Report MBA

HRM In Hospitality Sector

INTRODUCTION

Background of the Study

"Employees are the most valuable resources of comparison in the service (software, banking,

management consultancy, etc.) sector. Like all other resources of the company, the employees

possess value because of providing future services." One of the most important indicators of a

company’s performance is the level of dedication of its employees. Despite of various resources

and supplies a company might require, human resource (HR) is the most important resource

because without labor force no business can be done. People within a company design and

produce goods and services, control quality, allocate financial resources, market the products, set

overall strategies and objectives for the company, etc. So ultimately human resource

management (HRM) is an important part of nearly every organization.

The rapidly changing environment has made, is on, human resource management (HRM) in the

Hospitality Industry. The rapidly changing hospitality industry and the sophistication of travelers

requires more nimble, opportunistic and tightly executed strategies. Hospitality Firms who are

effective at strategy formulation, implementation and evaluation are able to create value in a

highly competitive marketplace. One of the most important departments of any hotel staff is

human resources management. they intend to maintain the status quo, without implementing

much in the way of innovative HRM strategies or practices. They believe that finding the right

people is the most important issue, and that people’s personality and characteristics such as

enthusiasm, energy, positive attitudes, positive values, and language proficiency, are the most

important factors in hiring future employees, particularly at the entry level.

A number of researchers (Cetron et al. 2006; Henry et al. 2004; Holjevac 2003; Lu 2005; Tanke

2001; Watson et al. 2002; Woods 1999) have attempted to forecast the future HRM challenges

confronting the hospitality industry. Although high technology and information system have

replaced many traditional and administrative functions, such as payroll and records maintenance,

it is not possible to replace service employees in an intensive ‘hands on’ customer service

culture. Therefore, Holjevac (2003) predicts that employees will continue to be the most

important assets of hotels, and that training and development remains an imperative, permanent

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and continuing activity. Both management and employees need to have the idea of lifelong

learning and training, and it will become a significant part of work life at all levels (Cetron et al.

2006).

Statement of the Problem

The hospitality industry revolves around people: guests and the employees serving them.

Combined with the fact that hospitality is highly competitive and fast-paced, it's no wonder

human resources departments encounter myriad problems on a daily basis. The problems

encountered are:

Turnover and Retention:

A poorly managed restaurant or hotel is an invitation for employee turnover. Losing employees

for nearly any reason is a costly undertaking because of the time and finances involved for HR to

locate, interview, hire and train new staff members. Hospitality is an exciting field with the

potential for lots of action. The phrase "never a dull moment" certainly applies. However, for

some employees, serving people can be especially taxing work causing high levels of stress,

which many employees find they simply cannot tolerate.

Non-existent Policies and Procedures:

In the hospitality field, HR may find itself mired in legal proceedings such as unemployment

hearings and employment-related lawsuits. Many hospitality businesses, particularly smaller

ones, are fail to maintain accurate and current employee documentation. Without this type of

supporting documentation, HR department, and thus business, may find itself at the mercy of the

courts. HR personnel know that employment law favors employees to ensure they are not being

unfairly treated or taken advantage of. Accurate and timely documentation is often business's

only defense.

Inexperienced Managers: Frequently in hospitality, managers are asked to oversee departments

with many employees. Just as often, managers are not properly trained to be effective but are

rather thrown into a position of authority without the benefit of experience or adequate



management skills. Untrained or inexperienced managers can result in an entire department of

inefficient, disgruntled employees. Managers who don't know what their jobs encompass can

become frustrated and counterproductive, creating a negative trickle-down effect on their

employees.

Harassment Claims:

The adverse impact of harassment occurring in your hospitality business can affect your entire

staff. In a hotel or restaurant environment, there may be ample opportunity for harassment in all

its detrimental forms. Harassment is a situation HR is charged with preventing and, if it occurs,

resolving. Employees who are suffering through episodes of harassment become fearful and are

unable to properly perform their jobs or concentrate on providing the best service for your

guests. HR is charged with investigating and possibly firing or relocating involved employees.

Theft:

Restaurants and hotels usually have a large supply of expensive wine, unlimited food, and high-

end equipment. Some employees can't resist the temptation to steal these items from you. Theft

of this type is unfortunately commonplace in the hospitality industry and is extremely costly to

your business. Though HR may try to instill a sense of loyalty in employees, it often is not

enough to alleviate this cost.

Safety Problems:

Employees in the hospitality industry frequently find themselves in unsafe situations as part of

their jobs. HR professionals realize the importance of following occupational safety rules to

avoid injuries and lawsuits. However, many HR personnel find that their hotel or restaurant has

no safety rules in place, or that rules that are in place are not being followed. With so many

opportunities for injury -- on ladders, in the kitchen, with breaking glass, cleaning chemicals, and

more -- it becomes a considerable HR worry to ensure safety rules are followed.



Objectives of the Study

The main objective of this research is to investigate the human resources management

issues identified as important to HRM managers operating in the hospitality Industry.

The themes to be explored include the human resource management issues which human

resource managers identify as being of concern to the industry and their own

organisation;

the specific strategies and practices they employ to engage with them; and the further

developments they are planning for the future.

Significance of the Study

The main importance of this research is to investigate the human resources management issues

identified as important to HRM managers operating in the hospitality industry. The themes to be

explored include the human resource management issues which human resource managers

identify as being of concern to the industry and their own organisation; the specific strategies and

practices they employ to engage with them; and the further developments they are planning for

the future. The study explores the way managers are thinking about contemporary HRM issues,

concerns, and practices, and their plans for development for the future, in the context of the

hospitality Industry in. It provides insight which should be helpful for hoteliers, enabling them to

compare their perspectives and opinions with the `aggregated data and literature presented in this

study. Hopefully, it will encourage them to consider more strategically and systematically the

things they can do to more effectively position their HRM efforts.

Scope and Limitations of the StudyScope of the Study

This study was intended to generate data and insights that are relevant to the hotel

industry .The major scope of this study are that it adds contemporary data to a research which is

scarce. These studies have been single focus studies, and at least two of them can be accessed,



for varying reasons. By focusing on HRM thinking at a bigger picture or more strategic level, as

well as asking questions about the way specific practices are understood and deployed, this study

has filled a substantial gap in knowledge about the state of the industry. Its

case study is unique, in trying to place the HRM issues of hotel industry in the context of HRM

practice in the region, and in the hotel industry globally.

Limitations of the Study

This study was intended to generate data and insights that are relevant to the hotel industry .

However, there are some limitations regarding the generalisation of the results presented here.

The study was limited to the most senior managers responsible for human resource management.

Many researchers in the HRM field rely heavily on a management perspective in response to

current practices and business performance rather than direct observation.The integration of the

views of all levels of staff and customers would provide a better range of responses and give a

more balanced analysis. Inaddition, the fact that the respondents were not executives meant that

theperspectives of that group have not been represented here, an important gap given

the assumptions that some respondents made about the priorities and views of top management

and owners.The target of this research was international chain hotels and domestic chain

hotels. This research sample covered 2 hotels. This is not good sample and the data and findings

cannot reasonably be expected to provide a sound guide to thinking and practice across the chain

hotels. However, chain hotels represent a larger scale of operation and so these results should not

be generalised to smaller hotels. These are normally family-owned business and previous

research suggests that HRM is not as well developed – or even recognised – in that context .So

the results of this study cannot be viewed as representative of the hotel industry as a whole.

Definition

Hospitality:

The Oxford English dictionary hospitality is defined as:“the act or practice of being hospitable;

the reception and entertainment of guests, visitors or strangers”.



Accrding to Lashley (2000) the Joint Hospitality industry Congress defines hospitality as ‘The

Provision of food and/or drink and/or accommodation away from home’.The Higher Education

Funding Council –England’s Hospitality Review Panel defined hospitality as being ‘the

Provision of food and /or drink and/or accommodation in a service context’, furthermore the

Nottingham group defined ‘Hsopitality Is a contemporaneous exchange designed to enhance

mutuality (well being) for the parties involved through the provision of food and/or drink and/ or

accommodation ’.

King (1995)

King (1995) identifies a difference between private and commercial hospitality, where private is

Defined as‘acts by individuals towards individuals in a private setting such as the home ’and

Commercial hospitality is defined as‘meals,beverage,lodging and entertainment provided for

profit’.

King also provides us with four necessary parts of hospitality :

1. A relation between individuals, a host-guest relationship

2. This relation can be commercial or private (in a commercial relation the guest has the

obligation to pay and to behave reasonably, the guest has the power as opposed to private

hospitality where an equality of power is assumed)

3. A key element is having knowledge of what would invoke great pleasure in the

4. Hospitality is a process that includes arrival, which involves greeting and making the

Guest feel welcome… and departure.

These parts of hospitality might clarify what hospitality is but again looks at it from a consumer

(market) side and not from the sector perspective.

Brymer and Huffman

Accrding to Brymer and Huffman the hospitality industry is‘an umbrella term used to encompass

The many and varied businesses that cater guests’ . This statement indicates that they also

recognise the difficulty in limiting the scope of the hospitality industry.

They however like Angelo and Vladimir find some major segments in the hospitality industry,



namely: ‘food service, lodging, travel and tourism, and meeting and convention planning’.This

would mean that the tourism industry, as we discussed before is not a real industry, would be an

integral part of the hospitality industry

Human Resource Management (HRM):

There have been many attempts to define what exactly HRM might be and indeed Heery and

Noon (2001) recognize that it is a subject of considerable academic analysis and that, ultimately,

‘there is no common agreement on what HRM means. Resultantly, they offer 10 definitions,

which they feel capture the complexity and dynamism of HRM as a subject of academic study:

● A label HRM is seen as simply being another name for personnel management and there is

nothing distinct or special about HRM.

● A convenient shorthand term that allows for the grouping together of a whole series of sub-

disciplines that are broadly concerned with people management:such as employee relations,

industrial/labour relations, personnel management and organizational behaviour.

● A map to help guide students and practitioners to understand the concept and ideas associated

with the management of people.

● Aset of professional practices suggests that there are a range of personnel practices that can be

integrated to ensure a professional approach to managing people. In this view a potentially key

role is likely to be played by the Chartered Institute for Personnel and Development (CIPD),

which is the professional association for those entering the HR and personnel profession.

● A method of ensuring internal fit again sees the need to co-ordinate approaches to people

management, but here the co-ordination needs to be with other areas of the organization.

● A method of ensuring external fit where HRM activities have to be fully integrated with the

demands of the external environment.

● A competitive advantage where HRM is the means by which an organization cangain

competitive advantage, a view best captured by the cliché of ‘our people are our greatest asset’.

● A market-driven approach is that decisions will often be market driven and the needs of the

business determine the manner in which employees are treated; some may be treated well, others

less so well.

● A manipulative device sees it as inherently exploitative and manipulative.



● A hologram captures much of the above discussion in recognizing the fluid identity

of HRM and the fact that it has multiple meanings.

Best fit

One of the earliest and most influential attempts to develop a model that recognized the need for

a fit between the competitive strategy and HRM was that offered by Schuler and Jackson (1987).

Schuler and Jackson developed a series of typologies of ‘needed role behaviours’ that enabled

the link between competitive strategy and HRM practices to be made. The type of needed role

behaviours within Schuler and Jackson’s model was contingent on the overall strategies that an

organization could adopt to seek competitive advantage and the HRM approached adopted to

sustain this.

Best practice

Whilst arguments for best fit advocate a close fit between competitive strategies and HRM, those

in favour of best practice approaches to HRM suggest that there is a universal ‘one best way’ to

manage people. By adopting a best practice approach it is argued that organizations will see

enhanced commitment from employees leading to improved organizational performance, higher

levels of service quality and ultimately increases in productivity and profitability, Usually

couched in terms of ‘bundles’, the HRM practices that are offered in support of a high

commitment and performance model are generally fairly consistent. For example, Redman and

Matthews (1998) outline a range of HR practices which are suggested as being important to

organizational strategies aimed at securing high-quality service:

● Recruitment and selection: Recruiting and selecting staff with the correct attitudinal and

behavioural characteristics. A range of assessments in the selection process should be utilized to

evaluate the work values, personality, interpersonal skills and problem-solving abilities of

potential employees to assess their ‘service orientation’.

