Human Resource Management and Hospitality Institution - Essay Example

Download file to see previous pages • Innovation allows hospitality organizations to meet the dynamic needs of the customer. Hospitality is characterized by customers who have changing needs. People are looking for something different and exciting. Innovation allows hospitality organizations to come up with new and effective ways to meet the needs of these consumers. This helps in the generation of revenue.

• Innovation increases efficiency, which means the cost of doing business goes down. This allows the organizations to charge competitive prices in a bid to attract and maintain customers. The price elasticity of demand in the industry is very elastic. A small price change can lead to either losing or gaining many new customers.

• The hospitality industry is full of many different organizations that offer similar services. The stiff competition in the industry has led to the exit of many companies. The key to gaining a unique identity in the hospitality industry is having a unique service delivery system. Innovation fosters service and product differentiation (Chang, Gong, & Shum, 2011). These factors allow organizations to remain competitive. Differentiation gives the institution a unique identity that can also be used as the main marketing point. Innovation is needed for the organization to grow.

• Innovation is beneficial because it supports the development of sound human resource practices. According to Chang, Gong, and Shum (2011), frontline employees are directly involved in frontline innovations. In a bid to facilitate innovation, organizations support the development of a culture that allows employees to be creative. The creation of this kind of environment supports the development of all relationships within the organization. Therefore, innovation makes the internal environment of hospitality organizations conducive to work and creativity.

• Innovation has driven organizations to consider frontline employees with multiple skills in a bid to support innovation. Employee training is one way of motivating the workforce because they feel the organization cares about them (Nadda, Rahimi, Dadwal, & Bhan Singh, 2014). This is bound to increase the quality of services and the overall experience of customers. The ultimate effect is additional revenue generation and the creation of a stellar reputation when it comes to quality service delivery.

• Radical innovation holds the potential to proving an organization with a crucial competitive advantage that could last for a long time. Radical innovation can be experienced in the development of creative ways to enhance customer service and ways to improve human resource practices. The result is a satisfied workforce that is ready and dedicated to the cause of the organization. A combination of sound human resource practices and innovation leads to additional innovation, improved customer satisfaction, and employee satisfaction.

Disadvantages
• The development of highly efficient technologies in the hospitality industry has led to the loss of jobs (Manuel Martínez-López & Vargas-Sánchez, 2013). New technology has made it possible for one worker to work that could be previously done by more than two workers. This is a perfect example of how technology is replacing human beings in the workplace. They are cheap and more efficient.

• Research has shown that the hiring of experienced with multiple skills influences innovation (Chang, Gong, & Shum, 2011). It has also shown that the attitude of selective hiring and employee training supports innovation. All these activities are very costly to the organization. The cost of selectively hiring and training employees is very high. This limits this exercise to an organization that has the financial muscle to handle the costs. Innovation is a very expensive venture for all organizations.

• There is always the risk of some innovations backfiring (Khan, Parsa, & Narapareddy, 2015). An organization can lose a reputation that took years to build in a single moment because of a defective innovation. Therefore, organizations must conduct effective market research before introducing any innovations. Failure to take the necessary precautions can lead to serious damage that might take money and time to rebuild.

• The upfront of securing technology is characteristically very high. This is the case when hospitality organizations are trying to introduce new customer service management technologies. The cost of mistakes and glitches is very high. The cost of acquiring the new technology is also very high. ...Download file to see next pages Read More