STRATEGIES FOR EFFFECTIVE HUMAN RESOURCE MANAGEMENT IN

HOSPITALITY AND TOURISM

Human resource management is a combination of decisions that builds the employment
relationships; their quality adds to the competence of the organization and the employees
to accomplish their objectives. It is a process of managing the whole organization in a
structured manner. Human resource management plays a crucial role in any organization.
In a globalized organization like hospitality and tourism HRM plays a key function to
perform a distinctive competitive advantage.
Strategic HRM is a vital part of strategic planning. It plans for the company how it will
match its internal strength and weaknesses with its external opportunities and threats to
maintain competitive advantage. It is a long term process executing the organizations
mission by matching its capabilities with the external environment.

STRATEGIC LEVEL OF AN ORGANIZATION INCLUDES:

1. Corporate level strategy
2. Business or competitive level strategy
3. Operational level strategy
Hospitality and Tourism are service industries. The products of organizations in the
hospitality and tourism industry are service experiences, which are mostly intangible and
highly dependent on face-to-face interactions between employees and customers.
The strategic HRM literature has mostly examined organizational outcomes, such as
turnover, productivity, profitability; however, research has begun to investigate the
impact of Human Resource Management System on employee outcomes.
With reference to research journal titled “strategic human resources management research
in hospitality and tourism by Juan M. Madera, Mary Dawson, Priyanko Guchait and
Amanda Mepal Belarmino (Conrad N Hilton, College of Hotel and Restaurant
Management , University of Houston, Texas, USA) we came to know that strategic HRM
literature in hospitality industry mainly focused on the :
 Relationship existing between human capital and firm performance.
 Impact of high-performance HRM practices on firm performance
 Strategic HRM from international perspective, focusing on the strategic role of HRM
across many countries.
 How individual HRM practices can affect firm performance and related indicators.

STRATEGIES FOR EFFECTIVE MANEGENT OF HUMAN RESOURCES IN

HOSPITALITY INDUSTRY

 Paying more attention towards the Human resource functions that can support
industry’s competitive position.
 Add marketable value to business level decision making
  Adopting more efficient and effective policies, programs and systems that helps to
differentiate the firm from its competitors.
 make significant investments in attracting, developing and retaining the top talent that
has been identified throughout the organization.

As the hotel industry is one of the fastest growing industry in the world productivity of
the services are one of the first and foremost challenge. Before a manager can direct and
shape employees individual contribution into an efficient whole he or she must first turn
employees into a competent worker. Equipping hotel employees with the best possible
skills that are necessary for performing their job. Service line workers should be well
trained to get skilful, which gives good services to the hotel customers. Human resources
practices are very important in creating a hotel’s image with the hotel customers. Some
of the factors that effects the Human Resources practices are as follows:

EXTERNAL FACTORS

 Government regulations
With the introduction of the new workplace compliances standards Human
Resources Department is constantly under pressure under law.
 Economic Condition
One of the biggest external influence of gradual development of global economy.
 Technological Advancements
Due to the introduction of new technologies it affects the Human resource
management to the extent that the performance of technological development modifies
the Human Resources practices.
 Work force demographics
When an older generation retires and a new generation enters the workforce
environment the human resources must look for ways to attract this new set of
candidates. They must offer a work environment contusive to how this generation
works.

INTERNAL FACTORS
 Organizational size
At each functional level due to the large number of small firms need for a
different Human resource institute with formal HR practices.
 Organisational Structure
For determining flexibility and integration structure and strategy are important
due to the varied designs and operations of Human resources.
 Top management
Importance of top management on Designing and implementing HR practices is
well known by most analysts.
 Line Management
Involvement in designing and implementation HR activities through the creation
of values for any reasonable breakthrough in an organization involvement of line
management is equally important.
 Academic and professional influence on Hr practices
Valuable contribution of the professionals on HR Staffs is well appreciated.

