Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
discussions, stats, and author profiles for this publication at: https://www.researchgate.net/publication/259160213
CITATIONS
READS
200
3 authors, including:
Ruth Mcphail
Griffith University
Griffith University
SEE PROFILE
SEE PROFILE
Macquarie Graduate School of Management, Macquarie University, New South Wales 2109, Australia
Department of Management, Centre for Tourism, Sport and Service Innovation Research, Gold Coast Campus, Grifth University, Queensland 4222, Australia
c
Department of Tourism, Leisure, Hotel and Sport Management, Centre for Tourism, Sport and Service Innovation Research, Gold Coast Campus, Grifth University, Queensland 4222,
Australia
b
a r t i c l e i n f o
a b s t r a c t
Article history:
Received 15 December 2012
Accepted 17 June 2013
Available online
Qualitative interview data secured from 14 HR managers representing large hotels located in Australias
Gold Coast has been collected to examine: (1) what is the extent and nature of change in hotel HR
performance measurement systems, and (2) what are the primary challenges confronted by hotel HR
managers when attempting to implement effective HR performance measurement? Perennial HR
problems such as high staff turnover, employee dissatisfaction and low service standards that continue to
plague the industry highlight the importance of examining HRMs evolution in the dynamic hotel
context. Considered holistically, the studys observations reveal high consensus with respect to perceived
change in HR performance measures. Evidence of devolution of tasks generally associated with the HR
function to line managers a more strategic role for HR managers is also provided. The observations
suggest a substantially altered trajectory for the hotel HR function and this change appears to be
occurring at a rapid pace.
2013 The Authors.
Keywords:
Performance measurement
Strategic human resource
Hotel sector
1. Introduction
From a strategic perspective, human resource performance
measurement systems appear to provide vital information concerning a rms human resource activities and its performance
(Delery & Doty, 1996; Huselid, 1995). Lepak and Shaw (2008)
describe the establishment of associations between HR practice
and rm performance as a distinguishing feature of strategic human resource management (SHRM).
Empirically established associations have been found between HR
performance management and critical outcomes such as rm performance (e.g. Delery & Doty, 1996; Huselid, 1995), employee productivity (Huselid, Jackson, & Schuler, 1997; Wright, Gardner,
Moynihan, & Allen, 2005), and even competitive advantage (e.g.
Barney & Wright, 1998; Huang, 2000; Vlachos, 2008). Although
scepticism has been expressed over the veracity of some reported
ndings (e.g. Wall & Wood, 2005), the overriding opinion is that the
HR function provides important inputs to organizational strategic
69
of hotels appears a worthy endeavour, in order to further understanding of industry-wide issues such as turnover.
Wall and Wood (2005) provided a critical evaluation of prior
SHRM research. They concluded that whilst there is considerable
research highlighting associations between SHRM and organizational performance, there is no evidence of causality. They also
identied a lack of alternative research methods utilized by researchers. This highlights a need to seek further understanding of
the association between HR performance systems and organizational outcomes.
2.2. Performance management systems
Historically, HR performance indicators relied heavily on rudimentary measures such as manpower (Givan, 2005), which is
sometimes reported in isolation (Wall & Wood, 2005). Because HR
can be viewed as a source of competitive advantage, increasingly
complex systems and measures have been developed to capture
HR achievements. However, whilst there is little consensus as to
what constitutes the perfect system (Lepak & Shaw, 2008; Wall &
Wood, 2005), there is agreement that different systems designed
for specic organizational objectives can yield similar positive
organizational outcomes (Lepak & Shaw, 2008) and therefore the
focus should be on HR practices rather than policies (Lepak &
Shaw, 2008; Wright & Boswell, 2002). Further, in order to achieve strategic t, HRM practices need to be aligned with organizational strategy (Wall & Wood, 2005; Youndt, Snell, Dean, &
Lepak, 1996).
The collection and analysis of performance data should result in
an objective measurement of a functions effectiveness. However,
this goal continues to be elusive (Hansen, 2005) and HR practitioners continue to be asked to justify their role and position as
strategic partners. Despite increased awareness of the potential of
employees to be a source of competitive advantage, it is unclear
how the value added by HR might be measured. Williams and
Beach (2004) note that while organizations invest extensively in
human capital, they are compromised by an inability to measure
the return from this investment.
