A PROJECT REPORT ON

Study of Human Resource Management in

Hotel and Catering Industry

BY
Akshay Dandekar

OF
5TH SEMESTER OF B.Sc IN MARINE HOSPITALITY
STUDIES
BATCH 2019-21

UNDER THE ABLE GUIDANCE OF

---

---

TRAINING SHIP RAHAMAN, NHAVA

Page | 1
 CERTIFICATE

This is to certify that Mr. , a student of Training Ship

Rahaman from B.Sc in Marine Hospitality Studies has satisfactorily
prepared project report on the

“Study of Human Resource Management in Hotel and Catering

Industry” as a part of external evaluation in semester 5 for the
fulfillment of B.Sc – Marine Hospitality Studies (by papers) as
prescribed by University of Mumbai for the academic year of 2019-2021

Date-

College stamp Signature of guide

Signature of Examiner Signature of head of department

 ACKNOWLEDGEMENT

It is giving me immense pleasure to show a sincere sense of

gratitude to all my teachers and friends, who have helped me to
complete this project.

I express my sincere gratitude to T.S. Rahaman

for giving me an opportunity to work on this project.

I am also grateful to , Vice Principal whose

constructive suggestions, motivation helped me to work more
keenly on the particular topic.

I would also like to thank whose able guidance

helped me to shape and orient my work.
 TABLE OF CONTENTS

Chapter Title Page No.

1 ABSTRACT 6–7

2 PREFACE 8 – 11

3 INTRODUCTION 12 – 16

CHAPTER 3.1. 12 – 13

CHAPTER 3.2. 14 – 15

CHAPTER 3.3. 16

4 HYPOTHESIS 17 – 19

5 LITERATURE REVIEW 20 – 28

CHAPTER 5.1. 20 – 21

CHAPTER 5.2. 22 – 24

CHAPTER 5.3 25 – 26

CHAPTER 5.4. 27 – 28
6 METHODOLOGY 29 – 31

STUDY OF HUMAN RESOURCE

7 MANAGEMENT IN HOTEL AND 32 – 55
CATERING INDUSTRY

CHAPTER 7.1. 32 – 38

CHAPTER 7.2. 39 – 44

CHAPTER 7.3. 45 – 48

CHAPTER 7.4. 49 – 52

CHAPTER 7.5. 53 – 55

8 LIMITATIONS 56 – 60

9 DATA ANALYSIS 61

10 APPENDICES 62 – 64

11 QUESTIONNAIRE 65 – 72

12 DISCUSSION 73 – 76

13 SUMMARY / CONCLUSION 77 – 78

14 BIBLIOLOGY / REFERENCES 79 - 80
 CHAPTER 1.
ABSTRACT

The great significance of the workforce team, the human resources, in ensuring the commercial
success of the hospitality and catering industry and its many thousands of outlets and franchises
may be succinctly summarized. At a financial level, the hospitality and catering workforce
payroll is frequently the single largest costing thing, measured as a percentage of wage costs to
sales and payment.

From an aspect of a service sector, the human resources are normally the first point of
interpersonal contact between a hospitality enterprise and its consumers. Herein lays the origin of
the most serious dilemmas and challenges that face the industry: to contain and control the prices
of labour whilst maximizing the quality of service to the consumer, the principal focus of the
business.

The effective management of these human resources is therefore important to the prosperity of
the company, whether undertaken by the line managers and owner-managers of small businesses
or as part of the responsibility and agreement of specialist HR managers in the large chains. It is
not surprising that in recent years both practitioners and academics have increasingly sought to
tackle the key challenges facing the sector with a range of HRM initiatives and research-based
proposals.

Many hospitality companies have created launched extensive recruitment campaigns and job
offers utilizing all current means of gaining attention from potential employees, including the
web or Internet and social media. Any analysis study of the Hotel industry, won’t full-fledged
one without checking the tourism industry, which is usually considered as the mother of hotel
industry.

Thus, Good hotel management requires a hands-on approach view and strong communications
and leadership skills. Although, we now see an almost never-ending supply of new hotels,
operating on an almost gradual basis, setting out in numerous manuals and lists the dos and
don’ts of human resource management, excluding much of a hotel manager’s accountability,
responsibility and discretion.

There is generally a worldwide view that internationally the Hotel and Catering Industry has a
number of personnel related problems and poor employment practices and conditions. This view
is supported and agreed by a study of the Hotel and Catering Industries which revealed that the
industry was loaded with problems of low salary, long working hours and unstable shift hours,
poor or nonexistent career structures, over reliance on informal recruitment methods, lack of
evidence of good human resources practices and high labor turnover.

Therefore this research sought to assess the level of importance given to the Human Resource
function in order to discover meaningful solutions to employment practices and personnel issues
experienced. The research focused on the one star to five star rated and registered hotels and
restaurants. The hotel ratings are according to the polls. Both quality and quantity data was
collected for study.

The study showed that there was need for a paradigm shift for the Human Resource function
from being implementers to formulators of business strategy. The Human Resource function
should achieve this by becoming a strategic partner through spending less time on administrative
activities and participating more effectively in the hotel processes and activities that define its
strategy.
 CHAPTER 2.

PREFACE

The subject of the study is Human Resource Management in Hotel and Catering industry. We
used both the study and online data in the course of the project.

The study data was collected through the instrument of questionnaires and observation. The
online data was sources through internet, web, pdf, similar projects and helpful magazines.

The research design for the project was the survey research. The population of the study was 73
employees of the company. The sample size of the study was 52 employees derived using the
Yaro Yamani formula for the determination of ideal size.

A total number of 45 questionnaires were distributed and returned thereby having a hundred per
cent return rate. The researcher used model percentage and chi-square as mathematical tool for
the analysis.

The study showed that the most of the workers in this company are ignorant on pay
determination method which revealed that management does not include workers in the
machinery or the mechanics of salary determination. The workers role is deduced to that of a
rigid adherence to laws, rules and regulations.

The researcher recommended from others that broad personnel policy study be supported by
employers in the hotel industry.
Human Resource Management (HRM) has growingly come to be used as the framework
within which unfolding developments in the world of work are explained. Although, as a theory,
HRM has its roots tightly entangled within a manufacturing paradigm and pattern.

In addition to this, the extensive majority of the empirical testing of HRM has been placed
amongst manufacturing organizations. Yet almost 80 percent of the working population is now
employed within services. Unless it can be displayed to be relevant amongst this sector, what
future is there for HRM as the ‘dominant pattern’ within which unfolding developments amongst
the world of work can be explained?

The goal of this project is to address this question by calculating the relevance of mainstream
HRM study within the Indian hotel industry. The project addresses three key issues. The first
issue concerns the extent to which hotels have worked with new ways to HRM.

The second issue concerns the aspects that influence HRM decision-making, and whether these
aspects are any different within the hotel industry than anywhere else. The final issue concerns
the relationship among HRM and performance in the hotel industry. These questions are studied
using survey information from hotels, and both quantitative and qualitative methodologies are
adopted.

Human Resource Management as a discipline has been in existence for a long time span.
Although researchers have continued studying different HRM practices and whether these
practices are influenced by various demographic aspects pertaining to industries and companies.

Researchers of this study are in chase of identifying HRM practices in the hotel industry in
Mumbai in relation to demographic aspects such as ownership of hotel and type of hotels.

For the motive of this study, ownership is explained as whether the hotel is owned by a
foreign investor or domestic investor. Type of hotel is defined as whether the hotel is owned
by a hotel chain or an independent hotel.
The group of HRM practices of hotels was identified using the list of HRM practices created by
Hogue for his study on HRM practices and performance of hotel in UK. Hoque’s sheet of HRM
practices covers eight subjects of HRM practices and each subject consists of numerous HRM
practices owned by that particular subject of HRM. Based on finding, it was concluded that there
is a particular relationship amongst the type of hotel and HRM practices.

From the beginning of recorded time, people have travelled, and while their travels, they have
needed shelter. This consequently encouraged the rise up of some accommodation and facilities
in form of hotels and small hotels and subsequent larger hospitality suites, to meet such aspects.
This thus hospitality is said to be the world’s oldest profession.

Just after the civil war, there was a virtual close of hotels and especially, the well-known names
in the international hotel industry. Not till the late 70’s, during the oil boom era, did we start
experiencing some growth in hotel industry. In past few years however, hosting of several major
international events like the common wealth heads of government meeting (CHOGM), All
games, carnivals, meeting including the visits of President another presidents with their
entourage, has turned to the building of many more hotels, specially in the major cities.

This growth and increase is not restricted to Nigeria alone, example, the American food service
industry had 100 billion $ of busing for meals away from home and was the third biggest
industry in the country in terms of gross retail sales, it employs about 7 million people and had
average of 125 employees in 1990 and yet still needs many additional employees every year.

Nigeria has since seen many significant developments and changes in the relative development
in the standard of living of a big majority of working persons. These developments have come
about as a result of many various aspects including greater national productivity, stronger
growth of economy, having many more enlightened management and pressures from trade
unions.

The contributions made by the hotel industry and catering industry to this general uplift in
standard of living are considerable, supplying essential and leisure services, employment and
wealth creation.
The working state of the industry’s staff is for most cases unappealing. There are inherent
problems which are assured such as having to work long and tight evenings and weekends.
Another problem although can certainly be ignored or reduced by determined management steps.
Such issues are staff reliance on tips, arrogance of workers on methods of calculating pay or
ignorance and the supplying of service charges, and management’s reluctance to include staff in
matters that affect their working lives. Management should therefore evolve a way of bringing
out the best in these terms of ignored workers of our workforce.

In Africa, there are many companies that supply catering services and which by their nature can
be explained as hotels. It is estimated that there exists about 500 inns, hotels and commercial
guest houses in Africa by the year 2008 that employs around 100 and 2500 people in line with
their sizes. It is said that about 500 – 3000 people were employed in 2003.
 CHAPTER 3.

INTRODUCTION

Chapter 3.1.

There have been researches regulated on the importance of the human resource management and
as the business pyramid has transformed into more competitive world, the significance of
having a proper and appropriate Human Resource Management cannot be ignored.

The most significant aspect by which the HRM contributes towards the organizational progress
and success is to actualize the distinction amongst the cultures while the business tends to
experience internationalization. There have been many researches already being held in order to
actualize the various cultures, people having various attitudes towards the similar problems.

Due to several aspects like globalization and internalization of the businesses, this has grown the
focus of many writers to write about significance of culture and actualize that removing the
cultural difference will allow the industry to improve the performance.

In order for the business to progress in the international market it is important to actualize the
difference in the local culture and realize the various norms and values in the local market, and
this can simply be done by having exact Human Resource Management in the company.

