Whether Adopting Human Resource Management Might Enhance the Performance of Tourism Organisations - Essay Example

Critically discuss whether adopting HRM might enhance the performance of tourism organisations Table of Contents Table of Contents 2 Introduction 3 Discussions 4 Industrial Overview of Tourism and Hospitality Industry 4 Implementation of appropriate HR Strategies 4 Role of strategic HR and best practices in tourism and hospitality sectors 5 Culture and HRM 8 Sustainability is essential for any organization 9 Analysis 10 Is HRM and tourism helpful in developing economies? 10 Findings 11 Conclusion 12 References 13 Introduction The sector of tourism and hospitality is extremely competitive; still it’s expanding with rapid leaps and bounds. Due to which, it acts as a catalyst in enhancing the gross domestic product (GDP) and gross national product (GNP) by about 7.7% (US$947 billion) resulting in amplification of the economic development of the country among others. As a result of which, the rate of illiteracy and poverty reduced thereby enhancing the ratio of jobs to the individual. Due to which, the living-standard of the individual gets enhanced thereby amplifying their life-style to a significant extent. This is mainly due to proper maintenance and implementation of human resource management strategies and policies so as to enhance the level of performance and retention of the work-forces for a longer period of time. So that, the productivity and reputation of the organizations dealing in tourism and hospitality segments might get enhanced thereby boosting its brand image and market share to a significant extent. Thus, it might be stated that human resource management acts as the driving force that helps to maintain the employees in an accurate way thereby amplifying the operations and functions of a tourism industry. This is because; tourism industry is entirely dependent on human resource. So, they need to be controlled effectively. This essay is divided into five phrases mainly highlighting the ways by which human resource management enhances the performance in tourism industry. Along with this, Lashley and Taylor researched work regarding HRM is also discussed along with the role of strategic HR in various sectors. Apart from this, best practice approach is also discussed in regard to airline industry as well as vivid description is also offered in regard to culture and traditions of a hospitality sector. In addition to this, the impact of HRM in sustaining labours in tourism industry in developing economies. Finally, the essay is completed with an analysis and conclusions. Discussions Industrial Overview of Tourism and Hospitality Industry The sector of tourism and hospitality is highly fragmented in nature. This is mainly due to its diverse style of work and operations as well as its different policies and strategies. In-spite of fragmentism, a huge segment of educated individual are engaged in different divisions in both tourism and hospitality sectors. Due to which, these segments are highly recognised as labour intensive due to its wide scope of employment in diverse jobs. So, human resource management or HRM plays a vital role in these segments thereby managing the employees in an effective way in order to amplify the productivity and brand value of the organizations to a significant extent (Torrington & et. al. 2008, pp. 190-220). Apart from this, proper management and control of the human resources of these segments might reduce the rate of attritions thereby boosting the ratio of retention certainly. This is because, if the rate of attrition increases then it may hinder the operations of the tourism organization and as a result might reduce its reliability in the market. Implementation of appropriate HR Strategies According to Lashley and Taylor,(1998) it’s extremely essential to recruit appropriate type of human resources that best fits with the operations of the organization. Only then, the employees might implement their skills and knowledge in performing the jobs thereby amplifying the productivity of the organization. As a result of which, the profitability and brand image of the organization might get enhanced thereby boosting its reputation and position in the market among other rival players. On the other hand, if the appropriate employees are recruited or selected then, he or she might get the inspiration to perform the tasks in an appropriate way that may amplify his or her performance and dominance in the organization among others as analysed from the above points. However, it is clear that implementation of proper human resource management strategies within the organization so as to enhance their efficiency and effectiveness in the long run. In addition, Lashley and Taylor also described that the degree of customization and the degree of labour intensity differs from one sector to another such as service shop, professional service, service factory and mass services. Therefore, the human resources need to be selected as per the requirements of the organization. For example: in a restaurant of MacDonald’s, the degree of standardization is high but the degree of customization is low and so the intensity of labour is low. However, as the degree of standardisation is high so it’s quite unpredictable about the actions of the customers Torrington & et. al. 2008, pp. 335-355). Role of strategic HR and best practices in tourism and hospitality sectors In this age, the most important desire of any organization is to retain its sustainability over a longer period of time (Torrington & et. al. 2008, pp. 723-734). However, in order to do so, it’s extremely essential to implement varied types of effective strategies and policies within the organization so as to amplify its scope of success in the market among others. This is because; the organizational management understands and evaluates the final goals and objectives of the group by analysing its strategies (Torrington & et. al. 2008, pp. 880-912). Similarly, highly tactical and skilled human resources are extremely essential for the tourism or hospitality organizations to attain economic viability and competitive advantage in the market among other rival players (Sisson & Storey, 2000, pp. 634-665). This is mainly due to extensive competition and rivalry among the existing players. Therefore, if the human resources or the driving forces of the organizations fail to convince or attract the customers towards their brand, then it might become extremely