Gonzalez (2004) refers to the use of leading and lagging indicators noting that nancial measures are lag indicators. Employees and their capabilities, however, are generally viewed as
lead performance indicators. This underscores the importance of
HR. Conventionally used human resource indicators have included:
turnover, absenteeism and employee satisfaction. The following
additional HR key performance indicators are noted by the
Australian Bureau of Statistics (2006): productivity growth, gender
mix, superannuation, training, workers compensation, overtime,
job tenure, occupational injury and incidence of industrial disputes.
Greenberg and Lucid (2004) note managements awareness of
the positive impact human resources can have on the bottom line.
They assert that performance measurement not only supports
achievement of better results, it also supports employee development. Supporting this view, the UK Institute of Personnel and
Development and the US Society for Human Resource Management
contends that human resources should have inuence at senior
corporate levels. Despite these contentions, there is a substantial
body of research suggesting that the HR function struggles to be
taken seriously at senior levels (e.g. Kochan & Dyer, 1995; Sisson,
1995).
It is widely agreed that performance measurement design
should be context dependant. Harris and Mongiello (2001) note
that recognizing industry factors is of utmost importance when
designing performance measures. Despite this, the hotel industry
has been subjected to few HR performance measurement research
examinations (Haktanir & Harris, 2005).
70
Table 1
Participant prole.
ID
Star rating
Main activities
4.5
4.5
F
G
H
4.5
5
4
Domestic tourism.
Accommodation
Accommodation
3.5
4.5
3.5
M
N
4.5
3.5
More metrics.
Focus on turnover. Executive/strategic role.
Executive/strategic role. Greater importance
for HR.
Extensive change. Work differently. Executive/
strategic role. Costing out functions to departments.
Executive/strategic role. More metrics. Costing
out functions to departments.
Costing out functions to departments
Costing out functions to departments. Expanding
role. Executive/strategic role. More supportive.
More supportive. Expanding role.
More metrics.
distillation of the raw data into themes and facilitating the generation of ndings.
Content analysis was used to categorise responses and identify
emergent themes. The analysis process followed Wolcotts (1994)
process which incorporates three major phases; description
(relying heavily on verbatim quotes from respondents), analysis
(identifying important factors and themes) and interpretation
(making sense of meanings in context). There was a high level of
agreement among the researchers about the emergent themes.
Table 1 provides an overview of the interviewees. Each has been
assigned an alphabetical reference that appears in the rst column.
The second column records each hotels star rating and the third
column identies the hotels main activities. The nal two columns
of the table provide a summary of key themes emerging from the
interviews with respect to the two research questions.
4. Findings
The research ndings have been structured according to the two
questions lying at the core of the study:
1. How are HR performance measurement systems changing?
2. What are the main challenges confronted by hotel HR managers when attempting to implement effective performance
measurement systems.
71
72
company. We communicate as talent management or talent management activity. We found that HR wasnt really going anywhere,
so we have changed the way we work in the hotels. This hotel was
outsourcing many of the functions conventionally associated with
HR (e.g. recruitment and payroll) to other functional areas so that
we can be more in the strategic part of the business . and give
more direction and leadership in where we are going. . for the rst
time ever we sort of feel like we have moved to talent management
and we have changed the way we work. (Interviewee I).
Paralleling this development, Interviewee D predicted a demise
of HR in its conventional form: Our HR function will go . but (I)
will be involved a lot more in executive meetings. I think that will
go out throughout every other industry.
This increased strategic orientation suggests there is a longer
term and more holistic perspective being taken by HR managers.
Associated with this longer term view is a need to promote
employee satisfaction. The importance of this particular employee
factor was noted by Interviewee D who commented: They are
thinking about the employees and that they are being the best
employer to the employees. . That sometimes is enough for me to
be sitting here.
4.2. Challenges confronting the implementation of HR performance
measurement systems
The second research question concerns an examination of
challenges confronting HR managements attempts to implement
effective performance measurement systems. As with the rst
research question addressed, a high degree of consistency was
evident in the interviewees perceptions. This again suggests
achievement of data saturation in the data collection process, as
later interviews failed to yield any new perspectives.