There are many issues in which big company experienced lass in order to enter the new market
like China, this is mostly because the company is not capable to realize the various and intense
local culture, norms and individual values of the nation, it creates difficulties in managing
operational and non-operational jobs like marketing and financing the industry.
Having HR department to manage the industry, through intense communication around the
industry and also supplying the needed training and developing the required skills in the
employees can allow the industry to become more competitive in the new market.

The difference in the culture and the significance of realizing the difference is very difficult in
every factor of the business including the Hospitality industry. This industry is exclusive in kind
since this is the only business in which the customer is being brought to the product and not of
taking the product to the customer.

Hospitality industry around the world has experienced push due to globalization concept, this
project report is based on the book written by an writer named Ulrike Ditzel, and the name of the
novel is Cultural difference in business life, finding German and American Business Culture.

This research study is being focused on the significance of Culture in business supported to the
requirement of having proper HRM in hospitality industry. This report displays the different
problems that are being displayed by the writer and the evaluation of the job is also being placed
which can be found during the research report a lot of times, whereas this novel makes it sure
that actualizing cultural difference is important for hospitality industry.
 Chapter 3.2.

Since the origin of recorded time, people have traveled, and during their travels, have needed
place to stay. This simultaneously encouraged the springing up of some facilities in form of
hotels, inns and small motels and subsequent big hospitality suites, to reach such needs. This thus
hospitality is thought to be the second oldest profession.

Just after the civil war, there was a virtual banishment of hotels and specially, the famous names
in the international hotel industry. Not till the 70’s, during the oil era, did we start knowing some
increase in the hotel industry.

In this decade however, hosting of some major international parties like the common wealth
heads of government meeting (CHOGM), all games, festivals, meeting including the visits of
president with another president with their entourage, has changed towards the building of few
more hotels, especially in the important cities.

The field of human resources management (HRM) has transformed over the decade. HRM
has transformed from being a mere policing working focused on the custodianship of policies
and processes to being more included in the strategic way of industries.

The tourism part has not been ignored. Purposely, the continuing increase of world markets
growth in the availability of technological and management know-how in various nations,
progress in telecommunications and the political and economic integration worldwide have
shown towards the growth in globalization of Tourism and Hospitality organizations.

Subsequently, this has brought about many challenges in terms of how industries approach a
range of human resources problems. Globalization of business has created it complicatedly
significant for industries to embrace the importance of human resources management.
Although, there is simply a worldwide approach that internationally the Hotel and Catering
Industry has a particular amount of personnel related issues and weak employment practices and
conditions.

This approach is supported by a study of the Hotel and Catering Industry by which displayed that
the industry was dogged with issues of low salary, long working time and unusual shift hours,
weak or nonexistent career structures, over reliance on informal employment methods, lack of
evidence of nice human resources practices and big labor turnover.

Just like the Hotel sectors in African nations have also been negatively affected by these weak
employment practices which have been intensified by economic structure and delicate political
systems. In Zimbabwe, industries in the Hotels focused in Harare are facing similar issues.

Such issues emanate from weak working conditions, grown labor court problems, less
remuneration, long labor turnover, weak or nonexistent career statuses, and ignorance of
professionalism. The state of affairs questions the importance given to the Human Resources role
in the Hotel sector in Harare.

Therefore this research pursued to access the level of importance given to the Human Resources
function in order to show meaningful solutions to employment practices and personnel issues
experienced in the Sector.
 Chapter 3.3.

The subject of Human Resource Management (HRM) was created in the early 80s and
simultaneously transformed as a separate field of study. Extant literature allows that Harvard
University and Michigan University contributed to the initial frameworks on HRM. According to
Schneider and Bowen successful utilization of human resources allows a competitive border for
industries. Thus, human resource management practices are significant component of the process
of HRM and are necessary to investigate the usage of human resource management practices in
service industry. Since, service industry is mostly driven by proficiency and regulations of
working staff in company.

Recent HRM literature displays important and positive relationship amongst human resource
management and organizational performance. Therefore, handling human resources in an
industry is very significant towards achieving organizational goals and objectives.

The hotel industry is significantly labor intensive and this allows HRM practices particularly
significant and it must create effective human resource practices and policies to reach
competitive success. Research on HRM practices in the Service sector industries is similar few
and the hotel sector is an important segment of service. According to Hoque the hotel industry
has simply displayed weak practices and a absence of interest in HRM among managers.
However interest in HRM among the hotel industry has actually grown over the years and
heterogeneity in the service sector is displayed as an issue to investigate the sector as whole.
 CHAPTER 4.

HYPOTHESIS

By mid-1998, the proportion of the UK employed population working in service sector jobs had
grown to 75.7 percent. The comparable figure in mid-1986 was 68.3 per cent. Over the same
period, the proportion of the employed population working within production industries fell from
25.2 per cent to just 18.4 percent.

These figures clearly demonstrate the size, the growth-rate and the ever-increasing economic
importance of the service sector. The growing importance of the sector is further demonstrated
by the enormous power now wielded by service firms worldwide.

For display, as noted by Quinn, Toys R Us now gains five times the profit of the world’s largest
toy producing industry and they are in a level to be able to order the products which click the
marketplace, how they are contained, created, designed and transported. Such is the strength of
McDonalds that the cheese and fat markets turned and fell when they took the recommendation
to switch to healthier products.

Trade in services is now the increasingly growing element of international trade, with 30 percent
of world trade and 40 percent of US transports outside now being service planned. Several
aspects forces have supported this process. Firstly, cultural homogenization has patched to the
improvement of key similarities in customer preferences across countries.

Secondly, electronic point of sale (EPOS) technology is now capable of creating and storing the
data important to engage in sophisticated international marketing practices. Thirdly, the
deregulation of world markets has patched to a loosening or lifting of restrictions on foreign
ownership.

Service products are becoming increasingly complicated, internationally tradable and available
of producing a tremendous amount of wealth, and service sector globalization has transformed a
reality. This globalization will inevitably allow UK service providers with around the world
trading opportunities.

However, UK service providers should also have to cope with complex competition from around
the world. In retailing, for example, incursions by European food retailers such as Aldi into UK
domestic markets have created concern. If the UK is competing efficiently within the growing
globalized service markets in the display of such significance, developing an understanding of
the aspects that allows service providers to create and sustain competitive advantage is
important.

Through the past few years, people have grown more and more conscious and particular that the
competitive side of an industry lies in human aspects. Indeed, it can be watched that the
environments of the twenty-first century rolled out to be highly competitive where industry need
to devote a particular amount of time, attention and power to supervise human resources. The
firms also want highly effective personnel and HRM factors.

This is mostly needed by the hospitality operators which should acquire quality human resources
because over all, they are in the people business and the reach of service they deliver to their
consumer depend mostly on the people they have and call.

It is that’s why important that people who are engaged in Hospitality Industry should have
proper knowledge, skills and qualities so that the subjects could succeed and increase not only in
national boundaries but also in the international arena. Based on this history that Human
Resource Management grasps its growing significance and the help it can supply to hospitality
operators by attracting, training, motivating good people. In fact, all industries should adopt
Human Resource Management in aspect to perform effectively.

When we talk of the Hospitality Industry, we normally think of hotels and restaurants. But the
topic has a big and broader meaning. As specified by the English Dictionary, hospitality means
“the reception and entertainment of customers, consumers, visitors or strangers with liberality,
kindness, politeness and goodwill.”
The word hospitality is origined from hospice, a medieval ‘house of rest’ for migrators, travellers
and pilgrims. A hospice was even an old form of what we now show a nursing home and the
subject is clearly connected to hospital. The term “the hospitality industry” brief to companies,
organizations and businesses which have as their core business the provision of food, drink,
leisure, business facilities and accommodation to people away from their homes.

The hospitality jobs and works are among the oldest of the humane jobs and they include making
a guest, customer, client, consumer or resident welcome, nice and comfortable. The component
parts in the hospitality industry are Hotels & motels, Nursing Homes, Guest houses, Restaurants,
cafes & snack bars, Night-clubs and Public houses.
 CHAPTER 5.

LITERATURE REVIEW

Chapter 5.1.

As per the scholars, effective human resource management is strategic in nature and displays
certain characteristics such as summarized after.

It focuses the strategic management of the human capital income of the company. It is a
comprehensive and coherent way to the provision of mutually helping employment policies and
practices. It means the development of integrated human resources policies and practices,
therefore transforming or bundling. It supports importance on gaining commitment to the
company’s mission and values.

Thus it is commitment oriented. It treats people as assets for the industry rather than money.
Therefore, people are seen as a source of competitive advantage also human capital to be
invested in. It is a way to employee relations which is unitary, simple and not pluralist.

The faith is that employees share the same interests as employers highlighting on the principle of
mutuality. It focuses that the performance and supply of human resources management activities
is a line management responsibility.

Human resource management is concerned with personnel. According to Keiser et al (1979),

management means “getting things done through others”. The behaviorist’s view of management
assumes that since management can be accomplished only through people, the consideration of
these people and their needs is all important. Personnel management includes not only their
selection, marketing, hiring and training, but also their ethics, motivation and morale.

Many theorists consider personnel the most essential resource of an operation; others claim that
the importance depends on the type of operation based on the level of technology at hand. The
knowledge gained by the study of employee at work can be used to understand, depict and bring
about changes.
The fundamental conclusion to be drawn from the works of recent behavioral scientists, and
Abraham Maslow in particular, is that man is a satisfaction seeking being motivated primarily by
his biological needs. In addition, and unlike most other beings, when man’s biological needs are
satisfied, further needs emerge. This manifests itself in the pursuit of power, status, security and
other outward signs of “success”.

Maslow’s proposition does not end here; his famous hierarchy of human needs recognized that
an individual has a scale of need and that the higher levels do not become pressing until the
lower levels have been satisfied.

Beginning at the lower level, Maslow’s human needs are physiological wellbeing, safety,
belongingness and love, esteem, and self-actualization. Satisfying these needs at whatever level
that may arise, an organization makes an employee happier and theoretically eager to produce as
much as possible.

Chapter 5.2.

Most people are not conscious of the needs, which drive or motivate them. If, however,
management can see them, they can bring appropriate ways to make that these driving forces can
be used to the advantage of both the industries and the individual.

Satisfactory social relationship with other people is among the highest needs of everybody.
Service occupations as obtainable from the hotel and catering industry are advantageous; since
many people derive real joy from serving others, it is thus, no doubt a major force that attracts
people into the hotel and catering industry. It has been discovered that workers’ productivity is
usually governed to a great extent by their social relationship.