STRATEGIES FOR EFFECTIVE MANAGEMENT OF HUMAN RESOURCE IN

THE TOURISM INDUSTRY
With reference to research journal titled “Human Resource Management in the Tourism
Industry” by Ramona GRUESCU, Roxana NANU, Gheorhe PIRVU (Faculty of
Economics and Business Administration, Economy Department, University of Craiova
Romania) following are some of the strategies effective management in tourism industry.
By applying the 4Cs Model of Business strategy the productivity of the personnel can be
enhanced. The 4Cs model having 4 components as follows.
Commitment
Awareness to business objectives of the organization and how to achieve the desired goals
and objectives with fullest potential is one way where the management can work upon.
Competence
Whether the personnel employed have required skills to compete with market needs and
attainment of objectives goals of the organization. If not remedial action is required to fill
the skills gap hindering the growth.
Congruence
The entire workforce must go with the vision of the organization from managerial level to
staff level, so that the direction of achieving objectives of organization follows a
unidirectional path. In that case transparency and a good communication channel is
required between all three levels of the organization so proper identification and resolution
of issues can be done.
Cost-effectiveness
The top level managers must know the potential of the employees and how to use the
human resources in the best possible way.
The level of qualification among personnel occupied in tourism industries is also a matter
of concern from the view of current demands of tourism industry i.e. New possibilities in
tourism that demands professionalism.
As per studies made in main touristic European countries the following observations were
observed.
● Approximately 40% of personnel from total occupied in tourism is unqualified and lacks
professional skills required for the current needs of industry.
● Approximately 42% of personnel have general level of qualification and they also lack
competence to some extent as per current needs of market.
● Only 18% of personnel have kind of specialty studies in tourism and are equipped with
the skills required for professional touristic experience.

We need to focus on the 82% of personnel occupied in tourism industry and make them
equipped with required skills and new dimensions and areas of tourism such as Eco
tourism, Sustainable tourism, Alternative tourism etc.
However, the development of tourism industry brings about ample opportunities in terms
of employment but critics contended that the industry dominantly focuses on the low paid
and low-skilled jobs. This brings in the negative aspect of tourism industry, which focuses
on the physical demands in job, poor working conditions, job insecurity and lack of
training.
The nature of jobs in tourism industry has to be change to an extent where the personnel
are to be equipped with skills and training from time to time as per market trend. Also the
working conditions and job security are two main leads where improvement can bring a lot
of change in terms of productivity and commitment to roles and work offered to the
personnel.
With reference to paper titled “Human Resource Management Practice Tourism and
Hotel Industry” by S.A.Al Hrout and B. Mohamed Sustainable Tourism Research Cluster,
University Sains Malaysia the following concerned areas are need to be focused for
optimum use of human resource in hotel and tourism industry.

Need of technological advancement

With the growing needs of technological advancement in the human resource the
performance and perspective of looking at the goals and objectives of the organization has
transformed. There is a direct relationship between degree of interaction between
technology and increase in productivity of HR with the ways which work gets done.
It not only facilitates the growth of organization but at the same time offers freedom in
ways of doing work.

Legislations/Regulations
Effective HR management is directly correlated with rules and regulations of the
organization. A congenial organizational culture nurtures the productivity and
responsibilities undertaken by the personnel. Regulations set by an organization must offer
enough freedom to the employee in terms of flexibility in work hours, total working hours
and monetary benefits from time to time. This positive reinforcement will motivate
employee to work to their fullest potential.

Globalization
Globalization have a huge impact on the HR role which tends to transfer of HR
management and services worldwide. Given the set of skills in competence with the market
needs you have now freedom to work in any part of the world.

Business strategy facilitating Human resources growth

Business strategy has to be aligned with the organizational goals and objectives. With that
it also need to focus on the maximum and effective use of the human resources available.
The more the strategy will focus on optimum use of human resources the better will be
productivity and sustainability of the organization.
So, by focusing on a good business strategy we can make full use of human resources
available and also at the same time achieve the desired organizational goals.
CONCLUSION
However, the market needs tend to change so does the need of upgrading of human resource
skills is required from time to time. Training as an essential part of a professional way of
dealing with tasks and clients in industry such as hotel and tourism where the ultimate
results are based on your interpersonal skills and professional skills is mandatory. To use
the human resources available in an optimal way strategies focusing on individual as well
as organizational growth has to be implemented.