Before commenting on impediments to performance measurement system upgrades, it should be noted that a theme emerging
from the interviews was a view that HR managers are nding it
easier to implement performance measurement system changes,
due to their stronger connections with senior hotel executives.
Interviewee M noted that, consistent with greater importance
given to the HR function, they now had the bosss ear. Despite
this, several other HR performance measurement system challenges were expounded upon.
4.2.1. Senior managements perception of staff turnover
responsibility
A number of interviewees remarked that although senior
management were focused on turnover and retention as major
challenges, these same managers did not see the problem as falling
within their managerial jurisdiction. Rather, they saw the problem
as caused further down the hierarchy of the organization, and that
the responsibility should be seen as a departmental issue, or the
sole responsibility of the HR function. Exemplifying this view,
Interviewee L commented: Senior management still doesnt understand that staff turnover is still part of their responsibility.
4.2.2. Line managers willingness to assume traditional HR
responsibilities
A widely recognized challenge for HR managers is their need to
ensure that line managers can effectively conduct activities that
were traditionally viewed as falling within HRMs remit. The interviewees consistently observed that not only were line managers
not trained in lling these roles, but also these duties were never
included in line managers designated responsibility set. Interviewee L elaborated on the example of chefs increasingly assuming
responsibility for recruitment advertising, even though they had
minimal previous exposure to processes such as preparing job
implementing HR performance measurement in hotels. The ndings reveal a set of coherent changes and challenges. Firstly, it appears there is substantial evolution taking place within the hotel HR
function and this evolution is both recent and rapid. This nding
conicts with Kennerley and Neelys (2003) claim of minimal HR
performance measurement evolution, but supports Lengnick-Hall
et al.s (2009) literature review commentary suggesting
continuing SHRM evolution. This claim of change appears to be
relatively recent, which could partially explain the inconsistency of
these observations, although the degree of evolution noted by this
studys interviewees suggests the evolution has been underway for
several years.
It has also been found that the HR function is growing into a
more elevated sphere of inuence that is increasingly inltrating
the corporate level. This observation supports Lengnick-Hall et al.s
(2009) ndings. Traditionally viewed as a somewhat soft function
in hotels, employee related activities appear to have often been
dropped into the too hard basket with respect to measurement.
The evidence suggests there is an increasing emphasis on metrics in
organizations, heralded by such systems as the Balanced Scorecard,
which resulted in greater importance being attached to the
development of HR related performance metrics. Furthermore,
greater hotel industry awareness of staff turnover costs is likely to
promote a culture more receptive to HR initiated responses to how
this issue might be better managed. It is notable, however, that this
suggestion of enhanced importance attached to HRM is inconsistent with earlier claims (Kochan & Dyer, 1995; Sisson, 1995),
signifying this change has been somewhat recent. The interviewees explanations of how their HR positions now command
greater inuence suggest that these earlier ndings, made in the
1990s, are no longer tenable.
One of this studys more notable ndings concerns an apparent
repositioning of HRM closer to hotels strategic and executive
functions. This signies a broader HR organizational inuence, a
nding supportive of Lengnick-Hall et al.s (2009) observation of a
growing political inuence for HRM. Associated with this change is
greater outsourcing or decentralization of traditional HR functions,
such as recruitment and training, to departmental managers. This
signies that a greater proportion of turnover costs are being borne
by departments outside the HR function. This development can be
expected to result in a broadening appreciation of staff turnover
costs across a hotels functional areas. It will be interesting to see if
this development results in departmental managers attaching
greater importance to staff retention.
The observations of two interviewees predicting the eventual
demise of a segregated HR function are particularly noteworthy.
This perspective is consistent with that of Solnet, Kralj, and Baum
(2013), who highlighted increased decentralization of the HR
function in their review of the nature and structure of HRM in
hotels. This appears as a natural extension of the HR function
assuming more of a strategic orientation, as functions traditionally
associated with HR become assimilated within operating departments. This prediction holds signicant implications for the
way HR is researched and taught. There could well be a need for a
comprehensive overhaul of the manner that HR is conceived of in
classrooms, with greater emphasis attached to all line managers
understanding HRM functions.