In our society, another aspect of our relationship with others which plays a significant role is our
need for social acceptance; frequently, this depends on our jobs and way of living. By many
indications, society finds us on the social ladder but a lot of people not content with their
situation attempt to move up.

This unfortunately defers most people from working in the hotel and catering industry. This,
according to Keiser et al (1979), is unfortunate because working conditions are, after all, better
than those in many industrial jobs, with the jobs more interesting than mechanized assembly line
work.
Also many people go into the field at the non-management level when they cannot find work
elsewhere, and tend to view their work as a job of last resort rather than a career – something to
do until better work comes along. A probable reason for this is the absence of strong and solid
motivators.

If staff is going to have or achieve the results their manager is aiming at, they must be well
motivated. Frederick Herzberg in assessing motivation, focused on the distinction between
motivation and factors which simply alleviate dissatisfaction. He found that factors that make a
job satisfying are quite separate from those that make it dissatisfying.

For example, offering workers more money can lead to less dissatisfaction but not true job
satisfaction. Employees who hold jobs that they consider intrinsically rewarding are satisfied
with their jobs. With less rewording work, they become less satisfied.

Offering them more money does not replace the opportunity of doing fulfilling work. Workers
are often neutral – neither happy nor unhappy, but simply doing their work.

Herzberg believes that certain factors are used to keep a person from being unhappy; for
example, food keeps us from being hungry, having a fine breakfast does not stop us from being
hungry in the afternoon. That is the case of motivation in the organization. Also, a salary makes
us happy, but not forever. Six months or at most one year later, we feel we are deserving of a rise
again for one of many reasons.

In Herzberg’s jargon, money and fringe helps are known as “negative motivation”. Their
ignorance from a job unquestionably will force people unhappy, but their attendance does not
necessarily make them cherish or more helpful. So he went forward to name recognition from
others within the industry and prospects for promotion, within other things, as the aspect that can
rightly be called true motivators.

Invariably, the drive for reasonable performance by employees cannot be strong in the absence
of true motivators. In the evaluation of employee performance and motivation, Keiser et al
(1979) argued that financial benefits by themselves will not induce enthusiasm in workers but
will depend on the motivational factor; that is, the expectation that the application of effort will
result in performance, and performance resulting in some form of reward which will be of value
to him.

The actual level of performance will generate rewards both for the employee and the
organization. Wright Bakke discussed organization as a fusion process in which the individual
hopes to use the organization to achieve his goal, while the organization hopes to use the
individual to further its goals.
 Chapter 5.3.

The employee benefits in aspects of salary, bonuses, recognition,

achievement, etc. and the industry benefits in ways of profit, consumer
satisfaction and productivity. The value of the reward to the employee
will complete the loop to motivation and consequent increased effort on
the job.
A good reward system aims at:
 Encouraging appropriate people to stay loyal with the organization.
 Achieving equity in pay for similar jobs providing rewards
for good performance and incentives for further improvement
in performance.
 Being cost-effective in the same sense that the benefits of
the system are obtained without undue expenses.
 Being easy to define, understand, control and operate.
In Africa, the normal hotel manager seems to place so much focus on
salary alone as the greatest motivator and thus failing to see the
achievements and sacrifices of the employees that normally must need
recognition aside from the basic pay.
Employees want a recognition of their efforts and either a challenge or
motivation to improve their work. Cohen et al (1995) noted that people
tend to repeat behavior that is rewarded, avoid behavior that is punished
and drop or forget behavior that produces neither. In evaluating the
reward system as being important to employee motivation, it is
necessary that the administration of wages and salaries be examined.
Salaries and wages are paid by an organization, principally to obtain labor required for them to
operate. Apart from a well-articulated method of setting basic pay rates that is uncommon in the
hotel and catering industry, factors such as tipping, service charges and the provision of food and
accommodation all have to be chosen into consideration.

The payment system in hotels have particular problems because it usually consists of basic pay
and subsidized lodgings and food for employees, tips and service charges and fiddles, which are
all terms used to describe some transactions by hotel staff outside official means.

Undoubtedly, tips and fiddles are major sources of income to employees. In wage
administration, a major responsibility of managers is to decide on how to distribute fairly among
all employees, the money set aside for the payment of staff. They may decide by looking at what
competitors are paying the government, approved rates, what has been historically the
employer’s practice and what is necessary to overcome any crisis.

In addition to the salaries and wages, it is usual practice in a lot firms for some employees to
improve the “take home” by earning additional payment in different forms. These payments are
made largely to enable workers participate personally in the success of the undertaking by
rewarding individuals for their various contributions to the enterprise.

In the assessment of the position of pay (wages and salaries) and most especially the incentive
scheme. There is still no real consensus in spite of the vast body of knowledge coming from
early writers like Taylor, McGregor’s, Maslow, Herzberg, etc.
 Chapter 5.4.

Many managers yet believe that money, because of which it can purchase (including power and
status), is a major motivator. Others try to make their thoughts to the complicated views of
Maslow and Herzberg, debating that people work for not only money but also self-esteem,
ethics, job satisfaction and security, self-actualization, etc.

Incentives are necessary and important tools used to stimulate and uphold good performance,
increase sales and also control cost. Increased wages may simply be throwing good money after
bad, if no incentives for improvement accompany them. A good incentive scheme is most
effective when employees are dependent on them.

The incentive packages mostly operated in the hotel industry include tips, service charge bonuses
and commissions. Tipping as a normal incentive should stimulate and promote extra productivity
but are today generally seen by most employees as a matter of right and something necessary for
optimal work input. Financial incentives can reward employees through increased payment for
the increased contributions to the enterprise.

However, they can achieve little on their own. Such incentives should be a part of a
comprehensive balanced personnel policy that is based on offering employees adequate wages
before incentives are offered.

The necessity for employers to us fringe benefits in employment policies have grown because of
pressures from the rapidly increasing competition for employees.

They are intended primarily to motivate employees, to enhance performance and encourage them
to stay with the organization. Such fringe benefits could include meals, holidays, leave days, car
use and even deferred earnings such as pensions, such fringe benefits could be divided into three
main types:-

 Non-financial benefits: These include sick pays, medical insurance etc.

 Part financial benefits: include pensions, meals, Cars, Subscriptions etc.
 Financial benefits: include commissions, bonuses, profit sharing, share option etc.

Moreover, the presence and introduction of many fringe benefits in a “compensation package”
may not be a positive incentive to work harder or to perform better. Salaries consist of base pay
and benefits.

According to Halloran and Beaton (1987), the base pay is more important than benefits in both
practical and psychological terms. An employee must be made to feel that this or her base pay is
fair and adequate.
An employer cannot make up in benefits for what its lacking in the basic wages, because the
below average wage pay with good benefits, and the absence of fringe benefits on the other hand
may be a disincentive and could leave an employer at a disadvantage in the retention and
recruitment of workers.
 CHAPTER 6.

METHODOLOGY

As of any study, a research must be completed in such a way to find results to point out
conclusions. There for a research design or methodology is important and must create a structure
for following.

Research framework, is used to set the parameters of this research. In different words, it’s meant
to set the scope of which this study will be executed in points. As shown below, my study
process is ready to take place in three points.

1. Research Topic and Framework

Find Topic
Create Thesis Framework
Begin on Literature Review

Conclude Literature Review

2. Investigate Design quality research
Gather all the useful data

Analyze Data
3. ConcludeDiscuss result with theory from Literature Review
Present the End

Point 1, focuses choosing a research topic an area to conduct this study. Moreover, it also
consists the creation of this research design and its research question and gives way to a start of
investigating literature on the research topic. In relation to the research part itself this point
would contribute by setting the problem explanation on which the research must cover.

Point 2, contained the finding and conclusion of the literature review as to constructing the
adequate knowledge on the research topic where the method of collecting the necessary data
needed to conclude the reason of this research was chosen. In addition, various service managers
of various hotels within the Mumbai City Centre area would be contacted as to agreeing for
taking part in the research and set a date for scheduling interviews. Having analyzed the
situation, interviews will be set up with service managers to apprehend their individual and
personal perception of service quality and its uses.

Point 3, concerns the final decoding of the empirical study and the discussion between the
literature review and the findings which then concludes the purpose of apprehend the perception
towards service quality measurements in the hospitality industry. Last and final, having done this
the conclusion would point that either operational management have the correct perception on
service quality.

Research is briefly defined as ‘a form of systematic enquiry that contributes to knowledge and in
the case of this dissertation was used to identify new and better ways of managing within the
hospitality industry. After displaying on thoughts the writer chose to investigate further the
subject of HRM practices and staff turnover, once the research area was chosen the writer then
had to decide the research method which best suited the research question.

Saunders suggests that ‘many research questions are answered with the help of some
combination of secondary and primary research. Whereas, the writer of this dissertation takes the
display that there is enough secondary information available to achieve the goals and objectives
mentioned above and it is therefore based solely on secondary research drawing on existing
sources alone.

The main advantage of secondary research is that it uses less time and money. Secondary
information can be gained much faster than primary information and time is the only cost
incurred. Secondary information facilitates the analysis of bigger information sets, such as those
collected by nations surveys. It is readily available and simply proven reliability. Stewart and
Kimes suggest that the quality of information in secondary research is somehow far superior to
that obtained through primary research as secondary information is permanent and more open to
public scrutiny. Secondary data offers relatively fast and cheap solutions to many questions and
is almost always the point of departure for primary research.
However, it is important to recognize that secondary data does have a number of disadvantages.
It may well have been collected for a specific purpose differing, either substantively or in
emphasis, from the research question and this dissertation’s objectives. It might also reflect the
attitudes of those collecting it rather than offer an objective picture of reality. Along with the, the
secondary information may be outdated. Wrenn et al suggest that old information may not
significantly be bad information, but that modern information is an absolute significant.

The writer has attempted to overcome weaknesses of the secondary research way by using
secondary information that is both current and closely related in emphasis to this dissertation’s
title, aim and objectives. As the author aimed to analyze a large data set instead of concentrating
on a smaller sample, for example, one organization in particular, it was decided that secondary
research would be more appropriate for this type of study.
 CHAPTER 7.

STUDY OF HUMAN RESOURCE

MANAGEMENT IN HOTEL AND CATERING
INDUSTRY

Chapter 7.1.

Before we start to see the whole aspect as one, we will see them as various individuals. Human
Resource, Human Resource Management (HRM) and Hotel and Catering Industries so that when
we see them as one, we will be able to know the exact and proper connection and usefulness of
each of them and how they are useful to each other and their connection with its necessity.

So, first we will see what is Human Resource, how and where it is useful, its sectors and
necessity.