problematic for the organization to retain its portfolio. So, the human resources of the tourism or hospitality segments need to be extremely calculative and planned in order to satisfy the requirements of the customers in an effective way. Only then, the level of reliability and trust of the customers might get enhanced in the market among others. Thus, it might be clearly depicted that strategic HRM is extremely essential for tourism and hospitality sectors as it helps to improve the efficiency of its employees. According to Baum (2006) best practice approach is extremely essential for an organization, operating in any segment. This is because; if the organization implements the best strategies and policies so as to manage the human resources, then their level of commitment and performance might get enhanced to a significant extent among others. Similarly, the level of interpersonal relationship among the employees and the employers might also get enhanced thereby amplifying the scope of retention of experienced staffs (Baum, 2006). Along with this, the rate of conflicts and clashes with the employees might also get reduced that may enhance the level of uniformity and consistency to a significant extent. In addition to this, due to proper or best approaches, the level of team work or coordination among the employees might get enhanced that may prove extremely effective for the tourism organizations (Sisson & Storey, 2000, pp. 776-789). Likewise, the organizations of Southwest and Ryanair airlines also used best fit approaches in order to manage their human resources in an effective way. However, they are different from one-another in its strategies and policies. Southwest airlines implemented high-road approach that enhanced the commitment and devotion of its employees towards their assigned tasks. This is mainly because; the operating strategy of Southwest airlines highly concentrates over employee coordination and interpersonal relationships so as to amplify the level of productivity and profitability among others. However, in order to do so, the management of Southwest airlines always recruited extremely talented and skilled staffs for different departments in order to tackle any sort of business challenges in a coordinated way (Sturdy & et. al. 2001, pp. 554-563). This might help in improving the level of communication and sharing of ideas thereby amplifying the level of relationship and coordination among them. This is the prime essence of success of Southwest airlines in this competitive market among others (Gittell, 2002, pp. 312-323). Thus, the above paragraph clearly reveals the proper coordination improved the performance of the employees of the tourism organizations. Apart from this approach, another well-known approach is best fit or contingency approach in accommodation sector. According to this approach, best fit or contingency strategies or policies need to be implemented in the recruitment and selection procedures in order to attract a wide range of skilled and experienced workforces (Lee-Ross & Pryce, 2010, pp. 390-421). Otherwise, the organization operating in accommodation sector may not become successful in recruiting effective employees as the competitor might fascinate them. Just like Marriott hotel became successful in attaining a wide range of talented staffs due to its soft or best fit approach Gittell, 2002, pp. 212-223). The management of this hotel encouraged the staffs to participate in the discussion process so as to present their ideas and views regarding any issue (Legge, 2005, pp. 789-812). By doing so, the level of interpersonal relationship among the staffs and the employer might get enhanced thereby amplifying the inner spirit of work (Legge, 2005, pp. 823-834). Apart from this, due to high level of participation, the inner morale and confidence of the employees towards their assigned duties and the brand also gets enhanced thereby reducing the scope of conflicts or clashes. The level of devotion and commitment of the employees enhances to a certain extent thereby increasing its total amount of productivity and profitability of the organization of Marriott in the market among others (Schuler & Jackson, 2007, pp. 245-256). In addition, the management of Marriott tries to implement the strategies, keeping in mind the motives and ideas of the human resources as well as the organization’s operations. So, it proved extremely effective for the organization thereby amplifying its sustainability to a significant extent among others (Kusluvan & et. al. 2010, pp. 567-578). Culture and HRM The term culture is extremely hard to be developed and managed for longer period of time for an organization. However, it might be possible only if its employees obey the implemented rules and regulations in an effective way. This is because, the employees act as the guiding forces of an organization that helps it in enhancing its brand image and reputation in the market among other rival players (Korczynski, 2002, pp. 445-467). Such a similar scenario is witnessed in the hotel of Sheraton in China. It comprises of a strong and uniform culture in which, its core values and strategies are implemented after vigorous discussion and sharing of facts. So, that the employees might easily present their views and ideas regarding a topic in front of others and it will help them to present a sense of responsibility towards the organizational goals. By doing so, the level of interpersonal relationship among the employees might get enhanced thereby amplifying their inner skills and talents. Along with this, proper participation and communication also helps the employees to improve their dedication thereby boosting the total output of the organization of Sheraton in the market among others (Lucas, 2004, pp. 678-689). Similarly, such type of uniform culture or high level of participation of the employees also helps in introducing varied types of inventive services so as to satisfy the changing requirements of the customers. Thus, it might be clearly avowed from the above paragraphs that best fit HRM practices is extremely essential to develop or retain a strong or uniform organizational culture (People 1st 2013, State of the Nation 2013). Therefore such a culture might help in enhancing the level of reliability and consistency over the brand among others (International Labour Organisation 2010). Hence, it might be stated that proper human resource management helps to develop a unique culture within an organization operating