● Retention: The need to avoid the development of a ‘turnover culture’, which may of course be

particularly prevalent in tourism and hospitality. For example, the use of ‘retention bonuses’ to

influence employees to stay.

● Teamwork: The use of semi-autonomous, cross-process and multi-functional teams.



● Training and development: The need to equip operative level staff with team working and

interpersonal skills to develop their ‘service orientation’ and managers with a new leadership

style which encourages a move to a more facilitative and coaching style of managing.

● Appraisal: Moving away from traditional top down approaches to appraisal and supporting

things such as customer evaluation, peer review, team-based performance and the appraisal of

managers by subordinates. Generally, all of these performance appraisal systems should focus on

the quality goals of the organization and the behaviours of employees needed to sustain these.

● Rewarding quality: A need for a much more creative system of rewards and in particular the

need to payment systems that reward employees for attaining quality goals.

● Job security: Promises of job security are seen as an essential component of any overall quality

approach.

● Employee involvement and employee relations: By seeking greater involvement from

employees the emphasis is on offering autonomy, creativity, co-operation and self-control in

work processes. The use of educative and participative mechanisms, such as team briefings and

quality circles are allied to changes in the organization of work which support an ‘empowered’

environment.



REVIEW OF LITERATURE

The service intensive hotels depends heavily on its HR, the main part of Hospitality Industry. In

each subsector, the most highest investments, the most modern equipment and luxurious

buildings will fail if the human/personnel aspect of the organization is not carefully taken care

of. Human resources (HR) are the most important resource hotels have since when we talk of

hospitality we talk of a service, where the person who delivers it, is a vital part. Both the client

and supplier affect service and human resources development is the starting point for success in

hospitality organizations. Thus, the tourism industry and specially the hotel sector, considering

its main characteristics, more than any other sector, faces the need to put in practice the human

resources management (HRM) practices. Wood (in Baum, Amoah e Spivack, 1997) refer that

mainly because of the personal service nature of the work involved, in most developed countries,

both indusstry employees and wider society view hotel and catering labour as a relatively low

status. Besides, the hotel sector has some important features that need specific strategies namely,

a high proportion of unskilled labour; a set of competencies that are easily transferable between

hotel units; high turnover rates; low wages (unskilled nature of the work creates an excess of

supply that keep wages down).

Riley (1991) also refers to the subjective nature of standards i.e. every worker’s output is judged

subjectively because concepts like “hospitality” and “service” cannot be measured formally. The

negative employment image of the sector is the result of a set of historic and contemporary

factors (Baum, Amoah e Spivack, 1997:222): “the origin of hospitality work within domestic

service and its consequent association with servility; links, in some countries between hospitality

employment and colonial legacy; widespread use of expatriate labour in many developing

countries, creating the perception that the sector is one offering only limited opportunity for

promotion and progression; widespread exposure to work in the sector as a first working

experience, resulting in generalised assessment based on limited exposure”. Still, in what

concerns features in hotel working, to those who work directly with clients, hours of work are

traditionally dictated by the client’s needs and by the employment contract. Another dichotomy

can be established between those who are in management positions and those who are not. The

first ones work several hours according to the needs of the hotel and not according to specific

and well defined shifts of work. Since usually extra hours of work are not paid to workers in



management positions, organizations actually have more hours of work from their employees

without more expenses.

To those who live in hotels, it may happens that being officially “off” they are at the same time

available to solve some problem that may appears and needs attention. In what concerns those

workers that are not in management positions hours of work vary from country to country

(Hornsey e Dann, 1984). However, working in shifts is also common and as well for these

workers there is a large reluctance in paying extra-hours of work. They are too subjected to hours

of work that are not paid and are not expressed in working shifts. The HRM process is put in

practice in organizations through planning, organization, development, co-ordination, and

control of a set of techniques that are able to promote an efficient and effective performance

from all those who work in the organisation (Dessler, 1984). Promoting the management of all

activities in organisation in order to attract, develop, motivate and maintain a high performance

workforce, HRM marked itself away from personnel management which applied only

techniques of a operative nature with no relation to management in general. In opposite terms,

HRM has a proactive and strategic nature where HR are important assets of the organization,

managed accordingly to the established long range objectives. Besides, acts on the culture level

of the organization, in a holistic and integral perspective of managing people, where the

performance of each employee is an important contributor to efficient and competitive

organisations. Moreover, HRM is seen as a management activity, and consequently a

responsibility of all managers (Beaumont, 1993). In what concerns defining the HRM concept

there are several authors that pinpoint the need to distinguish between managing resources and

managing people.

Namely, Torrington, Hall & Taylor (2002) refer that in personnel management people who work

in the organization are the starting point, i.e. personnel managers direct their efforts to mediate

the relationships between employers and employees. Contrasting with this perspective, HRM is

directed to management needs in terms of resources to hire and develop. The emphasis is put on

planning and monitoring and not on simple mediation. Problem solving is made with all

managers involved in the question being discussed instead of debate between employees and/or

their representatives. Literature also refer that HRM is totally associated with the interests of

management since it is a generic management activity relatively distant from workforce as a



whole. Organizations face intensified competition and their survival can not only be based in

identifying market opportunities but in the adequate match between the needs of that market and

a productive, stable and responsible workforce. Given the established objectives, putting in

practice the correct HRM practices allows organizations to anticipate and deal with change,

either internal or external, in a more advantageous way. HR strategy must not only be integrated

with the overall organisational strategy but also must direct it. Only this way can organizations

manage for the future, anticipate problems, stay close to costumers, ahead of competitors and, at

the same time, promoting a strong organisational culture. Both capital and people intensive,

hospitality organizations face the problem of assuring a high performance from their HR given

the sector working conditions. HRM faces in the near future enormous challenges, specially in

the hotel sector, in the difficult task of leading managers and owners to treat HR with respect

and, at the same time, helping them to find new and original ways to release in those persons

talents and capacities trough training and development programs. The present study aims to

approach the importance of HR in hospitality organizations and giving the working conditions in

the hotel sector, to emphasise the vital role of HRM.

This paper draws on a number of sources (Brown et al., 2001; DfEE, 2000; HtF, 2000; 2000a;

2001; 2001a; 2002; IDS, 2001; 2001a; 2002; 2002a) to offer a brief review of the context in

which organisations in the hospitality industry are making their HRM choices. Hospitality is,

without doubt, one of the most important industries in the UK,contributing around 5 per cent of

UK GDP and 25 per cent of foreign invisible earnings. The industry employs 1.9 million people,

which denotes 7.3 per cent of total employment 26 in the UK. Moreover the sector is set for

substantial job growth in coming years, with the National Training Organisation (NTO) for the

sector, the Hospitality Training Foundation (HtF), suggesting that the sector is likely to create

300,000 new jobs between 2002 and 2009 (HtF, 2001). The majority of employees in hospitality,

around 1.1 million, are in the commercial sector of the industry, which consists of pubs, clubs

and bars, restaurants, hotels and contract catering. The remaining number are in the hospitality

services sector, where the main function of the business is not hospitality, for example hospital

catering, school meals and so on. Within the commercial sector the vast majority of businesses



are SMEs, many owner-operated. This arguably creates particular problems in relation to

attempts to sustain ‘best practice’ HRM, of which more soon.

The DTI (1999) indicated that 99.8 per cent of hotel and restaurant businesses employed less

than 50 persons in 1998. Indeed, across the commercial sector small or micro businesses with

between one and ten employees make up 90 per cent of business. This is particularly pronounced

in the restaurant sector where 94 per cent of businesses employ ten or less employees. Those

businesses employing 25 or more employees consist of only 3.6 per cent of all establishments but

employ 45 per cent of the hospitality workforce. The majority of these larger employers are

found in the hotel sector, with an increasing number of these being brand or chain affiliated.

Indeed, this point is equally true of the restaurant and pubs clubs and bars sub-sectors. As the

HtF (2001a) notes experts within the industry project major growth in branded products, such as

budget hotels, pubs, café bars and coffee and sandwich shops, and a major decline in small and

independent pubs and small bed and breakfast establishments. There is a preponderance of

women and young people within the hospitality workforce. Women make up around 67 per cent

of the workforce, reflecting that hospitality has a higher proportion of part time employees (57

per cent) than most other industries. Young people are also prominent within the sector, for

example employees under 21 make up 7 Interestingly, as part of the re-organisation of the NTO

network into the new Sector Skills Councils (SSC), hospitality as represented by the HtF, is part

of a broader formal expression of interest to become a SSC for the hospitality, leisure, travel and

tourism sector. It will be instructive to see whether the submission wins one of the approximately

25 available licenses from the Sector Skills Development 27 around 40 per cent of the workforce

within the fast food sector. Related to this last point a significant part of the workforce consists

of student, seasonal and migrant workers8. Only 3.4 per cent of employees in hospitality have a

degree or equivalent compared to an all industry figure of 16.9 per cent.

Around 25 per cent of employees have gone no further than O level or GCSE, with 18.5 per cent

of the workforce having no qualification compared to 11.5 per cent of the total workforce.

Despite the introduction of the national minimum wage (NMW) hospitality remains a poorly

remunerated sector with employees receiving lower pay than their counterparts in all other

industries and services. For example, average gross earnings for adult full time employees in the



hotel and restaurant sector were £289.1 a week in 2001, the lowest of the main 17 industrial

categories. The average gross earnings figure can also be compared to average earnings in the

whole economy, which were £444 per week. Indeed, the New Earnings Survey for 2001 found

that four of the ten lowest paid occupations are to be found in the hospitality industry. In the pub

and restaurant sector the majority of companies have minimum rates at or near NMW rates9.

Compared to most other sectors, hospitality has higher than average levels of labour shortages

and labour turnover. For example, the annual survey of labour turnover undertaken by the

Institute of Personnel and Development (IPD) in 2001 notes that hospitality, with a labour

turnover rate of 55.3 per cent, was second only to retail and the wholesale industry at 58 per cent.

It is also noteworthy that unsatisfactory pay is the main specified reason (25.6 per cent) for those

who had left hospitality jobs. To date, this section has largely talked of the hospitality sector as a

relatively homogenous sector.

However, recognising the earlier discussion of differing product market strategies, it is worth

reiterating the point that the industry, and particularly the commercial sector, is anything but

homogenous. Most obviously the heterogeneity is Agency, thus qualifying the sector as being

one considered to be ‘economically and strategically important’ (IRS, 2002: 5) 8 An interesting

recent example of this was reported in the Caterer and Hotelkeeper (‘Serbian students ease

Claridge’s staff problems’, 5 July 2001, p. 4) which noted how Claridge’s hotel, part of the

Savoy group’s five star properties, was using students from Serbia to address labour shortages. 9

That is not to say that the NMW has had no impact on the hospitality workforce. Indeed, a large

proportion of the 2 million or so workers who had their wage raised by the NMW were in the

hospitality industry. For example, HtF (2001a) recognises that around 30 per cent of hotel and

restaurant employees were earning below the rate at which the NMW was set in 1997. 28

exemplified by the predominance of SMEs. Equally though within the key sub-sectors of hotels,

restaurants and pubs and bars there is considerable diversity in terms of market offerings and the

increasing emergence of the importance of niche segments. For example, a particularly

noteworthy development within the hotel sector is the rise of budget hotels. In 1998 this sector

accounted for 554 hotels and by 2003 it is expected that this figure will have risen to 1,169.

Equally of interest is the rise in speciality coffee bars the number of which has increased by 60

per cent since 1997. This translates into an estimated 1,900 branded chain outlets, a figure that is

expected to rise to 2,700 by December 2004 (Gibbons, 2002).



This recognition of diversity within the various sub-sectors is important and has implications for

both competitive strategies and related approaches to HRM. As the DfEE (2000) notes two star

hotels tend to compete with other two star hotels within their immediate area and not three star

hotels. Likewise fast food restaurants and Michelin starred restaurants will compete in

completely different and separately defined consumer and labour markets. The DfEE (2000: 18)

goes on to recognise that, ‘The diversity of products, operational scales and technologies makes

it difficult to compare the overall degree of product complexity among sub-sectors, because,

essentially, the “products” are actually services – and these have diverse components.’