Human resources are the group of the workers who are the workforce of
an organization, business sector, industry, or economy. A narrower aspect is human capital, the
knowledge which the individuals embody. Similar factors include manpower, labor, personnel,
associates or simply people.

A human-resources department (HR department) of an company performs human resource

management, ignoring various factors of employment, such as compliance with labor law and
employment standards, administration of employee benefits, management of employees
documents with the required documents for future reference, and some factors of hiring and
employee off boarding.

In accordance to how people respond to the changes in a labor market, the following must be
understood:

 Skills and qualifications: as companies move from manual to more managerial

professions so does the need for more highly skilled staff. If the market is "tight" (i.e.
very less staff for the jobs), employers must compete for employees by offering financial
rewards, community investment, etc.
 Geographical spread: how far is the job from the employee’s place? The distance to travel
to work should be in way with remuneration, and the transportation and design of the area
also makes one think who applies for a position.
  Occupational structure: the norms and values of the different careers within an
industry. Mahoney 1989 developed three various types of occupational structure,
namely, craft (loyalty to the job and company), organization career path (promotion
through the company) and unstructured (lower/unskilled employees who work when
needed).
 Generational difference: different age categories of workers have certain characteristics,
for example, their behavior, way of work and their expectations of the organization.

Human resource industries play an important role of developing and making a company or
organization at the start or making a progress at the end, due to the labor provided by employees.
Human resources are intended to display how to have better employment relations in the
workforce. Also, to bring out the best work ethic of the employees and that is why making a
move to a better working environment.

Now, secondly we will see what is Human Resource Management (HRM), how and where it is
useful, its sectors and necessity.

Human Resource Management (HRM) is the strategic reach to the effective management of
employees in a company or organization such that they help their business acquire a competitive
advantage. It is developed to maximize employee performance in service of an employer's
strategic ambition. Human resource management is primarily worried with the management of
people within industries, focusing on policies and systems.

HR departments are accountable for supervising employee-benefits structure,

employee recruitment, training and development, performance raise, and reward management,
such as organizing salary and benefit systems. HR also involves itself with organizational change
and industrial relations, or the balancing of organizational practices with necessity arising
from collective bargaining and governmental laws.

The complete purpose of human resources (HR) is to make sure that the industry is able to gain
progress through people. HR professionals organize the human capital of an organization and
concentrate on implementing policies and processes. They can specialize in searching, recruiting,
training, maintaining and developing employees, as well as maintaining employee relations or
benefits.

Training and development professionals make sure that employees are trained and have
continuous development. This is completed from training programs, performance evaluations,
and reward programs. Employee relation works with the involvement of employees when
policies are broken, such as cases concerning harassment or discrimination.
Managing employee benefits involves developing compensation designs, parental
leave programs, discounts, offers, and other benefits for employees.

On the different side of the area are HR generalists or business partners. These HR professionals
would work in all areas or be labor relations representatives working with unionized employees.

HR is an object of the human relations movement of the starting of 20th Century, when writers
and researchers began documenting ways of developing business worth through the strategic
management of the workforce. It was originally influenced by transactional work, such as salary
and reward administration, but due to globalization, industry strengthening, technological
improvements, and further research, HR as of 2015 points on strategic techniques like mergers
and acquisitions, talent administration, succession organizing, industrial and labor connections,
and diversity and inclusion.

In the current global work environment, most companies look up on lowering employee
turnover and on gaining the talent and knowledge held by their workforce. New recruitment not
only entails a high cost but also gains the risk of a new employee not being allowed to
adequately exchange the level of the previous employee.

HR department attempts to offer gains that will request to workers, thus reducing the chance of
losing employee commitment and psychological ownership.

Now, lastly we will see what are Hotel and Catering Industries, how and where it is useful, its
sectors and necessity.

Hotels and the catering industry as we know it origin late in the 19th century with the
improvement of the major cities, easier travel through sea and the coming of the railways.

In ancient times, travellers were a rarity, but could always rely on a meal whilst passing through.
As the centuries transformed, travellers mostly pilgrims would be taken care for in the temple or
monasteries. During the mughal empire, the forts and nearby areas would cater to the demands of
the traveller- often in exchange of no more than the stories of their adventure during their travels
or any news from different cities and villages.
During the latter part of the 18thCentury, and the formation of the East India Company by the
British, it was apparent that catering requites on a more formal basis were required and with the
arrival of the railways in the mid-19th Century, hotels & clubs were becoming major part of
everyday life of people who could afford to eat out.

For the regular man in the street kerb side catering was a way of living and for many centuries
the scene of cooking delicacies like pakoda & samosa and other spicy tit bits was a way of
ensuring that anyone with a few paisas to spare need never go hungry.

Prior to the development of hotels and hotel companies the club supplied any lodging amenities
that were necessary. These clubs were restricted basically to Europeans or upper class Indians.
Whereas it did give many Indians the chance to work in a Hotel type surrounding and become
skilled in kitchen & restaurants. These skills were always passed down from father to son.

The big Indian army too, needed catering on a different level, and officer’s messes then as now
displayed high class restaurant with normally a very good kitchen connected.

The princely castles of the many royal Indian Maharajas or Landlords and families were also
managed on hotel lines of the present day at least as long as food & drinks were involved.

Kitchen with Indian & European cooks were deemed normal and the banquets of yester years far
out shone anything that is supplied today even of the best 5 star hotels and restaurants.

India & Indians have a big cultured heritage of catering and hospitality. The diversity of the
regional dishes and the talent to construct them has long been inherent and it is because of this
fruitful history that India with its number of Hotels & Restaurants levels among the world’s
leading hospitality & tourist venues.

In the medieval 19th century, the railway network started in India with an project that was to
develop the length & breadth of the large sub-continent. With travel made simplier, people were
transported from one part of the country to another, eventually requiring food & drink en route.
At most of the bigger stations catering to the large cities refreshment rooms were released. The
trains would stop for an appropriate length of time so that the passengers would alight and obtain
a simple meal.

3rd class passengers, who cannot afford to the luxury of eating in the relaxing luxurious rooms
could utilize themselves on the wares from the numerous vendors on the station platform or
carts.

At the turn of the century, most of the industries decided that catering was starting to become a
major part of railway travel & the expertise to run required catering operations of mobile choices
was not significantly within the scope of regional railway bodies.
In the early times of the new century, it was chosen naturally to contract out the catering
necessities to private companies or hotels with a catering background so that the traveller could
be more professionally helped and experience during the often long and arduous journey.
 Chapter 7.2.

Now when taking the aspects together, Human Resource Management in Hotel and Catering
Industries, we have to stay clear on certain aspects, which helps to increase the satisfaction of the
services provided to the recipient.

 Human resources managing: Through job analysis and strategic managing, involving
assessment of the environment and projections for future business, organizations can
forecast short- and long-term staffing needs and the strategic use of the human
resource functions to meet those needs.
 Job analyses and job descriptions: Job analyses are used to define the tasks and
responsibilities involved in each job and to determine the qualifications required to
successfully fulfill the job requirements. Job descriptions are the resulting documents.
They supply a basis for all other HR functions.
 Recruitment: Different methods are used to attract appropriate applicants from
labour pools.
 Selection: The selection procedure is used to employ the best people into the levels for
which they are most suitable for.
 Orientation: A new employee’s initial introduction to the company provides
essential information and creates a positive first impression.
 Training and development: These functions allow the improvement of knowledge, skills,
and attitudes necessary for staff to perform in their current level and/or to prepare for
improvements.
 Compensation, benefits, and recognition: Companies need to determine proper types and
levels of remuneration and incentives, including wages, formal benefits, and perks.
 Performance management: Giving feedback to employees on their work performance
encourages, helps and supports improvement. Also involved in performance management
is coaching. Progressive discipline is a different process intended as a formal corrective
process to address unsatisfactory behaviour or job performance.
 Termination: Businesses must manage the process of employees ignoring the
organization due to just cause or closing being the final stage of progressive
discipline.

Similarly many businesses and industry, the hospitality industry has also concluded the fact that
employees are the most important factor of the organization. Specially in hotel business, having a
good, qualified and hardworking workforce can differentiate between which hotel is good and
which is bad.
The human resource managers are able to cover almost every factor of the hotel; this helps
human resource management an integral and significant and necessary part of the management in
the hospitality industry.

After going through the documentation it is being realized that since hospitality industry is
about supplying and providing better services to the consumers, therefore the quality and quality
of the hotel depends upon the labor force working in the hotels.

There are many various areas, improving them is the duty of human resource manager evolving
in the overall better performance by the entire industry. The HRM department is responsible for
hiring new employees, the newly hired employees can seriously affect the performance of the
hotel which makes it necessary for the managers to hire the best and qualified workers present in
the market by following appropriate hiring process, in which every candidate is critically
evaluated and only those with the spark are being hired.

The most necessary task for the HR manager is to get the most perfect and proper people for
particular job, since in hotel industry, many workers tend to just participate in the job, as they
think that there is nothing else to do, although hotel services need proactive employees which
can make conclusions on the spot and can satisfy the customer issue or help in time.

This project will also display the issues that are connected with the HR manager in factors of
managing the different jobs in the hospitality industry, but the most significant task of the HR
manager is to gain the highest quality employees, the main issue in doing this job is the fact that
many of the people do not want to use this organization as the ending career, that is why the
employee turnover in the hospitality industry is connectively much higher than other
organization.

After analyzing the document that is being also debated in the start of the project, reading the
documents helped to realize that HR manager has to more strategic in factors of handling HRM
problems in the industry. In more complicated factor which can be realized is that since
hospitality industry, the management need to handle the consumers coming from various
countries having various cultures and unique attributes, that’s what makes the HR department to
have a larger perspective of duties in the Hospitality industry.

Therefore the importance of Human Resource Management cannot be neglected in this industry,
having customers coming from different cultures do have separate living standards and also the
expectation varies. Therefore the training and development provided by the HR manager should
enable the employees to cope up the issues related to the cultural issues arising.

Moreover, when any company wants to open a hotel in the international market, or in other
words a hotel which needs to go beyond the boundaries, it has to face some difficult issues in
terms of managing the cultural factors. There are many examples of huge companies facing
failure when entering into different countries. HR department has to play a significant role in this
regard while maintaining the significant corporate culture and also to cope up the issues
regarding the external environment.

Moreover in the global context in terms of hospitality industry, the HR manager also has to be
more strategic in terms of rewarding and motivating the employees through different processes.
Hotels which are able to provide appropriate training to the employees resulting in the
enhancements of the skills and abilities of the employees make it possible for them to go upward
in the career.

