained and educated, how they are valued and rewarded, and how
they are supported through a process of continuous learning and career
development (Fáilte Ireland, 2005, p. 10).
The irony is, Human Resource Management systems are not fully de-
veloped in the hotel industry and very little effort is put into ensuring their
development. In spite of the numerous studies on tourism development,
the presence of systematic HRM processes, policies, and procedures are not
common in most hotel organizations (Baum, 2007; Liu & Wall, 2006; Gold-
smith, Nickson, Sloan, & Wood, 1997; Locker & Scholarios, 2004; Schneider
& Bowen, 1995). A lack of attention is apparent in the absence of HR pro-
cedures (Powell, 2009).
This perspective is justified by Redman and Wilkinson (2009) through
a description of the economic and social pressures that the hotel industry is
faced with. The hotel industry operates in a labor market whereby there are
shortages of qualified candidates coupled with strong competition. Hence,
especially for smaller hotels, they will have difficulty competing with bigger
hotels which have more resources. The limited number of quality applicants
due to the generally perceived poor image as an employer, forces smaller
hotels to use more informal methods in recruiting people. Thus, smaller
hotels usually end up with employees who are less qualified. The poor
image emanates from the general practice of low salary, low job/position
status, poor prospects in terms of career development, unstable, seasonal
employment, “anti-social working hours, hard word and isolated locations”
(Redman & Wilkinson, 2009, p. 103). This stigma is one of the contributing
factors for high turnover rates in the context of hotels (Wildes, 2007). Fáilte
Ireland (2005, p. 66) believes that “good HR practices will be adopted be-
cause they deliver bottom line profitability.” These practices include, among
others, performance management, recognition and learning and develop-
ment. Thus, the question is, does this premise hold true to smaller hotels? A
336 L. Young-Thelin and K. Boluk
study by Enz and Siguaw (2000a; 2000b) noted the best practices in the ho-
tel industry. It was revealed that regardless of the size and market segment,
there are commonalities in HR practices. Among others, selection, training,
and performance appraisal are included (Hughes, 2002).
outlined below.
T&D processes are clearly a neglected HRM area which results in the
lack of quality employees. Although managers understand the need for their
employees’ to acquire new skills, there is an inability to implement T&D for
three primary reasons Firstly, the limited financial resources do not allow
the organization to invest in its employees. Secondly, the benefits of T&D
can be felt in the longer-term. Accordingly, with the heavy use of temporary
employees, it does not make sense to invest in people who will not stay in
the organization (Baum, 2007) and finally, there is an absence of professional
skills in implementing training.
The PM&A process falls in line with the current thinking of open com-
munication and allowing employees to give feedback. This process is used
not only to improve the relationship between management and employees
but it also helps to increase the level of performance of both the employees
338 L. Young-Thelin and K. Boluk
and the organization. Below are some of the more common PM&A practices
in the hotel industry.
1. Employees do not see the link between their performance and the salary
they receive (Alleyne et al., 2006).
2. There is failure or an obvious neglect of “even the basic steps” of per-
formance appraisal and reward systems which have an impact on the
motivation and retention of employees. This type of management does
not allow employees to understand their role and contributions to the
organization which causes job dissatisfaction (Olsen, Crawford–Welch, &
Tse, 1990). This creates the impression among employees that the industry
is practicing poor employment tactics since salaries and benefits are not
based on performance appraisals (Powell, 2009).
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3. Smaller hotels always face high risk situations or failures due to high oper-
ational costs. Hence, there is a strong tendency to engage in “fire-fighting”
activities such as the termination of poor or below average performing
employees without the benefit of performance appraisal (Nolan, 2002).
