Cultural diversity in human resource management within hospitality industries - Essay Example

?Cultural diversity in human resource management within hospitality industries Introduction The strategies of each organization in regard to the management of its human resources are not standardized. Usually, the needs of the organization are taken into consideration for developing those HRM strategies that are most appropriate; often, other factors, like the internal and the external organizational environment (market conditions, similar practices of rivals) are likely to influence the HRM strategy of each organization. On the other hand, the challenges that businesses have to face in the global market are not equal or standardized. There are industrial sectors, which are likely to face more market pressures compared to others. Current paper focuses on the examination of HRM strategies in the hospitality industry. Particular emphasis is given on cultural diversity, as a critical element of contemporary HRM. Diversity is an important issue within the hospitality industry; however, the aspects of diversity as a criterion for the development of HRM strategies in the hospitality industry have not been adequately explored. The literature published on the particular issue is explored. It seems that the forms of cultural diversity as part of the HRM in hospitality industry can be differentiated across firms in accordance with the local social and cultural principles; the ethics of each organization in regard to this issue have also an important role in choosing the HRM strategies of firms operating in the hospitality industry. The aspects of HRM in three major organizations in the hospitality industry, Hyatt, Hilton and Marriott are presented in order to show the common forms and effects of cultural diversity for HRM in organizations operating in this industry. It has been proved that the practical forms and implications of cultural diversity in the workplace can be differentiated from their theoretical context, at the level that market conditions tend to change continuously requiring different approaches when developing critical organizational decisions, such as decisions related to the level of cultural diversity accepted within each organization. 2. Human Resource Management in the accommodation sector 2.1 Role of HRM In order to understand how diversity can impact human resource management it would be necessary to refer to the role of HRM within modern organizations. Human Resource Management (HRM) can be characterized as a framework for managing employee issues across organizations. The role of HRM, even if seems simple, it could be described as quite complex, having to align the needs and the skills of individuals with the needs and the resources of the organization. The above view is verified through the following fact: HRM is divided into many categories, i.e. forms, each of which aims to address specific organizational problems, for instance, hard and soft HRM, the strategic HRM Management and so on (Talwar 2006). In accordance with Lee-Ross et al. (2010) HRM aims to support the relationships between employer and employees; it is explained that these relationships are often difficult to be managed, due to the lack of communication skills of HR managers but also due to the lack of willingness by the employees to support innovation and change. From a similar point of view, Saee (2006) supports that HRM is used for resolving disputes between the employer and employees especially in regard to the methods and the time framework related to the completion of various organizational projects or the alteration of existing business practices. It is also noted that HRM is a framework indicating the level of capabilities of managers involved in the relevant activity. On the other hand, Riley et al. (2002) supports that HRM is a mechanism/ framework reflecting primarily the interests of the organization; it is for this reason that HRM policies are usually based on the organizational aims and targets, either in the short or the long term. The level at which cultural diversity is promoted by HR managers within a particular organization shows the characteristics of HRM within the specific organization, or, else, the level at which the organization’s leaders are willing to support the development of cultural diversity within their organization. 2.2 Contemporary diversity issues in human resource management (hospitality industry) In modern organizations the management of diversity requires the development of a series of measures, such as: a) the explanation of the context of diversity to employees, so that HRM decisions related to diversity to be easier accepted; at this point, the ability of HR managers to communicate effectively with employees is of critical importance, b) the elimination of discrimination in the workplace; diversity can be developed only when discrimination is controlled, meaning that no differentiation exists regarding the treatment of employees working in different organizational departments, c) the change of existing hiring processes; the establishment of diversity in the workplace is highly based on the methods used for selecting the staff for various organizational positions; when setting the criteria for hiring staff, HRM need to take into consideration the issue of diversity, so that any relevant problem to be handled early so that major organizational damages – for instance, limitation of employee performance and decrease of organization’s performance – to be avoided (D’Annunzio-Green 2004). Under certain terms, it is possible that additional measures are developed by HRM for promoting diversity, for example: a) the establishment of a diversity department – within the organization’s HRM department – for monitoring the progress of diversity in the workplace, b) the incorporation of diversity within the agenda of HRM meetings, so that the issue is constantly under evaluation and c) the introduction of a regular ‘business audit’ could help to identify any delay in the promotion of diversity and suggest alterations in existing practices for promoting diversity (D’Annunzio-Green, 2004). In accordance with Boella (2000) HRM in hospitality industry is often problematic, mostly because of the following reasons: a) trade union membership in the hospitality industry is, traditionally, low (Boella 2000, p.186); employees are likely to avoid conflicts with employers, a fact which could be possibly explained as follows: the majority of staff in this industry are individuals