Having appropriate HR department in the hotel provides the employees a gateway by which they
can have proper guidance regarding any issue related to the performance or with the daily
operational activities. Moreover this provides with the sense of security to the employees that
they do have someone who can look after them whenever they commit a mistake.

The above discussed necessity of having proper and exact HR manager and department is being
found from the documents that were supposed to show the way. In those particular documents, it
was analyzed that using human resource management in the hospitality industry is necessary.

The strength of a nation lies not in machines but the men if possess. No country can become
strong, unless it does not make a note of the most powerful resources to people. It is clearly said
by the eminent economical Adam ceria that the development of the organization as well as the
nation lies in the development of their individuals.

India is a large country and has vast potential to become a strong nation with its huge
natural human resources. It is the third biggest body of scientific and technical manpower as
well as mercenaries.

A country may have large physical resources, but it cannot make fast economic and social
improvements unless it happens to have its people who are enterprising and have improved
necessary skills and attitudes. Human resources in developing countries are an important
resource and requires to be fully used to its extent.

The hospitality industry is a 4 trillion dollar service area within the world economy. It is an
umbrella factor for a large variety of service industries involving, but not stopping to, hotels,
food service, casinos, travel, and tourism. But travel and tourism is regarded as the principal
aspect of hospitality industry as it creates huge foreign exchange and supplies with large
employment and strategies.

The National Committee on Tourism explains tours and tourism as a comparatively

modern phenomenon of traveling in pursuit of relaxation, leisure, exploring, culture and
knowledge
about other lands. Tourism started on a large and massive area in Europe since 19th century,
although it has spread as a worldwide enterprise in a short time.

Today tourism development is sweeping the globe. It is one of the world’s largest and fastest
growing organizations and its role in improving the economic development of a country is
widely recognized.

It has also originated as the most lucrative business of the world, having tremendous and
humongous potentiality for earning foreign exchange, yielding tax revenue, sourcing for trade,
promoting growth of ancillary industries and generating income and employment. Tourism also
contributes and supplies to the development of industrially backward regions.
 Chapter 7.3.

The British established the concepts of modern catering in India during the Seventeenth Century,
and in fact the first hotel in Asia was established in Calcutta under their patronage. Gradually
western type of hotels was established in other cities Like Bombay, Delhi and Madras. A British
hotel was established in Mumbai(Bombay) in 1850 and the Esplanade hotel was established in
Mumbai(Bombay) in 1871.

The Great Eastern Hotel of Calcutta was established in 1843. After the establishment of the
railway network, people traffic in the region increased. Thereafter many eating houses and
primitive hotels were established near railway stations.

The opening of summer capital in remote places helped in the development of resorts hotels and
catering in India. After independence the British style of operation continued for many years
until the American way of hotel functioning became increasingly dominant. But hotel industry
spread only after the starting of large and gigantic chain hotels like the Oberoi hotel group, the
Taj, the Welcome hotel group and the Ashok group. A large number of major international hotel
chains like Hyatt, Holiday Inn, Intercontinental Quality Inn, Ramadda and Sheraton have already
been well established in India. In India hotel business was accepted as an organization only
recently.

Before 1937 there was hardly any establishment that could entertain more than 500 tourists at a
time. After World War II important cities in India witnessed the emergence of many hotels and
restaurants. In 1950, realizing the importance of tourism and acute shortage of hotel
accommodation, the government of India took a decision to build hotels in the public sector.
Thus, the Ashok hotel at Delhi was built in 1956.

In that year itself the government Hotel Standard and Rates Structure Committee with the
objectives of laying down criteria for the purpose of classification of hotels in India, keeping in
view the international standard then applied to similar establishments, suggesting improvement
in the existing arrangement, considering whether legislation/ assistance was necessary for the
hotel industry and if so what type and suggest suitable rate structure of hotel industries.

The importance of HRM in the hospitality industry cannot be ignored. There are two truths
highlight this significance. The first truth is that the hospitality industry is a people business
which is consumer-driven and quality and quantity focused. As a matter effect, the human
element plays a major and important role in the overall success of any industry, but especially so
in a service industry such as the hotel business.

Many employees of the workforce (waiters, waitresses and receptionists) are in direct
connections with the clients and customers and are seen as been included in achieving the
objectives of the hotel. The quality of service provided is dependent not only in the skills but also
in the attitudes of the staff. The latter are roles of the finished goods or items for which the
consumer is paying.

Customer satisfaction is mainly to be disturbed as much by the standard and provision of food
and beverage, accommodation or other amenities and facilities of the hotel as by the courtesy,
helpfulness and personal qualities of the staff.

Therefore both the skills and the attitudes of the workers are necessary if the demands of
the consumer are to be met satisfactorily. This places particular significance on human
resource management.

All scholars support that the role of the HR function has transformed over the years, and should
that is why viewed from the newest perspectives in industries. Whereas some industries seems to
still fall behind these trends. Scholars view the role of HRM in the digital age as having evolved
from the Personnel Administrative function to Human Capital Management function.

This is viewed as having made electronic HR becoming necessary in knowledge management.

These views the role of the HR function as increasingly being viewed as to be business related.
But citing Francis and Keegan, Brockbank, has the tendency for HR to point on business
performance outcomes except of employee well-being which must also remain a complicated
function of HR work.

According to when an organization’s HRM system supports and facilitate the behaviour and
competencies needed for organizational success, the HRM system and the needs of the
organization are in a state of strategic alignment. Vertical alignment stays and used when the
HRM system falls with every other factors of organizational environment.

Horizontal alignment is used when all of the HR policies and practices that include the HRM
system are supportive with each other and present a coherent message to employees relating how
they should behave at work. This view is shared by citing Guest, D. citing Legg also writes that
human resource policies should be related with strategic business planning. On to write this
views as being shared by Sisson, K, Storey, J.

Also write that the HR role has transformed from administrative services to business partner, and
that the newest view which is less developed in most corporations is that of a strategic partner.
Share this view and note that HR professionals bring business, change, consulting, and learning
to their partnership with line managers, so that together they create value. From the writings, it is
clear that HR should play an important role in organizations, which entail being included in
overall business Strategic issues and problems, as well as integrating HRM policies and
practices.
This states that HRM should also play a pivotal and important role in communication as well as
ensuring employee participation, as well as retention, as retention is complicated to Human
Capital Management. This writing was used as a guide in searching out how the HR function has
positioned itself in the hotel sectors.

HR manager has to realize that what factors are different in terms of interests in the new country,
it is also possible that the thing which is provided the most value in the country of origin means
nothing in the other country, hence resulting in the fall of the entire business.

That is why the Human Resource Management needs to realize the difference among the
interests and values of the ethics and culture and try to pose the hotel in an acceptable moral and
decorate it in the similar way, so that potential consumers can feel that they are in their own
culture and heritage is secure.

Here the education means the level of literacy rate in the country, this has become a
complicated problem for the HR management because, industries working in the country having
low literacy rate will prove it hard for the industry to search the most appropriate employee for
the job.
Moreover sometimes hiring less educated and literate people will harm the services supplied by
the hotels, since hiring wrong and inapplicable employee in hotel can alter the services at very
fast pace, since in hotels direct consumer interaction is being held, hence affecting the image of
the entire industry.
 Chapter 7.4.

The objective study aims at assessing the reasonability of all the entitlements due or payable to
that part of the labor force that works fully or partly in the hotel and catering industry.

The objectives of this study are thus.

 To examine the reasonability of different entitlements and benefits that is not part of the
basic salary.
 To assess the degree to which payment is equivalent with the efforts of employees in this
industry.
 To assess the extent to which salary and benefits in this organization are same to those of
like-organizations.
 To examine the industrial connections existing in the hotel under study and its impact on
employer’s welfare.
 To find out the impact of wrong and defective salary and employee benefit schemes or
their absence altogether, on employee performance.

The operative jobs are those tasks or duties which are significantly entrusted to the human
resource or personnel department. These are connected with employment, development,
compensation, integration and maintenance of the personnel of the organization.

 Employment: The employment of the proper kind and number of persons required to
achieve the objectives of the organization. This involves recruitment, selection,
placement, etc. of the personnel. Before these procedures are performed, it is better to
examine the manpower necessity both in factors of number and quality of the personnel.
Recruitment and choosing cover the sources of supply of labor and the devices
produced to select the right type of people for various jobs. Induction and placement of
personnel for their better performance also fall under the employment or procurement
function.
 Development: Training, managing and development of personnel is a follow up
reguarded of the employment function. It is the duty of the management to train each
employee properly to develop the technical skills for the job for which he has been
employed and also to reduce him for the higher jobs in the organization. There are many
on-the-job and off-the-job ways available and provided for training purposes. A good
training program should involve a mixture of both these ways. It is necessary to point out
that the personnel department arranges for training not only the new employees but also
the older ones in order to update their knowledge in the use of latest techniques.
 Compensation: This operative function is concerned with the determination of
adequate and equitable remuneration of the employees in the organization for the input
of their
 labor and skill. The personnel can be compensated both in terms of monetary and non-
monetary rewards. The personnel department can help some use of certain techniques or
ways like job evaluation and performance appraisal or bonuses.
 Maintenance: Finding the right employees for the right jobs and enhancing their work
potential through systematic training are only the starting point in molding a competent
work force. A far-sighted management cannot stop there. They must be supplied with
proper working conditions so that they may like their job and work-place and maintain
their efficiency. Working conditions normally influence the motivation and morale of
the employees. These involves measures taken for health, safety, and comfort of the
work- force.
 Motivation: Employees work in the industry for the satisfaction of their wants and needs.
The human resource manager provides the different departmental managers to design a
system of financial and non-financial things to help and motivate the employees.
 Personnel records: The human resource in the personnel department maintains the
records of the employees working in the enterprise. It keeps full and detailed records of
their maintenance, training, achievements, transfer, promotion etc. It also preserves
many other records relating to the behavioral pattern of the personnel like absenteeism
and labor turnover. The personnel programs and policies of the organization are also kept
here.
 Industrial relations: The responsibility of maintaining and stabilizing good industrial
connections is mainly discharged by the human resource manager. The human resource
manager can help and provide in collective bargaining, joint consultation and settlement
of issues, if the need origins. The human resource manager can make a great deal in
maintaining and stabilizing industrial peace in the industries as they are deeply
associated with all committees on discipline, labor, safety, grievance redress etc.
 Separation: The organization is responsible for meeting certain requirements in the
process in separation, as well as assuring that the returned person is in as good a shape
as possible. The personnel manager has to make possible and ensure the release of
retirement rewards to the retiring personnel in span.

Human resource manager has significant education and training in managing human resources.
He helps in top management and department heads.