Importantly, the report also notes the implication of this point for skills. ‘The degree of

complexity of products, both in terms of scale and sophistication, had implications for the range

and levels of skills required.’ Clearly, then, this sectoral profile offers a number of structural

features that may be inimical to sustaining good practice HRM. Aspects like the predominance

of small businesses and a youthful, part-time, female and lowly qualified workforce may mean,

as Keep and Mayhew (1999a) argue, the relatively low level of skills in the hospitality sector is a

‘third order problem’. Therefore although the low skills base in hospitality is potentially

problematic.

Keep and Mayhew (1999a: 7) suggest that ‘it is not the main [problem] and is often contingent

upon other structural factors.’ Thus the first order problem is the ownership structure of the

industry and the predominance of very small, 29 owner-managed micro businesses. Secondly,

within the hospitality sector generally competitive strategy is based on cost based competition.

These product market choices then give rise to and serve to exacerbate the second order problem

of the structure of the labour market and poor personnel management. Some of the issues

emerging from this second order problem will be further addressed later in the paper with a

review of examples of ‘bad’ and ‘good’ HRM practice in hospitality. At this point though we

aim to further explore some of the issues emerging from the predominance of small businesses.

As we have just noted SMEs play a crucial role in the hospitality industry and consequently there

is a need to consider in greater detail the specific exigencies facing these organisations. In



particular, this section on SMEs will consider potential ways to increase owner-manager learning

and upskilling, which in turn is likely to impact on SMEs human resources practices.

HRM Issues In The Hotel Industry Globally Employee turnover has been one of the biggest

concerns in the hotel industry for a long time (Hinkin &Tracey, 2000). The hotel industry

globally suffers from high staff turnover levels, which is a pervasive and serious problem

resulting in high direct expenditure as well as intangible costs (Cheng &Brown, 1998; Hinkin

&Tracey, 2000). Hinkin and Tracey (2000) suggested the indirect costs related to turnover

account for more than half of the total costs involved in turnover. Simons and Hinkin (2001)

contended that employee turnover is more costly for luxury hotels than for lower budget

hotels,due to the more sophisticated operating and training systems of the former. There are

many different factors that impact on turnover rates. Riegel (2002) argues that turnover is the

consequence of a complicated series of dynamics, which include the obvious ones of job

dissatisfaction and limited organizational commitment that influence employee attitudes and

ultimately affect employee behavior. Mobley (1982) suggested that the reasons for turnover in

general include dissatisfaction with work; availability of attractive alternatives; external factors

like housing, transportation, or physical environment; and personal factors like illness or injury.

Hinkin and Tracey (2000) added poor supervision, a poor working environment, and inadequate

compensation to that list. They further suggested that some managers do not understand the

relationship between employee retention and company profitability, and accept turnover as a

necessary evil. The issue of turnover has attracted

many researchers' attention in different countries. Powell and Wood (1999) suggested one of the

most significant problems in the hotel industry worldwide is 'brain drain', because the skills and

qualifications gained in hotel sectors are easily transferable to others. Cheng and Brown (1998)

explored the views of HR managers on the strategic management of employee turnover in

medium-to -large hotels in Australia and Singapore. They suggested that the most effective

mechanisms for minimizing turnover are initial recruitment and selection. They recommended a

greater focus on internal recruitment and development, which create career path options, as a

means to reduce staff turnover levels. They also noted induction and socialization that effectively

acculturate newcomers into the organization; and training and development that demonstrates the

willingness of an organization to invest in people which in turn lead to an increase in employees'



commitment and job satisfaction. At a more fundamental level, Iverson and Deery (1997)

investigated 'turnover culture' in six five-star hotels in Melbourne, Australia and suggested that

the hotel industry has actually created a turnover culture, where there is a normative belief in the

legitimacy of relatively high labor turnover. This point has been subsequently endorsed by

Hinkin and Tracey (2000). Iverson and Deery suggested a strategic switch to promoting a

permanent employment culture and developing an internal labor market to reduce the growth of a

turnover culture. They advocate that managers need to improve communication channels and

highlight the organization's aim for long-term employment during induction programmes, and

also need to develop career path programmes in order to increase employee commitment and the

retention of trained and qualified employees. In the Asian context, Zhang and Wu (2004) noted

that among human resource challenges facing China's hotel industry, high staff turnover rates

constitute one of the key issues.

Best fit vs. best practice?

Boxall and Purcell (2000) suggest that attempts to understand the way in which organizations

approach the management of their HR can be seen with regard to whether they aim for ‘best fit’

or ‘best practice’. On the one hand, the best fit school argues for an approach to HRM, which is

fully integrated with the specific organizationa land environmental context in which they

operate. On the other hand,best practice advocates argue for a universalistic approach to HRM

where all firms who adopt a range of agreed HR policies and practices are more likely to create a

high-performance/commitment workplace, as organizations aim to compete on the basis of high

quality and productivity.



THEORITICAL FRAMEWORK

3.1 HUMAN RESOURCE MANAGEMENT OF HOSPITALITY INDUSTRY

In hospitality industry the job of HR manager can be compare with the job of conductor, whose

job is to instruct and direct all of the various musicians so that they can perform well together.

But before a conductor can direct a beautiful performance, all of the individual musicians must

be able to play their instruments well. What kind of performance could one can expect if the

violinists did not know how to play their instruments or the flutists could not read music?

So it is in the hospitality industry, before a manager can direct and shape employee’s

individual contributions into an efficient whole, he or she must first turn employees into

competent workers who know how to do their jobs. Employees are the musicians of the orchestra

that the members of the audience-the-guests-have come to watch performance. If employees are

not skilled at their jobs, then the performance they give will get bad reviews. Just as an orchestra

can have a fine musical score from a great composer and still perform poorly because of

incompetent musicians, so a hotel can have a finest standard recipes, service procedures and

quality standards and still have dissatisfied guests because of poor employee performance.

That is why properly managing human resources is so important. No other industry

provides so much contact between employees and customers and so many opportunities to either

reinforce a positive experience or create a negative one.

As in the five-star hotel and five-star deluxe hotel there are around lots of employee are

involved in different jobs in different fields there is dire need to look and control on them. No

doubt different department’s heads are present to look their department employee, but HRD is a

place, which supervise and effectively communicate with these departments head and

communicate with the top management. Thus there function is very large and diverse as

compared with respect to different department’s heads.


General Manager

Personnel Director

Personnel Manager

Personnel Officer

Personnel Research & Development Officer

TrainingDepartment

PersonnelDepartment

Operative TrainingSupervisory Training

Management TrainingTraining Instruction

Training Aids & Equipments

WelfareTrainingRecruitmentMaintaining Payroll


3.1.1 Personnel Department of A Typical Five Star Hotel


FIGURE 1: Johar Journal,2012


3.1.2 Personnel Policies of HR

The personnel function in a hotel includes many activities such as:

≈ Consideration of leadership style

≈ Relationship

≈ Responsibilities

≈ Philosophy

≈ Social orientation

≈ Organizational structure

In most of the hotels the personnel policies are put in writing. These policies are distributed to

key and responsible executive to provide guidance and ensure consistent application.

Periodically the HRD review these policies.

3.2 COMMUNICATION IN HOSPITALITY INDUSTRY

Communication is the most important and most used of all skills in the hospitality

industry.

Talking Back for Success

The president of Hyatt Hotels makes it a practice to hold “gripe sessions” with small groups

of employees.

Managers at Earls restaurants make the rounds of all tables to inquire about the food and

the service.

The American Automobiles Associations uses an 800-number to makes its products and

services more accessible to customers and to gather information regarding what

customers are thinking and doing.

At United Airlines, managers are encouraged to get out of their offices and engage in

informal exchanges with employees.

What do Hyatt Hotels, Earls restaurants, the American Automobiles Association, and

United Airlines have in common? For one thing, they will all tell you that effective



communication makes good business sense. More importantly, they all “practice what hey

preach”.

These and other service leaders in the hospitality industry communicate on a frequent and

regular basis with their customers, suppliers and employees. They are well aware that honest

feedback from stakeholders is the ultimate driving force behind organizational success, for it

is this feedback that fuels any efforts at self-improvement, both internally and in the

marketplace.

3.3 HUMAN RESOURCE PLANNING

Human Resource Planning (HRP) is the first aspect of human resource process. It is very

commonly understood as the process of forecasting an organization’s future demand for, and of,

the right type of people in the right number. It is only after this that HRM department can initiate

a recruitment and selection process. HRP is the sub-system in the total organizational planning.

HRP is important for:

≈ The future personnel needs

≈ To cope up with change

≈ To create highly talented personnel

≈ For the protection of weaker sections

≈ For the international expansion strategy of the company

≈ It is the foundation for personnel functions

The list is infact never ending. HRP actually has become an inevitable part of HRM process.


OrganizationalObjectives & Policies

HR Demand Forecast HR Supply Forecast

HR Programming

HRP Implementation

Control and Evaluation of Program

Environment

Surplus Shortage


3.3.1 The HRP Process




Organizational Objectives & Policies

HR plans need to be based on organizational objectives. In practice, this implies that the

objectives of the HR plan must be derived from organizational objectives. Specific

requirements in terms of number and characteristics of employees should be derived from the

organizational objectives.

HR Demand Forecast

Demand forecasting must consider several factors – both external as well as internal. Among

the external factors are competition, economic climate, laws and regulatory bodies, changes

in technology and social factors. Internal factors include budget constraints, production

levels, new products and services, organizational structure and employee separations.

HR Supply Forecast

The next logical step for the management is to determine whether it will be able to procure

the required number of personnel and the sources for such procurement. This information is

provided by supply forecasting. Supply forecasting measures the number of people likely to

be available from within and outside an organization, after making allowance for

absenteeism, internal movements and promotions, wastage and changes in hours and other

conditions of work.

HR Programming

Once an organization’s personnel demand and supply are forecast, the two must be

reconciled or balanced in order that vacancies can be filled by the right employees at the right

time. HR programming is the third step in the planning process, therefore, assumes greater

importance.

HR Plan Implementation

Implementation requires converting an HR plan into action. A series of action programmes

are initiated as a part of HR plan implementation. Some such programmes are recruitment,

selection and placement; training and development; retraining and redeployment; the

retention plan; the redundancy plan; and the succession plan.

Control and Evaluation



Control and evaluation represents the fifth and the final phase in the HRP process. The HR

plan should include budgets, targets and standards. It should also clarify responsibilities for

implementation and control, and establish reporting procedures which will enable

achievements to be monitored against the plan. These may simply report on the numbers

employed against establishment and on the numbers recruited against the recruitment targets.

But they should also report employment costs against the budget, and trends in wastage and

employment ratios.

3.4 JOB ANALYSIS

In order to achieve effective HRP, the duties involved and the skills required for performing all

the jobs in an organization have to be taken care of. This knowledge is gained through job

analysis. In simple words, job analysis may be understood as a process of collecting information

about the job. Specifically, job analysis involves the following steps:

Collecting and recording job information.

Checking the job information for accuracy.

Writing job description based on the information.

Using the information to determine the skills, abilities and knowledge that are required on

the job.

Updating the information from time to time.



3.4.1 Job Analysis Process

RECRUITMENT


Job Analysis

A Process of Obtaining all Pertinent Job Facts

Job Description

A statement containing items such as

Job title Location Job Summary Duties Machines, tools & equipment Materials & form used Supervision given or received Working conditions Hazards

Job Specification

A statement of human qualifications necessary to do the job. Usually contains such items as

Education Experience Training Judgement Initiative Physical efforts & Physical skills Responsibilities Communication skills Emotional characteristics Unusual sensory demands such as

sight, smell, hearing.



3.5 Recruitment

Recruitment is understood as the process of searching for and obtaining applicants for jobs, from

among whom the right people can be selected. Recruitment is the process of finding qualified

people and encouraging them to apply for work with the firm.