working in supporting roles, with no needs for specific educational background; immigrants and people in minorities are likely to work in such positions. These individuals are not expected to argue with the employer for their compensation or their terms of employment, a fact that contributes in the deterioration of the hospitality sector as a workplace, b) in the hospitality sector employment contracts are likely to be kept secret; the avoidance of publication of the terms of these contracts helps the employers to seek for individuals who are willing to work at quite low pay-rates and who are not expected to seek for the protection of their employment rights by the courts. This means that employer is free to change the terms of employment – since the relevant term is included in the employment contract, b) at the same time, the secrecy of employment contracts in this sector serves another target: employer can pay employees in cash, keeping the relevant expense secret from the public authorities (Boella 2000, p.186); this is another advantage for employers in the hospitality industry where employment contracts are quite difficult to be retrieved and controlled. The above options of employer are more in cases that employees are not aware of the local employment law; at this point, immigrants and people in minorities are likely to be preferred, an issue which should be taken into consideration for evaluating the promotion of cultural diversity in the hospitality industry. The low skills of employees in the hospitality industry are considered as a major problem of the particular industry. In accordance with Talwar (2006) the vast majority of employees in the hotel sector have ‘below average educational qualifications’ (Talwar 2006, p.256), a trend, which is explained by the fact that most job positions in the particular sector, are ‘service, clerical or cleaning related activities’ (Talwar 2006, p.256). It is noted that poor education of employees in the hotel sector has led to the deterioration of the sector’s services, a problem that has not been appropriately addressed by the industry’s firms. Due to the poor education of employees in the hospitality industry, as explained above, the respect of people towards the sector’s employees is likely to be low. This fact is explained in the study of Kusluvan (2003). The results of the empirical research developed by Pizam (1999) are used in order to support the specific view. In accordance with the empirical evidence gathered by the above researcher, ‘the travel and hospitality jobs in Latin American earn only modest respect’ (Kusluvan 2003, p.10). The most key reason for the specific fact seems to be the following one: people in the hospitality industry are not likely to have the skills of employees in other industries – the fact that no such skills, for instance excellent capabilities in the use of IT, are required in this industry is the key reason for this phenomenon. On the other hand, the websites of the industry’s major organizations – such as Hyatt, Hilton and Marriott analyzed below – give the impression that cultural diversity is among the priorities of HR managers in these organizations; the literature published on this issue (see the analysis presented earlier in this section) supports a different view, that HR managers in firms operating in the hospitality industry are likely to prefer employees with low educational background; moreover, it seems that the personal development of the industry’s employees is not adequately supported by employees – in opposition with the schemes of such type developed in firms in other industrial sectors. 2.2.1 Hyatt In Hyatt, diversity and inclusion is considered as a key element of the organization’s HR strategy; it is for this reason that analytical explanations are given in the firm’s website in regard to the measures developed by the organization for ensuring diversity across its units. An event is held annually for giving the chance to employees in different organizational departments – and especially of different cultural backgrounds – to communicate. It is further explained that the organization’s HR strategy is based on five key elements: ‘Commitment, Accountability, Measurement, Development and Communication’ (Hyatt, 2011, Employment); however, no particular measures for ensuring cultural diversity in the workplace are presented – apart from the event mentioned above. It is just noted that the firm’s HR strategy is highly based on diversity, as a criterion for critical HR policies. It is assumed that the HR policies through which cultural diversity is promoted in Hyatt can be differentiated in the organization’s units worldwide – being influenced by the local culture and ethics and the relevant practices of local enterprises. 2.2.2 Hilton Hilton is among the key competitors of the hospitality industry worldwide. In accordance with the corporate website, the firm emphasizes on diversity and inclusion, a fact, which is explained as follows: currently the organization operates in more than 84 countries internationally (Hilton 2011, Employment). This means that employees need to face customers with different cultural characteristics; from this point of view, cultural diversity needs to be an indispensable part of the firm’s HRM strategy so that the effective communication between employees and customers in each country to be secured. However, no particular scheme seems to exist for ensuring the incorporation within the organization of people of different cultural backgrounds. Reference is made just to the necessity of cultural diversity for the organization, not to the plan that the firm’s managers have developed for ensuring the promotion of cultural diversity in the organizations units worldwide. 2.2.3 Marriott A similar problem, with Hilton, seems to exist in Marriott. The organization’s website gives analytical information regarding the potentials of individuals to join the organization and their prospects of such initiative. Information is also provided on the organization’s culture, which supports cultural diversity; it can be assumed that cultural diversity is part of the organization’s HR strategy – although such fact is not clearly mentioned in the firm’s website, meaning the part where information is provided to individuals who are interested in working in this firm. The training programs provided to the firm’s employees are not clearly related to cultural diversity – however, no differentiation is made among employees of different cultural background giving the impression that cultural diversity is part of the organization’s HRM – even if not clearly stated. 