 Top management: The Personnel manager advises the top management in the formulation
and evaluation of personnel programs, policies and procedures. He also provides advice
for reaching or achieving and maintaining good human relations and high employee
morale.
  Department heads: The Personnel manager offers advice to the heads of various
departments on matters such as manpower planning, job analysis and design,
recruitment and selection, placement, training, performance appraisal etc.

To this end, this project aims at reaching out to the reasonability of all the entitlements due or
payable to that part of the labor force that works fully or partly in the hotel and catering industry.
The objectives of this study are:

 To study the reasonability of other entitlements and benefits that are not part of the
basic salary.
 To reach out to the degree to which payment is commensurate with the power of
employees in this organization.
 To calculate the length to which payment and benefits in this organization are similar to
those of like-industries.
 To study the industrial relations placed in the hotel under study and its fall on worker’s
welfare.
 To identify the impact of inappropriate payment and employee benefit schemes or
their absence altogether, on employee performance.
 Chapter 7.5.

The hotel industry is one of the major pillars of Mumbai’s economy therefore great attention
must be paid to the hospitality industry. An organization like Oberoi Hotel needs to be
constantly in line with changes due to the competitive environment. That is why, there should be
a continuous reviewing of the HRM practices in order to reach success and maintain a corporate
increase. This study arise from the need to study to what extent the HRM practices are
effectively practiced at Oberoi Hotel and how they can be improved to gain better results.

HRM practices are the significant factors in which attention must be pointed as these practices
have a direct pressure on the human resource of the Hotel and people are very important in line
to gain competitive advantage, progress and success.

This study is on the 5 main HRM practices and how they are being played in the Hotel. The five
practices are”

1. Human resource planning

2. Recruitment and selection
3. Training and development
4. Performance management
5. Effective communication.

It is generally accepted that success is deemed to come from the way the human resources are
being managed and trained in the organization, for human resources are amongst the most
complicated element for Service Company in the hotel industry.

In an industry in India where there seems to have been a continued increase over the years,
expertise is that’s why expected to be limited and this constitutes an issue.

There and other issues are what the study wishes to consider and make recommendation where
significant. The problem reduction in experienced hands in this organization in the third world,
seem to be the case due to managers reluctance to train its workers and employ able hands.
Another issue lies in the fact that most workers in the organization have no clear cut channels
to register their protests and grievances since management normally stifles unionization
agitation.

The third issue concerns the issue of how the basic salary and benefits of workers is
commensurate with their dedication to job and efforts. As employers are less responsive to
changes in the economy with respect to adjustments of salary and benefit packages in line with
economic increase as being experienced in most developing countries today, including India,
they are left with employees whose dedication to work lessens; with huge fall in their morals and
motivation to work.
We are also faced with an environment where employees are normally kept in the dark without
being told about the things they have the right to know. Example, salary, determination method,
aspects for promotion, etc., but rather such problems are based on the whims of management.
This constitutes an issue. The last issue is the general belief by most people that jobs in the
organization is one of last resort which they can take up when they do not find a “better” job to
do. This thus discourages young generation who may wish to have a career in the hotel and
catering industry. Having displayed some of the issues, this study shows to find possible
solutions to some of them.

It’s normally agreed that contemporary management writings as well as concepts have originated
in post industrial revolution era where manufacturing industry continued to be the heart of
economies and this led to the emergence of research in an organizational setting. After World
War II, services industries continued to spread and economies have experienced transformation
from a traditional organizational setting to an emerging service organization landscape.

Hospitality industry is considered a sub category within the services organization and has
experienced particular increase with expanding global economy and positive changes supporting
to travel and hospitality industry in global environment. Also, services industry is widely
accepted to be worked by consumer satisfaction and therefore human resources are necessary
component of service delivery. That is why investigating HRM practices in a labor intensive
organization such as hotel is necessary.

Studies conducted by Hoque, Alleyne et al. and Chand and Katou have studied HRM practices in
hotel industry in UK, Barbados and India sincerely. Although the studies have been placed in
different years and there is a particular amount of gap between the studies, comparison of HRM
practices in these studies provide particular insights on the assumption of HR practices in three
countries.

Based on the research of the above studies it can be shown that HRM in the hotel industry is
largely adopted and researches are emerging from developed and emerging markets studying
HRM practices. That is why, this study focuses on identifying HRM practices in the Hotel
industry in Vijayawada, Andhra Pradesh, India and whether there is a particular difference in
HRM practices in chain hotels and independent hotels.
 CHAPTER 8.
LIMITATIONS

A trial of evaluating the management of the human resource in the hotel and catering
organization will be too big and all encompassing. It is that’s why the opinion of the researcher
that the scope of this study be stopped to the administration of employee interest and welfare
schemes, that is all other entitlements because to employee other than salary, which by their
nature may act as motivation for the employees of the organizations in the industry.

The study is enclosed to the entire staff of Royal Palace Hotel, Mumbai. Whereas, the study of
this study will apply to the hotel and catering industry in India. Major limitation to this study, is
the conceived worse by last researchers on this subject, as well as management’s hostility to
questions and enquires.

Generally tourism and hospitality has usually struggled with negative recognition about
employment practices and conditions and this perception has mostly been matched by the reality.

Keep and Mayhew for example in their review of the skills problem in the tourism and
hospitality organization suggest the industry has a number of personnel issues, including:

 Generally low salaries and wages, unless skill shortages act to6 counter this;
 Random and uneven hours and shift patterns that are not family friendly;
 Overrepresentation of females and ethnic minorities in low-level operative positions,
with better paid, higher profile and more skilled jobs filled by males, pointing to
undeveloped equal opportunities policies in the area;
 Weak or non-existent career structures and openings and use of capsulized seasonal
employment;
 Over reliance on informal recruitment methods;
 Absence of evidence of good practice personnel/HRM practices;
 Little or no trade union presence;
 High levels of labor turnover;
 Difficulties in hiring, recruitment and retention of employees.

Recognizing this actuality of poor employment practices, Riley et al. argue that economics is the
sole determining aspect for Human Resource Management policies and practices in tourism and
hospitality. Of course this factor is likely to be true of any industry, but as Riley et al. point out it
uses a particular resonance in tourism and hospitality, due to the nature of the area. That is not to
say that industries, organizations and managers in the industry are not well known of new
managerial thoughts on HRM.

However, they also find themselves wrestling along with ‘traditional problems’, which are not
properly treated by ‘fundamental labor economic imperatives’. Significantly, these issues limit
managerial actions and this leads Riley et al. to debate the behaviour of managers is determined
‘by the structures and forms under which they live’.

This economic authoritative creates a short-term view on managerial decision making, handling
and strategy in relation to HRM, and also means that management are more likely to deploy a
weak internal labor markets.

An obvious pressure of this is that Human Resource Management concerns of tourism and
hospitality industries are constantly directed to short-term responses to problems such as
recruitment, hiring, selection and basic training, instead of more long-term areas which could
conceivably offer more improvement and career progression for existing employees.

Another reason for continuing pessimism is the general attitude and behaviour of employers and
particularly the extent to what they are willing to recognize the extent of the Human Resource
Mamagement issue in the sector. The DfEE registers with some incredulity the awareness of low
salary, for example, existing with the naïve view of employers of tourism and hospitality as a
‘good’ employing area.

Thus, although in a number of areas labor shortages were simply reflective of an unwillingness
of workers to offer competitive salary and terms of conditions of employment, the DfEE notes
how, ‘We were struck by the range to which employers described wages and working conditions
as “rational” or even “nice” while at the same time reporting extensive recruitment issues, skills
gaps and labor turnover.’ This disjuncture among the views of employers and employees is also
stated by the ILO in a recent report on the international tourism industry.

They study how:

Employers’ representatives usually consider that the turnover in the industry must be attributed
to the necessary transient nature of part of the workforce, namely students, mothers and young
people as a complete, as well as the general difficulty in retaining staff.

Employees, on another hand, frequently cite low salary as a reason for changing employment,
though a lack of career design and benefits would appear to be of even greater importance.

This inability by organization to recognize the most glaring of problems is long standing and can
also be seen in relation to things like a degree of hostility and opposition from the workers’
associations in the organization, such as the British Hospitality Association (BHA), to
governmental initiatives such as the minimum salary and working hours directive. The BHA still
stays unsure of the benefits of such initiatives, despite help from others who argue these
initiatives are mostly to have a potentially positive pressure on the organization.

Given the above debate it is unsurprising to watch a long history of support for the proposition
that tourism and hospitality stays a weak employing sector. From Orwell’s Down and Out in
Paris and London in the 30s to modern work by the likes of Price, Kelliher and Perrett,
McGunnigle and Kelliher and Johnson and Jameson, the dominant paradigm has focused to
stress the negative factors of working in the areas.

For example, McGunnigle and Jameson tested and analysed a selected number of hotels from the
top 50 hotel groups ranked by ownership of bedroom stock, which were supposed to be most
likely to exhibit good practice Human Resource Management. Except this they concluded, ‘This
study displays that there is little adoption of HRM philosophy in legally owned hotels in the
United Kingdom sample has a long way to go before it can gain that it is encouraging a “culture
of commitment”.

Exactly, Kelliher and Perrett, drawing explicitly on Schuler and Jackson’s typology, created a
case study analysis of a ‘designer hotel’. Such a hotel might be of as potentially improving a
more sophisticated reach to HRM as they thought to distinguish themselves from chain
establishments such as Hard Rock Café and TGI Friday’s.

However, although the restaurant had changed ways to a more sophisticated approach to Human
Resource Management in areas like planning, recruiting, training and development and
appraisal, and ostensibly distinguishing an ‘innovation’ strategy, ‘there was tiny actual evidence
that human resources were displayed as a source of competitive advantage’. Instead, the Human
Resource Management reaches adopted by the hotels and restaurant were much more reflective
of immediate environmental grasps, such as the issues in recruiting and retaining staff.

In addition, any number of options may account for weak personnel practice in the tourism and
hospitality organization. Economic fatalism, the prevalence of SMEs, a low-skills base,
employer antipathy to a large progressive reach to Human Resource Management, labor market
characteristics, industries ensuring best fit Human Resource Management practices to support a
high volume, low-cost strategy; all are plausible reasons for a view of Human Resource
Management which is not necessarily premised on high-skills, high-wages and a high-quality
route to competitive advantage.