in hospitality segment. Sustainability is essential for any organization The industry of tourism is extremely competitive and fragmented in nature. So it is extremely tough to retain the labours for a longer period time. However, in order to retain the experienced and talented labours within the organization, it is extremely essential to develop effective HRM strategies for recruitment and selection (Kusluvan, 2010, pp. 356-378). Only then, the best candidates might get attracted towards the organization of tourism thereby amplifying its productivity and profitability to a significant extent. However, best HRM strategies might be developed only after effective planning and scheduling and organizing the ideas and information among all the members so as to implement the best one (Bratton & Gold, 2007, pp. 256-278). In addition to this, the organizational management offer best practices such as periodical training and development programs, participation in decision-makings, presenting proper behaviours to all, maintaining coordination and relationships with all, proper rewarding system, proper appraisals, proper delegation of duties and responsibilities etc so as to retain the employees for longer period of time (Boxall & Purcell, 2011, pp. 223-234). This might prove effective for the organization in amplifying its efficiency and competitive position in the market among other contenders. Hence, sustainable labour might be possible in tourism industry only by maintaining best practice approaches of HRM (Holmes & Smith, 2009, pp. 334-345). Thus, sustainability is extremely essential for any organization, operating in any segment. HRM strategies of tourism industry Analysis Is HRM and tourism helpful in developing economies? HRM acts as the guiding force that enhanced the scope of success of tourism segment in most of the developing countries. This is mainly because of its idea to implement best fit approaches within the organization that might enhance the interpersonal relationship among the employees (Salaman & et. al. 2005, pp. 612-623). Due to which, the level of uniformity might get enhanced thereby reducing its level of conflicts or attritions. As a result of which, the scope to present varied types of innovative products and services might get enhanced thereby amplifying the brand image and reputation of the organization in the market among others. However, it might be possible only if the organization becomes able to fulfil the primary, secondary and tertiary requirements of its employees (Swart & et. al. 2012, p.79). Then the inner morale and self esteem might get enhanced that might prove effective for the organization in amplifying its image and position in the market. As a result of which, the level of CAGR contribution of the tourism industries over the developing economies might get enhanced thereby boosting its economic position among others (Baum, 2007, pp. 1381-1399). In addition, improvement in the number of tourism organizations in the developing countries might reduce the rate of unemployment and poverty. As a result of which, the rate of living standard of the citizens of the developing countries might get enhanced thereby amplifying its dominance among other neighbouring states or nations. Thus, HRM acts as a boon in enhancing the scope of tourism industries thereby augmenting the economic scenario of the nation (Baum, 2006, pp. 112-123). Findings After examining and analysing all the above mentioned aspects, it might be clearly depicted that HRM acts as the cornerstone for the organizations operating under the big umbrella of tourism. This is because; HRM helps these organizations to develop perfect strategies and policies as per their operations so as to enhance their brand value and supremacy in the market as well as in their employees. Therefore, by implementing these strategies, employee switch over might be reduced thereby amplifying the popularity within the minds of its stakeholders, shareholders and customers (Storey, 2001, pp. 551-563). So, HRM is just not a buzzword but a concept that might enhance the performance and sustainability of the employees and the organization. Conclusion Ryanair Airlines implement the strategy of low road approach or high stress approach. As per this approach, the employees are offered very low remuneration for their long hours of stressful work. Due to which, their level of commitment and dedication is also lowering significantly thereby reducing its rate of interpersonal relationships. Along with this, the level of coordination and team work is also reducing among the employees day by day thereby hindering the prospects of the organization in the market among others. This is the prime difference in the strategies and policies of the airline organization that proved effective for the former and un-effective for the latter (Nickson, 2012, pp. 457-467). Thus, it might be revealed that proper HRM strategies might enhance the performances of the employees as well as organizations as well among others. The employees need to highly trained and skilled in all respects so as to offer perfect behaviours to satisfy the requirements of the customers. Due to these underlining reasons, it might be clearly depicted that HRM plays an effective role in an organization to train and manage its employees, to offer desired results. Conclusively, it might be depicted that HRM is a term or approach that helps in developing the reputation of an organization in the market. However, this might be possible only if effective policies might be developed that may be accepted and obeyed by the employees in an effective way. Only then, it might not only enhance the performance of the employees of the tourism segment but also amplify its essence of success among others in this aggressive era. References Baum, T. 2006. Human resource management for tourism, hospitality and leisure: an international perspective. London: Thomson Learning. Baum, T. 2007. Human resources in tourism: still waiting for change. Tourism Management, Vol. 28, No.6, pp.1381-1399. Boxall, P. & Purcell, J. 2011. Strategy and Human Resource Management, 3rd edition. Basingstoke: Palgrave Macmillan Bratton, J & Gold, J. 2007. Human resource management: theory and practice. 4th edition, Basingstoke: Palgrave Macmillan. Gittell, J. H. 2002. The Southwest Airlines Way: using the power of relationships to achieve high performance. New York: McGraw-Hill Holmes, K. & Smith, K. 2009. 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