4. Hinkin and Tracey (2010) studied three hotels that have best HR practices,
namely, Four Seasons, Kimpton Hotels and Restaurants, and Marriott Ho-
tel. Four Seasons developed an online job preview that gives prospective
candidates a realistic picture about the working environment in the ho-
tel. All hotels have a high standard for selection whereby managers are
required to follow the hiring procedures such as formal testing. Hotels
provide extensive training programs that are mostly facilitated by the se-
nior managers. Performance reviews are “comprehensive, continuous, and
open-book” (p. 166) assessment.
The key research questions that we address in this article are: What are the
current recruitment and selection processes in the Swedish hotel industry?
What is the purpose of T&D? Are these aligned with the individual needs
of the employees? How often are employees’ performances evaluated and
how are these evaluations carried out? Are these based on pre-set agreed
objectives?
METHODOLOGY
in those involved in the process of HRM. Although there are several cate-
gories of small hotels, this research is using United Kingdom’s Department
of Employment’s category review (Harrison, 1993) stating that small firms
are those with less than 20 people.
An interview guide was prepared to ensure the effectiveness of the
data collected. All interviews were recorded and transcribed. The interview
guide covered the three themes including R&S, T&D, and PM&A. Specif-
ically, the researchers asked about the hotels’ recruitment methods, for-
mal recruitment policies, training systems, employee training, and questions
about performance appraisals. A purposeful sampling technique was used
in determining the respondents by interviewing persons who are respon-
sible for the HR functions. All of the interviews were carried out on each
of the participating hotel sites in the managers’/owners’ offices providing a
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familiar and comfortable environment for each of the participants. Each in-
depth interview lasted approximately 45 minutes. To guarantee anonymity
letters A–F were used to denote the 6 hotels. The letters assigned to a
particular hotel were done at random and do not follow any particular
chronology.
RESULTS
which are more complex while “small” organizations should fill the vacancy
as quickly as possible to ensure the continuity of the operations.
The use of job descriptions as a tool in selection was also found to
be inappropriate by Hotels D, E, and F. These hotels felt that it was not
necessary and the assessment of the skills of the candidate/s could be done
during the orientation period. A subjective experience was expressed by
some of the managers who referred to relying on a good “feeling” regarding
a specific candidate and if they could handle the job. Only then would
a job offer be made. The basis for hiring was described differently by the
informants and involved factors such as: interest in the candidate, personality,
and individuals who could easily fit into the “family”.
Internal announcement of vacancies were carried out in four hotels. Al-
though this is not a formal process, internal recruitment is always considered.
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I try to get good people [. . .] it’s very hard [. . .] we look for the best man
for the job. The personal behavior is more difficult to change or develop.
Before they [applicants] are employed, they have to be liked by my staff
as well. He should be able to work for the entire team.
The research findings reveal that the R&S process in the participating
hotels is not fully developed as shown in Table 2. Although three hotels use
the job description in their selection process, only one hotel has an estab-
lished recruitment policy. The methods in attracting the candidates are not
deliberate in relation to the current need or vacancy. Despite the difficulty in
finding the “best” candidate, there seems to be a preference for using meth-
ods that do not require additional financing such as walk-ins, referrals, and
employment agency. Smaller hotels managed by the owner and/or partners
rely on their “feelings” and intuition in selecting the best candidate. In terms
of staffing, especially during peak seasons, the use of casual and contractual
employees is common in the industry.
Recruitment policy is in 1
place
Use of job description in 1 1 1
recruitment
Internal announcement of 1 1 1 1
vacancies
Recruitment methods:
Newspaper 1 1
Walk-ins 1 1 1 1 1
Referrals 1 1 1
Employment agencies 1 1 1 1
Special invitations 1
Others website File, website school
Use of casual and 1 1 1 1 1
contractual employees.
Note. “1” = Complies with description.
Blank = Non-compliance or not applicable with description.
HRM in Small Swedish Hotels 343
T&D PRACTICES
Four hotels admitted to regularly training their employees. Hotel D revealed
that they were unable to offer regular employment thus they could not justify
training. Hotel F, managed single-handedly by the owner, did not find this
issue applicable in his organization.