That said it should be equally bad to paint a wholly positive picture. It was recognized before in
the study that there are also examples of good practice Human Resource Management,
significantly in certain sub-areas of the organization and in market lines where organizations are
likely to seek distinguishing on the basis of offering high-quality hospitality services.
 CHAPTER 9.
DATA ANALYSIS

I made use of descriptive statistics by the use of raw data and simple percentages. The
hypothesis was treated using one sample chi-square test. The test is preferred because we are
comparing sample data with some assumed population and because the observation are
independent, nominally scaled and consist of frequencies in discrete categories. The analysis is
based on the assumption that responses from interviews represents the opinion of the workers
and that answers given to the questions asked were given in at most good faith.

A content analysis will be used to analyze the data gathered through the interviews. According to
Carlson et al content analysis require code groups of words found in transcripts of interviews
which are categorized into segments. These categories are usually dependent and based on the
research subjects.

Content analysis follows two steps:

 A first phase where codes are given to words or parts of words.

 A second phase where comparisons and or contrast are made between the
coder materials.

Axial decoding will be used for the first part and selective decoding will be used for the second
part. The coding procedure will work as QDA Miner Lite program.
 CHAPTER 10.

APPENDICES

Initial debate of the analysis displays an overview on background information pertaining to the
study. As mentioned earlier, tourism regions are categorized into 6 major destinations, in
Mumbai. Table classifies the respondents (hotels) according to these regions.

Highest number (41.3%) of the hotels responded to the study comes from Coast. The second
most respondents come from old cities which is 27%. Respondents from Colaba city and Greater
Colaba area are 18.5% and 8% respectively. Rest of the respondents comes from other
destinations.

Ownership Frequency Percent

Domestic 64 85.3 %
Foreign 11 14.7 %
Total 75 100.0 %

According to information on hotel ownership submitted, it can be displayed that 86.7% of the
hotels replied to the questionnaire were domestically owned hotels and 16.4% were hotels with
foreign ownership. Table provides information on type of hotel. Based on the findings, it is
identified that 54% of the hotels replied were belonging to the chain hotel type whereas the
balance 44% belongs to the independent hotel type.
 Age Distribution of respondent:-
50 &
Designation 20-30 % 30-40 % 40-50 % %
above
Management 0 0% 2 3% 2 3% 2 3%

Casuals 10 16% 1 2% 0 0% 0 0%

Supervisors 8 13% 6 10% 3 5% 0 0%

Operatives 17 27% 6 10% 4 6% 3 3%

Total 35 56% 15 25% 9 14% 6 6%

The above table shows that majority of the workers fall in the category of people in the age
bracket of 20 to 30 years. All casual staff are between 20 to 40 years of age and not above. Only
6% of the en entire respondents are at 50 years and above.

 Gender distribution

Designation Male % Female %

Management 6 10% 0 0%

Casuals 4 6% 7 11%

Supervisors 13 21% 4 6%

Operatives 20 32% 9 14%

Total 43 69% 20 31%

It is seen in table that majority of members of staff are male as 69% are males. No management
staff is female; there are more female casual staff than male.
  Martial status of staff
% of martial Status to
Designation Single Married
single married
Management 1 5 2% 7%

Casuals 9 2 13% 3%

Supervisors 4 2 6% 19%

Operatives 19 13 30% 16%

Total 33 30 51% 45%

Table reveals that 45% of the respondents are married of this figure, top management and
supervisor accounted for 26% (7% +9%) of the respondents who are married, while married
persons in the category of operatives represents 16% of the respondents. Overall, married
workers other than management accounts for 38% of the respondents. However, only 3% of all
respondents in the category of casual are married.
 CHAPTER 11.

QUESTIONNAIRE

Questions that need to be answered after what we gather from the study and topic are mentioned
as if someone is interviewing. The questions are simple and answered as of the point of
interviewee. This will summarize the topic and the study in brief.

Explain Human Resource Management and its relevance to the hotel industry?

Turning to the hotel industry, the main issue of consideration is whether or not the philosophy or
principles underlying the models of Human Resource Management discussed here, and the
practices stressed within those models, are of relevance. In other words, are there performance
gains to be made by adopting the philosophy that as human resources are the key strategic lever
within the organization, competitive advantage is dependent upon the achievement of certain HR
goals?

In turn, is the achievement of these HR goals dependent upon the adoption of a coherent,
strategically integrated package of innovative Human Resource Management practices? These
are among the central questions that will test the validity of Human Resource Management as a
concept within the industry.

However, the relevance of Human Resource Management within the hotel industry is not simply
dependent upon an analysis of the extent to which establishments have adopted the approaches as
espoused within the models of Human Resource Management discussed above. The mainstream
Human Resource Management literature contains within it a series of assertions in relation to a
range of factors that potentially influence the approach that a company takes to Human Resource
Management.

A test of the relevance of Human Resource Management within hotels must also therefore test
whether the influences on Human Resource Management decision-making debated within the
mainstream literature have the anticipated impact within a hotel industry context.

What characterizes HRM in the hotel industry?

Considerable debate has origin recently concerning the degree of trials and experiments with
new reaches to Human Resource Management within the hotel organization. Conventionally,
definitions of the industry have focused an autocratic management way and reluctance on the
part of managers to let employees any influence over work procedures or their working
environment. Management’s primary strategic control has focused to emphasize a tight control
over costs.

Hales study displayed encouraging results at first display concerning the extent to which Human
Resource Management-type practices had been used. Of the 32 establishments within his
sample, none had worker directors, only 22 per cent had autonomous work groups and only 15
per cent used quality circles. However, job evaluation was found in 55 percent of hotels, job
enlargement in 68 percent, job improvement in 59 percent, project groups in 68 percent, and
works councils in 43 percent.

These percentages, Hales concedes, must have been somewhat large, in that only those with
something to summarize may have replied to the question list. More importantly, a more in-depth
study displayed a considerable focus on labor importance and a big degree of managerial control.
As became legal in the 15 follow-up interviews, the manner in which the recipients interpreted
the meaning of the practices asked about distinguished greatly. In some establishments, job
rotation normally meant management moving between areas.

Job progress and improvement were, on the complete, used to give extra responsibility to
significant staff, often management, or as a way of minimizing the management design in order
to reduce headcount. Individual development meant to be considered a side-problem.

The works head of council found within the survey were often used simply to legitimate
managerial decisions, or to debate routine matters such as menus, timing or uniforms. Project
groups were only in presence at management level.

The primary intentions along the introduction of the abilities asked about within the questions
were therefore whether to improve managerial control, or to enhance productivity via job
loading. No trial was made to conceal this.

Indeed Hales states that there was a readiness on the part of management to admit that techniques
were used for these purposes. Also, most initiatives applied exclusively to management, there
being a general perception that non-management employees did not want any greater
responsibility.
How ‘strategic’ is human resource management in the hotel industry?

Is it the issue that managers in the hotel industry legally analyze the product market in
which their hotel works, and then adopt a business strategy and the HR strategy most correct
to that market analysis? Mostly not, similar to Haywood, who states there to be a
widespread belief within the organizations that managers are capable to identify intuitively
causes of consumer dissatisfaction and rectify them on immediate actions.

Haywood keeps on by suggesting that unless formal and legal techniques or ways such as quality
audits are used to explore consumer perceptions of service quality, management will tend to
point on the touchable, more controllable factors of the service such as politeness, cleanliness,
rather than on less measurable aspects such as worker politeness.

The application of his debate is that as few hotels work systematic mechanisms by which
managers can search out what consumers view as necessary, the development of a consumer-
oriented business strategy driven by consumer preferences is rare.

Supporting this view, Guerrier and Lockwood, contend that management in the organization
reflects a ‘hands on’, ‘operational’ view point, characterized by a preference for dealing with real
‘live’ issues, and a focus on day-today functioning and short time horizons, rather than a
reflective ‘business perspective’ approach, characterized by strategic thought on how to best
develop the business. It could seem therefore that conscious, stated business strategy-creating
does not make much within the organization.

In such a situation, as defined by Legg, the connection between product markets, business
strategy and HR strategy will be vanished. It is highly not likely that the appropriate HR strategy
will origin where managers in the first instance have lost to identify the business strategy correct
to emerging market trends.

One view is that there are short falls in terms of management training. The management
apprenticeship structure has tended to focus on the operational rather than strategic factors of
hotel management.

Trainee managers, moving between hotels to gain experience in a number of fields, find
themselves dealing with consecutive operational crises, never having the opportunity to analyze
the root cause of problems.
Thus, the skills created tend to be those significant to deal with operational problems—such as
how to cut salmon—rather than the skills significant to deal with business-related problems such
as how to use a spreadsheet or create a marketing plan.

As a solution, several writers urge for greater attention to be given to management training and
improvement. For example, Kelliher and Johnson state that management must be made more
conscious of the potential connections of the personnel work and that those included in personnel
management must be trained in the relevant skills.

Exactly, Kane dominates that training in the correct application of personnel management is
necessary to minimize the industry’s chronic productivity and job satisfaction issues. Haywood
suggests that training managers in the use of quality audits would help to address shortcomings
connected to strategic business planning.

What are the types of Human Resource Management?

There are two approaches to HRM, each of which aims to provide an organization with a
competitive advantage. Storey and Guest were the first writers to make the distinction suggesting
that the emphasis could either be on ‘human’ or ‘resources’. Normally, the two types are known
as ‘hard’ and ‘soft’ Human Resource Management.

The ‘hard’ approach to HRM stresses the need for ‘business orientated style, with an emphasis
on productivity, efficiency in the utilization of human resources and the achievement of business
goals’. Nickson (2007) describes the hard approach as ‘instrumental and economically rational’,
aiming to gain a competitive advantage whilst keeping labor costs to a minimum. Armstrong
suggests that the hard approach to HRM treats employees like any other resource, for instance
land or capital, to be used as managers see fit.

However, this approach does not necessarily mean that employees will be treated badly.
Marchington and Wilkinson suggest that if labor is in short supply or is central to the
achievement of organizational goals, employees may be treated well.

For the hard approach to be most effective, the staffing structure of an organization must mirror
its needs. It is essential that an organization has the right number of staff in the right place at
the right time. The HRM practice of human resource planning is that is why complicated.

The alternative approach, ‘soft’ HRM, stresses the ‘human’ aspects of HRM focusing
particularly on communication and motivation. Training and development programs as well as
commitment strategies are used with the aim of producing highly skilled employees in order to
gain a competitive advantage.
A ‘soft’ HRM approach puts staff at the center of determining and realizing strategic
objectives and staff are led rather than managed to achieve organizational success. Storey
states that ‘Soft HRM sees employees as a valuable resource whose competencies, skills and
attitudes are to be appropriately nurtured’.

The organization and its workforce work together towards a competitive advantage, the
organization aiming to improve the quality of its staff in the hope that it will reap the rewards of
their development. The ‘soft’ approach is based on the premise that if employees feel they have
been treated well, they’ll do all they can to achieve organizational goals.