3.5.1 Managerial Roles

Responsibility for the overall recruitment process is assigned to human resources

managers. They are responsible for designing and implementing a recruitment program that will

meet the hospitality industry’s personnel needs while complying with all legal requirements.

This responsibility includes finding sources of applicants; writing and placing advertisements;

contacting schools; agencies and labour unions; establishing procedures to guarantee equal

employment opportunity; and administering the funds the firm has budgeted for recruitment..

3.5.2 Recruitment Process

HR practices its function in each and every stages of recruitment. The process comprises five

interrelated stages, viz. (i) Planning, (ii) Strategy development, (iii) Searching, (iv) Screening,

and (v) Evaluation and control.

The function of HR is to make the selection procedure an ideal one. The ideal recruitment

programmed is the one that attracts a relatively larger number of qualified applicants who will

survive the screening process and accept positions with the organization, when offered.


Personnel Planning

Job Vacancies

Job Analysis

Recruitment Planning-Numbers-Types

Employee Requisition

Searching Activation“Selling”-Message-Media

ScreeningPotential Hires

Applicant PoolTo Selection

Evaluation & Control

Strategy Development-Where-How-When

Applicant Population


Recruitment Process




3.6 SELECTION

Selection is a process of picking individuals (out of the pool of job applicants) with requisite

qualifications and competence to fill jobs in the organization. Different hotels apply different

methods and procedure for recruitment as well as selection. It basically depends on the

management policies and the size of operation.

3.6.1 Selection Process

Selection is a long process, commencing from the preliminary interview of the applicants and

ending with the contract of employment. Selection procedure for senior managers will be long-

drawn and rigorous, but it is simple and short while hiring shop-floor workers.


Pre-placement Presentation

Group Discussion

Extemporization

Written Aptitude Test

Preliminary Interview

Psychometric Test for short listed candidates

Final Interview with senior management

Letter of Offer


3.6.2 Selection Process for Managerial Department in Marriot




3.7 ORIENTATION AND PLACEMENT

3.7.1 Orientation

Orientation is called as induction. It is the planned process of introducing new employees to their

jobs, their co-workers and the organization. The main purpose of induction is to relieve the new

employee from possible anxiety and make him or her feel at home on the job.

These orientation programmes are carried out formally as well as individually/collectively in the

hotels. These programmes are carried from 1 weak – 2 weak.

The topics, which are covered in the induction programmes are given in the following table:

Organizational Issues

History of employer Product line or services provided

Organization of employer Overview of production process

Names & titles of key executives Company policies & rules

Employee’s title & department Disciplinary regulations

Layout of physical facilities Employee handbook

Probationary period Safety procedure & enforcement

Employee Benefits

Pay scales and pay days Insurance benefits

Vacations and holidays Retirement programme

Rest breaks Employer-provided services to

employees Training & education benefits

Counseling Rehabilitation programmes

Introduction

To supervisor To co-workers

To trainers To employee counselor

Job Duties

Job location Overview of job

Job tasks Job objectives



Job safety requirements Relationship to other jobs

3.8 Placement

After orientation comes placement. Placement refers to the assignment of a new employee to his

or her job. The jobs of HR are simple where the job is independent, but where the jobs are

sequential or pooled, HR specialists use assessment classification model for placing newly hired

employees. For example the job of placing a waiter to its position is quite simpler as compared

with that of the placing the employee at managerial level. The job of placing a waiter to its

position is called an independent job but the job of placing employee at managerial level can be

considered as sequential or pooled job.

3.9 TRAINING AND DEVELOPMENT

Training and development activities are designed in order to impart specific skills,

abilities and knowledge to employees.

Effective training is basic ingredient of success in the hospitality industry. The concept of

training is endorsed my most managers in the hospitalityindustry, yet managers often give little

thought to the training function in the context of their own business or departmental

responsibilities until something goes wrong! One of the main problems in hotel industry is that

investment in training and development of employees is a reactive process for many companies.

Frequently, training and development arises as the result of significant change in the operational

environment or as a consequent of crisis such as staff turnover or major departmental problems.

Training is then used to cope with the immediate difficulty. This process may be proved costly to

hotel. Whereas development refers to learning opportunities designed to help employees grow

and evolve a vision about the future.




Here the job of HR is to identify the training need and then accordingly to design the

suitable programme for that. Training within a hotel provides the best opportunity to influence

the attitude and performance of employees. The training programmes include is such as

introduction, fire, food hygiene, control of substances hazardous to health, manual handling first-

aid, technical skills, product knowledge, and customer service.

Like in-house off-the-job training, external off-the-job training can also take a variety of forms.

Such training may be tailored to the company’s specific need or it may be offered on a more

general basis; it may focus on special disciplines related to hospitality.

Independent off-the-job training refers to training methods that are controlled and managed by

the learner. A number of these training options which are becoming increasingly important to

employees in the hospitality industry are:

≈ Distance/open learning or training (may involve correspondence teaching, use of

television or radio, video-conferencing, etc.)

≈ Computer-assisted learning

≈ Interactive-video learning

≈ A combination of the above method

Marriott Trains

Bill Marriott is a firm believer in the value of training front-line people, and in the impact the

front-line has on the bottom-line. There are over 140000 employees in the various Marriott hotel

and food service enterprises, which he describe simply as a “people business”. As Marriott says:



We are in the people business, from waiters to maids to truck drivers, our employees must be

able to get along pleasantly with others all day long.

He adds that, by one estimate, company employees make 6 million customer contacts per day, 6

million moments of truth.

In the Marriott Company that important customer interface isn’t left to chance. In 1984 Marriott

spend more than $20 million on training. To reinforce the effects of training, every employee

gets the regular performance review and participates in a generous profit- sharing plan.

3.10 PERFORMANCE APPRAISAL

Performance appraisal refers to the assessment of an employee’s actual performance, behaviour

on jobs, and his or her potential for future performance. It is done generally for the purpose of

assessing training needs to employee, to effect his promotions and to give him pay increase,

retention or termination.

Though there are different methods of performance appraisal only one method that is commonly

used in this industry is Rating Scale Method. In most of the hotels the performance appraisal is

done on yearly basis. The rating scales method is used by the way of Questionnaire (1-10).

3.10.1 Challenges of Performance Appraisal

Create a culture of excellence that inspires every employee to improve or lend himself or

herself to be assessed.

Align organizational objectives to individual aspirations.

Clear growth paths for talented individuals.

Provide new challenges to rejuvenate careers that have reached the plateau stage.

Forge a partnership with people for managing their careers.

Empower employees to make decisions without the fear of failing.



Embed teamwork in all operational processes.

Debureaucratise the organization structure for ease of flow of information.

3.11 JOB EVALUATION

Job evaluation refers to the process of determining the relative worth of each job for purpose of

establishing satisfactory wage and salary differentials. Jobs are evaluated on the basis of their

content and are placed in the order of their importance. In a job evaluation programme, the jobs

are ranked and not the job holders.

3.11.1 Methods of Job Evaluation


Job Evaluation

Analytical Non-Analytical

Point-Ranking Method

Factor Comparison

Method

Ranking Method

Job-Grading Method



Though there are different types of methods available but the most common method practiced in

this industry is analytical method and in analytical method point ranking methods is the most

appropriate one.

3.12 EMPLOYEE RELATIONS

As the name suggest it is all about maintaining relationship with the employee. It includes all

terms that are concerned with the employee like employee remuneration, incentives payments,

employee benefits and services, employee welfare, safety and health issue, trade unions etc. Here

it’s where the HR manager communicates with employee about their problems, suggestion and

so on. All these steps are followed in order to retain best employee.

3.12.1 Employee Remuneration

In most of the hotels, the human resource department plays a crucial role in determining the

remuneration policy of employees. For this they take into consideration all external as well as the

internal factors. By this they have to deal with external factors like labour market, going rate,

cost of living, labour unions, labour laws, society and the economy as well as internal factors like

company’s ability to pay, job evaluation and performance appraisal and the worker himself or

herself. In this industry both financial as well as non-financial methods of remuneration are

followed.

3.12.2 Employee Benefits and Services

The HRD has a major role in the development and management of benefits programs. These

benefits are designed by HRD in order to suit the requirement of employee. And further, they are

sent to the top management for approval. Thereafter they are implemented. These benefits, which

are given to the employee, are both financial as well as non-financial.



Some of the benefits and services, which are practiced in the hospitality industry are as follows:

Legally required payments

Old age, survivors, disability and health insurance

Worker’s compensation

Unemployment compensation

Contingent and deferred benefits

Pension plans

Group life insurance

Sick leave

Maternity leave

Payments for time not worked

Vacations

Holidays

Voting pay allowances

3.12.3 Employee Welfare

Labour welfare refers to taking care of the well being of workers by employers, trade unions, and

government and non-government agencies. Recognizing the unique place of the worker in the

society and doing good for him/her retaining and motivating employees, minimizing social evils,

and building up the local reputation of the hotel are the arguments in favour of employee

welfare. Hence this area has generated one more area for practicing of HR roles.

3.12.4 Safety and Health Issue

Since the hospitality industry, is the service industry, hence the safety and health aspects of

employee is concern for the organization, as employee are assets of service industry. The whole

and soul responsibility of employee health and safety measures lie on the shoulder of HR

department. Hence such types of measures reduce the chances of accidents.



3.13 FUTURE ROLE OF HUMAN RESOURCE IN HOSPITALITY INDUSTRY

Service quality and productivity were the most crucial competitive issues facing these firms.

When asked to different hotels regarding strengthening competitiveness, 50 percent choose

internal management actions, including educating and training employees, with publicly

announcing employee policy. And all these procedure of implementing such task is over HR

shoulder.

To achieve a progressive, innovative culture within organization- and to cope with the critical

challenges that the future might bring- human resources professionals are likely to assume

certain roles with greater frequency. These roles are following:

The Consultant Advisor Role:- In particular, the top human resources executive will

increasingly play a major role in advising the CEO and the top management team about the

human resources implications of broad organizational strategy, both nationally and globally.

Further, the human resources department will be called upon more and more advice

management at all levels about the motivational, morale and legal implications of various

present and proposed practices and policies.

The Catalyst Facilitator Role: - The human resources directors have a unique opportunity to

serve in a catalyst-facilitator role in stimulating a top management philosophy, leadership

style and organizational culture and climate. It is important that management develops a clear

view of these interrelated matters and that management is self-conscious about them on an

ongoing basis. In addition, the human resources director can serve as a resource person about

these concepts and their links to organizational outcomes such as effectiveness, efficiency,

development and participant satisfaction.

The Diagnostic Role: - By this, they are expected to identify the underlying causes of an

organizational problem as distinct from its symptoms and to come up with solutions – or

system for solving the problem- that correspond with the diagnosis. All too often, programs

of various kinds, like job enrichment, incentives systems, quality circles and so on, are

proposed by managers or human resources people. what is usually needed is an accurate

description of the problem to be solved, a careful analysis of the dynamics of that problem,



and a close look at alternative solutions and their rectifications before a program are

implemented.

The Assessment Role: - One of the most difficult roles for human resources professionals is

the assessment role, in which they assess the effectiveness of various human resources

practices and policies. A comprehensive evaluation of the effectiveness of various human

resources policies and practices is called a human resources management audit or personnel

audit. These comprehensive human resources audit may be used to analyze a wide array of

human resources practices and outcomes.

Hyatt’s Human Resource Strategy: Focus 2000

Hyatt has an ambitious plan to find, train, and keep quality employees during the next 10 years -

Focus 2000. Recruitment, training, recognition, retention, communications, volunteerism and

community involvement are important components of the plan. One priority of focus 2000 is

keeping tabs of management and line employees. The Hyatt Management Manpower Inventory

is a program to keep track of the locations, performance and wage scales of more than 8000

management-level employees in the company. The information, which is compiled on computer

at each hotel and sent to corporate offices, includes the employees’ levels of interest in

promotion, geographic preferences and the availability of other employees to fill their slots if

they are promoted. One another program provides more statistical indicators of a property’s

success and helps the corporate and regional staffs identify potential personnel problem areas.