2.4 Impact of good diversity management in HR management The good diversity management can highly support the improvement of relationships between employer and employees, since the feeling of equality is developed across the organization. Due to this fact, employee performance will be also increased, leading to the increase of the organizational performance. From another point of view, the effective diversity management reveals the skills/ capabilities of HR managers (Cornelius 2002). In this way, the management of the sector is kept at high levels – since the effectiveness of the choices of HR managers is tested and evaluated (Schuler et al. 2007). The good diversity management can also benefit HRM as of the following point: employees within the organization are enforced to cooperate with their colleagues without being influenced by their cultural background; this fact leads to the limitation of conflicts across the organization. From a different point of view, when diversity management is not effectively developed, it is possible to lead to severe disputes among employees – especially when no explanations are given to employees regarding the importance of equality in the workplace (Bratton et al. 1999). In this case, employees may see their colleagues who have different cultural background as a threat, a fact that can lead to the deterioration of employee relations and the elimination of cooperation across the organization. From a similar point of view, it is noted that when HR managers fail to develop an effective diversity management framework they usually have to face the following problem: conflicts appearing in organizational sectors where the need for staff of different cultural background is necessary – a common phenomenon for certain tasks, such as the cleaning services where local staff is usually not willing to work – the incorporation of these employees in the organization’s workforce is usually problematic (Cornelius 2001). As a result, problems are likely to develop, either in the short or the long term, where the need for cooperation exists between local staff and staff with different cultural background. In this case, the effects of the relevant conflict for the organization can be severe. 3. Conclusion When having to manage complex organizational activities, managers are likely to develop those strategies that are easier to be applied – taking into consideration existing organizational resources. The practices used by rivals operating in similar industries are also likely to be taken into consideration, at the level that these practices are feasible for the organization involved. The examination of the role of cultural diversity for the HRM in the hospitality industry has led to the following findings: a) cultural diversity is an issue highlighted by HR managers in most organizations of the particular sector; in accordance with the websites of the three organizations reviewed in this paper, Hyatt, Hilton and Marriott, diversity management is a key element of HR framework; b) in practice, the promotion of cultural diversity as part of the HRM of these organizations seems to be problematic; the fact that no specific mechanisms exist in these organizations for promoting cultural diversity is a first indication of this problem (Burke et al. 2005); this finding is in accordance with the views of researchers who studied the particular subject. All of these researchers seem to agree in the following fact: cultural diversity is a necessary element of HRM and it is for this reason that it is part of the HRM framework of most organizations operating in this industry. However, the reasons for the promotion of cultural diversity in the hospitality industry seem to be different that expected: the limitation of the rights of employees to seek for their rights or to be aware of their employment position is the key reason for the preference of people of various cultural backgrounds for organization in the hospitality sector. The above view is verified by the following phenomenon: employers as also customers in the hospitality industry show a low respect to the sector’s employees – indicating that they just tolerate the presence of these individuals in the particular sector mostly because of financial reasons (Mathis et al. 2010). From this point of view it could be stated that the promotion of cultural diversity in the hospitality industry is likely to be related to the local and the international financial conditions and not to the trend or the willingness for promoting diversity and equality in the workplace. References Boella, M. (2000) Human resource management in the hospitality industry. Cheltenham: Nelson Thornes Bratton, J., Gold, J. (1999) Human resource management: theory and practice. London: Routledge Burke, R., Cooper, C. (2005) Reinventing human resource management: challenges and new directions. London: Routledge Cornelius, N. (2001) Human resource management: a managerial perspective. Cengage Learning Cornelius, N. (2002) Building workplace equality: ethics, diversity and inclusion. Belmont: Cengage Learning D’Annunzio-Green, N. (2004) Human resource management: international perspectives in hospitality and tourism. Belmont: Cengage Learning Hilton (2011), available from < http://www.hilton.com/en/hi/brand/about.jhtml> Hilton (2011), Employment, available from < http://www.hiltonworldwide.com/careers-jobs> Hyatt (2011), available from Hyatt (2011), Employment, available from < http://www.hyatt.jobs/#hyatt(4)> Kusluvan, S. (2003) Managing employee attitudes and behaviors in the tourism and hospitality industry. New York: Nova Publishers Lee-Ross, D., Pryce, J. (2010) Human Resources and Tourism: Skills, Culture and Industry. Clevedon: Channel View Publications Marriott (2011), available from < http://www.marriott.com/marriott/aboutmarriott.mi> Marriott (2011), Employment, available from < http://www.marriott.com/careers/default.mi> Mathis, R., Jackson, J. (2010) Human Resource Management. Belmont: Cengage Learning Riley, M., Ladkin, A., Szivas, E. (2002) Tourism employment: analysis and planning. Clevedon: Channel View Publications Saee, J. (2006) Managerial competence within the hospitality and tourism service industries: global cultural contextual analysis. Oxon: Taylor & Francis Schuler, R., Jackson, S. (2007) Strategic human resource management. Oxford: Wiley-Blackwell Talwar, P. (2006) Travel and tourism management. Delhi: Gyan Publishing House Read More