Although training programs were offered to employees and the objec-
tives for training were clear, only two hotels followed a systematic method
of determining the needs of its employees. Hotel A and B carry out an in-
dividual development plan for its employees to ensure that the employees
attend training programs that would address their poor performance or pre-
pare them for higher responsibilities. Hotels D and E administer training
programs based on how they “feel” and how they perceive employee’s in-
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terests. These hotels feel that training should be given to employees who
show interest in their jobs and are willing to be trained.
it’s very common to forget those who are good enough because they are
doing their best already. It’s a lot easier to find those who don’t fit the
profile.”
Hotels A, B, and C demonstrated an established T&D policy, however,
Hotels A and B preferred the individual development plan that ensures
a systematic process so that training programs address the needs of each
employee. Hotels managed by owners and/or partners base their training
decisions on the interest elicited by the employee (Hotel E) or his “per-
sonality” (Hotel D). Hotels A, B, C, and E expressed an interest in training
their employees but only Hotel B demonstrated a commitment to training
through an established training objective and had a number of training days
per employee. Most hotels rely on informal training such as coaching and
orientation. Almost all hotels believe in T&D and understand the impact it
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B when he stated: “The owners give our objectives for the year [. . .] eco-
nomic goals and our values. Everything [performance] is based on the job
description.” The formality is indicated with the signing of the job description
by every employee. Although there are no indications of automatic salary
increases for good performers, the respondents indicated their belief in re-
warding good performers. Most of the respondents provide rewards that are
simple but “appreciated” as described by Hotel B when he said: “They [good
performers] could have a weekend in one of our hotels or something small
but often very appreciated.” Another way of acknowledging and inspiring
employees was described by Hotel A when she said: “It’s inspiring for our
staff to see that when they do something special we notice. People tend to
put an extra effort into the work.” For hotels with fewer employees, rewards
were given on the basis of organizational performance.
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DISCUSSION
tance of hiring the “best” employees through a more systematic R&S process
(Baum, 2007). Those hotels that do not have the ability or neglect the use of
relevant methods in hiring are forced to spend more time in recruiting and
selecting candidates (Cho et al., 2006). Hotel managers who are not willing
or cannot afford to invest in the recruitment processes hire candidates even
though they do not have the right skills and competencies to simply meet
their hiring needs (Chan & Kuok, 2011). The R&S process in smaller hotels
managed by the owners (Hotels D and E), depends on the attitudes of the
owners (Nolan, 2002). The erratic and unpredictable volume in the indus-
try also forces the hotels to engage in a “flexible” (Baum, 2007) headcount
through the use of casual and contractual employees (Hoque, 1999).
The more common R&S methods demonstrated a reliance on walk-in
applicants and referrals and the use of the government employment agency
(refer to Table 2). Hotels are also up-to-date with emerging technologies and
corporate websites as an avenue to recruit applicants. Most of the methods
used are those which are considered cost effective and that do not cost
the organization substantial investments. Hotels select the best candidate
which can become “part of the family.” On occasions when there is an
erratic increase in demand, the use of casual and contractual employees
is considered. Hotels which have access to corporate HR systems have a
systematic recruitment and selection process.
All hotels agree that employees should be trained to improve per-
formance or develop of the employee (Table 3). Understanding the cur-
rent needs and expectations of their customers is another purpose to train
employees. Other purposes of T&D are those triggered by company-wide
initiatives such as, computerization and safety programs. Two hotels have
been systematic in identifying training needs with the use of training needs
tools. However, smaller hotels are reluctant to invest time in determining
training needs-based decisions on the interests exhibited by their employ-
ees. The hotel industry has a reputation of poorly training their employees
and most of the training programs that take place are driven by legislative
HRM in Small Swedish Hotels 347
requirements. This general lack of training could be due to the high training
cost, no direct return on training investment, and the formality of a training
needs assessment is seen to be burdensome (Kyriakidou & Maroudas, 2010).