The strongest component of the focus 2000 program is employee communications. The chain has



always had clear, meaningful two-way lines of communication. Morgan, corporate director of

employee relations, discusses Hyatt’s commitment to employee communications. “We try to

share with employees as much information as possible about the company and how it’s

performing. Our approach is always to be honest and instill in them a sense of ownership in the

company. Then if the company or an individual hotel has a problem, sales are down, for

example, we can openly discuss the impact of the situation and what we can do together to solve

it.”



INTRODUCTION

Hyatt Hotels Corporation, is an American international company and operator of hotels. The

Hyatt Corporation was born upon purchase of the Hyatt House, at Los Angeles International

Airport on January 1, 1957. Thay are a global hospitality company with widely recognized,

industry leading brands and a tradition of innovation developed over our more than fifty-year

history. Their mission is to provide authentic hospitality by making a difference in the lives of

the people we touch every day. They focus on this mission in pursuit of our goal of becoming

the most preferred brand in each segment that we serve for our associates, guests, and owners.

They support our mission and goal by adhering to a set of core values that characterizes our

culture.

They manage, franchise, own and develop Hyatt branded hotels, resorts and residential and

vacation ownership properties around the world. As of June 30, 2012, the company's worldwide

portfolio consisted of 492 properties.

HR POLICIES

Employee Rewards

Hyatt believes in its employees in celebrating success and in highlighting accomplishments!

Employees take pride in being part of such a collaborative environment. As an employee of the

Hyatt team, not only will receive outstanding rewards and recognition, but also be a part of a

family-friendly atmosphere consistently labeled with "great camaraderie". Employee feel a

tremendous sense of pride when recognized for contributions to exceptional guest experiences.

Hyatt is equally committed to ensuring that employees, their family or domestic partner stay

healthy, take advantage of opportunities, plan for the future and take time to enjoy life. As

healthy and happy people, Hyatt employees are committed to working in collaborative

environment. Hyatt's worldwide recognition and rewards programs will vary depending on the

country.


http://en.wikipedia.org/wiki/Los_Angeles_International_Airport

http://en.wikipedia.org/wiki/Los_Angeles_International_Airport

http://en.wikipedia.org/wiki/Hotel


Safety to employees

Quality health and welfare care for employees and their family or domestic partner is top

priority. Hyatt’s medical, dental, vision and prescription drug coverage is designed to give

employees and their families the opportunity to obtain comprehensive and quality health care

services at reasonable costs utilizing a large network of medical professionals.

Combined with unique discounts for alternative health options and fitness services, Hyatt

employees take advantage of the special programs offered like the Moms-to-Babies and the

Healthy Outlook Programs. Hyatt puts their employees in control of their benefits by providing

easy-to-use tools to help manage them effectively and by offering a range of benefits to best

meet their needs.

When the need arises, Hyatt's leave policies, allow ample time off for personal, medical, new

child, military or to care for a family member. Successfully being able to cope with life's

everyday challenges equates to a healthy and productive work environment. The Life Balance

assistance program Hyatt offers has proven to act as a strong source of reference and is available

anytime.

Planning for the future

Hyatt employees have the opportunity to build their future through a retirement savings plan and

most importantly to take advantage of the company match. Employees with children have found

the company 529 plan attractive as everyone wants to give their children opportunity for a

college education.

Because Hyatt recognizes the need to keep employees skills current to stay on top, an

educational reimbursement program provides continued learning for associates. Hyatt

employees are encouraged to continue their career growth, if not by completing a college course

or obtaining professional certification, then by taking advantage of the internal Hyatt training

curriculum.

The Hyatt Life Insurance Program is intended to provide employees and their beneficiaries

additional financial support should a death occur while actively employed by Hyatt.



Balanced Role

Hyatt recognizes the importance of enjoying life and encourages all employees to focus on

balancing work and personal life. This keeps employees fresh and better equipped to handle day

to day service interactions.

Paid time off is earned by all Hyatt employees and encourages time away from work for vacation

and holidays or to be used at a time of illness. Time away promotes better health and creativity.

During time off, Hyatt employees may be eligible to enjoy complimentary or discounted Hyatt

room nights; by far the most popular reward of working for Hyatt.There are many perks to

working for a large company, as Hyatt has formed many corporate partnerships that allow

employee purchasing discounts. Employees enjoy a number of discounts to include computer,

mobile, recreational, home goods, clothing, dry cleaning, and memberships.

Positive Recognition With Hyatt

The hospitality industry is naturally filled with a wide range of occupations. Upwards to 80% of

employees have taken advantage of promotion opportunities with Hyatt and this is one of the

primary reasons Hyatt culture speaks of ethics and integrity. Though partially employee driven,

it is always look within first to identify and develop the next level of leadership.

The culture of integrity promotes pride in work environment. Their number one applicant source

is Employee Referral Program and good company brands speak for themselves.



INTRODUCTION

Marriott Hotels & Resorts is Marriott International's flagship brand of full-

service hotels and resorts. The company, based in Washington D.C., is repeatedly included on

the Forbes Best Companies to Work for list, and was voted the 4th best company to work for in

the UK by The Times in 2009.

As of August 2012, there were 502 hotels and resorts operating under the brand. The loyalty

program is called Marriott Rewards.

HR POLICIES

Employee Rewards

Marriott offers competitive compensation and benefits for all associates. Depending on job role

and location, Marriott associates receive:

Competitive benefit packages (which may vary by country according to employment laws and

practices)

Hotel room discounts at our locations around the globe

Discounts on food and beverages, as well as retail discounts in our gift shops, at Marriott

hotels around the globe

Competitive pay and advancement opportunities

In the ordinary course of business, compensation and benefits programs evolve as business needs

and laws change. Therefore, the benefits outlined here may be subject to change.

Safety to Employees

Marriott's Award-Winning Program Puts Employees' Safety First

“As one of the world's largest hotel brands, Marriott International employs approximately

110,000 associates in its 700 managed U.S. hotels. With a large staff and significant safety

challenges, Marriott has developed a sophisticated and innovative workers' compensation

program, recognized by the 2007 Theodore Roosevelt Workers' Compensation Award

committee as one of the best programs in the country.



The objectives of Marriott's workers' compensation program are simple: promptly respond to

workplace injuries with quality medical care and return associates to work as quickly and

safely as possible—all while controlling costs. The program has an impressive track record of

success—over the past five years, its claims frequency has dropped by 15 percent, and claims

costs also decreased by 15 percent.

HUMAN CAPITAL CONCEPTS: MARRIOT STRIVES TO PUT EMPLOYEES

SAFETY FIRST

CEO J.W. Marriott said his parents taught him to put associates first: "If the employees are

well taken care of, they'll take care of the customer and the customer will come back."

Marriott strives to maintain safe work conditions, and when someone is injured, to initiate a

prompt and appropriate response.

"There are two key factors to creating a safe work environment. "First, safety designers

analyze and design hotels with safety and security in mind. Second, they offer extensive Job

Safety Analysis training and tools to bring about safe employee behavior. In informal surveys,

an overwhelming majority of associates said they discuss safety during staff meetings … this

has made a significant impact."

A key indication of Marriott's success is that after an intensive six-month evaluation by

the American National Standards Institute (ANSI Z10), its safety standards and program

earned the prestigious World-Class Safety Award”..

Planning for the future

Marriot culture encourages long-term growth and development. For many of associates, working

at Marriott is a life-changing journey that allows increasing levels of responsibility,

accountability and leadership. Here are some great reasons to make a career at Marriott:



Marriot is a global business with many brands and locations, and many of associates create

lifelong, constantly evolving careers within the Marriott family.

They promote from within; thousands of managers began their Marriott careers in entry-level

positions.

Marriot associates have access to services that support their physical and emotional well-being

throughout their Marriott careers.

Marriott associates average 78 hours of training and 34 hours of professional development

each year.

All Marriott associates are encouraged to gain experience in a variety of disciplines to fully

understand the hospitality business and continue to expand their career options.

Balanced Role

Apart from providing a competitive pay package, Marriott strived to give its employees a good

work life. The company gave equal importance to non-monetary factors such as work-life

balance, good leadership, better growth opportunities, a friendly work environment and training.

Employees stayed longer with Marriott as they were happy with these non-monetary factors and

thought them more important.

Marriott's culture and guiding principles had a significant influence on the company's HR

practices including manpower planning, recruitment and selection; training and development,

employee retention and welfare initiatives and grievance redress.

Positive Recognition With Marriot

Marriott recognize employees for their commitment to delivering exceptional guest

experiences and their passion for our business, including recognition of:

Associates who demonstrate outstanding commitment to guests and the success of their

location or hotel

Managers who demonstrate exceptional leadership

Associates who demonstrate commitment to local communities

Associates who provide referrals for new employees

Years of service, at five-year intervals



Associates with 25 years of service (rewarded with free weekend stays at Marriott hotels

around the world)

Manpower Planning, Recruitment and Selection

Marriott attached a lot of importance to manpower planning. It started right from entry level and

went through to higher positions. Every unit of Marriott (division or department) prepared its

expansion plans over the next couple of years, and, in the process, decided on the number of

entry level and managerial employees required for the expansion.

Details on the number of new units planned in the given time frame (two to five years), a rough

picture of the likely organization structure, the time required to develop employees who could

take managerial positions, current availability of employees within Marriott and the necessity to

recruit externally - all these were determined during the planning process.

Training and Development

Once the right candidates were recruited, it was important to get them accustomed to the

company's unique work environment. Training and development played a key role here. These

programs varied between frontline employees and managerial personnel. Over time, training

programs evolved from classroom- based teaching to interactive multimedia training. Fresh

recruits went through an eight-hour initial training session, during which they were given an

overview of Marriott and their individual roles.

A unique feature was that senior hotel employees served lunch at the first session. During the

three- month training period which followed, a mentor, addressed as 'buddy' was allotted to each

recruit. The mentor guided the trainee. All trainees attended refresher sessions after the first and

second months. On the final day of training, recruits enjoyed a sumptuous feast at a Marriott

hotel.



Research Methodology

MEANING OF RESEARCH

Research in common parlance refers to a search for knowledge. Once can also define research

asa scientific and systematic search for pertinent information on a specific topic. In fact, research

is an art of scientific investigation. The Advanced Learner’s Dictionary of Current English lays

down the meaning of research as “a careful investigation or inquiry specially through search for

new facts inany branch of knowledge.”1 Redman and Mory define research as a “systematized

effort to gain new knowledge.”2 Some people consider research as a movement, a movement

from the known to the unknown. It is actually a voyage of discovery. We all possess the vital

instinct of inquisitiveness for, when the unknown confronts us, we wonder and our

inquisitiveness makes us probe and attain full and fuller understanding of the unknown. This

inquisitiveness is the mother of all knowledge and the method, which man employs for obtaining

the knowledge of whatever the unknown, can betermed as research.

Research is an academic activity and as such the term should be used in a technical

sense.According to Clifford Woody research comprises defining and redefining problems,

formulatinghypothesis or suggested solutions; collecting, organising and evaluating data; making

deductions and reaching conclusions; and at last carefully testing the conclusions to determine

whether they fit the formulating hypothesis. D. Slesinger and M. Stephenson in the

Encyclopaedia of Social Sciences define research as “the manipulation of things, concepts or

symbols for the purpose of generalising to extend, correct or verify knowledge, whether that

knowledge aids in construction of theory or in the practice of an art.”3 Research is, thus, an

original contribution to the existing stock of knowledge making for its advancement. It is the

persuit of truth with the help of study, observation, comparison and experiment. In short, the

search for knowledge through objective and systematic method of finding solution to a problem

is research. The systematic approach concerning generalisation and the formulation of a theory is

also research. As such the term ‘research’ refers to the systematic method consisting of

enunciating the problem, formulating a hypothesis, collecting the facts or data, analysingthe facts



and reaching certain conclusions either in the form of solutions(s) towards the concerned

problem or in certain generalisations for some theoretical formulation.