Many of the noted challenges confronting HR managers can be
related to the changes observed. For example, interviewees
consistently lamented their problems in convincing executive staff
to assume greater responsibility for limiting staff turnover. They
also face difculty training departmental managers to take greater
responsibility for functions traditionally associated with HRM. This
problem of securing line manager buy-in to HR issues is supported
by previous literature, which points to line managers seeing
73
6. Conclusion
This studys major contribution concerns the exposing of a
denitive change in the nature of the hotel HR function. Several
issues relating to this change have also been identied. In light of
continuing hotel sector evolution, this research is timely in
unearthing possible new research avenues as well as potential new
directions for hotel HR pedagogy. The ndings also highlight a
developing need for traditional HR activities to be added to the core
of generic management education, in light of traditional HR function decentralization to operating departments.
The ndings raise a number of implications for HRM. Not least,
they point to new directions for HR theory development. From a
managerial perspective, the ndings underscore the strategic
importance of HRM and highlight new challenges confronted by HR
managers in assuming this role. Hotel HR managers are likely to
struggle with their enhanced inuence in the senior echelons of
organisational life. If they receive insufcient support when highlighting HR issues at this level, hotels will likely fail to fully realize
latent benets. This issue was evident from a number of interviewees who appeared to lack the requisite condence to promote the HR agenda. This underscores a need for HR managers
receiving appropriate management training to assist their transition into this more senior role.
A second implication for the evolved HR managerial role concerns the responsibility of developing traditional HR capabilities
amongst line managers. This signies a need for HR managers to
develop the capacity to sell the importance of these roles to
department managers. This could be achieved through the development of new training programmes where HR managers assume
the role of training other departmental managers. An area of
particular concern was highlighted by some interviewees who
noted that because they were at an equivalent hierarchical level to
other departmental mangers, they found it difcult to instigate the
involvement and engagement of their management peer group in
HR activities. This poses an organizational management issue and
appears to suggests that the evolving HR strategic role may need to
be matched by the assumption of greater authority. This implies the
need for a major overhaul of the HRM function.
Challenges encountered by line managers have also been noted.
If these managers are expected to assume some traditional HR responsibilities, such as advertising for staff, they will require training
in these areas. This suggests a need to broaden conventional job
descriptions.
74
75
Shenhar, A., & Dvir, D. (1996). Handbook of technology management. New York, NY:
McGraw-Hill.
Sisson, K. (1995). Human resource management and the personnel function. In
J. Storey (Ed.), Human resource management: A critical text. London: Routledge.
Solnet, D., Kralj, A., & Baum, T. (2 January, 2013). 360 degrees of pressure: the
changing role of the HR professional in the hospitality industry. Journal of
Hospitality and Tourism Research, Online (in press).
Storey, J. (1992). Developments in the management of human resources. Oxford:
Blackwell Publishing.
Tracey, J. B., & Hinkin, T. R. (2008). Contextual factors and cost proles associated
with employee turnover. Cornell Hospitality Quarterly, 49(1), 12e27.
Vlachos, I. (2008). The effect of human resource practices on organizational performance: evidence from Greece. International Journal of Human Resource
Management, 19(1), 74e97.
Wall, T. D., & Wood, S. J. (2005). The romance of man resource management and
business performance, and the case for big science. Human Relations, 58(4),
429e462.
Walsh, K., & Taylor, M. S. (2007). Developing in-house careers and retaining management talent: what hospitality professionals want from their jobs. Cornell
Hotel and Restaurant Administration Quarterly, 48(2), 163e182.
Williams, K., & Beach, C. (2004). Laborious task of tracking skills and performance
streamlined by technology. Canadian HR Reporter, 17(9), 12e13.
Wolcott, H. F. (1994). Transforming qualitative data. Thousand Oaks, CA: Sage.
Wright, P. M., & Boswell, W. R. (2002). Desegregating HRM: a review and synthesis
of micro and macro human resource management research. Journal of Management, 28, 247e276.
Wright, P. M., Gardner, T. M., Moynihan, L. M., & Allen, M. R. (2005). The relationships between HR practices and rm performance: examining causal order.
Personnel Psychology, 58, 409e446.
Youndt, M. A., Snell, S. A., Dean, J. W., & Lepak, D. P. (1996). Human resource
management, manufacturing strategy, and rm performance. Academy of
Management Journal, 39, 836e867.