Business Success in Tourism and Hospitality: Analytical Essay

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1.0 Introduction

Unlike other sectors, Tourism & hospitality is dependent on the direct exchange among workers and clients. Therefore, there has to be a dynamic avenue for building the worker-customer experience (Kusluvan, et al., 2010). Available facts show that T&H is plagued with issues of recruitment, worker turnover being high, and constraints in alluring and holding onto very good employees, which all end up in unfortunate product/service and very little business growth. Bratton and Gold (2012) consider that human resource management (HRM) is able to help a firm to improve their business growth by effective staff management, which should focus on understanding employee needs and aspirations.

Ahmad and Scott (2014) identified that HRM’s dogmatic (hard) method in controlling the workforce, with its attendant inflexibility and mechanistic procedures, has continually bred dissatisfaction among the workforce, and therefore result in constant moving by the staff to other brands. Conversely, Aslam, et al. (2013) stressed that compassionate administrative tactic in managing people will increase assurance on labour force and inspire enthusiasm at work, and, if joined with concentrated coaching scenarios, it can increase know-how and good client handling, which will foster a lasting business success (Armstrong, 2017).

2.0 The Strange Nature of the T&H Industry and the Hard-To-Manage HR

The Tourism&/Hospitality industry is accepted universally as the chief hirer of labour, which obviously transcends to highest revenue generator to the economy. According to Baum, et al. (2016), this trend is expected to increase due to increase in travels, changing customer taste, high demand for comfortable accommodation, increase in holidaying, natural crave for relaxation after hard work, eating and drinking. The irregular landscape of tourism/hospitality is in the magnitude of the area and the fact that the sector unifies cultures/traditions, and as Michael et al. (2011) put it, notwithstanding the global economic predicaments, the sector is still predicted to rise. Because customer contentment and devotion are contingent on service delivery, and for impactful service transfer, the human resources inside the enterprise is indispensable.

Mohan & Arumugam (2016), in their appraisal of the challenges in the HRM of T&H industry, added that the segment has numerous workforce difficulties, which include very low remunerations, skill scarcities, and unfriendly working hours, shift arrangements not family-friendly. According to them, other issues show that women and ethnic minorities are employed in low-paid, low job positions, with well-paid, high position jobs levels occupied by men and selected ethnic groups, and this shows immaturity and unequal opportunities in the programs the industry have. Further complications are undeveloped/absence of career development programs and overreliance on casual seasonal workforce and contract staff, use of unofficial employment procedures, No substantial or good HRM practices, No presence of trade unions, rising levels of employee turnover and inability to recruit and retain workers.

Acknowledging this truth of poor staff welfare practices, Usha (2013) contends that financial advantage was the major element in HRM schemes and set-ups in tourism/hospitality. This can be said to be true of any business, but it is over-emphasized in tourism/hospitality and conveys a specific impact because of the uniqueness of the sector. Unfortunate people administration marks increasing worker resignations, and that is why Burke, et al. (2013) considers that a high percentage of the current labor force in T&H are not pleased with their service environment because ineffective administration of the workforce have a trend in sky-rocketing expenses, and consequently breeds dissatisfaction among workers.

Ahmad, et al. (2010) in their research, have revealed that the T&H sector has only a comparatively few number conventional HRM academies, but other industries have enough for their staff development.

All these underscore the lack of commitment on the side of the employers when it comes to staff well-being and prosperity. Employees are in constant search for advanced packeges, and if a company does not give them enough reason to stay, they will continue to move.

3.0 Methods that Help to Mitigate the Difficult Individualities of the Tourism/Hospitality Industry

3.1 Strategize structural change as a program to promote quality, efficiency, staff motivation, and contentment

In the study by Taylor (2010), endorsements were made by him concerning what schemes are better in tackling the identified constraints of tourism/hospitality, as faced by the HRM. In the work, he worries that structural change, upgrading quality, equity to staff and handling the workers in ways that boost their morale. The book also touched the areas of ensuring that concrete schemes are people-centered and proper control to ensure good implementation in the correct order and measure. He emphasized transparency and meritocracy in the policy of rewards and staff motivations and pinpointed that these two will foster employee engagement, hope and expectations in practical terms.

Develop active training packages

A report by United Nations Economic Commission for Europe (2013) projected the origination of nascent and continual drilling of latest expert knowledge as vital possessions of T&H segment. In this regard, a new development policy and its representative institutions is apt to project the communication of hospitality skills and culture. The new training strategy will:

Arrange training in an integrated scheme;
Position career development on the limelight rather than compulsory and managerial training progressions;
Concentrate training on the real work done in service that highlights hands-on skills to complement theories;
Maintain prevalent priorities;

Formulate Welfare schemes and assess the standards

A liberal worker welfare program is an excellent method to keep workers motivated and attract quality talent. This is in the findings of Tofail & Kaida (2015), and stated that designing welfare packages should be articulated beyond physical prizes like money and nonphysical schemes like mentoring by employers. This in effect will deeply change workers’ attitudes to both business owners and customers. They enumerated the package to bonuses, income allotment, health, accident at work, life assurance, paid holidays, free food, company vehicle, equity sharing, childcare trust, gratuity, sick permissions, additional time-off and end-service/pension plans.

Another piece of literature by Hayley (2016) attempted to reflect on the major attributes of a good benefits package, and made points that support the ones above: utilizing cloud computing and artificial intelligence for knowledge transfer and taking advantage of emerging technologies to create of skills pool where talents can be captured. See summary in theme below: (du Plessis, et al., 2016)

4.0 Strategic Contributions of Human Resource Management to Business Success in Tourism and Hospitality

Juan, et al. (2017) delivered a review of the strategic HRM literature from general management points of view and tourism and hospitality-specific angle. He explained that establishments in T&H business witness a difficult and competitive situation, where HRM handles critical roles in business successes and existence. What makes the industry peculiar is that the merchandises of organizations in the sector are service-oriented, and that means the core competencies are intangible and extremely dependent on human-to-human exchanges between personnel and clients. He stressed that human capitals play a major role in service excellence, client devotion, customer satisfaction and similar other key performance index used to measure company performance (Baum, 2015)

In a notably and exceptionally in-depth investigation, Tracey (2014) exposed five roles of HRM as tactical HRM planning, recruitment, coaching, performance evaluation & reward and welfare. Even though the study by Tracey (2014) did not specifically contain a part on strategic HR management, it does, however, mention that Strategic HRM is the bridge between what human resources does at the operational level (such as hiring, development, benefit and reward) and business success.

Huselid and Becker (2010) explained that over 300 published articles on Strategic HRM that concentrated on the link between a company’s HRM structures and company’s performance point to the substantial influence a diligent human resource have on business success. The two authors conclude that there is company’s performance enhancement when:

staffing and selection methods,
reinforcement schemes; and
coaching and career advancement policies are attuned to the company vision.

Wright and McMahan (2011) explored the current drift of HRM away from the human content of the human resource management, tries to call the attention of industry players to have a reflection and put back the human in the human resource management. He emphasized that the relationship between HRM and organizations is for human assets with inherent know-how, talents and aptitudes at both personal and general company levels. Madera (2013) agrees with these assertions and reiterated that company-specific personnel resources is connected with company performance, attractiveness, and competencies. These researches suggest that HRM functions advance human resources in ways that they rightly stimulate performance outputs and business success.

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Business Success in Tourism and Hospitality: Analytical Essay

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