OBJECTIVES OF RESEARCH

The purpose of research is to discover answers to questions through the application of

scientificprocedures. The main aim of research is to find out the truth which is hidden and which

has not been discovered as yet. Though each research study has its own specific purpose, we may

think ofresearch objectives as falling into a number of following broad groupings:

1. To gain familiarity with a phenomenon or to achieve new insights into it (studies with

thisobject in view are termed as exploratory or formulative research studies);

2. To portray accurately the characteristics of a particular individual, situation or a group(studies

with this object in view are known as descriptive research studies);

3. To determine the frequency with which something occurs or with which it is associated with

something else (studies with this object in view are known as diagnostic researchstudies);

4. To test a hypothesis of a causal relationship between variables (such studies are known as

hypothesis-testing research studies).

TYPES OF RESEARCH

The basic types of research are as follows:

(i) Descriptive vs. Analytical :Descriptive research includes surveys and fact-finding enquiries of

different kinds. The major purpose of descriptive research is description of the state of affairs as

it exists at present. In social science and business research we quite often use the term Ex post

facto research for descriptive research studies. The main characteristic of this method is that the

researcher has no control over the variables; he can only report what has happened or what is

happening. Most ex post facto research projects are used for descriptive studies in which the

researcher seeks to measure such items as, for example ,frequency of shopping, preferences of

people, or similar data. Ex post facto studies also include attempts by researchers to discover

causes even when they cannot control the variables. The methods of research utilized in

descriptive research are survey methods of all kinds, including comparative and correlation



methods. In analytical research, on the other hand, the researcher has to use facts or information

already available, and analyze these to make a critical evaluation of the material.

(ii) Applied vs. Fundamental: Research can either be applied (or action) research or fundamental

(to basic or pure) research. Applied research aims at finding a solution for an immediate problem

facing a society or an industrial/business organization, whereas fundamental research is mainly

concerned with generalizations and with the formulation of a theory.“Gathering knowledge for

knowledge’s sake is termed ‘pure’ or ‘basic’ research.” Research concerning some natural

phenomenon or relating to pure mathematics are examples of fundamental research. Similarly,

research studies, concerning human behaviour carried on with a view to make generalisations

about human behaviour, are also examples of fundamental research, but research aimed at certain

conclusions (say, a solution) facing a concrete social or business problem is an example of

applied research. Research to identify social, economic or political trends that may affect a

particular institution or the copy research (research to find out whether certain communications

will be read and understood) or the marketing research or evaluation research are examples of

applied research. Thus, the central aim of applied research is to discover a solution for some

pressing practical problem, whereas basic research is directed towards finding information that

has a broad base of applications and thus, adds to the already existing organized body of

scientific knowledge.

(iii) Quantitative vs. Qualitative: Quantitative research is based on the measurement of quantity

or amount. It is applicable to phenomena that can be expressed in terms of quantity. Qualitative

research, on the other hand, is concerned with qualitative phenomenon, i.e., phenomena relating

to or involving quality or kind. For instance, when we are interested in investigating the reasons

for human behaviour (i.e., why people think or do certain things), we quite often talk of

‘Motivation Research’, an important type of qualitative research. This type of research aims at

discovering the underlying motives and desires, using in depth interviews for the purpose. Other

techniques of such research are word association tests, sentence completion tests, story

completion tests and similar other projective techniques. Attitude or opinion research i.e.,

research designed to find out how people feel or what they think about a particular subject or

institution is also qualitative research. Qualitative research is especially important in the

behavioral sciences where the aim is to discover the underlying motives of human behavior.



Through such research we can analyse the various factors which motivate people to behave in a

particular manner or which make people like or dislike a particular thing. It may be stated,

however, that to apply qualitative research in practice is relatively a difficult job and therefore,

while doing such research, one should seek guidance from experimental psychologists.

(iv) Conceptual vs. Empirical: Conceptual research is that related to some abstract idea(s) or

theory. It is generally used by philosophers and thinkers to develop new concepts or to

reinterpret existing ones. On the other hand, empirical research relies on experience or

observation alone, often without due regard for system and theory. It is data-based research,

coming up with conclusions which are capable of being verified by observation or experiment.

We can also call it as experimental type of research. In such a research it is necessary to get at

facts firsthand, at their source, and actively to go about doing certain things to stimulate the

production of desired information. In such a research, the researcher must first provide himself

with a working hypothesis or guess as to the probable results. He then works to get enough facts

(data) to prove or disprove his hypothesis. He then sets up experimental designs which he thinks

will manipulate the persons or the materials concerned so as to bring forth the desired

information. Such research is thus characterized by the experimenter’s control over the variables

under study and his deliberate manipulation of one of them to study its effects. Empirical

research is appropriate when proof is sought that certain variables affect other variables in some

way. Evidence gathered through experiments or empirical studies is today considered to be the

most powerful support possible for a given hypothesis.

(v) Some Other Types of Research: All other types of research are variations of one or more of

the above stated approaches, based on either the purpose of research, or the time required to

accomplish research, on the environment in which research is done, or on the basis of some other

similar factor. Form the point of view of time, we can think of research either as one-time

research or longitudinal research. In the former case the research is confined to a single time-

period, whereas in the latter case the research is carried on over several time-periods. Research

can be field-setting research or laboratory research or simulation research, depending upon the

environment in which it is to be carried out.



Research can as well be understood as clinical or diagnostic research. Such research follows

case-study methods or indepth approaches to reach the basic causal relations. Such studies

usually go deep into the causes of things or events that interest us, using very small samples and

very deep probing data gathering devices. The research may be exploratory or it may be

formalized. The objective of exploratory research is the development of hypotheses rather than

their testing, whereas formalized research studies are those with substantial structure and with

specific hypotheses to be tested. Historical research is that which utilizes historical sources like

documents, remains, etc. to study events or ideas of the past, including the philosophy of persons

and groups at any remote point of time. Research can also be classified as conclusion-oriented

and decision-oriented. While doing conclusion oriented research, a researcher is free to pick up a

problem, redesign the enquiry as he proceeds and is prepared to conceptualize as he wishes.

Decision-oriented research is always for the need of a decision maker and the researcher in this

case is not free to embark upon research according to his own inclination. Operations research is

an example of decision oriented research since it is a scientific method of providing executive

departments with a quantitative basis for decisions regarding operations under their control.

Significance of Research

“All progress is born of inquiry. Doubt is often better than overconfidence, for it leads to inquiry,

and inquiry leads to invention” is a famous Hudson Maxim in context of which the significance

of research can well be understood. Increased amounts of research make progress possible.

Research inculcates scientific and inductive thinking and it promotes the development of logical

habits of thinking and organisation. The role of research in several fields of applied economics,

whether related to business or to the economy as a whole, has greatly increased in modern times.

The increasingly complex nature of business and government has focused attention on the use of

research in solving operational problems. Research, as an aid to economic policy, has gained

added importance, both for government and business. Research provides the basis for nearly all

government policies in our economic system. For instance, government’s budgets rest in part on

an analysis of the needs and desires of the people and on the availability of revenues to meet

these needs. The cost of needs has to be equated to probable revenues and this is a field where

research is most needed. Through research we can devise alternative policies and can as well



examine the consequences of each of these alternatives. Decision-making may not be a part of

research, but research certainly facilitates the decisions of the policy maker.

Government has also to chalk out programmes for dealing with all facets of the country’s

existence and most of these will be related directly or indirectly to economic conditions. The

plight of cultivators, the problems of big and small business and industry, working conditions,

trade union activities, the problems of distribution, even the size and nature of defence services

are matters requiring research. Thus, research is considered necessary with regard to the

allocation of nation’s resources. Another area in government, where research is necessary, is

collecting information on the economic and social structure of the nation. Such information

indicates what is happening in the economy and what changes are taking place. Collecting such

statistical information is by no means a routine task, but it involves a variety of research

problems. These day nearly all governments maintain large staff of research technicians or

experts to carry on this work. Thus, in the context of government, research as a tool to economic

policy has three distinct phases of operation, viz.

(i) investigation of economic structure through continual compilation of facts;

(ii) diagnosis of events that are taking place and the analysis of the forces underlying them;

and

(iii) the prognosis, i.e., the prediction of future developments.

Research has its special significance in solving various operational and planning problems of

business and industry. Operations research and market research, along with motivational

research, are considered crucial and their results assist, in more than one way, in taking business

decisions.

Market research is the investigation of the structure and development of a market for the purpose

of formulating efficient policies for purchasing, production and sales. Operations research refers

to the application of mathematical, logical and analytical techniques to the solution of business

problems of cost minimisation or of profit maximisation or what can be termed as optimisation

problems. Motivational research of determining why people behave as they do is mainly

concerned with market characteristics. In other words, it is concerned with the determination of

motivations underlying the consumer (market) behaviour. All these are of great help to people in



business and industry who are responsible for taking business decisions. Research with regard to

demand and market factors has great utility in business. Given knowledge of future demand, it is

generally not difficult for a firm, or for an industry to adjust its supply schedule within the limits

of its projected capacity. Market analysis has become an integral tool of business policy these

days. Business budgeting, which ultimately results in a projected profit and loss account, is based

mainly on sales estimates which in turn depends on business research. Once sales forecasting is

done, efficient production and investment programmes can be set up around which are grouped

the purchasing and financing plans. Research, thus, replaces intuitive business decisions by more

logical and scientific decisions.

Research is equally important for social scientists in studying social relationships and in seeking

answers to various social problems. It provides the intellectual satisfaction of knowing a few

things just for the sake of knowledge and also has practical utility for the social scientist to know

for the sake of being able to do something better or in a more efficient manner. Research in

social sciences is concerned both with knowledge for its own sake and with knowledge for what

it can contribute to practical concerns. “This double emphasis is perhaps especially appropriate

in the case of social science. On the one hand, its responsibility as a science is to develop a body

of principles that make possible the understanding and prediction of the whole range of human

interactions. On the other hand, because of its social orientation, it is increasingly being looked

to for practical guidance in solving immediate problems of human relations In addition to what

has been stated above, the significance of research can also be understood keeping in view the

following points:

(a) To those students who are to write a master’s or Ph.D. thesis, research may mean a careerism

or a way to attain a high position in the social structure;

(b) To professionals in research methodology, research may mean a source of livelihood;

(c) To philosophers and thinkers, research may mean the outlet for new ideas and insights;

(d) To literary men and women, research may mean the development of new styles and creative

work;



(e) To analysts and intellectuals, research may mean the generalisations of new theories. Thus,

research is the fountain of knowledge for the sake of knowledge and an important source of

providing guidelines for solving different business, governmental and social problems. It is a sort

of formal training which enables one to understand the new developments in one’s field in a

better way.

Research Process

Before embarking on the details of research methodology and techniques, it seems appropriate to

present a brief overview of the research process. Research process consists of series of actions or

steps necessary to effectively carry out research and the desired sequencing of these steps. A

brief description of the above stated steps will be helpful.

1. Formulating the research problem: There are two types of research problems, viz., those

which relate to states of nature and those which relate to relationships between variables.

At the very outset the researcher must single out the problem he wants to study, i.e., he

must decide the general area of interest or aspect of a subject-matter that he would like to

inquire into. Initially the problem may be stated in a broad general way and then the

ambiguities, if any, relating to the problem be resolved. Then, the feasibility of a

particular solution has to be considered before a working formulation of the problem can

be set up. The formulation of a general topic into a specific research problem, thus,

constitutes the first step in a scientific enquiry. Essentially two steps are involved in

formulating the research problem, viz., understanding the problem thoroughly, and

rephrasing the same into meaningful terms from an analytical point of view.

The best way of understanding the problem is to discuss it with one’s own colleagues or

with those having some expertise in the matter. In an academic institution the researcher

can seek the help from a guide who is usually an experienced man and has several

research problems in mind. Often, the guide puts forth the problem in general terms and it

is up to the researcher to narrow it down and phrase the problem in operational terms. In

private business units or in governmental organisations, the problem is usually

earmarked by the administrative agencies with whom the researcher can discuss as to

how the problem originally came about and what considerations are involved in its



possible solutions. The researcher must at the same time examine all available literature

to get himself acquainted with the selected problem. He may review two types of

literature—the conceptual literature concerning the concepts and theories, and the

empirical literature consisting of studies made earlier which are similar to the one

proposed.