Although some authors, for example Sisson, argue that organizations claiming to use a soft HRM
approach may just be using the language to disguise what is actually a hard approach, similarities
have been drawn between a ‘soft’ HRM approach and personnel management, as organizations
use employees to achieve a competitive advantage through developing their skills and loyalty.

How extensively has Human Resource Managemnt been adopted in the hotel industry?

Concerning the extent to which Human Resource Management techniques have been adopted
within the hotel industry, the debate has typically been characterized by a paradox. Supporting
the conclusions reached in these studies, the results within demonstrate a high reported usage of
Human Resource Management practices, particularly in relation to recruitment and selection
techniques, training, job design and communication and consultation.

The follow-up inter views suggest that there is genuine substance behind the reported usage of
Human Resource Management. The result here, that’s why, displays that theory and practice may
not be as different as previously believed.

The techniques widely talked up within the mainstream Human Resource Management literature
as ‘best practice’, for example, the use of sophisticated selection tests for all grades of staff, the
use of regular performance appraisals, the development of career paths, the empowerment of
lower levels of staff and the introduction of functional flexibility, are now being utilized within
the hotel industry, at least within larger establishments, on a previously unacknowledged scale.

In addition, the results display that Human Resource issues are recorded a high degree of
importance within the organization, not least reflected by the high proportion of hotels reporting
the existence of mission statements with an explicit reference to Human Resource issues.
Indeed, mission statements with a particular reference to human resources are displayed in over
65 percent of the organizations within the hotel industry sample, contrast with only 34 percent of
the organizations within the manufacturing sample.

Moreover, Human Resource Management is more likely to be viewed as a senior unit level
management strategic concern within the hotel industry, with 76 per cent of hotel industry
establishments having a formal HR strategy actively supported and formally endorsed by senior
management at the site, in comparison with only 52 per cent of manufacturing industry
establishment.
 CHAPTER 12.

DISCUSSION

This chapter highlights a series of potential influences on Human Resource Management policy
choice in the hotel industry. Discussions concerning the correct competitive reply to emerging
customer trends, workforce or management receptiveness to transform, the strategic capacity of
management to handle transform, fluctuations in designs of demand, organizational factors of
the industry such as establishment size, workforce instability and national ownership highlight
the differences in opinion which stays concerning the potential role of Human Resource
Management in the organization.

There are compelling debates suggesting that Human Resource Management has a strength
contribution to create, but equally compelling debates that its role will always be stopped.
Eventually chapters will examine the extent to which the factors discussed here weather
encourage or stop the adoption of Human Resource Management in the industry.

One thing that is clear, however, is that there are soul similarities among the debates in the hotel
industry writings and debates in the Human Resource Management literature, in relation to the
factors that are likely to influence the reach taken to Human Resource Management.

Firstly, as along with the mainstream Human Resource Management writing, items markets
within the hotel organization are seen as a soul determinant of business strategy and as a main
determinant of Human Resource Management policy choice. The Schuler and Jackson model
seems particularly relevant given that, in line with the key differences of opinion within the hotel
industry, it emphasizes cost reduction and quality enhancement as alternative approaches to
business strategy. Moreover, both Schuler and Jackson among the mainstream writings among
the hotel organization writings suggest the Human Resource strategy appropriate to quality
improvement to be one of high commitment.

Conversely, where price reducer business strategies are needed, both sets of writing suggest the
use of non-standard worker and deskilling to be the correct Human Resource responses.

Indeed, the only influences on Human Resource Management that can be considered unique to
the hotel industry are labor turnover and instability of demand, and there is considerable
debate over the likely impact of these factors anyway.
The only major influence on Human Resource Management debated among the mainstream
Human Resource Management writing that fails to receive observation among the hotel
organization literature examines the impact of financial markets and decentralization, as
discussed by Kirkpatrick, Davies and Oliver and Purcell.

It would be reasonable that’s why to conclude that there is considerable similar ground between
the influences on Human Resource Management seen as important within the hotel industry and
the influences on management seen as important elsewhere.

This is an important test of the relevance of Human Resource Management theory in the hotel
industry. There is little to suggest that the factors more likely to influence decision-taking in
connection to Human Resource Management within the organization are largely different from
the factors that are likely to influence decision-making in other industries.

Therefore, there is little to define that the hotel organization is really any ‘different’ from
organizations elsewhere, and there are no reasons why theoretical propositions origin within the
mainstream Human Resource Management writing, though improved within a manufacturing
paradigm, should be considered inapplicable to the organization.

A further issue origin by this chapter concerns what exactly is meant by ‘best practice’ Human
Resource Management in the term of the hotel organization. There are currently several grey
areas. There is similarly tiny on job design or on training. Perhaps more significantly, little is
told on how shared values can be gained when levels of salary are so low. Teare and Brother are
pretty well alone in explicitly suggesting that terms and conditions, career structure, salaries and
benefits are in need of improvement.

Focusing attention on the implementation of methods of employee inclusion, for example, may
have the effect of deflecting attention away from more costly problems relating to developments
in basic salary and conditions. Furthermore, most of the writing supporting the usage of Human
Resource Management in the hotel organization focuses on front-line workers coming into direct
contact with customers.

Yet little is said about Human Resource Management in relation to back-office staff who are not
in direct contact roles. Addressing these issues will enable a more sophisticated description of
what exactly is meant by ‘best practice’ Human Resource Management in the context of the
hotel industry.

Finally, irrespective of influences on Human Resource Management policy choice, this chapter
also highlights the emerging debate over the extent to which hotels have implemented practices
associated with an Human Resource Management approach. The next chapter looks at this issue,
by first introducing the empirical under-pinning of the book, namely the 1995 Survey of Human
Resource Management in the Hotel Industry, and then, from a comparative perspective,
considering the extent to which there has been an adoption of Human Resource Management
within the industry.

In the last part of the project, the importance of Human resource management is being debated
and how human resource manager can play its role in the development of the organizational
performance. There are few problems also discussed in which the basic emphasis was on to have
an correct inductions system by which the industry will be able to hire best employees.

Human Resource Management has been defined and the conflicting views have been discussed
as have the different approaches and strategies used in order to provide an overview of the topic
of Human Resource Management. An overview of the soul Human Resource Management
practices has also been supplied and those most relevant to the hospitality organization have
been separated into key areas.

Although selection and recruitment and training and development are suggested to have the
greatest impact on employee turnover, the literature suggests that other key Human Resource
Management practices, such as reward schemes, employee maintenance, bonuses, liaisons with
outside bodies, maintaining documents, statistics and records and dealing with trade unions, may
also have an important effect.
 CHAPTER 13.

SUMMARY / CONCLUSION

“Service to man is service to God”. As the proverb says the hotel landlords and the managers
supply good service to their consumers, which in turn will increase the profitability of the hotels.
In the hotel organization, service quality, as an extremely subjective part, is important to the
satisfaction of the consumers. If they increase the quality of service will attract more customers
at the same time they can expand the business, and it will lead to more employment
opportunities.

The aim here has been to test the influence of a range of factors both internal and external to the
organization put forward in both the hotel industry literature and also within the generic Human
Resource Management literature. In the event, several of the potential internal influences on
Human Resource Management had very little or no effect whatsoever. Workforce resistance to
transform does not seem to have a big influence; neither does the proportion of the workforce
working part-time (a research which displays that the daily fluctuations in demand within the
hotel organization do not present big logistical issues in terms of the introduction of Human
Resource Management).

The weak unions among the organization would also seem to have small influence on policy
choice. Looking at personnel managers, their presence appears to be unrelated to the introduction
of Human Resource Management, irrespective of how well qualified they are, how much time
they spend working on employment related problems and how many support employee they
have.

Their primary role may well have more to do with the manpower planning requirements arising
from high levels of labor turnover.

By contrast, the approach taken to business strategy would appear to be a highly influential
determinant of the approach taken to Human Resource Management. The results here clearly
demonstrate that HRM is more widespread amongst hotels where service quality enhancement is
emphasized as the key component within business strategy than amongst hotels where cost
reduction is viewed as central. It would appear, therefore, that where managers within the
industry have realized the importance of service quality, they have also realized the importance
of the adoption of an Human Resource Management approach.
The study undertaken here has gained several key findings, the first of which connects to the
importance of external fit. A relationship among Human Resource Management and performance
only stays amongst hotels emphasizing the significance of quality enhancement and amongst
hotels in the ‘other’ category. Human Resource Management proves ineffective where price
control is seen as the key to business strategy. This study that’s why provides help for the
contingency hypothesis that the effectiveness of Human Resource Management relies on fit with
business strategy.
 CHAPTER 14.

BIBLIOLOGY / REFERENCES

1. https://en.wikipedia.org/wiki/Human_resources
2. https://en.wikipedia.org/wiki/Human_resource_management
3. https://www.economy.gov.ae/Publications/Kim_Hoque Human_
Resource_Management_in_the_Hotel(BookSee.org).pdf
4. https://iproject.com.ng/human-resource-management/human-
resource-management-in-the-hotel-and-catering-
industry/index.html
5. https://writepass.com/journal/2012/11/human-resource-
management/
6. https://www.ukessays.com/essays/tourism/importance-of-hrm-in-
hospitality-industry-tourism-essay.php
7. https://ukdiss.com/examples/the-field-of-human-resource-
management.php
8. https://nscpolteksby.ac.id/ebook/files/Ebook/Hospitality/Personnel
%20Management%20(2007)/2.%20Chapter%201%20-
%20Human%20resource%20management%20and%20the%20touri
sm%20and%20hospitality%20industry.pdf
9. http://www.ijmbs.com/23/marcus.pdf
10. http://pub.abuad.edu.ng/Open_Access_Research_Projects_of
_Universities_-
_Batch_2/BUSINESS%20ADMINISTRATION/HUMAN_RESO
RUCE_MANAGEMENT_IN_THE_HOTEL_AND_CATERING_
INDUSTRY..pdf
11. https://www.researchgate.net/publication/305721565_HUM
AN_RESOURCE_MANAGEMENT_IN_THE_HOSPITALITY_I
NDUSTRY
12. https://www.researchgate.net/publication/309212306_Human
_resource_management_in_the_hotel_industry_A_review_of_the_
literature
13. https://opentextbc.ca/humanresourcesinfoodservices/part/hu man-
resources-management-in-hospitality/
14. https://www.routledge.com/Human-Resource-Management- in-
the-Hotel-and-Catering-Industry/Boella/p/book/9781138289970
15. https://www.slideshare.net/gentlekenny/human-resource-
management-in-the-hotel-and-catering-industry