The under-investment in training by small- medium-sized hotels results in
low productivity and poor performance (Ashton & Felstead, 2001).
The findings reveal that most hotels do not practice PM&A and appro-
priate reward scheme systems (Olsen et al., 1990). This makes it difficult for
employees to understand the meaning of good performance and how this
is linked to rewards. Employees are not motivated to perform better and
are always in constant search for other opportunities outside the organiza-
tion (Alleyne et al., 2006). Hotels reward their employees in different ways
for different reasons. Rewards are mostly non-monetary but acknowledge
good performance and are generally appreciated. Accordingly such rewards
serve as an inspiration to others. However, there are hotels that use the
continuity of employment as a form of motivation. Clearly, the absence of a
Through this article we sought to explore the HR practices in six small ho-
tels in Sweden. As such, we found evidence that although hotel operators
perceive HR practices to be important, little value is given to develop them
and as such they are often neglected. The researchers have suggested that
the participating hotels assess their organizations and implement the ba-
sic HR processes based on the size of the organization and the available
resources. Specifically, it was established that R&S is not given enough at-
tention. Hotels generally do not have formal R&S policies that would guide
them in choosing the best candidate but rather use recruitment methods that
do not require financial resources. In comparison, larger hotels seemingly
have more flexibility and options in terms of methods. With regard to T&D,
this is not administered in a systematic method that makes training delib-
erate and according to the need of the employee. Hotels with formalized
training processes try to train everybody but the identification of training
needs for individual employees is not established. Furthermore, hotels man-
aged by their owners and/or partners are guided by their “feelings” and/or
intuition whenever they need to make decisions regarding training. PM&A
is not generally seen as a strategic tool in improving overall organizational
performance in smaller hotels. Two hotels have integrated PM&A in their
organizations and have understood the impact it brings to the organization,
and there are indications of the desire to improve the system.
A few practical implications have emerged from this study. First, the
study found that a significant deterrent to training hotel employees were
the costs associated. As such, perhaps a viable option would be for small
hotels to plan joint training sessions focused on delivering safety programs,
the expected level of service delivery, and ways to empower staff. Such
HRM in Small Swedish Hotels 349
collaboration efforts could also provide an opportunity for joint skill de-
velopment and the training of hotel employees. Another opportunity (and
cost-saving mechanism) might be for hotels to establish connections with
hospitality and tourism schools. Such strategic collaboration could be bene-
ficial for hotels interested in capitalizing on passionate individuals, with little
experience as such representing a “blank canvas” with formal training and a
wider perspective of the hotel and broader tourism industry.
Further, perhaps it would be beneficial to have hospitality training pro-
grams for hotel managerial staff. This particular study demonstrated the in-
formal nature of the hospitality industry and the lack of planning and co-
ordination within small Swedish hotels, as well as between hotels. Thus,
similar to networks that provide support for entrepreneurs in Sweden per-
haps a network that would support hotel managers in the context of the
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hospitality industry is timely. The researchers argue that hotels should at the
very least address the basic requirements of each HR process to ensure that it
is systematic, functional, and effective. To do this in a smaller scale is realistic
to every organization within the industry. Accordingly, the implementation
of the basic HR systems discussed R&S, T&D, and PM&A should to some
extent create benefits for the organizations. In the context of implementing a
hospitality network perhaps it would be of some benefit to have an auditor
demonstrate the financial imperative in the systematic implementation and
monitoring of HR practices.
The study has created opportunities for further research. The researchers
call for an investigation exploring the financial impact of HR systems. This
may help justify the importance of HR processes in organizations. Another
opportunity for further research is the study of the feasibility of shared HR
services especially designed for the hotel industry. This will assist hotels
including those with limited resources to implement HR systems through
outsourced HR services. Basic HR tools, policies, and systems can easily be
re-designed according to their needs.
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