The basic outcome of this review will be the knowledge as to what data and other

materials are available for operational purposes which will enable the researcher to

specify his own research problem in a meaningful context. After this the researcher

rephrases the problem into analytical or operational terms i.e., to put the problem in as

specific terms as possible. This task of formulating, or defining, a research problem is a

step of greatest importance in the entire research process. The problem to be investigated

must be defined unambiguously for that will help discriminating relevant data from

irrelevant ones. Care must; however, be taken to verify the objectivity and validity of the

background facts concerning the problem. Professor W.A. Neiswanger correctly states

that the statement of the objective is of basic importance because it determines the data

which are to be collected, the characteristics of the data which are relevant, relations

which are to be explored, the choice of techniques to be used in these explorations and

the form of the final report. If there are certain pertinent terms, the same should be clearly

defined along with the task of formulating the problem. In fact, formulation of the

problem often follows a sequential pattern where a number of formulations are set up,

each formulation more specific than the preceeding one, each one phrased in more

analytical terms, and each more realistic in terms of the available data and resources.

2. Extensive literature survey: Once the problem is formulated, a brief summary of it should

be written down. It is compulsory for a research worker writing a thesis for a Ph.D.

degree to write a synopsis of the topic and submit it to the necessary Committee or the

Research Board for approval. At this juncture the researcher should undertake extensive

literature survey connected with the problem. For this purpose, the abstracting and

indexing journals and published or unpublished bibliographies are the first place to go to.

Academic journals, conference proceedings, government reports, books etc., must be

tapped depending on the nature of the problem. In this process, it should be remembered



that one source will lead to another. The earlier studies, if any, which are similar to the

study in hand should be carefully studied. A good library will be a great help to the

researcher at this stage.

3. Development of working hypotheses: After extensive literature survey, researcher should

state in clear terms the working hypothesis or hypotheses. Working hypothesis is

tentative assumption made in order to draw out and test its logical or empirical

consequences. As such the manner in which research hypotheses are developed is

particularly important since they provide the focal point for research. They also affect the

manner in which tests must be conducted in the analysis of data and indirectly the quality

of data which is required for the analysis. In most types of research, the development of

working hypothesis plays an important role. Hypothesis should be very specific and

limited to the piece of research in hand because it has to be tested. The role of the

hypothesis is to guide the researcher by delimiting the area of research and to keep him

on the right track. It sharpens his thinking and focuses attention on the more important

facets of the problem. It also indicates the type of data required and the type of methods

of data analysis to be used. How does one go about developing working hypotheses? The

answer is by using the following approach:

(a) Discussions with colleagues and experts about the problem, its origin and the

objectives is seeking a solution;

(b) Examination of data and records, if available, concerning the problem for possible

trends, peculiarities and other clues;

(c) Review of similar studies in the area or of the studies on similar problems; and

(d) Exploratory personal investigation which involves original field interviews on a

limited scale with interested parties and individuals with a view to secure greater insight

into the practical aspects of the problem. Thus, working hypotheses arise as a result of a-

priori thinking about the subject, examination of the available data and material including

related studies and the counsel of experts and interested parties.



Working hypotheses are more useful when stated in precise and clearly defined terms. It

ma as well be remembered that occasionally we may encounter a problem where we do

not need working hypotheses, specially in the case of exploratory or formulative

researches which do not aim at testing the hypothesis. But as a general rule, specification

of working hypotheses in another basic step of the research process in most research

problems.

4. Preparing the research design: The research problem having been formulated in clear cut

terms, the researcher will be required to prepare a research design, i.e., he will have to

state the conceptual structure within which research would be conducted. The preparation

of such a design facilitates research to be as efficient as possible yielding maximal

information. In other words, the function of research design is to provide for the

collection of relevant evidence with minimal expenditure of effort, time and money. But

how all these can be achieved depends mainly on the research purpose. Research

purposes may be grouped into four categories, viz., (i) Exploration, (ii) Description, (iii)

Diagnosis, and (iv) Experimentation.

A flexible research design which provides opportunity for considering many different

aspects of a problem is considered appropriate if the purpose of the research study is that

of exploration. But when the purpose happens to be an accurate description of a situation

or of an association between variables, the suitable design will be one that minimises bias

and maximises the reliability of the data collected and analysed. There are several

research designs, such as, experimental and non-experimental hypothesis testing.

Experimental designs can be either informal designs (such as before-and-after without

control, after-only with control, before-and-after with control) or formal designs (such as

completely randomized design, randomized block design, Latin square design, simple

and complex factorial designs), out of which the researcher must select one for his own

project. The preparation of the research design, appropriate for a particular research

problem, involves usually the consideration of the following:

(i) the means of obtaining the information;

(ii) the availability and skills of the researcher and his staff (if any)



(iii) explanation of the way in which selected means of obtaining information will be

organized and the reasoning leading to the selection;

(iv) the time available for research; and the cost factor relating to research, i.e., the

finance available for the purpose.

5. Determining sample design: All the items under consideration in any field of inquiry

constitute a ‘universe’ or ‘population’. A complete enumeration of all the items in the

‘population’ is known as a census inquiry. It can be presumed that in such an inquiry

when all the items are covered no element of chance is left and highest accuracy is

obtained. But in practice this may not be true. Even the slightest element of bias in such

an inquiry will get larger and larger as the number of observations increases. Moreover,

there is no way of checking the element of bias or its extent except through a resurvey or

use of sample checks. Besides, this type of inquiry involves a great deal of time, money

and energy. Not only this, census inquiry is not possible in practice under many

circumstances. For instance, blood testing is done only on sample basis. Hence, quite

often we select only a few items from the universe for our study purposes. The items so

selected constitute what is technically called a sample.

The researcher must decide the way of selecting a sample or what is popularly known as

the sample design. In other words, a sample design is a definite plan determined before

any data are actually collected for obtaining a sample from a given population. Thus, the

plan to select 12 of a city’s 200 drugstores in a certain way constitutes a sample design.

Samples can be either probability samples or non-probability samples. With probability

samples each element has a known probability of being included in the sample but the

non-probability samples do not allow the researcher to determine this probability.

Probability samples are those based on simple random sampling, systematic sampling,

stratified sampling, cluster/area sampling whereas non-probability samples are those

based on convenience sampling, judgement sampling and quota sampling techniques. A

brief mention of the important sample designs is as follows:

(i) Deliberate sampling: Deliberate sampling is also known as purposive or non-

probability sampling. This sampling method involves purposive or deliberate selection of



particular units of the universe for constituting a sample which represents the universe.

When population elements are selected for inclusion in the sample based on the ease of

access, it can be called convenience sampling. If a researcher wishes to secure data from,

say, gasoline buyers, he may select a fixed number of petrol stations and may conduct

interviews at these stations. This would be an example of convenience sample of gasoline

buyers. At times such a procedure may give very biased results particularly when the

population is not homogeneous. On the other hand, in judgement sampling the

researcher’s judgement is used for selecting items which he considers as representative of

the population. For example, a judgement sample of college students might be taken to

secure reactions to a new method of teaching. Judgement sampling is used quite

frequently in qualitative research where the desire happens to be to develop hypotheses

rather than to generalise to larger populations.

(ii) Simple random sampling: This type of sampling is also known as chance sampling or

probability sampling where each and every item in the population has an equal chance of

inclusion in the sample and each one of the possible samples, in case of finite universe,

has the same probability of being selected. For example, if we have to select a sample of

300 items from a universe of 15,000 items, then we can put the names or numbers of all

the 15,000 items on slips of paper and conduct a lottery. Using the random number tables

is another method of random sampling. To select the sample, each item is assigned a

number from 1 to 15,000. Then, 300 five digit random numbers are selected from the

table. To do this we select some random starting point and then a systematic pattern is

used in proceeding through the table. We might start in the 4th row, second column and

proceed down the column to the bottom of the table and then move to the top of the next

column to the right.

When a number exceeds the limit of the numbers in the frame, in our case over 15,000, it

is simply passed over and the next number selected that does fall within the relevant

range. Since the numbers were placed in the table in a completely random fashion, the

resulting sample is random. This procedure gives each item an equal probability of being

selected. In case of infinite population, the selection of each item in a random sample is



controlled by the same probability and that successive selections are independent of one

another.

(iii) Systematic sampling: In some instances the most practical way of sampling is to

select every 15th name on a list, every 10th house on one side of a street and so on.

Sampling of this type is known as systematic sampling. An element of randomness is

usually introduced into this kind of sampling by using random numbers to pick up the

unit with which to start. This procedure is useful when sampling frame is available in the

form of a list. In such a design the selection process starts by picking some random point

in the list and then every nth element is selected until the desired number is secured. (iv)

Stratified sampling: If the population from which a sample is to be drawn does not

constitute a homogeneous group, then stratified sampling technique is applied so as to

obtain a representative sample. In this technique, the population is stratified into a

number of non overlapping subpopulations or strata and sample items are selected from

each stratum. If the items selected from each stratum is based on simple random sampling

the entire procedure, first stratification and then simple random sampling, is known as

stratified random sampling.

(v) Quota sampling: In stratified sampling the cost of taking random samples from

individual strata is often so expensive that interviewers are simply given quota to be filled

from different strata, the actual selection of items for sample being left to the

interviewer’s judgement. This is called quota sampling. The size of the quota for each

stratum is generally proportionate to the size of that stratum in the population. Quota

sampling is thus an importantform of non-probability sampling. Quota samples generally

happen to be judgement samplesrather than random samples.

(vi) Cluster sampling and area sampling: Cluster sampling involves grouping the

population and then selecting the groups or the clusters rather than individual elements

for inclusion in the sample. Suppose some departmental store wishes to sample its credit

card holders have issued its cards to 15,000 customers. The sample size is to be kept say

450. For cluster sampling this list of 15,000 card holders could be formed into 100

clusters of 150 card holders each. Three clusters might then be selected for the sample

randomly. The sample size must often be larger than the simple random sample to ensure



the same level of accuracy because is cluster sampling procedural potential for order bias

and other sources of error is usually accentuated. The clustering approach can, however,

make the sampling procedure relatively easier and increase the efficiency of field work,

specially in the case of personal interviews. Area sampling is quite close to cluster

sampling and is often talked about when the total geographical area of interest happens to

be big one. Under area sampling we first divide the total area into a number of smaller

non-overlapping areas, generally called geographical clusters, then a number of these

smaller areas are randomly selected, and all units in these small areas are included in the

sample. Area sampling is specially helpful where we do not have the list of the

population concerned. It also makes the field interviewing more efficient since

interviewer can do many interviews at each location.

(vii)Multi-stage sampling: This is a further development of the idea of cluster sampling.

This technique is meant for big inquiries extending to a considerably large geographical

area like an entire country. Under multi-stage sampling the first stage may be to select

large primary sampling units such as states, then districts, then towns and finally certain

families within towns. If the technique of random-sampling is applied at all stages, the

sampling procedure is described as multi-stage random sampling.

(viii) Sequential sampling: This is somewhat a complex sample design where the ultimate

size of the sample is not fixed in advance but is determined according to mathematical

decisions on the basis of information yielded as survey progresses. This design is usually

adopted under acceptance sampling plan in the context of statistical quality control. In

practice, several of the methods of sampling described above may well be used in the

same. study in which case it can be called mixed sampling. It may be pointed out here

that normally one should resort to random sampling so that bias can be eliminated and

sampling error can be estimated.But purposive sampling is considered desirable when the

universe happens to be small and a known characteristic of it is to be studied intensively.

Also, there are conditions under which sample designs other than random sampling may

be considered better for reasons like convenience and low costs. The sample design to be

used must be decided by the researcher taking into consideration the nature of the inquiry

and other related factors.



6. Collecting the data: In dealing with any real life problem it is often found that data at

hand are inadequate, and hence, it becomes necessary to collect data that are appropriate.

There are several ways of collecting the appropriate data which differ considerably in

context of money costs, time and other resources at the disposal of the researcher.

