Human Resource Management in the Hotel Industry

The more surprising aspect is that the service industries like for e.g. hotels depend much more than manufacturing industries on their human capital for the quality of service being delivered by the intangible interface between the staff (the service provider) and the customer.
The reason for this could be that the ‘services sector’ is not homogeneous and includes such diversified industries and services like banking, business services, catering, distribution, finance, insurance, leasing, hotels, and transport etc. In addition to this, it is estimated that sixty-five to seventy-five percent of work in the manufacturing industries also relates to ‘services’.
However, the services provided by different industries are different in content and nature and for the reason cannot be dealt with as a general proposition. For example, the hotel industry is seasonal unlike many others listed above. The hotel industry is characterized by ad hoc management, lack of trade unionism and high labor turnover. (Hoque 1999a 4)The quality of human resources could well be the differentiator that can lend a competitive edge to the industry. The reputation that a hotel earns for its quality of service, is difficult for its competitors to replicate. The core philosophy of human resource management is that employee commitment enhances employe… sen sums up the key objectives for pursuing strategic HRM in the hotel industry as follows: it must focus on both activities generating value for the company and optimizing HRM costs at the same time (value contribution). it must develop, promote and retain human capital to suit the company’s strategic objectives (aligning human capital with strategic objectives). and it must anticipate and support change initiatives with necessary processes, methods, and instruments for a smooth transition (managing change). Hoque cites other researchers like Guest (1987) and Beer et al., (1985) to argue that employees’ commitment makes them more satisfied, productive, adaptable, willing to accept organizational goals and values, and not mind to ‘stretch’ themselves to meet organizational goals.