Primary data can be collected either through experiment or through survey. If the

researcher conducts an experiment, he observes some quantitative measurements, or the

data, with the help of which he examines the truth contained in his hypothesis. But in the

case of a survey, data can be collected by any one or more of the following ways:

(i) By observation: This method implies the collection of information by way of

investigator’s own observation, without interviewing the respondents. The

information obtained relates to what is currently happening and is not complicated by

either the past behaviour or future intentions or attitudes of respondents. This method

is no doubt an expensive method and the information provided by this method is also

very limited. As such this method is not suitable in inquiries where large samples are

concerned.

(ii) Through personal interview: The investigator follows a rigid procedure and seeks

answers to a set of pre-conceived questions through personal interviews. This method

of collecting data is usually carried out in a structured way where output depends

upon the ability of the interviewer to a large extent.Through telephone interviews:

This method of collecting information involves contacting the respondents on

telephone itself. This is not a very widely used method but it plays an important role

in industrial surveys in developed regions, particularly, when the survey has to be

accomplished in a very limited time.

(iii) By mailing of questionnaires: The researcher and the respondents do come in

contact with each other if this method of survey is adopted. Questionnaires are mailed

to the respondents with a request to return after completing the same. It is the most

extensively used method in various economic and business surveys. Before applying

this method, usually a Pilot Study for testing the questionnaire is conduced which

reveals the weaknesses, If any, of the questionnaire. Questionnaire to be used must

be prepared very carefully so that it may prove to be effective in collecting the

relevant information.



(iv)Through schedules: Under this method the enumerators are appointed and given

training. They are provided with schedules containing relevant questions. These

enumerators go to respondents with these schedules. Data are collected by filling up

the schedules by enumerators on the basis of replies given by respondents. Much

depends upon the capability of enumerators so far as this method is concerned. Some

occasional field checks on the work of the enumerators may ensure sincere work. The

researcher should select one of these methods of collecting the data taking into

consideration the nature of investigation, objective and scope of the inquiry, finanical

resources, available time and the desired degree of accuracy. Though he should pay

attention to all these factors but much depends upon the ability and experience of the

researcher. In this context Dr A.L. Bowley very aptly remarks that in collection of

statistical data commonsense is the chief requisite and experience the chief teacher.

7. Execution of the project: Execution of the project is a very important step in the research

process. If the execution of the project proceeds on correct lines, the data to be collected

would be adequate and dependable. The researcher should see that the project is executed

in a systematic manner and in time. If the survey is to be conducted by means of

structured questionnaires, data can be readily machine-processed. In such a situation,

questions as well as the possible answers may be coded. If the data are to be collected

through interviewers, arrangements should be made for proper selection and training of

the interviewers. The training may be given with the help of instruction manuals which

explain clearly the job of the interviewers at each step. Occasional field checks should be

made to ensure that the interviewers are doing their assigned job sincerely and efficiently.

A careful watch should be kept for unanticipated factors in order to keep the survey as

much realistic as possible. This, in other words, means that steps should be taken to

ensure that the survey is under statistical control so that the collected information is in

accordance with the pre-defined standard of accuracy. If some of the respondents do not

cooperate, some suitable methods should be designed to tackle this problem. One method

of dealing with the non-response problem is to make a list of the non-respondents and

take a small sub-sample of them, and then with the help of experts vigorous efforts can be

made for securing response.



8. Analysis of data: After the data have been collected, the researcher turns to the task of

analysing them. The analysis of data requires a number of closely related operations such

as establishment of categories, the application of these categories to raw data through

coding, tabulation and then drawing statistical inferences. The unwieldy data should

necessarily be condensed into a few manageable groups and tables for further analysis.

Thus, researcher should classify the raw data into some purposeful and usable categories.

Coding operation is usually done at this stage through which the categories of data are

transformed into symbols that may be tabulated and counted. Editing is the procedure that

improves the quality of the data for coding. With coding the stage is ready for tabulation.

Tabulation is a part of the technical procedure wherein the classified data are put in the

form of tables. The mechanical devices can be made use of at this juncture. A great deal

of data, specially in large inquiries, is tabulated by computers. Computers not only save

time but also make it possible to study large number of variables affecting a problem

simultaneously. Analysis work after tabulation is generally based on the computation of

various percentages coefficients, etc., by applying various well defined statistical

formulae. In the process of analysis, relationships or differences supporting or conflicting

with original or new hypotheses should be subjected to tests of significance to determine

with what validity data can be said to indicate any conclusion(s). For instance, if there are

two samples of weekly wages, each sample being drawn from factories in different parts

of the same city, giving two different mean values, then our problem may be whether the

two mean values are significantly different or the difference is just a matter of chance.

Through the use of statistical tests we can establish whether such a difference is a real

one or is the result of random fluctuations. If the difference happens to be real, the

inference will be that the two samples come from different universes and if the difference

is due to chance, the conclusion would be that the two samples belong to the same

universe. Similarly, the technique of analysis of variance can help us in analysing

whether three or more varieties of seeds grown on certain fields yield significantly

different results or not. In brief, the researcher can analyse the collected data with the

help of various statistical measures.



9. Hypothesis-testing: After analysing the data as stated above, the researcher is in a

position to test the hypotheses, if any, he had formulated earlier. Do the facts support the

hypotheses or they happen to be contrary? This is the usual question which should be

answered while testing hypotheses. Various tests, such as Chi square test, t-test, F-test,

have been developed by statisticians for the purpose. The hypotheses may be tested

through the use of one or more of such tests, depending upon the nature and object of

research inquiry. Hypothesis-testing will result in either accepting the hypothesis or in

rejecting it. If the researcher had no hypotheses to start with, generalisations established

on the basis of data may be stated as hypotheses to be tested by subsequent researches in

times to come.

10. Generalisations and interpretation: If a hypothesis is tested and upheld several times, it

may be possible for the researcher to arrive at generalisation, i.e., to build a theory. As a

matter of fact, the real value of research lies in its ability to arrive at certain

generalisations. If the researcher had no hypothesis to start with, he might seek to explain

his findings on the basis of some theory. It is known as interpretation. The process of

interpretation may quite often trigger off new questions which in turn may lead to further

researches.

11. Preparation of the report or the thesis: Finally, the researcher has to prepare the report of

what has been done by him. Writing of report must be done with great care keeping in

view the following: (i) the preliminary pages; (ii) the main text, and (iii) the end matter.

In its preliminary pages the report should carry title and date followed by

acknowledgements and foreword. Then there should be a table of contents followed by a

list of tables and list of graphs and charts, if any, given in the report. The main text of the

report should have the following parts:



(a) Introduction: It should contain a clear statement of the objective of the research and

an explanation of the methodology adopted in accomplishing the research. The scope of

the study along with various limitations should as well be stated in this part.

(b) Summary of findings: After introduction there would appear a statement of findings

and recommendations in non-technical language. If the findings are extensive, they

should be summarised.

(c) Main report: The main body of the report should be presented in logical sequence and

broken-down into readily identifiable sections.

(d) Conclusion: Towards the end of the main text, researcher should again put down the

results of his research clearly and precisely. In fact, it is the final summing up.

1. At the end of the report, appendices should be enlisted in respect of all technical data.

Bibliography, i.e., list of books, journals, reports, etc., consulted, should also be given in

the end. Index should also be given specially in a published research report.

2. Report should be written in a concise and objective style in simple language avoiding

vague expressions such as ‘it seems,’ ‘there may be’, and the like.

3. Charts and illustrations in the main report should be used only if they present the

information more clearly and forcibly.

4. Calculated ‘confidence limits’ must be mentioned and the various constraints

experienced in conducting research operations may as well be stated.

Research Design Used

The type of design taken into consideration for the research is the primary data and secondary

data. The primary data is collected through telephonic interview by Mr Manoj Kumar, HR

Manager, Grand Hyatt.

Through the webisite of the company (Hyatt and Marriot) it can be interpreted regarding the HR

practices and policies of the hotels operating in the Hospitality Industry. This analysis process

can help in future in making any decision regarding to it. It can review whenever necessary.



Time and Place Of Study: The survey was done in the city of Delhi through Telephonic Interview, in the

month on March,2013

Sample size: To be convenient about the research sample size for the research is 2

Sample Frame: Hotels in India

Sample Method: Convenient Sampling

Research tools: The data was collected through “Telephonic Interview”.

Data collection: Data is collected through the following:

Primary sources: Interview with HR manager, Mr Manoj Kumar, Hyatt Regency, New Delhi

Marriot Hotels

Secondary sources:

- Internet

- Books

- Magazines

- References

- Articles



CONCLUSIONS AND RECOMMENDATIONS

CONCLUSIONS

High Quality HR Policy would be the policy, which not only considers all HR functions with

proper care but also considers all other factors like culture of the hotel, types of customers it

receives, the nature of the business and also the place from it operates. And the hotels,

considering all the above factors to achieve the organizational goal while framing its HR

functions is said to have been following good policy. For example in most of the Marriot Hotels,

the employee care is given the most priority. The work environment at Hyatt Hotels is employee

friendly and hence employees can discuss their problems openly. And now when our country is

trying to develop hospitality sector , it has become mandatory for us to provide hotel services up

to international standards and this is possible only when hotels are in position to cope up with

employees.

They need to be given more training and also the proper career planning and oppurtunities for

their future. And first of all they should be aware of the facts of this industry before they join in,

so that they will be prepared for everything. Thus the role of HRM is much higher in the

Hospitality Industry. Retention of employees is another large problem in the hotel service

business. Since so many of the employees do not have hotel work as their ending career goals,

many of them only work in a hotel for a short amount of time. The importance of human

resource management for hotels is very large in this area. The issue of employee progression and

promotion is also another issue in hospitality industry. It is easy to implement services of this



nature and the expense is negligible compared to expense and time necessary to constantly find

new employees to replace the ones that always leave shortly after being hired.

At the same time growth in hospitality Industry has become important source of employment in

India.It is hoped that this project will not only meet the requirements of Hotliers but will also be

helpful as a guide to academic professionals.

Recommendations

Hospitality is a high touch, high tech, high involvement industry where it is the people

who make the difference. So they need to make people retain by good HR policies.

The ability for the Hospitality Industry to succeed and the future performance of the

industry and related activities will depend largely on the skills, qualities and knowledge

of its employees. Indeed the challenges facing the industry can only be met successfully

by a well educated, well being, bright, energetic,multi-lingual and multi task workforce.

A high quality hospitality workforce can only be achieved through high standards of

hospitality education and training which in turn will impact the ability to compete in the

global hospitality industry.

Qualitative research uses the human-as-an-instrument for the data collection and analysis.

Its exploratory and descriptive nature provides insight into the perceptions and ideas that

are in the minds of people, and which can be usefully compared with practice. However,

qualitative research is relatively rare, both in the field of hospitality generally and

certainly in the context of research into industry in India.

Managers can provide good training and incentive programs that will cause employees to

stay longer at the hotel. Having a clear progression plan to advance to higher levels of

service will also cause employees to stick around much longer.

The new practices can be introduced by certain governments and industry to improve

skills and enhance the competiveness of sector.



They can develop themes wherein under contextual change can be introduced that has

direct impact on people and their management in Hospitality sector and should consider

the consequences of changes.

BIBLIOGRAPHY

1. Baum, Tom, Amoah, Vanessa & Spivack, Sheryl (1997), “Policy dimensions of

human resource management in the tourism and hospitality industries”,

2. Beaumont, P. B. (1993) Human Resource Management: Key concepts and skills,

Sage Publications Ltd, London.

3. Brown, D., Dickens, R., Gregg, P., Machin, S. and Manning, S. (2001) Everything Under

a Fiver: Recruitment and Retention in Lower Paying Labour Markets, York: Joseph

Rowntree Foundation.

4. Brown, P., Green, A. and Lauder, H. (2001) High Skills: Globalization, Competitiveness

and Skill Formation, Oxford: Oxford University Press.

5. Hornsey, Timothy, Dann, David (1984) Manpower Management in the hotel and

catering industry, Batsford Academic and Educational Ltd, London

6. International Journal of Contemporary Hospitality Management, Vol. 9, nº 5/6, p.



221-229.

7. Torrington, Derek, Hall, Laura, Taylor, Stephen (2002) Human Resource

Management 5th Ed, Pearson Education Ltd, Great Britain.

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